Focused on copper
Annual Report and Financial Statements 2024
Annual Report and Financial Statements 2024
Corporate Governance
Governance at a glance
UK corporate governance code
compliance statements
100
Chairman’s introduction 102
Senior Independent Director’s
introduction
104
Governance framework 106
Board activities 108
Stakeholder engagement 110
Workforce engagement 112
Board of Directors 114
Executive Committee 119
Committees
Introduction to the committees 122
Nomination and Governance
Committee report
124
Audit and Risk Committee report 128
Sustainability and Stakeholder
Management Committee report
134
Projects Committee report 138
Remuneration
Remuneration and Talent Management
Committee Chair’s introduction
140
Remuneration at a glance 142
Directors’ and CEO’s
remuneration policy
145
Remuneration and Talent Management
Committee report
157
Directors’ report 161
Statement of Directors’
responsibilities
163
Financial Statements
Financial performance
Independent auditors’ report 166
Consolidated income statement 174
Consolidated statement of
comprehensive income
175
Consolidated statement of changes
in equity
175
Consolidated balance sheet 176
Consolidated cash flow statement 177
Notes to the financial statements 178
Parent company financial statements 231
Other Information
Alternative Performance Measures 237
Five-year summary 240
Production statistics 242
Ore reserves and mineral
resources estimates
243
Glossary and definitions 254
Shareholder information 257
Strategic Report
Overview
Investment case 1
At a glance 12
Letter from the Chairman 14
Letter from the Chief Executive Officer 16
Copper market review 18
Business model 20
Our strategic framework 22
Key performance indicators 26
Operating review
Mining Division 28
Transport Division 38
Key costs 40
Operating excellence and innovation 42
Growth pipeline 44
Exploration activities 47
Sustainability review
Introduction to sustainability review 48
Our approach to sustainability 49
Materiality assessment 50
Health and safety 52
People 54
Water 56
Communities 58
Biodiversity 60
Tailings 61
Decarbonisation and climate resilience 62
Non-financial and sustainability
information statement
71
Financial review 72
Risk management 80
Viability statement 96
In this Annual Report, the terms “Company”, “Group”, “we”, “us”, “our” and “ourselves” are used to refer to Antofagasta plc and, unless the context requires otherwise, its subsidiaries.
These terms may be used as collective expressions where general reference is made to the companies in the Group and/or where no useful purpose is served by identifying any particular
company or companies.
Contents
Sustainability Report
antofagasta.co.uk/sr
Climate Action Plan
antofagasta.co.uk/CAP
Sustainability Databook
antofagasta.co.uk/sdb
Social Impact Report
antofagasta.co.uk/sir
Climate Change Report
antofagasta.co.uk/ccr
Our reporting suite
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
We are committed to our purpose
of developing mining for a better future
Through our pipeline of sustainable growth projects, and focus
on continuous improvement in our operations, we aim to be a leader
in the global mining industry, to unlock the full potential of our portfolio.
Positioned for significant long-term value creation
Read more on p.2
Read more on p.4
Read more on p.7
Read more on p.9
Read more on p.11
Read more on how we are delivering on our strategic framework on p.22
Powered by copper
Established producer
Focused on growth
Resilient financial performance
Operating responsibly
Investment case
Antofagasta plc Annual Report 2024 1
Investment case continued
At Antofagasta, we believe in the fundamental value of copper, based on its essential role
in energy security and electrification, as the world accelerates its electricity consumption.
On the supply side, discovery rates for new copper deposits are declining, and barriers
to entry for new mines and brownfield expansions are rising. As a result, existing supply
of primary copper is expected to remain flat in the medium-term and decline long-term.
This diverging supply-demand dynamic positions copper as an attractive pathway for
investing in the key themes of energy security and transition to electrification.
For more information on the copper market, see page 18 of this report
Key driver: Grid spending & clean tech
1
(2023-2030)
+7%
p.a.
estimated growth rate in copper demand from grid
investment and clean energy technologies
Growth in total copper demand
1
(2023-2030)
+2%
p.a.
estimated demand growth rate, with existing global
copper supply forecast to remain flat in the medium-
term (2023-2030)
International Energy Agency (IEA): forecast decline in primary copper supply
Powered by
2040203020232021
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
(historical) (historical) (estimated) (estimated)
Forecast decline in global mine supply
Copper demand-supply (kt)
Demand: IEA stated policies
Supply: IEA base case scenario
1. Source: IEA Report Global Critical Minerals Outlook 2024
COPPER
Total demand Global mine supply (primary copper) Total demand Total mine supply (primary copper)
Antofagasta plc Annual Report 20242
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Image: Close-up of copper ore.
Antofagasta plc Annual Report 2024 3
Investment case continued
producer
ESTABLISHED
At Antofagasta, we are an established producer in Chile, which has been the
world’s largest producer of copper for many years. The successful operation
of such investments is made possible through a supportive business environment.
Through a focus on well-established jurisdictions across the Americas, we are
able to make significant investments and grow our portfolio with confidence.
Read more on our portfolio on page 12
Image: Mining at Los Pelambres
Antofagasta plc Annual Report 20244
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Global copper production by country
(Sources: USGS 2024, S&P Global Inc. as of Feb-25)
Chile
Credit rating: A
Peru
Credit rating:
BBB-
DRC
Credit rating:
B-
China
Credit rating:
A+
USA
Credit rating: AA+
Others
Antofagasta plc Annual Report 2024 5
Investment case continued
Construction underway: Centinela Second Concentrator
+170,000
additional tonnes of annual copper-equivalent production, ramping up from
2027, in addition to by-products (130koz p.a. gold and 3.5kt p.a. molybdenum)
1
Los Pelambres Development Options Project
+15 years
Environmental Impact Assessment (EIA) submitted in December 2024
to extend the mine life of Los Pelambres to 2051
1. Production figures represent the average over an initial 10-year period.
Antofagasta plc Annual Report 20246
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
At Antofagasta, we are delivering growth. In 2024, we began construction at a number
of key projects in our portfolio that will help to deliver material growth in the medium-term,
as well as providing a platform for further growth.
Through a combination of our own cash flows and innovative financing solutions, we can
offer industry-leading levels of growth from our organic pipeline of projects.
Beyond these projects, we have the ability to further grow our portfolio through our
significant resource base and exploration programme.
Read more on our growth pipeline on page 44
GROWTH
Focused on
Image: Centinela
2025 guidance
660-
700kt
copper
Potentially delivering
+
30
%
copper growth
Centinela Second
Concentrator
+144,000 t Cu
(+170,000 t CuEq)
•
Los Pelambres:
Development Options
Project
•
Zaldívar primary
sulphides
•
Cuprochlor-T®
•
Centinela Second
Concentrator (Phase 2)
•
Cachorro (Chile)
•
Encierro (Chile)
Los Pelambres
grade increase
Medium-term ambition Additional pipeline
Antofagasta plc Annual Report 2024 7
Investment case continued
Dividend payout ratio (2024 proposed)
(% figures denote total FY payout ratio)
Final
Interim
2024202320222021202020192018
100% 100% 100%
50%
35%
65%
50%
Antofagasta plc Annual Report 20248
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Through a consistent and conservative approach to our business model and capital allocation
framework, we have maintained a strong balance sheet, which enables us to deliver both growth
investments and shareholder returns throughout the cycle. Through the application of our capital
allocation framework, we have been able to ensure our assets are well-invested, maintaining
our
industry-leading EBITDA margin for pure-play copper mining peers. We have consistently
delivered in line with our dividend policy, being a minimum of 35% of underlying earnings.
Looking forward, we are maintaining this approach in tandem with our organic growth programme.
Read more in the Financial Review on page 72
financial
performance
RESILIENT
Image: Los Pelambres’ desalination plant
Industry-leading EBITDA margin
52%
delivered through our capital allocation framework
(2023: 49%)
Strong balance sheet
0.48
net debt to EBITDA ratio as at 31 December 2024
(0.38 as at 31 December 2023)
Consistent approach to capital allocation
Operating cash flow
Strong balance sheet
Growth capex Excess cash dividend
Sustaining capex & mine development
Committed dividends (35% payout)
Decision factors
Capital outflow
Capital outflow
Financial
position
Macro
perspective
Value
optimisation
Climate
resilience
Creating sustainable value and shareholder returns over the long term
Antofagasta plc Annual Report 2024 9
Responsible water sourcing
58%
of water withdrawals from sea water sources in 2024
Investment case continued
Antofagasta plc Annual Report 202410
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Sustainability is embedded throughout our strategy. We understand the importance
of operating in a safe and sustainable manner, for the benefit of our people, local
communities and other stakeholders. Through developments in areas such as safety,
creating a balanced workforce, decarbonisation and responsible water sourcing, we aim
to build a strong and positive culture that drives improvements across our operations.
We aim to encapsulate this approach in our purpose: developing mining for a better future.
For more information on our purpose, see page 22.
Updated emissions targets announced
50%
reduction in Scope 1 and 2 emissions planned by 2035,
published in Q1 2024
3
Strong safety performance continues
0.57
lost time injury frequency rate remains below
industry benchmarks
2
Community engagement
10
years of our flagship Somos Choapa Programme
celebrated in 2024
We operate
RESPONSIBLY
Read more in our Sustainability Review on pages 48-71
Female representation in our workforce
1
% of employees
1. Female representation within employee workforce, Antofagasta plc
2. Compared to latest industry safety data published by the ICMM
3. Scope 1 and 2 emissions (absolute) on a combined basis, versus baseline year of 2020
Aspiration
(2025)
2024202320222021202020192018
30%
25%
20%
15%
10%
5%
0%
Antofagasta plc Annual Report 2024 11
1. Non-IFRS measure: refer to the Alternative Performance Measures section on page 237.
2. Employees: excludes contractors, as at 31 December 2024.
3. Reflects Antofagasta’s 50% holding in Zaldívar.
4. Group includes 815 employees in our corporate offices (2023: 675).
Please note that numbers in the above table are rounded.
At a glance
We operate four copper mines in Chile, two of which produce significant volumes of molybdenum
and gold as by-products.
In addition to our mining activities, our Transport Division provides rail and road cargo services
in northern Chile predominantly to mining customers, which include some of our own operations.
A portfolio focused on copper
CENTINELA
70% owned
33-year remaining mine life
Produces copper cathodes and copper
concentrates containing gold and silver,
and a separate molybdenum concentrate
223,800 tonnes
2024 (2023: 242,000 tonnes)
$1.60/lb
2024 (2023: $1.63/lb)
2,621
2024 (2023: 2,602)
40,100 tonnes
3
2024 (2023: 40,500 tonnes
3
)
$3.02/lb
2024 (2023: $2.95/lb)
949
2024 (2023: 928)
80,400 tonnes
2024 (2023: 77,800 tonnes)
$2.53/lb
2024 (2023: $2.63/lb)
930
2024 (2023: 949)
ANTUCOYA
70% owned
19-year remaining mine life
Produces copper cathodes
TRANSPORT DIVISION
Cargo transport system in the Antofagasta
Region of Chile
c.900-km rail network
7.1m tonnes
transported
2024 (2023: 7.1m tonnes)
1,273
2024 (2023: 1,387)
GROUP
664,000 tonnes
2024 (2023: 660,600 tonnes)
$1.64/lb
2024 (2023: $1.61/lb)
8,095
4
2024 (2023: 7,753)
LOS PELAMBRES
60% owned
10-year remaining mine life
(EIA submitted to extend mine life to 2051)
Copper concentrate containing gold and silver,
and a separate molybdenum concentrate
319,600 tonnes
2024 (2023: 300,300 tonnes)
$1.27/lb
2024 (2023: $1.14/lb)
1,507
2024 (2023: 1,212)
Copper production Net cash costs
1
Employees
2
ZALDÍVAR
50% owned (and operated)
14-year remaining mine life
(EIA submitted to extend operational permits
that currently expire in 2025 to 2051)
Produces copper cathodes
Antofagasta plc Annual Report 202412
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Transport Division
Transport network
Who we are
We are a mining company focused on the responsible
production of copper through our purpose: developing
mining for a better future.
We operate four copper mines in Chile, with associated
by-products of gold and molybdenum, and we are listed
on the London Stock Exchange.
Our vision
Our vision is to be an international mining company
focused on copper and its by-products, known for
its operating efficiency, creation of sustainable value,
high profitability and as a preferred partner in the
global mining industry.
65%
owned by the Luksic
Group
$21.0 bn
market capitalisation
(31 December 2024)
FTSE 100
35%
free float
Group
Top 10
global copper
producer
Mining Division
664,000 t
copper production
10,700 t
molybdenum
production
Focus on copper
production in the
Americas.
$1.64/lb
net cash costs
186,900 oz
gold production
High-quality assets
with significant
potential for
production growth
Transport Division
7.1 Mt
total tonnage
transported
Provides rail and
road cargo services
in Chile’s Antofagasta
Region
Antucoya
Centinela
Zaldívar
Los Pelambres
Santiago
ARGENTINA
BOLIVIA
Mine
Railway
Road
Antofagasta plc Annual Report 2024 13
Dear shareholders
As energy security and the transition to electrification continue to gather
pace today, we see the opportunity ahead to supply the world with the
copper that it needs to realise its environmental, social and economic
goals. Societies around the world are accelerating their electricity use,
with emerging technologies such as AI, data centres and smart grids,
putting electricity use at the heart of our day-to-day lives. Our business
is to provide the copper needed now and in the future in a responsible
and sustainable way while creating significant shareholder value.
As a copper producer, we help facilitate this change through our pipeline
of growth projects, with our programme at Los Pelambres (in central
Chile) and Centinela (in the north of Chile) set to deliver over 30%
growth in production, all of which we are advancing today. The
medium-term outlook for copper is strong, driven by a combination of
rising global demand and increasing constraints on global supply, with
a lack of investment in existing mines and declining discovery rates for
new deposits. This is having an impact on the balance of the copper
market, with strong supply and demand fundamentals expected ahead.
Our focus remains on safe and sustainable production, with strong
financial performance enabling a balance of growth and shareholder
returns. Through profitable production, and robust market conditions,
we saw a 5% increase in revenue and an 11% increase in EBITDA
1
in 2024. Applying our capital allocation framework, the Board of
Directors (Board) has recommended a final dividend for 2024 of
23.5 US cents per share that, if approved at the Company’s AGM, will
take total dividends for the year to the equivalent of 50% of net earnings.
At Antofagasta, we recognise our role in society: supplying copper
the world needs, engaging with local communities where we operate,
creating jobs, skills and livelihoods, generating revenue for our host
nations, and being a responsible steward of the environment.
By fostering a positive culture and maintaining safe working
environments, we have successfully operated our business model
which led to record safety performance at our operations in 2024.
This is all underpinned by our five strategic pillars that are at the core
of everything we do: safety and sustainability, people and culture,
competitiveness, innovation and growth.
Workforce safety
Health and safety remains at the forefront of our approach, which is
critical for the success of responsible mining. We were pleased to
once again have delivered a fatality-free year, as well as a record low
injury frequency rate, an achievement that required continuous effort
and oversight to ensure best practices throughout our operations.
Highlights included the implementation of a new operational excellence
management system, with our Mining and Transport Divisions
delivering sequentially lower injury frequency rates in 2024 and
Letter from the Chairman
Positioned for
significant long-term
value creation
Zaldívar completing the year without a single high-potential incident,
which is a key leading indicator of safety.
Operational resilience
We produced 664,000 tonnes of copper in 2024, maintaining our
position as one of the world’s largest pure-play copper producers.
Furthermore, we maintained our costs in 2024 at a time of significant
inflation across the global mining industry.
During the year, we ramped up to design capacity the first phase of
the desalination plant and sea water transport system at Los
Pelambres, while also successfully bringing the newly commissioned
fourth SAG milling line into operation. At Centinela Concentrates, we
encountered lower copper grades, and therefore while the
concentrator plant performed well, copper production was reduced
compared to the prior year. At the same time, Centinela Cathodes
reported a very strong year as a result of higher grades, with
Antucoya registering a record level of production.
At Zaldívar, we face a different challenge. With operational permits due
to expire in May 2025, we are working with the authorities to extend
these permits and to realise the full potential of Zaldívar’s 1 billion
tonne resource by extending its mine life to 2051. We have a plan in
place to maintain our workforce and continue generating value to
support local communities, and we are working constructively with the
authorities to resolve this matter.
Strategic growth
We are at a pivotal stage in the delivery of our growth strategy,
executing on several brownfield transformational projects that will
position us well for the future. We are in an enviable position as our
growth projects are within our existing sites which means that they
can add value with reduced risk, cost and time to delivery. Our focus
with growth is to add stakeholder value, through investing in the right
projects, at the right time, which we feel is now given the copper
market’s tightening fundamentals. Initial construction work on our
projects started well in 2024, with our major projects developing on
schedule and on budget.
At Los Pelambres, in March 2024, we hosted a high-level delegation of
Chilean government representatives to inaugurate our new desalination
plant, part of the Phase 1 Expansion Project. Through an investment of
more than $2 billion in this expansion, we are already benefitting from
increased ore processing capacity and water availability, which helped
underpin the robust financial performance at Los Pelambres in 2024.
Construction is already underway on the next phase, to further expand
desalination capacity and a new concentrate pipeline, and we are
pleased to report that this work is continuing in line with expectations.
Further to the north, Centinela has now begun full construction of the
Second Concentrator Project, which will add 170,000 copper-equivalent
tonnes of production from 2027.
1
This is one of the largest copper
projects in construction in the world today and will also supplement
1. Non-IFRS measure, refer to the alternative performance measures section on page 237.
Antofagasta plc Annual Report 202414
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Centinela’s competitiveness through a greater focus on by-products and
modern technologies, helping us to make the most of our significant
resource potential. Undertaking significant investments such as these
requires a strong balance sheet and an innovative approach to financing,
which are key components of our business model as we look to deliver
industry-leading levels of growth in the copper sector.
Beyond Chile, we consolidated our investment in Compañía de Minas
Buenaventura S.A.A. during 2024, and we continue to advance our
own exploration presence in Peru, deploying our decades-long
experience and understanding of copper in this jurisdiction. In the
United States, we remain committed to Twin Metals Minnesota as part
of our long-term growth pipeline, with litigation underway to challenge
several actions taken in 2021 by the US federal government that have
deterred its development into one of America’s top mines for a range
of critical minerals.
Sustainability in our purpose
Sustainability remains a key priority for us. We have long-life mines, with
mineral resources that have the potential to support mining for many
decades. Our responsible operating and business practices to support
positive relationships with our stakeholders and the environment have
been in place for many years but we are always striving for
improvement that benefits all. Effective engagement with our workforce,
local communities, local authorities and financial investors enables us to
operate our business model and generate stakeholder value. In 2024,
we celebrated the tenth anniversary of Somos Choapa, our flagship
programme for engaging with communities close to Los Pelambres.
During this time, we have delivered over 150 projects in clean water
supply, education and health, working together with our communities.
Where it is practical to do so, we have set targets in areas of
sustainability, such as responsible water sourcing, emissions reduction,
engagement with local businesses, and building and developing an
inclusive workforce, and these are a demonstration of our commitment
to the path ahead. In 2024, we updated our emissions reduction targets
and published our Climate Action Plan, which jointly serve to outline our
expected decarbonisation journey.
Through our sustainability efforts, we have received external recognition
for all our mines in the form of accreditation by the Copper Mark. In
November, Centinela and Zaldívar were confirmed as being the first
copper mines in the world to re-certify under the Copper Mark’s new,
expanded set of 33 criteria, covering environmental, social and
governance-related factors.
Innovation
The global copper industry is facing further technical, social and
economic challenges that put constraints on increasing supply, at
a time when the world requires record levels of copper to fuel
economic development and decarbonisation. As a result, innovation
is central to successful copper mining. We have over 40 years of
experience in producing copper, and innovation is an intrinsic aspect
of our business. We are developing new technologies, such as our
own Cuprochlor-T® for primary sulphide leaching, which means we
expect to be able to produce copper from material that was previously
uneconomic. We are also fast followers of new developments, utilising
existing technologies to utilise raw sea water in processing, deploying
automation so our workers can operate remotely, and using advanced
analytics such as AI to increase production and cut costs. We have
developed a culture throughout our organisation to encourage
innovation and identify new opportunities.
Governance
We continued to refresh the composition of our Board and Committees
in 2024, as the Company enters its next phase of investment and
growth. The current composition of our Board reflects a diverse balance
of Chilean and international experience across a wide range of skills and
backgrounds, including finance, technical mining, sustainability and
Shareholder returns
50%
proposed payout ratio of underlying net earnings in respect
of 2024 (2023: 50%).
2
Investing in growth
+30%
growth in production anticipated in the medium term, delivered
in part through new projects commenced in 2024.
exploration, which puts us in a strong position to oversee the successful
future development of our business. In March 2025, Vivianne Blanlot
resigned from the Board with effect from 31 March 2025, having served
as a Director for 11 years. I would like to thank Vivianne for her
contribution to the Board, including her distinguished leadership of the
Sustainability and Stakeholder Management Committee.
Outlook
Macroeconomic conditions are continually evolving, with 2025 bringing
a presidential election in Chile and a new presidential term in the
United States. Chile has now settled several recent deliberations
relating to the Constitution and mining royalty, and our expectation
is that the country’s political system will now be empowered to focus
on core concerns related to promoting economic growth, attracting
investment and delivering improvements in public security, which have
become a major challenge and a very apparent priority for the
population. Recent years have been characterised by a global
reshaping of supply chains and the emergence of potential capacity
constraints for critical materials. At the same time, the recent
resurgence in Chile of inflation and lower economic growth has led to
a tighter fiscal balance. The opportunity now exists to pursue policies
that are more decisively orientated towards growth, to benefit both
living standards and the business environment in Chile, which will
ultimately provide for a more permanent and sustainable fiscal income.
We are, however, cognisant of the near-term risks and uncertainty
related to the current global economic environment and evolving
geopolitical landscape. In this environment, our focus remains on
managing our cost base and successful project execution, which will
be critical to maintaining our competitiveness and creating value for all
our stakeholders for decades to come. Our organic brownfield growth
portfolio and strong balance sheet gives us the opportunity to deliver
value-accretive growth at the right time, given the continuing build-up
of supply-side capacity constraints in global copper markets. Through
a
resolute focus on project delivery, in parallel to our core strategic
values, we are positioned strongly for the future.
Our success is predicated on the support of all our stakeholders, and
I would like to thank every one of our partners, customers, suppliers,
investors, governments and communities who supported us in 2024.
Above all, I want to thank our colleagues across our operations who
are safely and responsibly helping us deliver on our purpose of
developing mining for a better future.
JEAN-PAUL LUKSIC
Chairman
1. Average over an initial 10-year period.
2. Shareholder returns shown represent the combination of the interim dividend of
7.9 cents (announced in August 2024) and proposed final dividend of 23.5 cents.
Antofagasta plc Annual Report 2024 15
Letter from the Chief Executive Officer
Strong financial
performance
powering growth
Dear shareholders
The past year was one of strong financial performance, operational
resilience, and the start of key growth projects. Once completed, these
projects will deliver growth, increase competitiveness and position
us as leaders in supplying critical metals for energy security and the
global transition to electrification. We generated $7.65 billion of value
for our stakeholders in 2024, including salaries to employees,
payments to suppliers and local communities, and our pipeline of
projects is set to deliver material production growth.
We finished the year with a year-on-year increase in copper
production, with strong performance in respect of our cash costs and
positive first steps in the construction of several significant projects.
Our financial performance remains robust; revenues increased by 5%,
cash flow from operations increased by 8% to $3.3 billion and our
EBITDA margin widened by 300 basis points to 52%, which is towards
the top end of our copper-focused industry peers. This performance
has enabled the Board to propose shareholder returns that are aligned
to our policy, while simultaneously advancing over $7 billion of growth
and development projects.
The past year saw another positive result in safety, with a fatality-free
year and a lost time injury frequency rate of 0.57 – a level below both
our industry peers and historic levels for the Group, and I would like
to thank everyone across our portfolio for this achievement. We are
particularly pleased by our recent safety performance given the
number of large-scale construction projects recently commenced,
with these projects completing the year with lost time injury frequency
rates below the average for the Group, despite a combined total of
more than 10,000 contractors now mobilised across our major
construction sites. Furthermore, Zaldívar completed 2024 without
a single high-potential incident, and our Transport Division continues
to make good progress, with a 50% decrease in its lost-time injury
frequency rate in the past year.
An engaged workforce is critical for achieving these results, and we
are proud to offer people the opportunity to grow and develop their
careers with us, and we provided 33% more hours of workforce
training per employee in 2024 compared to 2023.
Strong delivery across the portfolio
At Los Pelambres, the successful delivery of the Phase 1 Expansion
Project facilitated a 22% increase in ore processing in 2024,
compensating for lower copper grades, which are expected to revert
to higher levels in the near term and in line with the recent past, as
mining operations move to new areas currently under development.
Los Pelambres successfully completed by year end the drawdown
of the stockpile that accumulated in Q1 2024, which followed the
extended maintenance undertaken at the concentrate pipeline.
At Centinela Concentrates, copper production was lower compared
to the prior year because of lower copper grades and elevated levels
of clay and fines in ores processed during 2024, and our operational
management teams successfully developed plans which responded
well to these conditions. As a result, we saw a quarter-on-quarter
sequential increase in production delivered during the year, alongside
a record level of production at Centinela Cathodes.
Antucoya had a record year of copper production and plant
performance, delivering very high levels of reliability. At Zaldívar,
copper production was largely in line with the prior year, with lower
grades being compensated by a 20% increase in ore processing.
We are consistently striving to increase our resilience, and central
to this effort is our Competitiveness Programme. Over more than ten
years, this programme and its predecessors have achieved savings
and productivity improvements of more than $1 billion, which is a
credit to all those involved. It was also a major factor in us achieving
our cash cost results for 2024, broadly in line with the prior year,
despite industry-wide cost inflation and lower grades at our
concentrators. As we progress through 2025, we expect to see an
incremental increase in our full year production and lower cash costs.
Investing for the future
Our strong financial performance and balance sheet give us confidence to
invest for the future. Once delivered, these investments will provide growth,
extend mine lives, and increase resilience through a greater focus on
copper concentrates and their associated by-products.
Los Pelambres: future growth
In respect of recently completed projects, I was pleased to see the
Phase 1 Expansion at Los Pelambres operating well following a
successful ramp-up. This project is enabling us to once again operate
consistently at our full potential, with greater water availability from our
desalination plant and expanded processing capacity.
At Los Pelambres today, construction is underway on two projects that
will provide a platform to enable future growth. The expansion of the
recently completed desalination plant to 800 litres per second will
provide further operational resilience, as well as benefits through
reduced continental water sourcing, with water scarcity a fundamental
aspect due to continuing drought conditions in central Chile. Separately,
but also at Los Pelambres, work is underway to complete construction
of a new concentrate pipeline along a new route that shares
infrastructure built during the Phase 1 Expansion and which is at
a greater distance from populated areas.
Construction of both projects is progressing well, and both are on
schedule and on budget. Work at the end of the year was focused on
trench excavation work, welding of pipe sections and commencement
of construction at the desalination plant following the mobilisation of
people to site.
Looking beyond today’s phase of projects, in Q4 2024 we submitted our
Environmental Impact Assessment for the Los Pelambres Development
Options Project, which is critical to extending the mine life by a further
Antofagasta plc Annual Report 202416
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
15 years after 2035. If approved, this will provide for the long-term
continuation of Pelambres and bring into production a significant amount
of existing mineral resources which would otherwise remain
unexploited. The project contemplates an increase in the capacity of the
tailings storage facility, and the option for additional ore processing and
desalination plant capacity. If approved, construction work is expected to
commence in the early 2030s.
Centinela: expansion underway
Key projects commenced in 2024 include the Centinela Second
Concentrator Project, which represents a major investment of
approximately $4 billion during 2024-2027, and will double the Centinela
District’s concentrate output through the addition of 170,000 copper-
equivalent tonnes. This represents a major investment in Chile’s economy
at a time when few other mining projects are being developed, and it is
a significant step towards reaching our medium-term growth ambition.
We have made a strong start to this project in 2024, with work
proceeding on time and on budget. Work to date has focused on the
camp facilities, ore delivery system, concentrator and tailings facility.
Foundation works and the installation of concrete at the site of the
primary crusher have commenced, in addition to continued work to pour
concrete and earthworks at the planned concentrator and tailings facility.
Key equipment continues to be shipped to Chile on schedule.
Zaldívar: implementing innovation
We aim to maximise Zaldívar’s potential by leveraging innovations like
Cuprochlor-T®, which is our patented technology for the leaching of
primary sulphides, as well as a transition away from continental water
sourcing. Work has continued with all stakeholders, including national
and regional authorities, workers and the community, on this
operation’s Environmental Impact Assessment, which is being
reviewed by the relevant environmental Chilean authorities. We are
continuing this process having now responded to the three expected
rounds of enquiries from the government.
Innovation in financing
Our financing strategy aims to enable our pipeline of growth and
development projects, while also protecting our balance sheet strength
and facilitating our sustainable approach to capital allocation.
In March 2024, we announced an innovative financing package for the
Centinela Second Concentrator Project. This $2.5 billion facility, with
a 4-year drawdown period within a 12-year term, is structured to help
safeguard our approach to our capital allocation model during construction.
Separately, an agreement was completed in June 2024 for the legal
transfer of existing water infrastructure at Centinela, and the planned
expansion of water assets, helping to lower the capital intensity of this
project at a time of cost inflation across the mining industry.
Furthermore, we agreed pricing for our third corporate bond in April
2024, with $750 million issued, which represents a continuation of this
process following our inaugural bond issuance in 2020. In early 2025,
as part of a financing associated with Los Pelambres’ water
infrastructure, the Group finalised a $2 billion facility with favourable
financing terms including banks and a private placement bond with
a 20-year term, reflecting the long-term nature of this operation.
Sustainability embedded within our culture
We remain well-positioned with respect to addressing our emissions
footprint, while also enhancing our competitiveness. Efforts in 2024
helped to outline the next phase of work, which includes the testing
and phased adoption of new technologies throughout our business.
Decarbonisation, which enhances our cost-competitiveness, is an
important area for us to demonstrate innovation and a determination
to deliver critical metals for electrification in a sustainable manner.
We understand the importance of addressing changing environmental
conditions, the effects of which are being acutely felt in Chile, notably
through changing water availability. As such, we continue to develop
our decarbonisation and competitiveness pathway as we continue our
progress towards carbon neutrality by 2050. In early 2024, we
published our Climate Action Plan, announcing updated emissions
targets founded on specific action plans, with a targeted 50%
reduction in Scope 1 and 2 emissions and our first Scope 3 emissions
target. We expect that through achieving these targets, we will
enhance our competitiveness on costs, through extending the use
of locally sourced low-cost renewable energy.
Initiatives in 2024 included the delivery of equipment for a trial of
trolley-assist technology at Los Pelambres, and our continued efforts
at Centinela to implement automation in mining fleets, with both
projects expected to help reduce diesel consumption. Our Transport
Division (FCAB) also took delivery of a hydrogen-powered locomotive,
a first for South America, which is part of our strategy to evaluate
alternative fuels. Our efforts to reduce Scope 3 emissions are centred
on helping our suppliers of goods and services to reduce their
emissions footprints as well as enhance competitiveness through
improving their overall sustainability practices, through our Suppliers
for a Better Future Programme.
Elsewhere in sustainability, a highlight remains our continued high
levels of sea water use at a number of our operations, representing
58% of the Group’s total withdrawals in 2024, which reflects our
recent investment in desalinated water at Los Pelambres. In terms of
building and developing a balanced workforce, we reached a level of
26.6% female participation as at the end of 2024, with an aspiration
of achieving 30% by the end of 2025. We remain committed to our
work with industry-leading organisations such as the International
Council on Mining and Metals, the Copper Mark, the Global Industry
Standard on Tailings Management and other third parties to help
develop and implement industry best practice.
Looking ahead: growth and value
Our ambition is to increase our production by delivering on our
transformational projects for industry-leading levels of growth in copper
production. Through this, we will also add resilience to our business for
decades to come through a greater focus on concentrates and associated
by-products. In 2024, we made significant progress along that path with
a disciplined and experienced team set to deliver this growth.
We believe that copper markets are facing a structural shortage due to
supply-side constraints, coupled with rising demand from global economic
growth, electrification, the rise in the digital economy, and energy security.
We are pursuing growth ahead of others, and we have positioned ourselves
as a responsible producer of copper. As we navigate a rapidly changing
world, we remain focused on our long-term vision: to be a leading copper
producer with a focus on responsible production and creating value for all
our stakeholders. Thank you for your continued support.
IVÁN ARRIAGADA
Chief Executive Officer
Revenue driven by robust demand
+5%
increase in revenue to $6.6 billion in 2024, reflecting robust
demand for copper and by-products.
EBITDA margin increases
52%
EBITDA margin widened by 300 basis points in 2024,
demonstrating the Group’s high-quality portfolio.
Antofagasta plc Annual Report 2024 17
Review of 2024
1
The full-year copper price rose by 8% to $4.15/lb in 2024, reflecting
increasing supply-side restrictions and a gradual broadening of
copper demand from a range of sectors. Copper markets briefly
reached an all-time high in copper pricing in May 2024, driven by
a tight supply of physical copper and financial market participants
seeking to buy physical copper to cover short positions.
2
Key themes: energy security and transition to electrification
Copper is an essential aspect of electricity consumption, given its
high electrical conductivity, malleability and resistance to corrosion.
Rising demand for copper is being driven by society’s long-term pivot
to increasing electricity use (particularly renewable energy), energy
security and increasing efficiency in energy use. These themes are
evident in the following areas:
1. Electricity generation, with increased copper use driven by both
rising levels of power generation globally and an increasing reliance
on renewable power, which is estimated to utilise more than six
times more copper per megawatt than traditional forms of power
generation.
3
2. Electricity transmission, with copper critical in equipment such
as transformers and substations. Levels of grid spending are a key
indicator of activity in this sector.
3. Electricity end use, with copper-intensive sectors, such as
battery electric vehicles, demonstrating increasing adoption rates.
4. Electricity storage, which is an emerging area for copper
demand, as economies aim to utilise renewable energy on
a 24/7 basis.
Outlook: global copper demand
Chinese copper demand
China remains the key market for refined copper, representing
approximately 55-60% of total global demand, with the Chinese
government announcing a series of actions in late 2024 to support
its economy and maintain levels of growth.
4,5
Historically, copper consumption in China has been dominated by
the construction sector, which is estimated to represent around 30%
of demand within China.
6
The Chinese government continues to
introduce measures to mitigate the effects of a slowing construction
sector, following a period of oversupply in the housing market.
A series of stimulus measures were announced in September,
October and December 2024, including policies designed to release
liquidity, lower mortgage rates and use fiscal measures to alleviate
debt-related pressures on local government.
5
It is expected that this
step-wise approach will continue as the Chinese government
manages down the risks related to its construction sector, and any
potential rising risks related to tariffs imposed by trading partners.
The following review aims to summarise recent key drivers in the copper market.
2024 represented a year of continued stability, relative to other critical minerals, underpinned
by limited supply growth and copper’s essential role in energy security and electrification.
Despite headwinds facing the Chinese construction sector, copper
markets have remained resilient in recent years. This implies rising
demand from other growth sectors related to energy security and
electrification, which is helping to balance overall demand, with growth
in the following areas within China in 2024:
•
Renewables: As of mid-2024, renewable power provided more
than half of total electricity generation capacity in China, with
substantial year-on-year increases of 45% and 18% in installed
solar and wind capacity respectively.
7
•
Grid spending: China’s National Energy Administration confirmed
a 15% increase in grid spending in 2024.
7
•
Battery-electric vehicles (BEVs): There was a 37% increase
in BEV sales in China during 2024, rising to 11 million units (out of
a global total of 17 million), placing China as the largest market
globally.
8
Global copper demand (ex-China)
Beyond China, North America and Europe represent approximately
15% and 10% of global copper demand respectively.
9
Future growth
in demand in these regions is likely to be spurred by policies designed
to onshore manufacturing (in the case of the US) and the phased
unveiling of the EU’s Carbon Border Adjustment Mechanism, which
began in late 2023.
10
More broadly, the themes of energy security
and electrification also apply from a global perspective.
Examples of global indicators include the following:
•
Global electricity generation, with the global growth rate
experiencing a ‘sharp acceleration’ to 4.3% in 2024 (from 2.5%
in 2023), with this elevated level expected to continue until 2027.
This represents the equivalent of Japan’s electricity consumption
being added to the world’s grid every year. The same report
forecasts a 95% increase in global renewable power supply
by 2030 (versus 2023), with renewables and nuclear set to meet
all of the world’s new demand in the next three years.
11
•
Grid-scale batteries: US grid-scale battery capacity increased
by 66% in 2024, with further material growth expected in 2025.
12
Outlook: global copper supply
The production of copper presents varying challenges depending
on the maturity of a producing mine.
Existing supply: grade decline and ore hardness
Grade decline and ore hardness are common technical constraints
that affect primary copper production as mining progresses to deeper
sections of a copper deposit. Rising ore hardness results in increasing
energy requirements to maintain existing production levels, with
investments in greater processing capacity required as a result.
In tandem, lower grades at depth are a second factor also requiring
companies to increase processing capacity, and this trend of declining
copper grades is expected to affect a significant proportion of global
copper mines in the next decade.
13
Copper market review
Copper market review
Image: Copper mineralisation.
Antofagasta plc Annual Report 202418
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
New mines: increasing barriers to entry
Whilst technologies for recovering copper have improved in recent
years, enabling the economic processing of increasingly lower grades,
this requires greater processing capacity for mines to become
economically feasible through scale.
The drawback is that increasing scale comes at an increasing up-front
cost. The capital intensity for a new mine in 2000 was between
$4,000-5,000 per tonne of copper production,
14
which increased to an
average of $16,000 per tonne for mines approved between 2015 and
2023.
15
More recent estimates for capital expenditure costs suggest
that the capital intensity for brownfield and greenfield projects is now
between $20,000 and $30,000 per tonne, based on recent industry
announcements.
16
In addition, discoveries of new, large-scale copper deposits are
becoming increasingly rare. An analysis by S&P Global Commodity
Insights, which publishes an annual review of major copper discoveries,
shows that 2023 was the second successive year with no major
discoveries. This compares to an average of 2.7 discoveries a year
in the decade up to 2020 and 8.7 a year in the decade up to 2010.
17
With existing supply declining without major investment, increasing
barriers to entry for development-stage projects and no new
discoveries in recent years, global copper supply is set to be
increasingly sourced from existing copper mines and established
jurisdictions. To illustrate this point, the International Energy Agency
(IEA) estimates that the market share of the top three mining countries
will increase from 47% in 2023 to 54% by 2040.
18
Existing supply: increasing disruption rates
The global mining industry is facing increasing levels of regulation and
scrutiny as rising demand and depletion of resources mean that mining
now takes place in closer proximity to population centres. This, in turn,
contributes to higher disruption risks and increased delays to project
development timelines. Wood Mackenzie estimates that the global
disruption rate was 5.1% in 2024, but 6% has been assumed for future
years given an expectation of rising levels of disruption.
19
With increasing
reliance on existing major mines (see commentary above), disruption
rates could increase further given this shift in market concentration.
Outlook: market balance
Rising copper demand and an increasingly constrained global
supply-side are expected to provide long-term support for the copper
market, with expectations of a market deficit in future years. Wood
Mackenzie estimates that an additional 790 kt per annum of new
supply is required to fill this deficit, with a 5.5 Mt deficit forecast for
2034. For context, projects with an estimated combined total of 460 kt
of projects were sanctioned in 2024.
19
In the event of a market deficit, then demand destruction (through
substitution and miniaturisation) would be a consideration, but it should
be noted that substitution only represented an estimated 1.3% of total
copper demand in a recent survey.
20
Secondary copper supply, which is copper recovered from the
recycling of scrap materials, currently represents 15-20% of total
supply and the IEA expects that this supply will grow by a further
1.4 million tonnes by 2030. However, the same report models
overall demand to grow by 5.2 million tonnes, and therefore secondary
copper is expected to represent the same proportion of the global
market as it does today.
18
Finally, visible global inventories fell towards the end of 2024, which
would potentially reduce the ability of global copper markets to absorb
the impact of any deficit going into the coming period.
21
Gold price $/oz
Average gold market price (2024)
$2,387/oz Representing a level 23% above 2023
3,000
1,500
1-Jan
30-Jun
31-Dec
25
15
1-Jan 30-Jun 31-Dec
Molybdenum price $/lb
Average molybdenum market price (2024)
$21.3/lb Representing a level 12% below 2023
1-Jan 30-Jun 31-Dec
5
3
Copper price $/lb
Average copper market price (2024)
$4.15/lb Representing a level 8% above 2023
Consensus estimates
Based on more than 20 contributing banks, the consensus estimates
(as of January 2025) for copper pricing in 2025 and 2026 were
$4.25/lb and $4.50/lb respectively. For context, the spot price for
copper was $3.95/lb as of 31 December 2024.
By-products: gold market summary
Gold prices rose throughout 2024, beginning the year at $2,078/oz
and finishing the year at $2,609/oz. This trend was driven by interest
rate cuts by central banks, particularly the US Federal Reserve,
perceptions around elevated market risks related to (a) the ongoing
conflict in the Middle East and (b) broader recession risks as
governments attempt to reduce inflationary pressures, geopolitical
tensions, and elevated central bank demand.
By-products: molybdenum market summary
Market prices for molybdenum remained stable in 2024, averaging
$21.30/lb for the year. The primary use of molybdenum is in the
manufacturing of steel and other alloys, with molybdenum improving
qualities such as strength, hardness and resistance to corrosion.
The continuing growth of the global steel industry has provided
consistent demand, and limited supply disruption in 2024 resulted
in broadly stable prices throughout the year.
Footnotes on page 258
Antofagasta plc Annual Report 2024 19
Delivering value for our
stakeholders through the
mining lifecycle
Business model
We believe in developing mining for a better future. As custodians of natural resources, we have
a responsibility not only to manage these resources efficiently and responsibly, but also to harness
copper’s potential to contribute to the development of a greener and more sustainable world.
Exploration and acquisition
We undertake exploration activities
in Chile and abroad, with a particular
focus on the Americas.
WHAT WE DO WHAT WE NEED
Evaluation
We integrate sustainability criteria into
the design process and evaluation phase
of every project, developing innovative
solutions for challenges such as water
availability, long-term energy supply
and community relations.
Construction
This stage requires significant input of capital
and resources, as well as effective project
management and cost control to maximise
a project’s return on investment.
Extraction and processing
Health and safety, operating efficiency
and innovation are all key elements
of how we run our operations.
Sales and marketing
We build long-term relationships with
the smelters and fabricators who
purchase our products, with
approximately 75% of output
by value going to Asian markets.
Mine closure and rehabilitation
At the end of a mine’s life, it must be
closed and remediated according to the
international standards and national
regulations in place at the time.
Long-term relationships
Our people
We have over 29,000 employees,
permanent contractors and temporary
contractors related to projects. Constructive
relationships, anchored in mutual respect
and transparency, are crucial for a good
working environment and talent retention,
as well as for productivity and efficiency.
Communities
The wellbeing of our neighbours is directly
related to the sustainable development and
success of our business.
Suppliers
We work with over 4,000 suppliers, who
provide a broad range of products and
services, from large mining equipment
to catering and transport. They are vital
to our ability to operate continuously, safely
and efficiently.
Customers
Most sales are made under long-term
framework agreements or annual
contracts, with sales volumes agreed
for the following year.
Financial investors
We maintain fluent and transparent dialogue
with our shareholders and bondholders
to ensure that they are treated fairly and
receive all relevant information.
Governments and regulators
We work alongside mining associations
and other industry-related bodies to engage
with governments on public policy, laws,
regulations and procedures that may affect
our business.
For more information on our approach
to sustainability see P48-71 and 110
Antofagasta plc Annual Report 202420
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
WHAT WE GENERATED (2024)
Copper
664,000 t
2023: 660,600 t
Gold
186,900 oz
2023: 209,100 oz
Molybdenum
10,700 t
2023: 11,000 t
Silver
2.8 million oz
2023: 3.1 million oz
For more information on our
operations see P28
CO
2
e emissions intensity
1.75 tCO
2
e/tCu
emissions per tonne of copper produced,
representing a 3% increase year on year
(2023: 1.69 tCO
2
e/tCu).
Water withdrawals
58%
of water withdrawals were from sea water
in 2024, in line year-on-year following
construction of Los Pelambres’ recently
completed desalination plant (2023: 60%).
For more information on our environmental
footprint, see P56 and P62
Total economic contribution
$7,580m
We generate economic value for all our
stakeholders, distributed as wages to
employees, purchases of goods and services
from suppliers, community social investment
programmes, taxes to governments, dividends
to shareholders and interest payments to
lenders (2023: $7,249 million).
For more information on our total economic
contribution, see P48
Resources Our products Our footprint
Our outcomes
World-class assets
We have a portfolio of operations in two
main mining districts. We are investing
in technology to improve productivity
and drive sustainable growth across
our operations.
Inputs
Our mining operations depend on
a range of key inputs, such as energy,
water, labour, sulphuric acid and fuel.
Financial resources
We have a strong balance sheet,
an undrawn credit facility and access
to other sources of capital.
For more information on our portfolio
and financial review see P12 and
P72-79 respectively
Responsible mining
We believe it is possible to mine
sustainably by prioritising environmental
protection and the efficient use of natural
resources.
S.172(1) Statement
Antofagasta’s purpose is developing mining for a better future – to achieve this and continue to deliver sustainably, we rely on the support
of a range of different stakeholders. This means that we understand the importance of putting the safety of our people first, as we seek
to deliver value to our customers, suppliers, shareholders and the communities in which we operate.
The Directors of Antofagasta plc have acted in accordance with their duties to operate in the way that they consider, in good faith, is most likely
to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
a. The likely consequences of any decision in the long term;
b. The interests of the Company’s employees;
c. The need to foster the Company’s business relationships
with suppliers, customers and others;
d. The impact of the Company’s operations on the community
and the environment;
e. The desirability of the Company maintaining a reputation
for high standards of business conduct; and
f. The need to act fairly as between members (including all
stakeholders) of the Company.
In the Strategic Report, we outline how these decisions have been applied. In the Corporate Governance Report (pages 98-163),
we discuss the key decisions that the Board has taken during the year, and how the matters set out in Section 172(1) of the Companies
Act 2006 were relevant to these decisions.
Antofagasta plc Annual Report 2024 21
In order to deliver a better future, we need a robust strategy. Our five strategic pillars are the
key areas we focus on as a business, and these will drive us onwards to achieve our purpose.
Our vision is to be an international mining company, focused on copper and its by-products,
which is also known for its operating efficiency, creation of sustainable value, high profitability
and position as a preferred partner in the global mining industry.
How we deliver our purpose
Our strategic framework
Developing
mining for a
better future
OUR PURPOSE
Planet
Our vision of a better future reflects the quest for a more
sustainable planet, with copper playing a central role in global
energy security, electrification, economic progress and
improved livelihoods around the world.
Society
Our vision of a better future is one that is developed together
with local communities, aiming for a society that recognises
the economic and social value generated by mining.
Organisation
To tackle the challenges that we face in our daily operations
and growth, we need a robust organisation that consistently
meets these challenges and is grounded in clear and
unshakeable values and principles.
Our vision of a better future therefore encompasses our
ethical organisational behaviour and continuous pursuit
of a sustainable culture of trust, inclusivity, collaboration, agility
and willingness to embrace change and continuous learning.
People
Our success relies on having the best people at the heart
of everything we do. Our vision of a better future would
be incomplete without the shared values of our workforce:
a diverse and inclusive group of individuals open to learning
and to enjoying personal and professional growth,
who strive for excellence in their results.
WHY WE WANT TO ACHIEVE OUR
PURPOSE
Antofagasta plc Annual Report 202422
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Respect for others
We respect our people and care about their opinions, which is why
we engage in an open, transparent and collaborative way. We trust
them and have a genuine interest in their wellbeing.
Responsibility for health and safety
We are responsible for our own health and safety, as well as for
that of others. We identify and control our risks, and we are aware
of the impacts of our actions.
Committed to sustainability
We operate responsibly and efficiently, with a long-term vision.
We maximise the economic value of our assets, contribute
to social development and minimise our environmental impacts.
Excellence in our performance
We continually seek to achieve the best possible results through
operational discipline. We look after our resources, and we build
trust by fulfilling our commitments.
Innovation as a permanent practice
We recognise and promote new ideas that improve our work
practices and the way we relate to others. We aim to create
value for the organisation, stakeholders and the environment.
Forward-thinking
Our business strategy aims to generate value with a long-term vision
for shareholders and other stakeholders. We learn from our mistakes
and have the flexibility and courage to face new challenges.
Safety and
sustainability
to enhance our current
operations, while aiming
to future-proof our
business model
Competitiveness
to achieve excellence
and create long-term
value
People
and culture
to cultivate the talent
necessary for a better
future
Growth
to keep contributing
to the development
of a better future
Innovation
to constantly push back
boundaries and explore
new ways of advancing
Through our five strategic pillars
Underpinned by our values
HOW WE WILL ACHIEVE THIS
For more information on our strategic pillars see P24
Antofagasta plc Annual Report 2024 23
People and culture
Investing in people and fostering
a positive culture to cultivate the
talent necessary for a better future.
Competitiveness
Our competitiveness is key to us
achieving excellence and creating
long-term value.
Safety and sustainability
Emphasising safety and
sustainability to enhance our current
operations, and look to the future.
Our strategic pillars
Our strategy is built around five pillars, each of which has defined long-term objectives
with short- and medium-term goals.
Description
We aim to create value and growth
throughout the mining lifecycle, from
exploration to mine closure. Our goal
is to be a company known for its ethical
and transparent conduct, respectful of human
rights and the law. To achieve this, we are
determined to continue to develop a
comprehensive and long-term commitment
to all our stakeholders, particularly local
communities and our workforce.
We align ourselves with the UN Sustainable
Development Goals (SDGs), developing
responsible mining practices that are certified
by the Copper Mark and the ICMM’s
Performance Expectations. We prioritise the
efficient use of renewable natural resources
and the reduction of our greenhouse gas
(GHG) emissions by using sea water and
energy from cleaner sources.
All of this is done while ensuring the
occupational health and safety of all our
employees and contractors. We do this
through the active leadership of our workers,
who by their responsible behaviour and
proactive management of risks and critical
controls ensure a safe and healthy working
environment for all.
Key initiatives
•
Decarbonisation and climate
resilience initiatives
•
Social contribution
•
Health and safety
Performance
•
Zero fatal accidents in 2024
9% reduction of Group’s lost time
injury frequency rate
•
3% increase in Mining Division
emissions per tonne of copper
production (Scope 1 and 2)
•
100% renewable energy
(Mining Division)
Description
Our goal is to create and nurture a working
environment that incorporates new ways
of thinking, with innovation at the forefront,
to tackle current and future challenges.
We strive to inspire people to tackle more
complex and dynamic problems, and to
develop new management approaches to
solve them. The demands of today’s and
tomorrow’s adaptive challenges require
us to collaborate and excel while developing
new skills.
We aim to truly understand what our people
value, to treat them fairly, and to engage
and inspire them based on their personal
motivations and unique qualities as
individuals. This is a challenge that requires
us to change the understanding of the
traditional employment relationship with
the Group.
We will continue to drive forward our cultural
transformation, promoting the organisation as
a safe and supportive space that actively
listens, empathises, connects and builds
strong relationships with our people.
Key initiatives
•
Balanced workforce programme
•
Leadership and Diversity Academy
•
Adoption of new legislation during
the year
Performance
•
Inclusive practices are an integral
part of how we work
•
26.6% of our employees are women
•
Labour relations award received
at Antucoya
Description
Competitiveness is essential as it ensures
resilience and makes the business viable.
By producing copper efficiently, we are able
to grow and contribute to the development of
mining while promoting energy security and
electrification.
We aim to maintain our strong financial
position through efficient capital allocation,
the proper execution of our projects and the
renewal of our asset portfolio, allowing us
to continue operating and growing as we
address increasingly complex challenges.
We strive to be one of the most cost-
competitive companies in the industry,
and towards that end we are dedicated
to achieving excellence in our work and
seeking new and efficient ways to manage
our operations.
Additionally, we are undergoing a process
of operational transformation that allows
us to integrate technology and innovation,
utilise data analytics and promote efficient
resource management by strengthening key
operational processes that will enable us
to achieve the full potential of our assets.
Key initiatives
•
Competitiveness Programme
•
Operational Excellence Management
System
Performance
•
664,000 tonnes of copper produced
at a net cash cost of $1.64/lb
•
EBITDA margin remains
strong at 52%
•
Competitiveness Programme
delivered benefits of $248 million,
surpassing target of $200 million
To read more on safety and
sustainability, see pages 48 to 71
To read more on our people
and culture, see pages 54 to 55
To read more on competitiveness,
please see pages 28 to 47
Our strategic framework continued
Antofagasta plc Annual Report 202424
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Innovation
Through innovation we are
committed to constantly pushing
back boundaries and exploring new
ways of advancing.
Growth
By prioritising growth, we will
continue contributing to the
development of a better future.
Description
We aim to create new ways of operating and
using existing technology more effectively,
incorporating our own and others’ learning
to improve performance.
We adopt and adapt new technologies, while
optimising existing ones, to improve safety,
productivity and cost efficiency. Strategic
innovation focuses on transformative
technologies like Cuprochlor-T
®
,
electrification, and advanced tailings
management. Operational innovation
strengthens predictive maintenance, remote
operations, and AI-driven decision-making
to maximise asset performance.
Our Digital Roadmap accelerates automation
and analytics, improving processes through
Integrated Remote Operations Centres,
autonomous systems, and AI-powered tools.
The Innovation Roadmap ensures smart,
integrated and sustainable operations,
improving usage of resources such as water
and energy while reinforcing our commitment
to safety and environmental responsibility.
By embedding innovation across all
operations, we drive continuous improvement
and maintain our competitive edge.
Key initiatives
•
Integrated Remote Operations
Centres
•
Advanced tailings management
and water recovery
•
Cuprochlor-T
®
Performance
•
Updated Integrated Remote
Operations Centre operating model
•
Workstream underway for
commercial validation of
Cuprochlor-T
®
with third parties
•
Digital transformation and advanced
analytics to optimise milling, flotation,
and condition monitoring
Description
Growth enables us to maintain our viability
and fulfil our purpose. It allows us to realise
the full potential of our resources and assets,
creating additional value and diversifying risk.
To accomplish this, we aim to:
•
Expand and increase the Group’s
production capabilities by building
projects such as Los Pelambres
Expansion Phase 1 and the Centinela
Second Concentrator Project.
•
Increase our mineral resource base
through exploration for new resources
and/or the development of new ore
deposits.
Our strategy for growth beyond our existing
operations is focused on producing copper
and its by-products in the Americas
(particularly Chile, Peru, the United States
and Canada), a region that is highly attractive
due to its geological potential, mining activity,
relative proximity to our existing portfolio of
operating assets, political and administrative
similarities, as well as similarities in culture
and language.
Key initiatives
•
Completed: Los Pelambres
Expansion Phase 1
•
Underway: Centinela Second
Concentrator and Los Pelambres
growth enabling projects (including
desalination plant expansion to
800 l/s and a new concentrate
pipeline)
Performance
•
Major growth and development
projects remain on track and on
budget as of year-end
To read more on innovation,
see pages 42 to 43
To read more on growth and other
investments, see pages 44 to 47
For further information on the risks
associated with each strategic pillar,
please see P80
For more information on how we align
our strategic performance with
remuneration, please see our
Remuneration report on P140
Image: Sample testing of copper ores.
Antofagasta plc Annual Report 2024 25
2020 2021 2022 2023 2024
100% 100% 100%
50% 50%
Measuring our performance
We use key performance indicators (KPIs) to assess our performance in meeting our strategic
and operating objectives. Performance is measured against the following financial, operating
and sustainability KPIs outlined below.
FINANCIAL KPIs
Key performance indicators
EBITDA
1
Profit before tax Net debt/(Net cash)
1
2020 2021 2022 2023 2024
2,739
4,836
2,930
3,087
3,427
2020 2021 2022 2023 2024
1,413
3,477
2,559
1,966
2,071
2020 2021 2022 2023 2024
82
(541)
886
1,160
1,629
This is a measure of our underlying
profitability.
EBITDA was $3.4 billion, 11% higher on
stronger revenues and robust cost control,
which helped to increase the Group’s EBITDA
margin to 52% (2023: 49%).
This is a measure of our profitability
before the deduction of taxes.
Profit before tax (including exceptional items)
was $2,071 million, 5% higher than 2023
due to higher revenues (higher copper price);
the exceptional items gain mainly related to
impairment reversal in Antucoya, partly offset
by higher depreciation and amortisation.
This is a measure of our financial
liquidity.
Strong balance sheet with net debt of
$1,629m at the end of 2024 and a net debt/
EBITDA ratio of 0.48 (2023: 0.38).
$3,427m $2,071m $1,629m
1. Non-IFRS measure; refer to the Alternative Performance
Measures section on page 237.
2. From continuing operations excluding exceptional items.
3. From continuing and discontinued operations including
exceptional items.
4. 2024 payout ratio shown includes proposed final dividend.
5. 100% of Los Pelambres, Centinela and Antucoya, and
50% of Zaldívar’s production.
6. Mineral resources (including ore reserves) relating to
the Group’s subsidiaries on a 100% basis, and Zaldívar
on a 50% basis.
7. The lost time injury frequency rate is the number of
accidents with lost time during the year per million hours
worked.
8. Scope 1 and 2, Mining Division only.
9. Tonnes of CO
2
equivalent per tonne of copper produced.
Underlying earnings per share
2
Earnings per share
3
Dividend payout ratio
4
50%
This is a measure of the profit
attributable to shareholders before
exceptional items.
Underlying earnings per share excluding
exceptional items decreased by 13%
to 62.8 cents, reflecting lower underlying
profit after tax.
This is a measure of the profit
attributable to shareholders after
exceptional items.
Earnings per share including exceptional
items for the year were 1% lower at
84.1 cents, compared with 2023, despite
the higher profit after tax during the year.
84.1 cents
2020 2021 2022 2023 2024
54.7
142.5
59.7
72.0
62.8
2020 2021 2022 2023 2024
51.3
130.9
155.5
84.7
84.1
62.8 cents
Read more on P73 Read more on P75
Read more on P77
Read more on P78
Antofagasta plc Annual Report 202426
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
2020 2021 2022 2023 2024
2.79
2.56
1.75
1.69
1.75
2020 2021 2022 2023 2024
733.9
721.5
646.2
660.6
664.0
2020 2021 2022 2023 2024
1.14
1.20
1.61 1.61
1.64
2020 2021 2022 2023 2024
19.2
19.1
20.1
20.5
20.6
2020 2021 2022 2023 2024
0.9
1.3
0
0.84
0.63
0.57
0
1
00
2020 2021 2022 2023 2024
38.9
29.0
37.7
31.3
33.1
39.7
33.1
48.8
42.8
59.8
Continental water
Sea water
OPERATING KPIs
SUSTAINABILITY KPIs
Copper production
5
Net cash costs
1
Mineral resources
6
Copper is our main product and largest
source of revenue.
Copper production increased by 1% to
664,000 tonnes, with higher production
at Centinela Cathodes and Los Pelambres,
offset by lower grades at Centinela
Concentrates.
This is a key indicator of operating
efficiency and profitability.
Net cash costs for 2024 were $1.64/lb,
in line with 2023 and guidance for the
year, reflecting lower copper grades
at Los Pelambres offset by stronger
by-product credits.
Our mineral resource base supports
our strong organic growth pipeline.
Total mineral resources increased
by 148 million tonnes during the year,
following work at Centinela.
664.0 kt $1.64/lb 20.6bn t
Safety Water withdrawals (gigalitres) CO
2
e emissions intensity
8,9
Safety is our top priority, with fatalities
and the LTIFR
7
being two of our
principal measures of performance.
Record safety performance with no fatalities
and the LTIFR improving by a further 9% as
the Group continues to embed a safety-first
culture, with improvements in both leading
and lagging indicators of safety.
Water is a precious resource and
we are focused on using the most
sustainable sources and maximising
its efficient use.
The use of sea water as a proportion of total
water withdrawals was similar on a year
on year basis at 58% (2023: 60%). Increase
in overall water use reflects the Group’s
increase in ore processing in 2024.
We recognise the need to measure
and mitigate greenhouse gas (GHG)
emissions, as part of our overall
strategy.
CO
2
e emissions intensity increased by 3%
in 2024.
0 Fatalities 0.57 LTIFR
7
103 GL 1.75 tC0
2
e/tCu
Read more on P28
Read more on P52
Read more on P28
Read more on P56
Read more on P243
Read more on P62
Antofagasta plc Annual Report 2024 27
Mining Division
Antofagasta owns and operates four mines.
Los Pelambres is located in the Coquimbo
Region of central Chile and Centinela,
Antucoya and Zaldívar are in the
Antofagasta Region of northern Chile.
Group production highlights
Operating Review
Mines
Capital city
Cities and town centres
Ports
BOLIVIA
ARGENTINA
COQUIMBO
REGION
SANTIAGO
ANTOFAGASTA
REGION
CENTINELA
ZALDÍVAR
ANTUCOYA
ANTOFAGASTA
MEJILLONES
CENTINELA
PORT
ARGENTINA
LOS
PELAMBRES
LA SERENA
PUNTA
CHUNGO PORT
ILLAPEL
LOS VILOS
BOLIVIA
PERU
ARGENTINA
PERU
Copper produced (2024)
664.0 kt
660.6 kt
of copper produced
2023
Gold produced (2024)
186.9 koz
Net cash costs (2024)
$1.64/lb
Molybdenum produced (2024)
10.7 kt
$1.61/lb
net cash costs
209.1 koz
of gold produced
11.0 kt
of molybdenum produced
2023
2023
2023
Antofagasta plc Annual Report 202428
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Los Pelambres
Los Pelambres is a sulphide deposit in Chile’s Coquimbo Region,
240 km north of Santiago. It produces copper concentrate (containing
gold and silver) and molybdenum concentrate through a milling
and flotation process.
For more information see P30
Centinela
Centinela mines sulphide and oxide deposits 1,350 km north of Santiago
in the Antofagasta Region, one of Chile’s most important mining areas.
Centinela produces copper concentrate (containing gold and silver)
through a milling and flotation process, and molybdenum concentrate.
It also produces copper cathodes, using the solvent extraction
and electrowinning (SX-EW) process.
For more information see P32
Antucoya
Antucoya is approximately 1,400 km north of Santiago and 125 km
north-east of the city of Antofagasta. Antucoya mines and leaches
oxide ore to produce copper cathodes, using the solvent extraction
and electrowinning (SX-EW) process.
For more information see P34
Zaldívar
Zaldívar is an open-pit, heap-leach copper mine which produces copper
cathodes using the solvent extraction and electrowinning (SX-EW) process.
The mine is 3,000 metres above sea level, approximately 1,400 km north
of Santiago and 175 km south-east of the city of Antofagasta.
For more information see P36
Revenue
$3,327m
+14%
EBITDA
$1,861m
+10%
Revenue
$2,359m
-7%
EBITDA
$1,130m
-5%
Revenue
$733m
+9%
EBITDA
$276m
+33%
EBITDA
$100m
+15%
Antofagasta plc Annual Report 2024 29
Los Pelambres
Los Pelambres is a sulphide deposit in Chile’s Coquimbo Region, 240 km north of Santiago.
It produces copper concentrate (containing gold and silver) and molybdenum concentrate
through a milling and flotation process.
Operating review continued
Snapshot of the year
Safety
0
Fatalities
(2023: 0)
0.29
LTIFR
1
(2023: 0.47)
Revenue
$3,327m
+14%
EBITDA
$1,861m
+10%
202420232022
310-325
275.0
300.3
319.6
2025
Forecast
202420232022
55-65
43.1
43.3
46.6
2025
Forecast
202420232022
12.0-13.0
7.2
8.1
8.4
2025
Forecast
Molybdenum production
8.4k tonnes
Gold production
46.6k ounces
Copper production
319.6k tonnes
202420232022
1.10
1.14
1.27
1.05-1.25
2025
Forecast
202420232022
1.84
1.92
2.09
2.05-2.25
2025
Forecast
25 years
MINE LIFE
10 years
20352000 2025
Net cash costs
$1.27/lb
Cash costs before by-products
$2.09/lb
Lifecycle of the mine
(EIA submitted to extend mine life to 2051)
1. Lost time injury frequency rate.
Antofagasta plc Annual Report 202430
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Trolley-assist technology
Work is underway at Los Pelambres to trial
the use of trolley-assist technology, which
will enable haul trucks to substantially reduce
diesel consumption by connecting to
overhead cabling, to power this aspect of the
haulage cycle. Since diesel consumption is
highest when trucks are fully loaded and
ascending out of the pit, this technology has
the potential to address a major aspect of
our Scope 1 emissions.
The trolley-assist system will be trialled on
a short section of haul road leading to an
existing waste dump. The system, which
includes cabling, pylons and substations,
started to arrive at Los Pelambres in 2024
and is expected to be installed and brought
into operation during 2025. The trial,
including feasibility studies, is expected
to take place over the next 2-3 years.
Advanced analytics: energy
consumption optimisation
The Group’s Advanced Analytics team has
developed ‘SIRO Potencia’, which is an
Operational Recommendation System that
optimises energy use during mining and
processing. During the year, this system
generated an estimated $1.2 million of
savings through power management at peak
hours, reducing costs and diesel
consumption. Using a predictive demand
model, this system provides real-time
recommendations, enabling strategic
energy management. This innovation
lowers costs and emissions while
maintaining efficiency, supporting our
commitment to sustainability and developing
cost-effective operating practices.
2024 performance
Financial performance
EBITDA for the full year was $1,861.2 million,
compared with $1,692.0 million in 2023,
reflecting higher sales volumes, and higher
realised prices for copper and by-products.
Production
Full year copper production was 319,600
tonnes, representing a 6% increase year-on-
year, with this increase related to higher ore
processing rates following completion of the
Phase 1 Expansion Project, delivering
additional water availability and processing
capacity, and more than compensating a
planned reduction in ore grades processed.
Cash costs
Full year cash costs before by-product credits
of $2.09/lb were 9% higher than the prior
year, impacted primarily by lower ore grades
partially compensated by increased
production, lower unit costs for key
consumables such as diesel and electricity,
grinding media and explosives, and
depreciation of the Chilean peso. Full year
2024 net cash costs were 11% higher at
$1.27/lb, as a result of higher underlying cash
costs offset by stronger by-products credits
increasing to 82c/lb.
Capital expenditure
Capital expenditure was $833.0 million
($897.1 million in 2023), including $547.9
million of sustaining capital expenditure,
$136.2 million of mine development and
$148.9 million of development capital
expenditure.
Outlook for 2025
The forecast production for 2025 is
310,000–325,000 tonnes of copper,
12,000–13,000 tonnes of molybdenum
and 55,000–65,000 ounces of gold.
Cash costs before by-product credits are
forecast to be $2.05-2.25/lb and net cash
costs $1.05-1.25/lb, reflecting higher
production of by-products, offset by lower
expected copper grades.
Growth and development
projects
Phase 1 Expansion – completed 2024
Comprising:
•
Desalination plant (400 l/s)
•
Processing capacity expansion to 190 ktpd
Growth-enabling projects (underway,
2024-2027)
•
Desalination plant expansion to 800 l/s
•
New concentrate pipeline
Development Options Project
(mine life extension)
Environmental Impact Assessment (EIA)
submitted Q4 2024, including:
•
Expansion of the El Mauro tailings dam
•
Option to increase throughput up to 205ktpd
•
Option to increase desalination plant capacity
For more details of the Group’s project
pipeline, see page 44.
Sustainability snapshot
Safety
Los Pelambres recorded the lowest lost time
injury frequency rate within the Group’s
operations, with a figure of 0.29 for 2024
(2023: 0.47). This marks a significant
achievement for the Group, as Los Pelambres
represents the largest operation within our
business.
High-potential incidents at Los Pelambres
decreased by 21% to 11 in 2024.
Community engagement:
ten years of Somos Choapa
Los Pelambres’ mine and processing plant
are situated in the central area of Chile, and
the Group’s operations co-exist with several
local communities in the Choapa Valley. The
Somos Choapa Programme is a key aspect of
our community engagement programme, and
completed its first ten-year cycle of operations
in 2024, implementing more than 150 projects
during this time.
During 2024, Somos Choapa’s work focused
on three main tasks: delivering to the
community the last projects agreed during the
first cycle, celebrating together the
achievements and sharing progress and
lessons learned to plan the next cycle of work.
For more information on our community
engagement efforts, please see page 58.
Enabling the low-carbon transition
In addition to a trial of trolley-assist technology
(see case study above), Los Pelambres is
deploying innovations across its mining and
processing operations to reduce emissions,
including dynamic charging infrastructure and
trials of a haul truck that is able to capture
energy expended during braking.
INNOVATION CASE STUDIES
Antofagasta plc Annual Report 2024 31
Centinela
Centinela mines sulphide and oxide deposits 1,350 km north of Santiago in the Antofagasta Region,
one of Chile’s most important mining areas. Centinela produces copper concentrate (containing
gold and silver) through a milling and flotation process, and molybdenum concentrate. It also
produces copper cathodes, using the solvent extraction and electrowinning (SX-EW) process.
Operating review continued
Snapshot of the year
Safety
0
Fatalities
(2023: 0)
0.90
LTIFR
1
(2023: 0.56)
Revenue
$2,359m
-7%
EBITDA
$1,130m
-5%
230-245
202420232022
247.5
242.0
223.8
2025
Forecast
155-165
202420232022
133.7
165.8
140.3
2025
Forecast
3.0-3.5
202420232022
2.4
2.9
2.4
2025
Forecast
Molybdenum production
2.4k tonnes
Gold production
140.3k ounces
Copper production
223.8k tonnes
202420232022
1.75
1.63
1.60
1.35-1.55
2025
Forecast
202420232022
2.44
2.57
2.60
2.30-2.50
2025
Forecast
24 years
MINE LIFE
33 years
20582001 2025
Net cash costs
$1.60/lb
Cash costs before by-products
$2.60/lb
Lifecycle of the mine
1. Lost time injury frequency rate.
Antofagasta plc Annual Report 202432
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Water infrastructure:
innovation in financing growth
In June 2024, the Group announced the
successful completion of the process to
transfer the existing water supply
infrastructure for Centinela and Antucoya
to an international consortium, for cash
proceeds of $600 million. Under this
agreement, the same consortium will
complete the planned expansion of this
infrastructure for water supply to the
Second Concentrator Project, reducing
capital costs for this project by
approximately $380 million.
At a time of higher capital intensity costs
associated with growth projects in the
global copper industry, this represents an
innovative step to reduce the capital costs
associated with the Second Concentrator
Project.
Remote operations: situational
awareness tool
In 2024, the situational awareness tool for
Centinela’s Integrated Remote Operations
Centre (IROC) was implemented.
Originally developed at Los Pelambres’ IROC,
the situational awareness tool enables control
room supervisors to understand real-time
process conditions and generates alerts when
potential production risks are detected.
The tool also serves to improve optimisation
across a range of areas, reduces process
variability, and enhances agility in response
times, creating a more efficient and reliable
operation.
2024 performance
Financial performance
EBITDA at Centinela was $1,130.3 million in
2024, compared with $1,183.6 million in
2023, on lower copper sales volumes partially
offset by lower unit costs and higher realised
copper prices.
Production
Total full year copper production was 8%
lower in 2024, at 223,800 tonnes, with this
decrease related to lower production at
Centinela Concentrates due to lower grades,
partially offset by higher output at Centinela
Cathodes.
Full year copper in concentrate production
was 121,800 tonnes, 25% below the prior
year, primarily due to lower grades. Total
copper cathode production in 2024 was
102,000 tonnes, representing a 29% increase
year on year. The key drivers for this increase
were higher grades, an improved throughput
rate and higher recoveries.
Gold production during the year was 140,300
ounces, 15% lower than in 2023 due to lower
gold grades (which are correlated to copper
grades). Molybdenum production in 2024 was
2,400 tonnes, a 17% decline year on year
following record levels of production in the
prior year.
Cash costs
Full year 2024 cash costs before by-product
credits of $2.60/lb were 1% higher year on
year, which was the result of lower
production during the year, offset by lower
costs for maintenance and input prices for
key consumables, and depreciation of the
Chilean peso. Full year net cash costs were
2% lower year on year at $1.60/lb, with this
movement representing the balance of an
increase in the underlying cash cost and
a 6% increase in the by-product credit.
Capital expenditure
Capital expenditure was $1,414.0 million
($1,044.6 million in 2023), including $210.8
million of mine development, $240.1 million
of sustaining capital expenditure and $963.1
million of development capital expenditure
($877.6 million related to Centinela Second
Concentrator Project).
Outlook for 2025
Production is forecast at 230,000–245,000
tonnes of copper, 155,000–165,000 ounces of
gold and 3,000–3,500 tonnes of molybdenum.
Production of copper in concentrate is
expected to increase in 2025 as a result of
higher grades at Centinela Concentrates.
Cash costs before by-product credits
are forecast to be $2.30-2.50/lb, with net
cash costs of $1.35-1.55/lb.
Growth and development
projects
Second Concentrator Project
Full construction commenced in 2024, with
this project to add 170,000 CuEq tonnes, and
production is expected to ramp up from 2027.
For more details of the Group’s project
pipeline, see page 44.
Reserves update
Following the move to commence full
construction of the Centinela Second
Concentrator Project, the higher grade
Encuentro sulphides pit has been included in
the Group’s Ore Reserve estimate.
Adding 738 million tonnes at a grade of
0.45% copper, the Ore Reserve estimate for
Centinela is now 2.6 billion tonnes as of 2024,
representing a 35% increase year-on-year.
Details of the Group’s Ore Reserves and
Mineral Resources are on page 243.
Sustainability snapshot
Safety performance
The injury frequency rate at Centinela rose to
0.90 in 2024 (2023: 0.56), while high-
potential incidents decreased by 38% to five
for the year. Work at the Second Concentrator
Project registered a lost time injury rate
below the Group’s average in 2024, despite
more than 8,000 contractors being deployed
to site as of the end of the year. At the peak
of construction, 13,000 contractors will be
engaged at this project, and the successful
adoption of our safety-first culture will be
critical for its success.
Responsible water use
Centinela operates on raw, untreated sea
water, which is pumped from the Group’s
port facility on the Pacific coast. The last
continental water wells for Centinela were
closed in 2022.
Copper Mark
In November 2024, the Group was proud to
announce that Centinela, alongside Zaldívar,
had successfully completed its Copper Mark
re-certification process under the 33 updated
criteria of this framework, with these
operations being the first in the world
to achieve this recognition. This process
involved independent reviewers visiting both
sites (and surrounding areas) in September
2024, alongside conducting interviews with
key stakeholders.
INNOVATION CASE STUDIES
Antofagasta plc Annual Report 2024 33
202420232022
2.50
2.63
2.53
2.60-2.80
2025
Forecast
Cash costs
$2.53/lb
Antucoya
Antucoya is approximately 1,400 km north of Santiago and 125 km north-east of the city
of Antofagasta. Antucoya mines and leaches oxide ore to produce copper cathodes using
the solvent extraction and electrowinning (SX-EW) process.
Operating review continued
Snapshot of the year
Safety
0
Fatalities
(2023: 0)
1.39
LTIFR
1
(2023: 0.65)
Revenue
$733m
+9%
EBITDA
$276m
+33%
9 years
MINE LIFE
19 years
20442016 2025
Lifecycle of the mine
80-85
202420232022
79.2
77.8
80.4
2025
Forecast
Copper production
80.4k tonnes
1. Lost time injury frequency rate.
Antofagasta plc Annual Report 202434
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Lifting plant throughput rates
Innovation is key to ore processing, and it is particularly relevant to the lower-grade ores
that are typically processed at Antucoya.
During 2024, Antucoya invested approximately $50 million in specialist equipment to reduce
particulate matter at its secondary crushing unit and transfer tower. The introduction of this
equipment is aimed at reducing dust generation, which will have positive effects on the
working environment, as well as facilitating greater throughput rates.
Optimising the leaching process
Through the adaptation of the Group’s existing processes in a project called Mineral
Tracker 2.0, Antucoya is looking to optimise the metallurgical processes associated with
leaching of copper ores. This approach involves the development of an integrated software
platform connecting Antucoya’s mining and processing systems, to monitor ores as they
are mined and processed, and to create detailed mapping of ore types as they are stacked.
This initiative, which went live in the third quarter of 2024, is expected to enable a more
tailored irrigation strategy, reducing sulphuric acid consumption and enhancing the
efficiency of leaching activities.
Initial efforts have focused on achieving a 0.5 to 1.0 percentage point increase in recoveries
by minimising water loss in irrigated areas and optimising secondary crushing, thereby
reducing the need for tertiary crushing.
2024 performance
Financial performance
EBITDA was $275.8 million, compared with
$206.9 million in 2023, an increase of 33%
reflecting mainly higher realised prices for
copper, higher sales volumes and lower
unit costs.
Production
Full year 2024 production rose by 3%
to 80,400 tonnes, which reflected a record
year for ore tonnes processed, with higher
recoveries offset by lower grades on
a year-on-year basis.
Cash costs
Full year cash costs of $2.53/lb represented
a 4% year-on-year decrease, representing
higher production, lower unit costs for key
consumables, and depreciation of the Chilean
peso, with these factors mitigated by a higher
level of mining activities during the period.
Capital expenditure
Capital expenditure was $123.4 million,
including $80.3 million on sustaining capital
expenditure.
Outlook for 2025
Production is forecast to be 80,000–85,000
tonnes of copper and cash costs are expected
to be approximately $2.60-2.80/lb.
Sustainability snapshot
Safety
Antucoya’s lost time injury frequency rate
rose to 1.39 in 2024 (2023: 0.65). There was
a total of one high-potential incident during
the year, in line with 2023.
Suppliers for a Better Future
Programme
In December 2024, Antucoya hosted its first
meeting of supplier companies associated
with the Group’s Suppliers for a Better Future
Programme, with more than 70 leaders from
28 businesses sharing their views and
experiences. Under this programme, one
objective is to raise female representation in
local third-party suppliers to 25%, in addition
to objectives across a range of areas.
Community engagement
In 2024, through the Diálogos para el
Desarrollo (Dialogues for Development)
Programme, Antucoya and Centinela worked
with the local communities of María Elena and
Sierra Gorda. This engagement included
efforts to promote healthy lifestyles and
initiatives to improve local residents’ access
to medical care.
INNOVATION CASE STUDIES
Antofagasta plc Annual Report 2024 35
30 years
MINE LIFE
14 years
20391995 2025
Lifecycle of the mine
(EIA submitted to extend mine life to 2051)
Operating review continued
Zaldívar
Zaldívar is an open-pit, heap-leach copper mine which produces copper cathodes using the
solvent extraction and electrowinning (SX-EW) process. The mine is 3,000 metres above sea
level, approximately 1,400 km north of Santiago and 175 km south-east of the city of Antofagasta.
Operating review continued
Snapshot of the year
Safety
0
Fatalities
(2032: 0)
0.31
LTIFR
1
(2023: 0.72)
Revenue
$720m
+0.2%
EBITDA
$100m
+15%
40-45
202420232022
44.5
40.5
40.1
2025
Forecast
Copper production
40.1k tonnes
202420232022
2.39
2.95
3.02
2.80-3.00
2025
Forecast
Cash costs
$3.02/lb
1. Lost time injury frequency rate.
Antofagasta plc Annual Report 202436
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Mineral tracking
(mine to crusher)
At Zaldívar, we have successfully tested and
are now implementing our mineral tracking
system, which actively monitors ore feed into
the crushing circuit. This system also
includes a detection mechanism for fines
generation during processing activities,
as well as mechanisms for monitoring
of stockpiles and the processing plant.
Now fully operational, the system sends
alerts to operators during periods of
elevated fines generation, which may impact
the leaching efficiency of the material.
A range of factors, including geochemical
properties, rock densities, and expected
recoveries by ore type, are assessed in real
time. By carefully monitoring plant
conditions, this system is also expected to
reduce unplanned downtime and improve
overall processing rates.
Fines predictor statistical
model
Avoiding excessive fines generation,
as mentioned above, is a critical factor
in managing recoveries at Zaldívar.
Through fines modelling, we aim to enable
proactive operational adjustments by
differentiating between various ore types
as
they are processed.
The various statistical models underpinning
this project have now been trained and are
currently undergoing validation through
operational usage. This approach is expected
to enhance process efficiency and support
more precise decision-making in managing
ore variability.
2024 performance
Financial performance
Attributable EBITDA at Zaldívar was $99.9
million in 2024, compared with $86.8 million
in the same period last year, with this
increase linked to higher realised copper
prices and lower operating costs, partially
offset by lower sales volumes.
Production
Full year copper attributable production in
2024 was 1% lower than the previous year,
with 40,100 tonnes produced, with a 15%
year-on-year drop in copper grades in line
with expectations, partly compensated by
higher ore throughput rates.
Cash costs
Full year cash costs of $3.02/lb in 2024
represent a level 2% higher than 2023,
reflecting a balance of lower unit costs for
key consumables such as sulphuric acid,
depreciation of the Chilean peso, a reduction
in costs associated with maintenance and the
settlement of a three-year labour agreement
in the prior period. These factors were
balanced by lower production due to lower
grades and an increase in costs associated
with the utilisation of inventory from prior
periods.
Capital expenditure
Attributable capital expenditure in 2024
was $42.2 million, of which $29.6 million
was sustaining capital expenditure.
Outlook for 2025
Attributable copper production is forecast
to be 40,000–45,000 tonnes at a cash cost
of $2.80-3.00/lb.
Other matters
In relation to the previously announced claim
filed by the Consejo de Defensa del Estado
(CDE), an independent governmental agency
that represents the interests of the Chilean
state, against Zaldívar, Minera Escondida and
Albemarle regarding water extraction from
the Monturaqui-Negrillar-Tilopozo aquifer,
in
December 2024 the parties reached a
settlement agreement, which was thereafter
approved by the Environmental Court in
January 2025, thus putting an end to the
proceeding.
The operation at Zaldívar has rights to mine
ore and extract water until May 2025. The
mine life after May 2025 is, therefore, subject
to the approval of an Environmental Impact
Assessment (EIA). This EIA is under review
by the relevant authorities, a process which
contemplates up to three rounds of comments
and reviews.
Responses to the third round of comments
were filed in March 2025, following receipt
of comments in January 2025.
Separate to the EIA submitted for Zaldívar
under local environmental regulations, if
a permit allowing continuity of operations is
not favourably resolved by the current permit
expiry date in May 2025, Zaldívar will be
required to have in place at that time an
approved temporary closure plan. In line with
this eventual regulatory condition being
required, Zaldívar filed in December 2024
a temporary closure plan application with the
mining authority. However, the Group’s full
year guidance for 2025 is presented based
on 12 months of normal operations at Zaldívar
– see Note 5 to the financial statements for
more details.
Sustainability snapshot
Safety
The lost time injury frequency rate at Zaldívar
recorded the largest improvement in the
Mining Division, decreasing by 56% to 0.31
in 2024. Zaldívar managed to complete 2024
without a high-potential incident, which is
a significant milestone (2023: 4).
Community engagement
During 2024, Zaldívar and the Camar
community laid the first stone for a
conservation and regeneration project related
to the Tambo de Camar, a pre-Hispanic
building located on the Inca Trail, which was
declared a World Heritage site in 2014. In the
past, the tambo was used as a place for resting
and provisioning travellers and caravans of
people and animals, but this structure suffered
damage in 2019 due to a flash flood. Thanks to
this project, a new path and lookout point will
be built, and all the archaeological findings
located during the development of the project
will be safeguarded.
Additionally, work to help rescue local
community heritage continued at Zaldívar.
Efforts in 2024 included the creation of an
ancestral recipe book featuring contributions
from grandparents and local elders of typical
food dishes of the Peine community.
Copper Mark
In November 2024, the Group was proud to
announce that Zaldívar, alongside Centinela,
had successfully completed its Copper Mark
re-certification process under the 33 updated
criteria of this framework, with these two
operations being the first in the world to
achieve this recognition. The process involved
independent reviewers visiting both sites (and
surrounding areas) in September 2024, and
undertaking interviews with key stakeholders.
INNOVATION CASE STUDIES
Antofagasta plc Annual Report 2024 37
Operating review continued
Transport Division
BOLIVIA
ARGENTINA
URUGUAY
PARAGUAY
Overview History Activities
FCAB operates one of the most extensive
privately-owned rail networks in South
America, connecting key mining regions with
ports and processing facilities. The division
prioritises innovation, sustainability and safety,
with initiatives to reduce emissions and
enhance efficiency. Its strategic integration
supports economic growth and the region’s
vital mining sector.
Headquartered in the city of Antofagasta,
northern Chile, the division’s workforce
comprises nearly 2,000 people.
FCAB has a rich history dating back to the
19
th
century. Established in 1888 as the
Antofagasta (Chili) and Bolivia Railway
Company Limited, it was incorporated in
London to construct and operate a railway
from the Pacific port of Antofagasta to La Paz,
Bolivia’s capital.
Over the years, FCAB expanded its network
and services, adapting to the evolving
demands of the mining industry. In the 1980s,
following acquisition by the Luksic Group,
Antofagasta diversified into mining, with the
Transport Division continuing to provide
essential rail and road cargo services in
northern Chile, predominantly to mining
customers, including the Group’s own
operations.
The Transport Division operates an extensive
rail network that connects key mining sites
to ports and processing facilities, facilitating
the efficient transportation of bulk materials.
In addition to rail services, FCAB offers road
cargo solutions to complement its rail
operations, ensuring flexibility and
comprehensive coverage for its clients’
logistical needs.
The division is focused on sustainability and
innovation, exemplified by the delivery in late
2024 of South America’s first hydrogen-
powered locomotive, aiming to reduce
greenhouse gas emissions and enhance
operational efficiency (see case study
opposite).
PERU
Antofagasta Region
María Elena
Antofagasta
Taltal
Tocopilla
Mejillones
Sierra Gorda
Calama
Our Transport Division is known as Ferrocarril de
Antofagasta a Bolivia (FCAB) and provides rail and
truck services to the mining industry in the Antofagasta
Region, including our own mining operations.
Transport network
Mine
Railway
Road
Antofagasta plc Annual Report 202438
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Revenue
$195m
-0.5%
EBITDA
$76m
-7%
2024202320222021
7,108
7,110
7,107
6,702
2024 tonnage transported
7,107k tonnes
2024 performance
During the year, the Transport Division
renewed its strategic plan with a focus on
three pillars: (1) productivity improvements,
(2) growth, and (3) operational efficiencies
to increase competitiveness in a more
challenging market.
Operating performance
Total transportation volumes in 2024
remained broadly consistent with those of
2023, with 7.1 million tonnes of transported
material.
EBITDA reached $76 million, a 7% decrease
compared to 2023, due to higher operational
costs and lower performance of the truck
transport business.
Costs and operating efficiency
The division has worked in a focused manner
to implement various initiatives aimed at
guaranteeing an efficient use of its assets.
These actions not only seek to improve
profitability, but also to ensure the long-term
sustainability of our operations.
Sustainability
The Transport Division made significant
progress in its safety performance in 2024,
reducing the lost time injury frequency rate
across its various operational activities by
more than half to 0.42 (2023: 0.90).
In respect of workforce balance, the operation
made further progress in 2024, with female
participation in the workforce increasing to
24.4% (2023: 23.1%).
Outlook for 2025
In 2025, the division intends to maintain the
progress made in 2024, with more than
300,000 tonnes in new contracts plus
existing contracts renewed during the year.
Looking ahead, the division has a robust
portfolio of projects that we hope will facilitate
the increase in transportation volumes.
Concurrently, the division continues to
advance its strategy to transform its former
rail yards, located in the city centre of
Antofagasta, from industrial to urban use.
During 2024, the remediation of the first lot
associated with the project was completed.
In 2025, the redevelopment of this sector
will begin, and we will start the remediation
of a new sector.
Another important milestone looking ahead
to 2025 is the commissioning of the first
hydrogen locomotive in South America
(see case study opposite).
FCAB train, northern Chile
South America’s first hydrogen train unveiled
In 2024, Antofagasta’s Transport Division introduced South America’s first hydrogen-
powered train, supplied by China’s CRRC Qishuyan. Scheduled to begin operations in 2025,
the train will run between the city of Antofagasta and the regional port of Mejillones,
transporting critical materials such as sulphuric acid and copper products. This
1,000-kilowatt locomotive is equipped with a high-capacity battery and a 35 MPa hydrogen
storage system, with emissions of water vapour and hot air from the consumption
of hydrogen as its fuel.
The initiative underscores the Transport Division’s commitment to sustainability, aligning
with the Group’s ambitious targets of a 50% reduction in Scope 1 and 2 greenhouse gas
emissions by 2035 and achieving carbon neutrality by 2050.
Hydrogen locomotive
Antofagasta plc Annual Report 2024 39
Key costs
Our mining operations depend on several key inputs, including energy, labour, sulphuric acid
and fuel, the most important of which are reviewed below.
The breakdown of the Group’s cash costs is shown in the chart
below, with energy and labour being the largest direct costs, each
accounting for 13% of the total. Collectively, contractor services,
maintenance and spare parts account for 43% of the Mining
Division’s total production costs. Our concentrators at Los Pelambres
and Centinela utilise reagents and grinding media in their operations,
whereas our SX-EW operations use sulphuric acid.
Chart: Breakdown of cash costs 2024
Energy
Labour
Operational Services
Maintenance
Services
Material and
spare parts
Fuel and
lubricants
Sulphuric Acid
Other inputs
Other
13%
13%
19%
11%
13%
8%
5%
11%
7%
Energy
All our operations are on Chile’s main grid, the National Electrical
System (Sistema Eléctrico Nacional, SEN), and source power under
medium- and long-term contracts called Power Purchase Agreements
(PPAs). Since 2022, the Group has had contracts in place for all
operations to receive renewable power.
During 2024, electrical energy consumption was 3,953 GWh (2023:
3,396 GWh). The weighted average price considering all items (all-in
price) was $125/MWh (2023: $131/MWh). The increase in consumption
compared to 2023 is mainly explained by the operation at full capacity
of the Los Pelambres Phase 1 Expansion Project.
Labour
Accessing a diverse and talented workforce is key to our success.
Our employees accounted for 13% of our production costs in 2024
(2023: 11%). Labour agreements are in place with each of the unions
at our operations and generally last for a period of three years, at the
end of which they are renegotiated. One labour negotiation took place
in 2024 (Centinela), and the Mining Division has four labour
agreements due to expire in 2025. Our employees’ wages are adjusted
quarterly for inflation. As a result, labour costs typically increase by
more than inflation (once labour agreements are considered), but
we aim to compensate for this with productivity improvements.
Fuel and lubricants
Fuel and lubricants represent approximately 8% of our production
costs and are used mainly in our mining operations. Diesel prices
exhibited an increased degree of stability in 2024 compared to 2023.
The average price for WTI crude oil in 2024 was $76.60 per barrel
(WTI 2023: $77.60 per barrel). This component accounts for
approximately 70% of the diesel price, with the remaining 30%
attributed to refining, logistics, distribution, storage and other factors.
Explosives (category: other inputs)
During 2024, prices for explosives averaged $648 per tonne (2023:
$680), reflecting a slight decrease of 5% due to lower and stabilising
prices of the main raw material ammonia, which is derived from
natural gas. Additionally, lower demand for ammonia from the
agricultural sector contributed to a reduction in pricing.
In 2024, the normalisation of exports from key producing countries,
such as Russia and Belarus, also contributed to greater availability
of ammonia on the market, helping to stabilise and reduce prices.
However, we do not source ammonia from these locations.
Grinding balls and mill liners (category: other inputs)
Steel is used in the manufacture of grinding balls and of some mill
liners, and accounts for approximately 7% of a concentrator plant’s
costs and 2% of the Group’s production costs. Steel prices decreased
in 2024 due to a decline in the Chinese market, lower demand for
steel, primarily in the construction sector, increased production from
major producers like Australia and Brazil, and international trade
tensions.
Tyres (category: other inputs)
Tyre prices are influenced by international market trends and
fluctuate based on the supply and demand of key raw materials,
including natural rubber, synthetic rubber, steel and black carbon.
In the second half of 2024, prices increased by 3% compared to the
same period in 2023.
Each year, our operations consume approximately 1,400 haul truck
tyres, which are typically procured through five-year contracts to
ensure a stable supply.
Sulphuric acid
Sulphuric acid is one of the main inputs for the SX-EW leaching
process used to produce copper cathodes, and in 2024, this cost
accounted for approximately 5% of the Group’s overall production
costs. Each year, Centinela, Antucoya and Zaldívar use a combined
total of approximately 1.5 million tonnes of sulphuric acid, which is
typically contracted under one-year agreements to secure supply.
During 2024, the annual acid price (including transportation) was
approximately $155 per tonne, while market spot prices ranged from
$120 to $173 per tonne, compared to an annual price (including
transportation) of $183 per tonne in 2023 and market spot range
of between $90 and $148 per tonne.
Exchange rate
The Chilean peso/US dollar exchange rate generally has a strong
correlation with the copper price as copper exports generate nearly
50% of Chile´s foreign currency earnings. Therefore, if the copper
price strengthens, so does the Chilean peso, and vice versa, providing
a natural hedge for the Group.
During 2024, the Chilean peso averaged 944 to the US dollar.
Operating review continued
Antofagasta plc Annual Report 202440
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Operational Excellence Management System: revised approach launched in 2024
Common goal
Aiming to reach
full potential
Aspirational
challenge
T
e
a
m
d
e
v
e
l
o
p
m
e
n
t
I
m
p
r
o
v
e
m
e
n
t
c
o
n
t
i
n
u
e
s
Aspiration, KPIs and goals Forums of performance Agenda
Resolution
of issues
Role
confirmation
Innovation and
transformation
Process
confirmation
Standards
Feedback and
recognition
Competitiveness Programme
The global copper industry is a competitive landscape, with geological
factors and inflation creating upward pressure on operating and capital
costs, which in turn creates the need for continuous improvement and
innovation. At Antofagasta, we have historically channelled our efforts
to control and reduce costs through our Cost and Competitiveness
Programme, which began in 2015.
In 2024, the Group launched a new approach to managing this area,
which was a decision that was linked to the adoption of a revised
Operational Excellence Management System (OEMS), with this new
workstream known as the Competitiveness Programme. Through
the Competitiveness Programme, the Group aims to competitively
position itself on the global cash cost curve through a series of
savings and efficiencies.
Since the inception of the above initiatives, these programmes have
delivered more than $1.0 billion of savings and efficiencies, helping
to support the Group’s competitiveness in the global copper industry.
Operational Excellence Management System
The OEMS is designed to help the Group achieve its full potential
through the establishment of three common goals: (1) clear KPIs
and objectives, (2) the creation of appropriate forums to discuss and
enhance performance, and (3) a clear pathway for achieving success.
Continually improving and developing team performance enables
teams to further enhance and improve their KPIs and objectives
for further gains.
At the Company, the process to implement an OEMS was launched
in
early 2024, and development is expected to take place in several
waves – an initial debottlenecking phase (organisational level), followed
by a phase during which specific areas embed updated practices in
a sustainable manner, followed by a final phase that is expected to
develop on an organisational level, linking newly developed capabilities
across different organisational functions and teams. For example,
in the case of the processing capacity of a concentrator, initial work
is focused on understanding the full potential of the equipment
(aspirational goal), followed by activities to deliver marginal
improvements over time, with continuous reviews to understand the
reasons if any planned gains remain unrealised when set against the
full realisable potential.
The identification of specific debottlenecking tasks will be primarily
undertaken by in-house specialist teams but may involve external
consultants depending on the nature of the activity. Debottlenecking
activities can focus on the availability, utilisation rate or performance
of individual equipment or systems, with the Competitiveness
Programme reviewing the benefit of each workstream in terms
of net financial impact.
Delivering results in 2024
Total benefits of $248 million were delivered in 2024, surpassing
the target of $200 million of combined savings and productivity
improvements in the programme’s first year, which was an ambitious
target after the Cost and Competitiveness Programme delivered
$135 million of benefits in the previous year.
In achieving this result, the three principal areas were: (1) operational
efficiencies and throughput (55% of total), (2) contract management
(29%), and (3) other savings (16%).
A total of 129 initiatives were identified during the first year, with
92 progressing to Stage 5 (Materialised Value) in the OEMS and a
further 37 reaching Stage 4 (Execute Action Plan). Relative to the total
cost base of each mine, Antucoya delivered the highest proportional
saving, which related to a reduction in key consumable usage,
particularly sulphuric acid.
Antofagasta plc Annual Report 2024 41
Operating excellence and innovation
Strategic innovation and digital transformation serve to deliver operational excellence through
an approach that combines advanced technologies, sustainability, analytics, ensuring efficiency,
cost reduction, and long-term value creation across all our operations.
Operational excellence and innovation are core to our business and form
one of our strategic pillars (see page 24). We embed these principles
across operations to enhance safety, boost productivity, reduce costs and
minimise our environmental impact. In today’s global economy,
continuous innovation is vital for competitiveness. Examples of our efforts
appear throughout this report, including safety (page 52), growth projects
(page 44), exploration (page 47), and financing (page 72). Our three
innovation streams are as follows: (1) Strategic Innovation, (2)
Operational Innovation and (3) Digital Roadmap, which are detailed below.
Strategic Innovation
Our strategic approach to innovation is focused on the use of technologies
over a longer timescale, in terms of both deployment and improvements,
and in ensuring they are applicable to a wide range of areas within our
business. Key focus areas for Strategic Innovation include: primary
sulphide leaching (Cuprochlor-T®), the electrification of our operations,
innovations to enhance efficiency and selectivity in material movement,
and the adoption of the latest technologies in tailings management. The
Group is undertaking studies to examine the application of water recovery
and alternative tailings deposition methods for Los Pelambres, including
a
review of various technologies and site visits. Work to develop a
pre-feasibility study for the electrification of mining operations continues
(see trolley-assist case study on page 63).
Through the Strategic Innovation workstream, the Group also achieved
ISO 50001 certification for energy efficiency at all its sites during 2024.
Operational Innovation
Significant progress was made in the field of operational innovation
during 2024, which is a key pillar for improving productivity,
sustainability and safety across the Group’s operations. With an active
portfolio of 71 projects, financial benefits totalling $40 million have been
realised, with notable initiatives driving efficiency and reducing operating
costs. Among the projects implemented during the year are innovative
technologies such as ShovelSense, which optimises the quality of
transported ore, and IonoGuard, which enhances operational availability
by preventing downtime caused by GPS system failures.
Additionally, the optimisation of the acid addition model at Antucoya
has improved operational efficiencies, while other initiatives have
contributed to enhancements in transportation systems and the adoption
of new analytical technologies to support decision-making. These
achievements underscore the Group’s commitment to innovation as a key
driver for creating value and promoting more efficient and sustainable
operational practices across all the Group’s operations.
Digital Roadmap
Our Digital roadmap continues to drive innovation and transformation
across the Group, enhancing safety, productivity and operational
efficiency through advanced analytics and cutting-edge technologies.
In 2024, advanced analytics delivered more than $30 million in value
through 13 key projects, including Los Pelambres’ Milling Constraints
and Agile Decision Assistant, Centinela’s blending and flotation
optimisation, Antucoya’s Mineral Tracker, and Zaldívar’s Condition
Monitoring. These initiatives aim to automate decision-making and
optimise processes through increased situational awareness,
forecasting, and decision-recommendation tools.
Following work in 2024, we have now validated the corporate Integrated
Remote Operating Centre (IROC) operating model, with full
implementation planned for later this year, and are unifying operations
at our IROCs in Santiago and the city of Antofagasta to improve
efficiency and foster knowledge sharing. Los Pelambres also advanced
safety by deploying a robotic solution for SAG mill liner replacements,
thereby reducing worker exposure to hazardous tasks.
From 2022 to 2024, our strategic technology plan achieved notable
progress in telecommunications, cyber security, digitalisation and
sustainability. We expanded data coverage from 55% to 90%, deployed
AI-enhanced cyber security solutions, and introduced autonomous
drills, teleoperated spreaders, and safety systems such as our Collision
Avoidance System and Operator Alertness System. Moving forward,
we are shaping our 2025–2027 strategy to align our use of technology
to strengthen our business goals, reduce costs, boost production, and
uphold the highest safety standards.
Operating review continued
Digital roadmap in action: Antucoya leach pad monitoring dashboard
Antofagasta plc Annual Report 202442
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Case study: advanced analytics in processing
Advanced analytics leverages data-driven tools to enhance decision-
making and optimise processes, driving efficiency and sustainability.
At Antofagasta, we continue developing innovative solutions like the
Daily Plan Optimiser (SIRO Mezcla), which was launched in 2024.
This tool automates daily blending of extracted materials to meet
production targets while respecting operational and mineralogical
constraints.
By replacing manual, time-intensive processes, the Daily Plan
Optimiser generates optimal extraction scenarios, balancing equipment
availability, tonnage and ore quality. It also provides contingency plans
to address unexpected changes, such as fleet availability adjustments.
This level of flexibility enables planners to maintain alignment with
production goals, even in dynamic operational environments.
In 2024, the Daily Plan Optimiser achieved a 100% adoption rate
by the end of the year. The system’s ability to streamline planning
processes, enhance agility and boost productivity underscores its
positive impact.
This initiative demonstrates the benefit of integrating technology into
mining processes to achieve economic and environmental benefits.
The Daily Plan Optimiser not only improves efficiency and cost-
effectiveness, but is a demonstration of our dedication to sustainability.
Case study: Cuprochlor-T®
Primary sulphide leaching has been a long-term goal for the global
copper industry. Primary sulphides represent approximately 70% of
the world’s copper reserves, and the ability to leach these materials
would extend the life of existing SX-EW capacity, which accounts for
approximately 20% of current world copper production capacity.
At Antofagasta, we have developed Cuprochlor-T®, our own
patented primary sulphide leaching technology, which is based
on proprietary chemical leaching technology. We have previously
announced that industrial scale tests have achieved recoveries
of more than 70% of contained copper over a leaching cycle of
approximately 220 days. Recent work has also focused on developing
low-cost methods of heating leach pads for the application of this
technology, in addition to registering patents in key countries and
regions around the world.
During 2024, we continued to advance engineering studies for
applications of this technology within Antofagasta, and progress was
made in respect of commercial validation of this technology with third
parties. A significant number of exploratory tests with third-party
minerals have been initiated, and have systematically delivered
positive results.
Case study: ShovelSense at Centinela
Following a successful trial period, Centinela has fully integrated
ShovelSense technology at one of their shovels: a cutting-edge
solution designed to monitor, in real time, the quality of ore being
loaded by mining shovels. Utilising high-precision sensors and
advanced analytical algorithms, ShovelSense determines material
composition directly at the mine face, delivering critical data on ore
grade and other essential parameters in real time through integration
with the mine Fleet Management System (FMS).
This innovation has significantly improved the efficiency of ore
dispatch to processing plants, enhancing selectivity, improving ore
recovery and preventing waste material from entering the ore stream.
The success of ShovelSense at Centinela has generated interest
across the Centinela District, with similar projects now under
evaluation for deployment on other shovels at this operation. It has
also sparked interest across the wider Group, with similar projects
now under evaluation for deployment at other sites.
Antofagasta plc Annual Report 2024 43
Growth pipeline
We are actively advancing our pipeline
of projects, comprising major growth and
development projects at both Centinela and Los
Pelambres, offering one of the highest levels of
growth amongst pure-play copper producers.
In March 2024, the Group announced the commencement of full
construction of the Second Concentrator Project following the
signature of definitive financing agreements. The project is
expected to produce an annual average of 170,000 tonnes of
copper-equivalent output over its first decade, including 144 kt of
copper, 130 koz of gold, and 3.5 kt of molybdenum.
The project’s estimated capital expenditure on announcement was
$4.4 billion, with approximately 60% of the funding coming from
project finance lending facilities, with the remaining 40% directly
funded by Centinela’s shareholders. This figure was subsequently
reduced by c.$380 million following the completion of the process
to transfer Centinela’s water supply infrastructure, with its
associated expansion.
First copper production is targeted for 2027, with a mine life for
the Centinela District extending to 2060, and this expansion will
make it one of the world’s top copper mines by output. The project
reflects Antofagasta’s commitment to sustainability, for example by
utilising 100% renewable electricity and sea water, to mitigate and
minimise environmental impact.
The Group also has the option to further expand this facility to
150ktpd (Phase 1: 95ktpd), and this is a step that will be evaluated
further in due course, as development work advances.
As at the end of 2024, construction activities are progressing
in line with expectations and on budget, including work on the
camp facilities, ore delivery system, concentrator and tailings
facility. Foundation works and the installation of concrete at the
site of the primary crusher have commenced, in addition to
continued work to pour concrete and earthworks at the planned
concentrator and tailings facility. Key equipment continues to be
shipped to Chile on schedule.
Centinela Second Concentrator Project
170,000 tonnes
of copper equivalent production
Enhancing Centinela’s competitiveness
First-quartile
Moving towards first-quartile production on the global cost
curve through an increased focus on modern technologies
and by-products
Centinela: Second Concentrator Project
Status: Underway (full construction from March 2024)
Capital cost: $4.4 billion (subsequently reduced by c.$380 million
to $4.0 billion following completion of water transaction in June 2024)
Construction timeline: 2024-2027
Operating review continued
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Los Pelambres: Future Growth Enablers
Comprising two major components – (1) desalination plant expansion
to 800 l/s and (2) new concentrate pipeline and El Mauro enclosures.
Status: underway (from 2024)
Estimated capital cost: combined cost of approximately $2 billion
Timeline: 2024-2027 (both projects)
The desalination plant expansion to 800 l/s will move the Group
towards achieving its medium-term target of 90% of Group-wide
water use coming from sea water or recirculated water sources.
Following a successful mobilisation of personnel and equipment during
2024, construction work to increase the capacity of the Group’s
desalination plant is underway, in line with the project schedule.
Construction of the new concentrate pipeline will update a key piece
of infrastructure and will follow a less populated route. Work in 2024
continued in line with expectations and on budget, with activities at the
end of 2024 focused on trench excavation work and the welding of
pipe sections.
Los Pelambres: project pipeline
Los Pelambres: Phase 1 Expansion Project
Status: completed (desalination plant inaugurated in March 2024)
Comprising two major components – (1) construction of a desalination
plant with a capacity of 400 litres per second and (2) an additional
concentrator line, increasing Los Pelambres’ processing capacity
to 190 ktpd (from 175 ktpd). Commissioning began in 2023, with
an opening ceremony held in March 2024.
Through this expansion, Los Pelambres was able to increase ore
throughput rates by 22% in 2024.
Los Pelambres’ Development Options Project
(mine life extension)
Status: Environmental Impact Assessment (EIA) application submitted
in Q4 2024
Estimated capital cost: approximately $2 billion
Timeline: works expected to take place after 2030
Mine life extension beyond 2035, adding a minimum of 15 additional
years by increasing El Mauro’s capacity. The EIA, which was submitted
in Q4 2024, includes the option to increase throughput to an annual
average of 205 ktpd (from 190 ktpd) and the option to enable
a modular increase of any water requirement for the enlarged
capacity of this operation by up to 800 l/s, after the current expansion.
Zaldívar: EIA application
Mine life extension and water transition
Status: EIA submitted 2023, and the Group responded in March 2025
to the latest round comments received.
The ongoing EIA process is an application to extend Zaldívar’s mine life
to 2051, and transition to a sustainable water supply, being either
desalinated water or a third-party water source. The project includes
the development of primary sulphide ore, ensuring continued copper
production through the use of primary sulphide leaching.
Antofagasta plc Annual Report 2024 45
Pre-production and investments
Exploration portfolio: Chile
The Group has a portfolio of exploration projects in Chile, including:
Cachorro (Mineral Resource of 255Mt at 1.26% Cu), and Encierro
(Mineral Resource of 522Mt at 0.65% Cu).
For more details, see page 47 opposite.
Exploration portfolio: Twin Metals Minnesota (USA)
Twin Metals Minnesota is a wholly-owned copper, nickel, and platinum
group metals (PGM) underground mining project. The planned project
envisages mining and processing 18,000 tonnes of ore per day for
25 years to produce three separate concentrates – copper, nickel/cobalt
and PGM. However, further development of the current project, as
configured, is on hold whilst litigation takes place to challenge several
actions taken by the US federal government to deter its development.
Investments: Buenaventura (Peru)
Antofagasta has beneficial ownership of approximately 19% of the
outstanding shares of Compañía de Minas Buenaventura S.A.A.
(Buenaventura), which is Peru’s largest publicly-traded precious
and base metals company and a major holder of mining rights.
Buenaventura has a portfolio of operating mines and exploration
projects in Peru, in addition to a minority stake in the Cerro Verde
copper mine in Peru.
Image: Drilling at Cachorro, Chile
Image: Mineralised drill core, Twin Metals Minnesota.
Image: Inspecting drill core
Operating review continued
Antofagasta plc Annual Report 202446
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Exploration activities
At Antofagasta, we conduct exploration activities with the aim of replacing Mineral Resources
mined at our operations during the year, as well as providing a platform for future, long-term
growth by developing a pipeline of organic growth options. Our strategy is to focus exploration
efforts on a mix of near-mine exploration, greenfield projects and seeking opportunities with third
parties in the Americas with a focus on Chile, Peru, the USA and Canada.
In order to continually develop our pipeline of projects and deliver
stakeholder value through exploration, our Global Exploration Team
manages our exploration efforts.
During 2024, the highlights included exploration deployment in Chile,
the consolidation of the Group’s own exploration efforts in Peru, and
our near-mine exploration programme in Chile.
Chile: greenfield exploration
Our exploration portfolio in Chile continued to focus on the prospective
metallogenic belts in northern and central Chile, with the main
objective being to detect new targets of copper porphyries, strata-
bound deposits, and IOCG (iron oxide, gold and copper) deposits.
During the year, more than 65,000 metres of drilling were completed
on the Group’s Chilean greenfield exploration portfolio, with 70% at the
Cachorro project. Additionally, progress was made in respect of our
programme to prioritise and/or relinquish properties in line with our
five-year portfolio management strategy.
Chile: near-mine (brownfield) exploration
Brownfield exploration efforts in 2024 focused on identifying leachable
resource targets at Centinela, locating new sectors to the north and
south of the district. This work aimed to identify material that can be
integrated into Centinela’s medium-term mine plan.
At Los Pelambres, drilling was conducted to determine the geological
potential of complementary areas for the development of the Los
Pelambres Development Options Project (mine life extension).
In the Antucoya District, a prospective study was carried out to both
evaluate and delineate primary minerals, and district targets were
evaluated ahead of drilling in 2025.
Chile: Cachorro Project
The Cachorro Project is in the western Atacama Desert in northern
Chile, 100 km north-east of the city of Antofagasta and 1,100 km north
of Santiago.
Exploration work at this project continued to focus on known
mineralised bodies through drilling. A new mineral resources estimate
was carried out, resulting in an updated estimate of 255 Mt at
1.26% Cu, representing a 2% increase. This confirms that the
Cachorro deposit is one of the most important manto-type deposits
in the coastal belt of Chile.
In early 2025, the Group submitted a Declaration of Environmental
Impact (DIA) for further exploration work at the Cachorro Project.
This next phase of work includes various forms of drilling, the
construction of access roads, an exploration adit and an expansion
of the existing exploration camp.
Image: Block model and cross
section, Cachorro Project
Chile: Encierro Project
The Encierro Project is in the Chilean High Andes, 100 km east of the
city of Vallenar and 600 km north of Santiago. The deposit is a
complex Cu-Au-Mo Miocene porphyry copper.
During 2024, exploration work continued according to the planned
drilling programme. In addition, new exploration targets were
generated within the property. Reported resources remain unchanged,
comprising 522 Mt grading 0.65% copper, 0.22 g/t gold and 74 ppm
molybdenum (with a cut-off of 0.5% Cu).
Americas
We continued our strategy to focus on exploration within the Americas
during 2024.
In Peru, the copper exploration activities were focused on drill targets
at 100% Antofagasta-owned properties, and on managing a portfolio
of greenfield exploration projects under existing joint ventures.
Specifically, work in 2024 focused on achieving permitting ahead
of plans to test-drill several properties in 2025.
Additionally, exploration efforts in North America remain focused
on the key copper belts in British Columbia and Arizona/Nevada.
Antofagasta plc Annual Report 2024 47
Introduction to Sustainability review
Our approach to sustainability
Our purpose at Antofagasta is to develop mining for a better future,
with sustainability an integral aspect of our business model and playing
a key role within several of our strategic pillars.
Our portfolio of long-life operations requires strong, long-term
relationships with our stakeholders and the environment to be
successful. We consistently manage and co-ordinate our efforts across
our portfolio in respect of safety, emissions reduction, biodiversity and
integrating circular economy principles, among other areas.
Sustainability is integral to a number of other day-to-day processes
associated with our operations and projects, such as our ongoing
Environmental Impact Assessment (EIA) applications at Los Pelambres
and Zaldívar, and we produce a wide range of external reports, such
as the Sustainability Report and Climate Action Plan, which are
available on our website.
Sustainability programme
We have a clear, well-developed programme for developing
sustainability practices within our business, as we understand the
importance of being a responsible operator. This approach includes
forward-looking targets and ambitions, including those related to
emissions, water use and workforce diversity, which illustrate our
expected pathway and level of ambition in each area.
At Zaldívar we are working with the local authorities for the EIA
related to extending this project’s mine life to 2051, progressing this
application during the course of 2024. As a longer-dated initiative,
the Los Pelambres’ Development Options Project (mine life extension)
is one area where work is not expected to commence until the early
2030s but was nevertheless a significant area of focus during the
year, with the EIA for this project submitted in late 2024.
Demonstrating this approach in 2024
Our safety performance is a clear demonstration of our focus
on sustainability, with operations once again delivering a result
ahead of our industry peers, and another fatality-free year.
Centinela and Zaldívar were the first mines in the world to complete
the re-certification process for the Copper Mark under the new
33 criteria framework, and we received further external recognition
such as inclusion in the FTSE4Good Index and positive ratings
following sustainability assessments.
Looking ahead to 2025, we are increasing our focus on biodiversity
following the publication of the Taskforce on Nature-related Financial
Disclosures (TNFD) roadmap in October 2024, and we will continue
to progress the various EIA processes that we have underway.
Read more in our Sustainability Report at www.antofagasta.co.uk
Suppliers
$5,369m
Payments for the purchase
of utilities, goods and services
Communities
$49m
Social investment programmes
Lenders
$327m
Interest payments
$7,580m
Our total economic
contribution to society
(2023 – $7,249m)
Shareholders
$317m
Dividends
Subsidiaries’ non-
controlling shareholders
$240m
Dividends
Employees
$605m
Salaries, wages and incentives
Delivering sustainable economic value
“Sustainability is an integral aspect of our business model and
plays a key role within several of our strategic pillars. Our portfolio
of long-life operations requires strong, long-term relationships
with our stakeholders and the environment to be successful.”
ALEJANDRA VIAL
Vice President Sustainability
Sustainability review
Governments
$673m
Income taxes, royalties and other
payments to governments
Antofagasta plc Annual Report 202448
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Our approach to sustainability
Sustainability governance
BOARD
The Board is responsible for analysing, leading and monitoring sustainability policies and best practices.
SUSTAINABILITY AND STAKEHOLDER
MANAGEMENT COMMITTEE
•
Supports the role of the Board.
•
Makes recommendations to ensure that sustainability topics
are included in the Board’s ongoing decision-making.
•
Supervises the community and environmental dimensions
of sustainability and human rights policies.
•
In 2024, the Committee met six times to assess
the organisation’s priorities.
AUDIT AND RISK COMMITTEE
•
Supports the role of the Board.
•
Responsible for reviewing sustainability-related financial
information and disclosures.
•
Risks associated with sustainability, which is one of our
five strategic pillars, are monitored to identify degrees
of uncertainty and allow us to adopt measures in a timely
fashion.
Monitoring sustainability and safety-related risks
Growing levels of risk impose new challenges that require an
integrated approach. In 2024, we updated our sustainability and
safety risks matrix, applying a double-materiality approach and
incorporating relevant changes according to the new challenges.
At Antofagasta, we conduct rigorous evaluations of the possible
risks that could affect our long-term sustainability. The Board
examines each one thoroughly to assess its impact and probability
of occurrence.
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Sustainability and safety
strategic pillar Level of risk
Health and safety
Environmental management
Climate change
Community relations
Political, legal and regulatory
Corruption
Low Medium High Very high
Antofagasta plc Annual Report 2024 49
Background
Our previous materiality assessment was conducted in 2022, following
the publication of updated Global Reporting Initiative (GRI) Standards
in 2021. This process was a single materiality assessment, with the
results presented in our Annual Report and Financial Statements for
2022 and 2023.
The process completed in 2024 represents a double materiality
assessment, whereby the effect of our activities on stakeholders and
the environment is assessed in tandem with an assessment of the
effect on our business of the actions of our stakeholders and any
potential change to the environment in which we operate.
The double materiality analysis was completed across a range of
environmental, social and governance topics, including the topics
previously considered in the 2022 assessment and additional
emerging topics.
Purpose
The double materiality process enables companies to assess and
report not only the direct financial impacts on the Group, but also how
the Group’s activities affect society and the environment. After
completing this assessment, companies are better positioned to
understand the risks and opportunities related to sustainability. We also
believe that the completion of this exercise is a demonstration of our
commitment to industry best practice and the reputational benefits of
a clear and transparent approach to different sustainability topics.
Methodology and approach
Through a process of stakeholder engagement to identify and assess
the material issues that are of common interest to our stakeholders,
we have identified the range of topics shown in the matrix opposite.
This was developed in order to create an improved understanding
of each area’s potential to impact our ability to create value over time.
The materiality matrix is an integral part of our planning process and
helps support our approach to sustainability and sustainability policies.
The double materiality assessment process was conducted using the
guidelines of the new standard recommended in the European
Sustainability Reporting Standard (ESRS): Double Materiality.
Through this, we identified our material topics, the main impacts that
people or the environment have on our organisation – both risks and
opportunities – and how our activities may impact, or have the
potential to impact, the ecosystem in which we operate.
Our Board of Directors is responsible for reviewing and approving
the content of both our Annual Report and Financial Statements,
and Sustainability Report, where this information is presented and
describes the material topics identified by this process.
Sustainability review
Materiality assessment
In 2024, we updated our understanding of the potential material risks, opportunities and impacts
facing our business. Through a double materiality assessment, we looked at our impact on society
and environment in tandem with how sustainability issues affect us.
Double
materiality
assessment completed with a four-stage process
Topics considered
80
across a range of environmental, social
and governance issues
Material topics identified
19
with a determination of the relative likelihood
of occurrence and potential financial impact
Categories were assessed for their severity (scale, scope and – in the
case of negative impacts – the ability to address any impacts) and
probability of an event.
The process undertaken comprised four stages:
•
Step 1: Diagnostic – An initial review of industry standards and
frameworks, internal information, peer benchmarking and other
sources of information, and interviews with senior management and
external experts to determine an outline list of potential risks,
impacts and opportunities for the Group.
•
Step 2: Evaluation and validation – A review of the Step 1
outcomes, consolidating the identified potential risks, impacts and
opportunities into topics, and a quantitative assessment of the
severity and probability of an event in each category. With this
information, a Group-level review enabled us to prioritise the
identified topics and identify potentially material events and/or
topics.
•
Step 3: Materiality assessment – Validation of the thresholds for
materiality and determination of material topics. The full range of
topics were considered collectively, with a range of outcomes for
each topic.
•
Step 4: Matrix construction and validation – Following the
process outlined above, a single matrix for Antofagasta plc was
produced and agreed with the Group’s Executive Committee.
Antofagasta plc Annual Report 202450
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Materiality assessment: results
In total, 80 subtopics were considered in the materiality assessment,
with 32 external impacts. A total of 48 subtopics represented financial
risks and opportunities for the Group’s activities.
A total of 65 of the 80 subtopics were determined to be above the
Group’s materiality thresholds, that once aggregated, left a total of
19 material topics, following internal meetings to validate the study’s
initial findings. These material topics are those positioned presented
in the matrix shown above.
Of these topics, the following three are considered to have the greatest
impact (being the highest ranking along the y-axis on the matrix):
•
Respect for human rights;
•
Climate change and decarbonisation; and
•
Sustainable economic growth.
Four others are considered to have the highest potential financial
impact (being the highest ranking along the x-axis on the matrix):
•
Health and safety culture;
•
Sustainable economic growth;
•
Water management; and
•
Tailings management.
The following sections aim to summarise our approach to, and
management of, a number of the topics identified in the 2024
materiality assessment, with our Sustainability Report and
Sustainability Databook providing a more extensive overview of our
approach to sustainability (both available at www.antofagasta.co.uk).
Double materiality matrix Antofagasta plc 2024-2025
IMPACT MATERIALITY
FINANCIAL MATERIALITY
MODERATE
MODERATE
HIGH
HIGH
VERY HIGH
Governance Social
Environment
Sustainable
economic growth
Tailings management
Environmental management
Water management
Collaborative
labour relations
Talent attraction, retention and development
Continuous adaptation to the environment
Innovation
Regulatory transformation
and compliance
Climate change and
decarbonisation
Responsible sourcing
Biodiversity
Workforce wellbeing
Diversity and inclusion
Circular economy
Relationship and engagement with
communities and indigenous peoples
Respect for human rights
Health and
safety culture
Cyber security
VERY HIGH
Antofagasta plc Annual Report 2024 51
A significant part of this process has been to communicate a clear
understanding of each individual’s role and function, to identify
potential safety hazards and responsibilities, and to empower
individuals to drive continuous improvement in our safety performance.
Safety in 2024
During the year, the Group again maintained its fatality-free record
across all operations, with key indicators of safety – frequency rates
for both lost time injuries and total reportable injuries – declining year
on year in 2024. We were also pleased to report that Zaldívar
registered no high-potential incidents in 2024, which is a key leading
indicator of safety, and a significant result for this operation.
In delivering this result, efforts in 2024 focused on three areas – risk
identification and management, leadership, and training. In relation
to risks, the Group has implemented a revised Operational Excellence
Management System (OEMS, see more on page 41), aimed at making
operations more productive and performance more sustainable.
A primary purpose of this approach is to learn from safety-related
events and eliminate repeat safety incidents.
With respect to training and visible leadership on safety, we continue
to host high-visibility tours of our operations as well as ensuring that
senior leaders speak regularly on safety-related topics. In September
2024, our Chief Operating Officer hosted a safety day in a hybrid
format, with more than 3,000 members of our workforce across our
operations in attendance. This workforce engagement helped to
generate over 900 employee-led safety proposals. In training, efforts
in 2024 centred on the standardisation of critical tasks to ensure that
these are well understood and that protocols are followed.
During the year, we introduced a new focus on safe shift changeovers,
as these had been previously identified as a key area of operations
where risks could be introduced. Safety is a key component of the
OEMS, demonstrating its central role in our efforts for continuous
improvement.
For example, the Group implemented collision avoidance systems
in mobile mining equipment at all mining operations in 2023.
These promote safer driving by warning operators if another vehicle
(light vehicle or mining equipment) is detected within a specific
distance. Work in 2024 for this project pivoted to implementation
and testing, and it is expected that such systems will embed long-term
gains in safety performance. To illustrate the scale of this project,
systems at Centinela were installed in over 300 vehicles, including
more than 120 units of mining equipment, making it the largest
deployment within our portfolio of operations.
Health
and safety
Health and safety remains a key focus area
across the Antofagasta portfolio, with a goal
of maintaining the wellbeing of each member
of the Group’s workforce. Through careful
monitoring of a range of leading and lagging
indicators of safety, and a well-developed
network of initiatives to promote health and
safety, we aim to create and maintain a safety-
first mindset and culture in all our activities.
Sustainability review continued
Fatality-free operations
Zero
Registering another year of fatality-free
operations.
Strong performance continues – LTIFR
0.57
Maintaining a lost time injury frequency rate
ahead of industry benchmarks.
Health and wellbeing
78%
Registering a 78% reduction in the occupational
illness frequency rate to 0.04 in 2024.
Antofagasta plc Annual Report 202452
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
2024 2023
Five-year
average
2
%
(vs. average)
Lagging indicators
1
Fatalities 0 0 0.2
3
–
Lost time injury frequency
rate (LTIFR) 0.57 0.63 0.93 -39%
Total reportable injury
frequency rate (TRIFR) 1.62 1.81 2.56 -37%
Leading indicators
1
High-potential incidents 21 34 89 -76%
High-potential incident
frequency rate 0.06 0.10 0.31 -81%
Occupational illness
frequency rate 0.04 0.19 N/A –
1. Injury and occupational illness frequency rates provided in the table above cover both
employees and contractors and are all calculated per million hours worked. High-potential
incident frequency rate is per 200,000 hours.
2. Five-year trailing full-year average (2019-2023).
3. One fatality recorded during the past five full-year periods (2021).
Risk management: operational health and safety
The management of health and safety-related risks is led by constant
dialogue between the areas where high-potential risks have been
identified, with involvement from key individuals in each area.
This programme’s goal is to prevent (a) fatalities, (b) high-potential
incidents, and (c) the exposure of people to occupational health risks.
Additionally, we focused on the critical controls required for the
consolidation of the Planned Task Risk Assessment tool, which we
have introduced for all routine and non-routine baseline tasks.
This framework is applicable to 100% of our operations and the
internal workforce, in addition to contractors. We also reaffirmed that
responsibility for this process lies with the owners of each identified
risk and the control owners of the organisation’s operational areas.
A baseline of occupational health risks has now been identified as
a preventive measure to avoid occupational illnesses in future periods,
and the effectiveness of critical controls has been verified at each
of the Group’s mining operations.
Health and wellbeing
In respect of performance in 2024, the number of individuals with
high-risk indicators of occupational health conditions (noise) fell by
93% to 10 in 2024, with the detection of both temporary and
permanent conditions decreasing by 100% and 75% respectively.
These improvements are linked to the Group’s recent success in
reducing exposure levels to factors such as noise and dust.
In 2024, there were three cases of permanent occupational illness
due to hearing loss, comprising two employees and one contractor.
Workers have access to periodic occupational exams and various
monitoring programmes according to their associated risks (for
example, exposure to silicosis, hypobaric conditions, sleep hygiene), in
addition to the annual influenza immunisation campaign. Each company
within our Mining Division has its own joint working committee that
meets once a month with representatives from each contractor
company, to advise and instruct staff on the correct use of protective
equipment. Additionally, the committees monitor compliance with
prevention, hygiene and safety measures.
Risk management: wellbeing
The prevention of work-related psychosocial risks continued
throughout 2024, consolidating occupational health processes,
preventive hygiene, medical surveillance, and early management
of any potential incident of occupational health.
In terms of mental health, we managed psychosocial risk alerts in
a timely and efficient manner by setting up technical committees in
each operating company. Together with the areas of labour relations,
diversity and inclusion, and compensation and wellbeing, we developed
a new control strategy titled: “Management of people with health
variables that represent an occupational risk”. We also documented
an occupational health baseline in contractor companies and began to
transfer our health standards to them. During the reported year, we
implemented our occupational health risk management process across
all our contractors and subcontractors.
Health and safety: looking ahead
Following the reduction in high-potential incidents (HPIs) in 2024,
including a year of zero HPIs at Zaldívar, we are looking to learn from
this success and replicate it elsewhere in our portfolio.
With respect to health and wellbeing, we continue to monitor exposure
levels (relating to dust and noise for example) in high-risk areas,
to effect a long-term improvement in workplace environments.
Case study: supervisor leadership programme
All four companies within the Mining Division are now in the
second year of implementation of the four tools developed for
our Leadership Programme: a planning tool for risk analysis,
known locally as the Análisis de Riesgo de la Tarea Planificada
(ARTP) or Planned Task Risk Assessment; the standardisation
of supervisor work shifts; role confirmation; and process
confirmation. Co-ordination of these areas comes under the
Group’s revised Operational Excellence Management System
(OEMS, page 41 for more information).
A focus during 2024 was the development of this programme
into its implementation, adherence, and maturity phases, with
the OEMS enabling a continuous approach to delivering
improvements, for safer and more productive operations.
Additionally, to enhance supervisors’ skills, the Leadership
Programme focused on the following areas:
•
Risk analysis of planned tasks, which is incorporated into the
operational model.
•
Shift change protocols, to ensure effective information
transfer.
•
Role confirmation, to model expected practices or behaviours.
•
Process confirmation, to identify opportunities for
improvement in key occupational health and safety elements
and ensure the completion of the task execution process.
Antofagasta plc Annual Report 2024 53
Sustainability review continued
People
Our workforce is a crucial part of our
operations and fundamental to our business
model. We strive to offer quality employment
and working environments that promote
development, which provides a platform for
collaborative labour relations.
Total workforce
29,877
people, including employees, permanent
contractors and temporary contractors.
Training provision
33%
increase in the training hours provided
to each employee in 2024 (72 hours).
Gender balance in recruitment
47%
of new starters were women in 2024, as we
move towards a more balanced workforce.
We have a workforce of more than 29,800 people, including
employees, permanent contractors and certain temporary contractors
associated with projects, collectively representing a key stakeholder
group for the Company. We aim to provide development opportunities
to everyone working across our business. In terms of location,
approximately 99% of our workforce is based in Chile.
Prioritising local employment is a key aspect of our engagement with
the communities in the regions where we operate, and 55% of our
employees are residents of the regions in which we operate.
We focus on attracting, retaining and developing talent to provide the
capabilities needed to achieve our business objectives. Our initiatives and
programmes are based on the following key themes: attracting talent
and learning, leadership development and integrated talent management.
Training
A clear and effective approach to workforce training is an essential
part of delivering production in a safe and sustainable manner.
Through safety training, the Group aims to protect each individual
and to ensure that everyone completes their shift safely.
Longer term, training helps to create a positive working environment
and culture in which individuals can grow and develop their careers.
In 2024, the Group provided on average the equivalent of 72 hours
of training to each employee (2023: 54 hours), with operators in the
Mining Division receiving the highest level of training (90 hours).
Case study: Leadership and Diversity Academy
Within our focus on retaining and empowering our talent, in 2024
we designed and implemented a new Leadership and Diversity
Academy. Its purpose is to promote the development of behaviours
and skills that support the Mining Division’s inclusive leaders, so
that they can leverage the Group’s strategy and meet the
challenges of the business in an environment of respect.
In 2024, following changes to the Mining Division’s Leadership
Seal, we developed training programmes for various roles
within the organisation from senior executives to operators.
Skills such as feedback, development conversations, and the
strengthening of team commitment and respect were enhanced.
To date, over 4,200 individuals have participated in this
refreshed version of the Leadership and Diversity Academy.
Balanced workforce
Overall, female representation in our workforce reached 26.6% at the
end of 2024, (24.8% average for the year) and we continue to
progress towards reaching our target of 30% by the end of 2025.
In 2024, we recorded another year of recruitment close to gender
parity, with female recruitment representing 47% of new hires across
the Group (2023: 52%). This more balanced approach to recruitment
is expected to drive further progress towards gender equality
throughout our business over the medium to long term.
Antofagasta plc Annual Report 202454
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With reference to disability inclusion within our workforce, we continue
to exceed the Chilean requirement for a minimum of 1% of our workforce,
reaching 2.0% at the end of 2024 (1.6% average for the year).
As at the end of 2024, Antofagasta corporate offices were certified,
and the Group’s Transport Division (FCAB) was re-certified, to the
Chilean Norm 3262, which is a voluntary management system that
establishes requirements to promote gender equality and the
reconciliation of work, family and personal life within enterprises.
It is expected that the certification process for the Group’s mining
companies in its Mining Division will continue in 2025.
Female representation in management
2024 2023
2
Executive Committee
1
Male 9 75% 9 82%
Female 3 25% 2 18%
Senior management
2,3
Male 26 72% 24 69%
Female 10 28% 11 31%
Direct reports to the Executive
Committee
Male 54 76% 57 79%
Female 17 24% 15 21%
Overall employee workforce
4
Male 5,940 73% 5,926 76%
Female 2,155 27% 1,827 24%
1. Members of the Executive Committee that report directly to the CEO, as shown on pages
119 and 120.
2. Includes all members of the Executive Committee, including those who do not report
directly to the CEO, as shown on pages 119-121 and directors of subsidiaries as defined
in The Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013.
3. 2023 figures for Senior management and Direct reports to the Executive Committee have
been restated.
4. Number of persons who were employees of the Group. The number of persons of each
sex who were Directors of Antofagasta plc at the end of the financial year is shown
on page 127.
Read more about workforce engagement on page 112
Collective labour relations
Antofagasta respects the rights of its workforce to participate in trade
unions and collective bargaining and aims to engage proactively with
unions at its operations. Our mining operations have 11 unions: four
in Centinela, three in Los Pelambres, two in Zaldívar and two in
Antucoya. 5,046 of our workers are covered by collective agreements,
representing 77% of our workforce. In our Transport Division, we have
five unions present, representing 72% of the workforce.
During the year, we concluded a three-year labour agreement with
a workers’ union at Centinela, with discussions completed ahead of
schedule. This was the only agreement due to expire in 2024, with
four agreements due to expire in 2025.
New legislation
During 2024, Chilean authorities enacted three new laws that changed
operating practices: the Economic Crimes Law (Law No. 21,595),
Labour Code amendments relating to workplace harassment (Law
No. 21,643), and the phased adoption of the 2023 Labour Law (Law
No. 21,561) reducing the working week in 2024 to 44 hours, and
gradually progressing to 40 hours in 2028.
Chile’s Economic Crimes Law, which came into effect in September
2024, aims to consolidate and systematise various legal instruments
under a single umbrella of economic crimes. It expands the range
of criminal offences for which a company can be held liable and
introduces both personal liability for senior leaders at companies and
new environmental offences.
Chile’s 40 hours law aims to progressively reduce the working week
over a series of years, with the first reduction in 2024 to 44 hours
(previously 45 hours), 42 hours in 2026 and 40 hours in 2028.
The Company’s operations were able to adopt a 44-hour working
week in the form of 4x3 shifts, without inconveniencing the operations
and by mutual agreement with the workforce.
The Group remains in compliance with the laws of Chile, including
the new and amended laws outlined in this section.
Responsible employer
At Antofagasta plc, we are committed to paying ethical wages (living
wages) to 100% of our employees and contractors, which, as of
December 2024, were 26% higher than the Chilean legal minimum.
Case study: Antucoya wins award for labour relations
In November 2024, Antucoya won the annual labour relations
award presented by the Carlos Vial Espantoso Foundation and
the Pontificia Universidad Católica de Chile. The award
recognises companies that stand out for their excellent labour
relations and that actively promote the wellbeing and
development of their workers, in areas such as talent
management, leadership and professional development,
compensation and relationships with unions, and innovation.
Antucoya also received the “Triple Impact” award, which
recognises companies for taking co-responsibility for the
wellbeing of workers and their relationship with the community
and the environment.
Sustainability goal: balanced workforce
30%
Female participation rose from 8.8% in 2018 to 26.6% in 2024,
moving towards our 30% goal by the end of 2025.
2024202320222021202020192018
8.8%
10.4%
14.7%
17.2%
20.4%
23.6%
26.6%
Balanced workforce: female representation
Antofagasta plc Annual Report 2024 55
Sustainability review continued
At Antofagasta, water use at our operations is primarily centred on the
processing of ores: it is essential for moving material through our
concentrators, beneficiating ores to produce concentrates and treating
ores at our SX-EW operations to extract copper in the production of
cathodes. Responsible extraction, use and recycling of water are all
important aspects of our purpose of being a responsible mining
company.
Year in review
Sea water sources represented 58% of total water extraction by the
Group’s Mining Division in 2024, representing a consistent result
year-on-year (2023: 60%).
In March 2024, the Group inaugurated the first phase of its
desalination plant for Los Pelambres, representing a major investment
and a technological response to lower water availability in the
Coquimbo Region of central Chile where the mine is located.
This 400 litres per second facility, located at our port facility at Los
Vilos, now supplies approximately half of Los Pelambres’ water needs
and is contracted to operate on 100% renewable electricity.
In the north of Chile, Centinela and Antucoya’s operations have used
raw sea water for a number of years, with both plants configured
to handle saline water in processing. Local water wells were closed
in 2022, and therefore these operations run on 100% sea water.
At Zaldívar, an Environmental Impact Assessment (EIA) application
was submitted in 2023 to begin a phased move to either sea water
or third-party water sources. More information on this process is
available in the Growth Pipeline section on page 44.
Operationally, the Group upgraded its water management department
to a standalone function in 2023 and strengthened its water
governance system for all mining operations in 2024. The system now
includes plans, monthly reporting and goals related to water use at
each mine. During 2024, the first stage of the Water Data Platform
was developed, which allows for detailed monitoring and reporting
of the Group’s key metrics.
Water usage in the Group’s Transport Division (FCAB) principally
relates to potable water consumption in the division’s corporate offices
and is therefore not considered material for the purposes of this
report.
Water withdrawals
(Figures in GL unless stated otherwise) 2024 (% of total) 2023 (% of total)
Sea water 59.8 (58%) 48.8 (60%)
Surface water 23.3 (23%) 15.2 (19%)
Ground water 19.5 (19%) 17.9 (22%)
Total 102.6 81.9
Water
Water is an essential resource for both
communities and mining companies. In Chile,
changing environmental conditions mean that
continental water is an increasingly scarce
commodity.
Key highlights
Sea water extraction in 2024
58%
Sea water represented 58% of total water extracted in 2024,
in line year on year (2023: 60%).
Investment in water
$1 billion
investment announced for doubling the Los Pelambres
desalination plant to 800 litres per second.
Sea water sourcing at Centinela and Antucoya
100%
sea water usage since the closure of continental wells in
2022.
Antofagasta plc Annual Report 202456
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Applying innovation to increase water recoveries
At Los Pelambres, we are aiming to further enhance the recovery
of water at our tailings facility. Pilot tests are underway for the
recovery of water generated when producing sand in the construction
of the tailings dam. Initial results in 2024 were positive, with an 80%
recovery of water, and as a result this initiative has been progressed
to a pre-feasibility study.
At Centinela, pilot tests are also underway with a flocculant that helps
speed up the separation of tailings and water at the tailings dam,
enabling us to recover more water before it is lost to evaporation or
entrained within the tailings deposit. Initial results from small-scale
tests have indicated that this technology could improve water
recoveries by up to 20%.
Cutting evaporation at storage ponds
An economic feasibility analysis is being developed for measures to
reduce evaporation from the water ponds at Antucoya, which has
already led to the implementation of a pilot-scale test to cover pools
with floating elements. In addition, Zaldívar has carried out two pilot
tests to reduce water evaporation, one involving the coverage of leach
pads and another through the introduction of a chemical additive in its
storage ponds.
Looking ahead
Following the ramp-up of the desalination plant at Los Pelambres with
a nameplate capacity of 400 litres per second, and the successful
delivery of water to Los Pelambres, a key priority for the coming years
will be to maintain the construction schedule for the expansion of this
facility to 800 litres per second.
At Centinela, existing water infrastructure will be expanded to supply
the Second Concentrator Project for its completion in 2027,
maintaining this project’s reliance on 100% raw sea water as it
expands.
We are also continuing to work with the authorities in relation to
Zaldívar’s EIA application, which aims to migrate this operation to sea
water or third-party sources. For further details, see page 37.
Sustainability target: water
90%
of the water use by our operations should be sea water and/
or recirculated water, once our desalination plant at Los Pelambres
reaches its expanded capacity of 800 litres per second.
2019 2020 2021 2022 2023 2024
42.8
59.8
32.6
28.2
38.9
29.0
37.7
31.3
39.7
33.1
33.1
48.8
100
80
60
40
20
0
Continental water
Sea water
2024: a year of major water projects
At Los Pelambres, work is already underway to expand the
desalination plant to 800 litres per second, despite only recently
completing the first phase (400 litres per second). More details
of this project are available on page 45.
Separately, Centinela completed a process in 2024 to outsource
the management of existing water infrastructure, and the
planned expansion of this system, to an international
consortium. See page 44 for more information.
Case study: advanced analytics in water monitoring
At Los Pelambres’ main tailings facility, El Mauro, our Water
Planning team uses a water balance model to understand the
bathymetry (water depth) at the facility. This joint project with
our Advanced Analytics team enables us to model water loss
and monitor water profiles for the safe operation of this facility.
Mining Division water withdrawals (GL)
Antofagasta plc Annual Report 2024 57
Sustainability review continued
Our social management model is based on four lines of action:
(1) open and collaborative relationships with stakeholders through
a multi-stakeholder methodology, (2) effective implementation of social
investments, (3) measurement of the impact of our social investments
and (4) monitoring and management of social and community risks.
Each of these components has its own standard, to ensure the correct
application of principles, methodologies and relationship practices in
the territories where our operations are located.
Impact measurement
Since 2018, and as part of our impact assessment ecosystem,
we periodically measure the impact of our social programmes in the
territories where we operate in the Antofagasta Region and in the Choapa
Province, using the Theory of Change and Social Return on Investment
(SROI) tools, as well as the Territorial Human Wellbeing matrix, which
integrates information from public data related to the territory. At the
Group level, by the end of 2024, we had measured the impact of more
than 20 initiatives and processes for social management.
Citizen Participation process developed
To help with incorporating local community views into the planning
process for major projects, the Chilean Environmental Assessment
Service allows project owners (such as Antofagasta) to set up voluntary
participation processes with the stakeholders involved, typically
communities and social organisations. During 2024, progress was made
in Early Citizen Participation for the Los Pelambres Development Options
Project (mine life extension), ahead of an Environmental Impact
Assessment (EIA) presentation in Q4 2024, which is currently in the
formal participation process until the end of Q1 2025. As part of the
voluntary process we organised “open house” community consultation
sessions in Salamanca, Illapel, Chillepín, Los Vilos, Caimanes and Pupío.
In addition, Zaldívar took charge of the observations collected during
a second Citizen Participation process promoted by the Environmental
Assessment Service, in connection to its proposed mine life extension
and associated EIA application.
Year in review: Los Pelambres
We have operated alongside communities in the Coquimbo Region
since the 1990s, and 2024 represented our 25
th
year of operations,
during which time we have generated significant stakeholder value in
the area. In 2024, 31% of Los Pelambres’ suppliers were located in the
Coquimbo Region, 52% of the workforce live locally and Los
Pelambres paid a total of $481 million in taxes.
Key programme: Somos Choapa – celebrating ten years of projects
A significant aspect of Los Pelambres’ community engagement is the
Somos Choapa Programme, which supports the Choapa Valley, where our
mining and processing operations are located. This programme celebrated
its tenth year of operation in 2024 – a decade in which the programme
Communities
Our approach to social management is
characterised by our commitment to public-
private partnerships and inclusive dialogue with
communities. We operate a multi-stakeholder
platform that we use to understand people’s
concerns and address them with relevant
initiatives that add value; and through dialogue
we aim to achieve solutions that are
representative of communities’ goals.
Generating local value for stakeholders
$6,023 million
of value generated in 2024 through salaries, contractors
and local community support (2023: $5,539 million).
Providing local employment
55%
of our employees are residents of the regions
in which we operate.
Local economies
93%
of our suppliers are Chilean businesses.
Antofagasta plc Annual Report 202458
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Case study: sponsoring Chile’s Olympic heroes
As part of our community engagement programme, we
understand the importance of role models in sport for promoting
healthy lifestyles. At the Paris Olympics and Paralympics in 2024,
Antofagasta sponsored nine Chilean athletes attending the games.
This followed our sponsorship of the Pan American and Parapan
American Games that were held in Santiago in 2023.
Case study: opening new schools
In December 2024, the Chilean Ministry of Education inaugurated
the new infrastructure of the Canela Alta Primary School, located
in the commune of Canela. The establishment, which replaces
one severely damaged in the 2015 Illapel earthquake, has begun
operating in 2025. The design of the building was financed by Los
Pelambres, through the Somos Choapa Programme, and CORE
(the Regional Council) approved a budget of more than $15 million
for its construction. The new 6,000 m² building is one of the most
modern school facilities in Chile, and includes canteen facilities,
boarding rooms, multi-purpose sports courts, a library, and
dedicated rooms for arts and music.
The Canela Alta Primary School is the result of collaborative work.
Through Los Pelambres, we were able to finance the design, which
was also shaped by input from the entire school community:
parents, teachers, assistants and pupils. This participatory design
reflects the feelings and aspirations of the Canela community.
and community practices, and helping ecosystems support native
species. Examples of such work in 2024 laying the first stone for the
conservation and regeneration project of the Tambo de Camar,
a pre-Hispanic building located on the Inca Trail, which was declared
a World Heritage Site in 2014. In education, we held Collaboration
agreements with regional universities (Universidad de Antofagasta and
Universidad Católica del Norte) in the areas of training, research and
outreach actions. In training, the aim is to contribute through projects
and initiatives that promote the training and the reduction of gaps in
access to undergraduate and graduate education. A key programmes
are “propaedeutic” and “School Link”, which benefitted 292 students in
the last two years of secondary education from selected schools in the
city of Antofagasta, Mejillones and María Elena.
Year in review: Transport Division (FCAB)
Antofagasta’s Transport Division is headquartered in the city
of Antofagasta and has rail and road haulage operations throughout
the Antofagasta Region. As a result, its stakeholder groups are more
diverse and geographically spread out than those typically connected
to a mine, so it has its own tailored community engagement
programme that includes a focus on healthcare and on promoting
diversity and inclusion. In 2024, for example, FCAB continued its
reforestation campaign with the Antofagasta Regional Hospital,
planting trees for every child treated in the hospital’s paediatric
critical care unit.
Key programme: FCAB rail yards restoration
FCAB is a business with a history dating back to the late 1800s,
when its railways were constructed to transport nitrates and other
goods from the interior of Chile and Bolivia. After over a century
working out of a city centre location in Antofagasta, known as the
Bellavista Yard, FCAB is in the process of relocating its rail yards to
a larger, more modern site at the Group’s port at Mejillones. As part
of this planned move, FCAB is transforming its vacated 48-hectare
site into an area for community use and redevelopment, after
a multi-year phase of remediation work was completed in 2024.
As part of the plan, 20% of the Bellavista Yard will be planted with
trees, promoting biodiversity and giving the community nearly six
hectares of communal space, representing an additional 7% of green
space for the city of Antofagasta.
Looking ahead
In addition to our ongoing projects, specific areas of focus in 2025 will
be our second cycle of Somos Choapa, with a focus on resilience to
climate change and fostering social improvement; and in the northern
operations, the deployment of the employability strategy.
established work agreements for the development of the various
communities. Projects have been agreed and managed with municipal
teams, social organisations, technical teams and allied foundations in a
participatory and transparent manner. During the decade of activities, we
have overseen and invested in more than 150 projects related to water
supply, education and culture, health, and community infrastructure. Over
this period, support has been provided to more than 6,400 local
entrepreneurs and over 8,000 local individuals that have the right to
irrigate land for activities such as farming. During 2024, to mark Somos
Choapa’s tenth anniversary, the Group presented the achievements and
lessons learned from this programme at the Regional Commitment
Seminar in Coquimbo, an event collectively organised by a local
newspaper (El Día), the Regional Development Corporation (CIDERE),
Chile’s Catholic University of the North, and Los Pelambres.
Somos Choapa includes programmes to support water consumption and
sanitation; and the efficient use of water resources, including the
APRoxima and Confluye programmes. For example, during 2024, as part
of the APRoxima initiative, 144 water sensors were installed across the
communities of Canela, Illapel, Los Vilos and Salamanca to allow for data
collection in 2025 in order to optimise water management practices and
usage. The Confluye Programme operates in conjunction with the local
authority that manages water use in the local area (“Junta de Vigilancia de
los ríos Choapa, Chalinga e Illapel”), with an additional CLP 300 million
(cumulative) investment (c.$350,000) made through this programme to
improve water transport to local communities through the construction of
canals. We also co-finance the public-private water research consortium
Quitai Anko, led by Chile’s University of La Serena. This initiative’s original
five-year plan started in 2019 and has now been expanded to include the
rest of the Coquimbo Region and the neighbouring regions of Atacama
and Valparaíso, which are suffering similar levels of water stress.
Year in review: Northern Operations
In the north of Chile, which is less densely populated, community
engagement efforts focus on internet connectivity for communities,
training and education, the preservation of local heritage, languages
Antofagasta plc Annual Report 2024 59
Biodiversity
Biodiversity protection is part of our long-term
sustainability approach and policy. We aim to
deliver a net zero loss of biodiversity by
minimising the impact of our operations,
and by working to mitigate and compensate
for potential negative effects.
Our biodiversity management efforts span the full lifecycle of our
mines, from the early stages of exploration through to development
and operations. We operate in accordance with local regulations,
international standards, International Council on Mining and Metals
(ICMM) principles and commitments, and the mitigation hierarchy.
ICMM position statement on biodiversity
In 2024, under the tenure of our CEO, Iván Arriagada, who at the time
was Chair of the ICMM, members committed to take urgent action to
support a nature-positive future by 2030, which promotes the health,
diversity and resilience of species, ecosystems and natural processes.
Reflecting the Position Statement on Nature of the ICMM, Antofagasta
is committed to:
1. Respect legally designated protected areas and ensure that any new
operations or changes to existing operations are not incompatible
with the objectives for which the protected areas were established.
2. Not explore or mine in UNESCO World Heritage sites. All reasonable
steps will be taken to ensure that existing operations in World
Heritage sites, as well as existing and future operations adjacent
to World Heritage sites, are not incompatible with the outstanding
universal value for which these sites are listed and do not put the
integrity of these sites at risk.
3. Assess and address material risks and impacts to biodiversity and
ecosystem services by implementing the mitigation hierarchy
actions specified in the Position Statement to achieve a minimum
of no net loss, or net gain, of biodiversity by completion of closure.
In accordance with our Biodiversity Standard and aligned with the ICMM’s
commitments, we seek to protect wildlife around our mining sites.
Protecting nature sanctuaries
Los Pelambres is situated in Chile’s Coquimbo Region, where
businesses and communities operate in close proximity to wildlife
and natural habitats. We work directly with the relevant local
authorities to support activities in four nature sanctuaries in the
commune of Los Vilos, where our port and desalination facility are
located. For every hectare of land utilised by Los Pelambres, a further
six hectares are supported, meaning that more than 27,800 hectares
are protected.
The most recent of these areas to be declared a sanctuary is Cerro
Santa Inés, a “Valdivian forest” that survives due to the existence
of special climatic conditions, such as obtaining water
from the coastal fog typical of a coastal steppe climate.
Taskforce on Nature-related Financial Disclosures
(TNFD) roadmap
Following publication of the TNFD metals and mining guidance
in 2024, we have completed a gap analysis, and biodiversity action
plans will be defined and implemented from 2025 onwards.
Nature reserves protected
27,808 hectares
of nature reserves protected through work funded
by Los Pelambres.
Rehabilitation of natural habitats
64,000
plants of 12 different local species being used in the
ongoing rehabilitation of the Quillayes Dam at Los
Pelambres, using phytostabilisation as a planting technique
and 100% local labour.
Sustainability review continued
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Tailings
At Antofagasta, we understand the need to
work in harmony with the natural environments
in which we operate, which range from the
mountainous terrain of the Andes in central
Chile to the dry deserts of northern Chile.
From supporting efforts to protect and encourage biodiversity, to the
rehabilitation of former working areas, we understand that our legacy
extends beyond the copper that we produce today.
Working with local stakeholders, we aim to prioritise the successful
redevelopment of decommissioned land, to provide a positive legacy
for future generations. Our operations are long-term businesses, with
the potential to continue operating for decades.
Where our mining operations have reached a conclusion, however,
such as at the completion of a design for a tailings facility, we aim
either to restore habitats to pre-agreed designs or to repurpose the
space for a different use, depending on the natural environment.
All the Group’s tailings dams are constructed using the downstream
method, in accordance with Chilean regulatory requirements. The
Group utilises the dry-stack tailings disposal method at Centinela and
is reviewing modern technologies for the enhanced recovery of water
from tailings prior to disposal at Los Pelambres (see page 57 for
more information).
The Group’s policy on tailings is available on our website at the
following location: www.antofagasta.co.uk/sustainability/environment/
Global Industry Standard on Tailings Management (GISTM)
The GISTM is the highest industry standard in its sector and was
developed through the Global Tailings Review, an independent process
convened in 2019 by the United Nations Environment Programme
(UNEP), the office sponsoring the Principles for Responsible
Investment (PRI) and the ICMM.
GISTM compliance was achieved in 2023 for the Group’s main tailings
facilities at Los Pelambres (El Mauro) and Centinela. Work in 2024
included a third-party evaluation for these facilities. At Quillayes, a
smaller-scale tailings facility at Los Pelambres, the self-assessment
process for GISTM compliance is underway and is expected to be
completed in 2025. Our last tailings facility, located at Zaldívar, is due
to achieve compliance in 2025, in line with the timeframe set under
the GISTM framework. Each deposit is independently reviewed.
Quillayes Dam: native tree planting continues
Rehabilitation work at the Quillayes tailings facility at Los Pelambres
has focused on replanting this 300-hectare site. Work is focused on
planting native trees and shrubs, in accordance with the closure plan.
Centinela: investments in tailings
Following the completion of mining activities at a former oxide pit in
the Centinela District, the Group has begun work on a pilot project
depositing tailings at a former open-pit mine site. If this trial is
successful, this project will potentially reduce Centinela’s operational
footprint and enable Centinela to backfill a previously operational area
with material.
In addition, once operational, the Second Concentrator Project at
Centinela will utilise technologies to produce thickened tailings.
This form of tailings generation will have benefits in terms of reducing
water consumption and increased tailings stability.
Global Industry Standard on Tailings
Management (GISTM)
Compliant
at Los Pelambres and Centinela, in line with the schedule
stated in the GISTM framework.
Antofagasta plc Annual Report 2024 61
Sustainability review continued
Decarbonisation
and climate
resilience
Efforts to reduce emissions and achieve carbon
neutrality are key aspects of our overall
strategy. We are taking steps to reduce our
environmental footprint and our approach to
decarbonisation includes emissions reduction
targets that outline a pathway to our goal of
carbon neutrality by 2050.
Our approach to decarbonisation establishes a comprehensive
framework for the timely management of climate-related risks and
opportunities that are presented throughout the value chain. Through
innovation, planning and resilience, we are transforming our
production processes and managing risks associated with climate
change according to three criteria: risk control, the assurance of
investment resources, and ensuring the consistent use of an internal
carbon price in project approvals.
The central objective of this strategy is to strengthen the Group’s
capacity to mitigate and adapt to climate change. The strategy is based
on the following five pillars and their respective lines of action:
1. Building climate resilience
2. Reduction of greenhouse gas (GHG) emissions
3. Efficient use of strategic resources
4. Environmental and biodiversity management
5. Integration of stakeholders
Climate Action Plan published in 2024
In March 2024, we released our first Climate Action Plan, which
followed the publication of updated emissions reduction targets. This
Annual Report summarises a number of the intended actions and
technologies described in detail in the Climate Action Plan.
Scope 2 emissions reduced through renewables
100%
of electricity contracted from renewable sources at all mining
operations since 2022
Decarbonisation pathway
50%
reduction in Scope 1 and 2 emissions (combined basis) by 2035
FCAB: hydrogen-powered train unveiled
First
hydrogen-powered train in use in South America
202420232022202120202019
0.0
0.5
1.0
1.5
2.0
2.5
3. 0
3.10
2.79
2.56
1.75
1.69 1.75
Emissions journey to date: Scope 1 and 2 (unit basis)
(tCO
2
e/tCu, Mining Division only)
Antofagasta plc Annual Report 202462
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Case study: trolley-assist technology trial at Los Pelambres
Given the prominence of diesel consumption in our Scope 1
emissions footprint, work is underway to review the potential for
trolley-assist technology, which uses overhead cabling to power haul
trucks on the up-ramp portion of a haul cycle, when diesel
consumption rates are highest. Los Pelambres, with its location in the
Andes of central Chile, has been chosen for a trial of this technology
on the basis that haul cycles at this operation typically have the
greatest elevation change, therefore this is the location where the
benefits are potentially most significant. As part of this trial, an
800-metre section of trolley-assist technology, which includes 25
overhead pylons carrying electrical cabling, is being installed along
the haul ramp linking the pit at Los Pelambres to the Hualtatas waste
dump, with a view to test work commencing in 2025.
The Group has delivered a material reduction in its absolute emissions
in recent years, principally linked to a reduction in Scope 2 emissions
following the signature of agreements to source renewable power
across all mining operations in 2022. The expectation is that absolute
emissions will rise following the introduction of the Centinela Second
Concentrator Project, ramping up in 2027, but the continued adoption
of modern, low-carbon technologies that should, in time, result in
a reduction of absolute emissions despite the expected +30% increase
in copper production during this time.
The following section details the innovations and modern technologies
required to achieve these goals, alongside the modelling of climate
scenarios, which help to highlight the risks and opportunities
associated with a range of possible climate-change outcomes.
The Group’s Climate Action Plan is available at www.antofagasta.co.uk.
1. Scope 2 emissions for Mining Division are contracted to be 100% renewable. In 2024, emissions of the corporate offices showcase an increased due to the pending I-REC certificate.
As a result, Scope 2 emissions were 530 and 1,324 tonnes respectively in 2023 and 2024. For a breakdown, please see the Sustainability Databook on the Group’s website.
Scope 1 and 2 emissions (market-based)
Scope 1 Scope 2 Total
(Group-level) (Group-level)
Absolute
(tonnes)
Unit basis
(tCO
2
e/t)
2024 1,319,382 1,324 1,320,706 1.75
2023 1,276,348 530 1,276,878 1.69
% change +3.4% +150% +3.4% 3.4%
Note: Group-level data shown for absolute emissions, covering both the Mining Division
and the Transport Division. Unit basis emissions shown for Mining Division only. For a
breakdown, please see the Sustainability Databook on the Group’s website.
Scope 1 and 2: emissions footprint and progress to date
In 2022, the Mining Division achieved a level of 100% of its electricity
supply from renewable power sources, which has reduced Scope 2
emissions to near-zero
1
in subsequent years. Scope 1 emissions are
primarily composed of emissions related to diesel consumption in the
Group’s mining operations, which generate c.60% of this category of
emissions. Of the Group’s diesel use, 90% of emissions are related
to haul trucks, which helps to guide efforts for further reducing
future emissions.
Antofagasta plc Annual Report 2024 63
To date, we have adopted, or are trialling, a range of modern
technologies to reduce emissions, principally focusing on diesel
consumption:
•
The adoption of autonomous mining equipment at Centinela,
which is expected to deliver long-term efficiency savings in fuel
consumption and productivity;
•
A trial of trolley-assist technology at Los Pelambres, with test work
commencing in 2025;
•
Battery-electric buses for transporting our workforce, together
with electric light vehicles and ancillary mining equipment; and
•
The trial of hydrogen use in our Transport Division, with the delivery
of South America’s first hydrogen locomotive in 2024.
Target setting: Scope 1 and 2
Having achieved the Group’s previous emissions reduction targets
in 2022, work was conducted in 2023 to establish a new set of
medium-term targets for Scope 1, 2 and 3 emissions. In respect of
Scope 1 and 2 emissions (direct and indirect emissions respectively),
a target of 50% was set for the reduction of absolute emissions on
a combined basis by 2035 (with the year 2020 as a baseline).
The Group is targeting an absolute reduction in emissions, rather than
unit emissions, as this represents a more ambitious target for the
business given its growth ambitions. Whilst the Group has already
recorded a 41% reduction in absolute emissions versus the baseline
year of 2020, it should be noted that in parallel to these targets, the
Group is currently undertaking a +30% expansion of its production
through development projects at both Los Pelambres and Centinela.
Case study: FCAB hydrogen train
In November 2024, FCAB took receipt of a hydrogen-powered
train, which has become the first in operation in South America
following commissioning in 2025. The 1,000-kilowatt locomotive
marks an important step in Antofagasta’s decarbonisation
journey, which is targeting alternative energy sources to diesel
throughout its business. The Chinese-developed train is
designed to handle northern Chile’s challenging dry conditions,
high altitudes and extreme temperatures.
Through opering this train in 2025, FCAB will begin to evaluate
the economics of hydrogen-use in the Group’s Transport
Division. The trial will bring both Scope 1 emissions savings to
the Group and Scope 3 emissions savings for FCAB’s
customers.
New Scope 1 and 2 target (announced 2024)
50%
reduction by 2035, using 2020 as a baseline.
New Scope 3 target (announced 2024)
10%
reduction by 2030, against a no action scenario projection.
Long-term ambition
Carbon neutral
for Scope 1 and 2 emissions by 2050.
Sustainability review continued
Future pathway: Scope 1 and 2 emissions
To achieve the Group’s Scope 1 and 2 emissions reduction targets,
we will gradually deploy innovation and modern technology throughout
each operation, as technologies develop and become commercially
viable.
Two specific technologies are under consideration for reducing diesel
consumption. The first is a transition to trolley-assist technology for
haul trucks, with a pre-feasibility study underway to validate the overall
benefits of this technology, and to assess its operating costs and
additional operational factors such as changes to existing mine
designs. The second is a potential pivot to battery technology across
the Group’s fleet of haul trucks, with a transition timeframe dependent
on the availability of charging solutions (dynamic and stationary) at
a competitive cost. Additional considerations, such as the costs
associated with electricity generation and transmission in Chile and the
easing of technological constraints, are detailed in the Group’s Climate
Action Plan that was published in 2024.
Target setting: Scope 3
For constructing our Scope 3 emissions reduction framework, the Group
established a baseline by utilising the most up-to-date data available,
including methodologies and recommendations set by the ICMM and
considering both quantitative and qualitative initiatives. It also ensured that
our strategy is aligned with the approach set by the International Copper
Association (ICA). As a result of this work, the Group published its Climate
Action Plan in 2024 with a target for a 10% reduction by 2030, set against
a “no action” scenario projected from a baseline of 2022. Due to the
complexity of calculating Scope 3 emissions, this category of emissions
will be published after the publication of this report. The following text
therefore focuses on 2023 data as the latest available.
Antofagasta plc Annual Report 202464
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Following the adoption of industry-wide recommendations published
by the ICMM, the Group commenced reporting Scope 3 emissions
from 2022 onwards. Of the Group’s Scope 3 emissions in 2023, 58%
is related to Category 1 (Purchased Goods and Services). This is the
main area of focus for emissions reduction efforts as we believe it is
currently the most feasible. As part of this effort, the Group uses a
carbon price of $100 per tonne in its contracts with a value of more
than $10 million in monetary value. Through applying a carbon price,
it is our intention to bring the consideration of emissions into our
financial evaluation when selecting a supplier’s proposal. The second
largest category of Scope 3 emissions is Category 10 (Processing of
Sold Products), which represented 26% of the Mining Division’s Scope
3 emissions in 2023, and the Group is engaging with industry-wide
groups, such as the ICA and ICMM in respect of its emissions
reduction initiatives.
The Transport Division’s estimated Scope 3 emissions were 2,939
tonnes in 2023, representing 3% of total emissions for this division.
Scope 3 emissions (latest available data)
Total Scope 3 emissions
(Mining Division)
Absolute (tonnes)
2023 4,410,631
2022 5,006,810
% change -12%
Note: Scope 3 information presented in the table above covers the Mining Division only.
For a breakdown of Scope 3 emissions by category, please see the Sustainability Databook
on the Group’s website.
Case study: Suppliers for a Better Future Programme
Launched in December 2022, our Suppliers for a Better Future
Programme is a cornerstone initiative in our efforts to engage
with local communities and generate sustainable value in
partnership with our supplier businesses. The programme aims
to promote best practice with third-party suppliers, through
initiatives that help them to improve transparency and
disclosure, lower emissions and raise diversity. The programme
spans many fields: from our purchasing practices to community
engagement, and from our Scope 3 decarbonisation goals to
promoting diversity. The programme expanded in 2024, to
engage with 50 supplier companies, with a focus on training,
mentoring and agreements with unions to promote best practice
in the hiring and development of individuals. In addition, we
collaborated with ten selected suppliers to design and
implement action plans to help reduce gaps in standards and
reporting through the “Ejecuto mi plan” (“I execute my plan”)
Programme, which included training and mentoring sessions.
In 2024, we signed agreements with 20 of our key local
contractors in the north of Chile, who collectively represent
approximately 40% of staff employed at our supplier companies.
As part of these agreements, we have included 16 initiatives to
help increase female employment, one of the key requirements
under the Suppliers for a Better Future Programme.
To help us progress towards our Scope 3 emissions target, we
also started engagement with more than 20 suppliers in 2024
regarding their emissions footprint, to help them understand
potential opportunities for decarbonisation.
In respect of local purchasing, we hosted roundtable
discussions with local businesses in both the Antofagasta and
Coquimbo regions of Chile, where we operate.
Energy management
In line with our climate change strategy, in 2022 we published our
energy policy, which establishes that energy is a strategic resource,
and its management must ensure a safe, economic, efficient and
sustainable supply for our companies. Our policy gives practical
evidence of our commitment to the supply of renewable energy for
our mining operations and to implementing, maintaining, operating
and continuously improving our energy management system.
Since 2022, based on the ISO 50001:2018 standard on energy
management systems, this in-house system has been aligned with
the requirements of the Chilean Energy Efficiency Law.
There are specific roles and teams at each of our mining operations,
responsible for leading and ensuring that the energy management
system is established, implemented and continuously improved in
accordance with the requirements of the law. The Energy Manager
also ensures compliance with each operation’s objectives and goals
related to energy management and decarbonisation, through the
development of plans to improve the organisation’s energy
performance and reduce greenhouse gas emissions.
In order to monitor and improve our energy performance, our mining
operations have energy performance indicators that measure the
production/consumption ratio of different operational processes.
Energy represented approximately 13% of Group-level cash costs in
2024. For more information on energy as a component of the Group’s
costs, see page 40. In 2024, the Group consumed 17.8 PJ of energy
through diesel consumption, representing a result in line year-on-year
(2023: 17.8 PJ). Electricity consumption rose by 16% in 2024 to 3,953
GWh as a result of increased ore processing (2023: 3,396 GWh).
Initiatives for adaptation and resilience
Our adaptation and resilience initiatives focus on identifying and
managing the physical and transition risks associated with climate
change, for example a reduction in the available water supply as
a consequence of drought, an especially important consideration
because all our mining companies are located in water-scarce areas.
These actions are essential to ensure the continuity of our operations
and the fulfilment of our strategic objectives. The importance of these
initiatives lies in strengthening our capacity to adapt and respond to
climate challenges, ensuring that our operations are sustainable and
aligned with the best climate risk management practices.
We incorporate scenario analysis into the mining planning cycle,
considering the physical and transition risks associated with climate
change, and integrating these elements into the normal operating process.
Approach to carbon offsets and other emission neutralisation
measures
Depending on our progress towards meeting our long-term carbon
neutrality emissions target, and our assessment of how viable it is
to achieve further emissions reductions within our value chain,
we acknowledge that we may need to offset some residual emissions
in order to reach carbon neutrality, through the purchase and
retirement of carbon credits.
A strategy was developed in 2024, through market analysis, to
determine a plan for offsetting difficult-to-mitigate emissions and
evaluating various scenarios for the potential purchase of carbon
credits that may be required in the future. To the extent that carbon
offsetting may form part of our strategy, we are committed to
purchasing high-quality carbon credits and, in making any offset or
climate mitigation claims, taking into account the guidance and
recommendations of the internationally recognised carbon standards
and industry stakeholder bodies. We note that, while offsets provide
a valuable tool to manage hard-to-abate emissions in the long term,
they do not replace our core strategy of substantial emission
reductions within our value chain. Instead, they would represent
a complementary measure towards reaching carbon neutrality.
Antofagasta plc Annual Report 2024 65
Our TCFD progress
The Group’s reporting on the Task Force on Climate-related Financial
Disclosures (TCFD) recommendations is integrated into this report in
accordance with the UK Listing Rule UKLR 6.6.6(8). Progress against
the recommendations is summarised below, together with an index
showing where more detailed disclosures can be found. In 2024, our
disclosures are fully consistent with the TCFD recommendations and
recommended disclosures as well as the supplementary guidance for
non-financial groups. The climate-related financial disclosures made
by the Group comply with the requirements of the Companies Act
2006 as amended by the Companies (Strategic Report) (Climate
related Financial Disclosure) Regulations 2022. In addition, 2024’s
projects have been matured by adopting climate change measures.
•
Strategy, impact on business – decarbonisation plan: We have
assessed, and reported in our Climate Action Plan, our path to
decarbonisation, which was published in March 2024. This outlines
the actions that we are taking, or planning to take, to help address
the global challenge of transitioning towards a reduction of CO
2
emissions, achieving carbon neutrality (for Scopes 1 and 2) by 2050
and mitigating the impacts of climate change. In addition, our Climate
Action Plan reflects the medium-term targets that we have set.
•
Metrics and Targets, climate-related metrics – Climate Metrics
and Targets: We have estimated the capital expenditure we expect
will be required to mitigate and adapt to climate change. As part of
the necessary engineering studies, this figure will be refined
throughout the cycle until final investment decision.
•
Metrics and Targets, GHG emissions and related risks: Scope 3:
The Climate Change Report for 2022, published in November 2023,
included our Scope 3 emissions and breakdown, split in 15
categories, and the main areas of work to achieve our goal of a 10%
reduction by 2030 (against a ‘no action’ scenario projected from
a baseline of 2022). This report and Climate Action Plan both outline
key ways in which we aim to work with our suppliers. The Scope 3
emissions estimate for 2023 is calculated and verified, whereas our
Scope 3 emissions figure for 2024 is not yet available due to the
time delay in collecting data and updating estimates.
This report integrates the Group’s reporting on the TCFD recommendations in accordance with the UK Listing Rule UKLR 6.6.6(8). The Group
has provided a summary of its decarbonisation plan in this Annual Report, and the Climate Action Plan and Climate Change Report for 2022 are
complementary to this summary.
Governance
Recommended disclosures
•
Board oversight
•
Management role
Progress
•
The Decarbonisation Project Management area, created in 2023 as part of the Vice Presidency of Strategy and Innovation, has
made progress on a more mature decarbonisation plan.
•
Base case and development case scenario analysis was presented to the Board, and the results of this analysis informed the
annual long-term financial planning process. Both cases incorporate climate change elements that are significant for each
operation and consider mitigations for these climate change impacts, reflected through different adaptation measures, with
controls already in place.
•
In addition, a climate change case is analysed to enhance understanding of the base case and development case, where the
relationship between climatic and operational variables is modelled to define quantitative impacts on the operation over time.
•
This climate change scenario analysis (using the base case, development case scenario and the more severe climate change
scenario based on SSP5-8.5
1
“fossil-fuelled development” for physical risk analysis, and IEA’s NZE by 2050
2
for transition risk
analysis) was presented to the Board and the results of this analysis informed the annual long-term financial planning process.
We have separately reported on Board members’ experience relating to climate change issues.
•
Since the establishment of the corporate Climate Change Committee in 2021, the Committee has continued to enhance the
understanding and appreciation of the importance of our Climate Change Strategy within the organisation and provide advice to
our Executive Committee.
•
In 2024, we published our first climate transition plan (Climate Action Plan).
Strategy
Recommended disclosures
•
Identified risks and
opportunities
•
Impact on business
•
Business resilience
Progress
•
Los Pelambres: The desalination plant has been in operation since H1 2024 (400 l/s water capacity). Los Pelambres has obtained
environmental approval and has begun early works for the expansion of the desalination plant to increase its capacity to 800 l/s.
•
Los Pelambres: To secure the water supply due to water scarcity, it is planned to lease a modular desalination plant with a capacity
of 100 l/s for the most stressed periods.
•
Community activities related to resilience have been in place during 2024, mainly working on an infrastructure plan and emergency
programme.
•
In transition risk analysis this year, we made the valuation of an updated decarbonisation plan. An improvement in the analysis was
to include a more mature decarbonisation plan by going into greater detail on new pricing for battery trucks, trolley costs, stationary
loads and retrofits.
•
We reviewed the impact of climate change risks and opportunities as part of our 2024 long-term financial planning process under
different scenarios, using our base case, development case and climate change case. Potential effects and mitigation measures
were considered on our base case and development case analysis, which incorporates climate change elements (2
o
C or lower
scenario), allowing us to assess the impact of climate change risks during the life-of-mine (LOM) of each operation.
•
Following our evaluation of climate change issues that could affect our supply chain, we have strengthened the resilience of our
supply chains for some of our critical resources, such as diesel and sulphuric acid.
•
This year, to continue improving our understanding of the financial impact of the physical risks of climate change, we used the
“fossil-fuelled development” climate change scenario (SSP5-8.5
1
), same used for 2023 analysis. For transition risk, we used the
“net zero emissions by 2050” scenario from the IEA.
•
As referenced in our Climate Change Report for 2022, we follow the TCFD recommendations to assess our climate-related risks.
Sustainability review continued
Antofagasta plc Annual Report 202466
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Risk management
Recommended disclosures
•
Identifying and
assessing risks
and opportunities
•
Managing risks
and opportunities
•
Integrating climate
change into overall
risk management
Progress
•
Climate change physical risks were assessed using the base case
3
, development case
4
scenario and climate change case based
on the SSP5-8.5 scenario.
1
The estimated financial impact on operating costs and capital expenditure, considering the differences
between the cases, was calculated for two situations: controls already in place and actions planned to be implemented in the future
(base and development cases); and plans and actions to be implemented in the future under a more challenging situation (climate
change case).
•
Climate change transition risks were assessed using the base case, development case scenario and climate change case based
on the IEA’s NZE by 2050
2
scenario. The estimated financial impact on operating costs and capital expenditure, considering the
differences between the cases, was calculated for two situations: controls already in place and actions planned to be implemented
in the future (base and development cases); and plans and actions to be implemented in the future under a more challenging
situation (climate change case).
•
Controls and action plans for transition risks were updated. The risk of carbon tax was assessed using the IEA’s NZE by 2050
4
scenario, considering our decarbonisation plan as an input for this analysis.
Metrics and targets
Recommended disclosures
•
Climate-related
metrics
•
GHG emissions
and related risks
•
Targets and
performance
Progress
•
Our Climate Action Plan was published in 2024, outlining our emission targets: to reduce our Scope 1 and 2 emissions by 50% by
2035, with the year 2020 as a baseline. Our Scope 3 reduction target, which will be achieved through collaboration with industry,
and to also achieve a 10% reduction in Scope 3 emissions by 2030, with the year 2022 as a baseline, calculated using the ICMM’s
Scope 3 Emissions Accounting and Reporting Guidance. Furthermore, the plan also reports the progress and enabling conditions
for the 2035 decarbonisation targets for Scope 1 and 2 emissions (combined basis), and our Scope 3 position and performance in
line with its emissions reduction framework.
•
We have estimated the amount of capital that we anticipate will be required to achieve these targets, assuming trolley and
battery-based technologies, understanding that these technologies may change and/or evolve before we achieve our
decarbonisation goals. As part of the necessary engineering studies, this figure will be refined throughout the cycle until final
investment decision. In 2024, progress was made on scoping studies, where Antucoya has the maximum progress, while Centinela
and Los Pelambres are advanced. Furthermore, a project is underway to validate a specific technology in an operational setting at
Los Pelambres. This project consists of a trolley, which would function as a battery enabler, thus aligning with the decarbonisation
strategy, reducing diesel consumption in haul trucks.
1. Shared Socioeconomic Pathway (SSP) as defined by the Intergovernmental Panel on Climate Change (IPCC) in its 2021 Sixth Assessment Report. Representative Concentration Pathway
(RCP) 8.5 (SSP5-8.5) assumes emissions continue to increase for the rest of the 21
st
century, and is considered a worst-case scenario.
2. International Energy Agency’s (IEA) Net Zero Emission Scenario (NZE) is a normative scenario that shows how the global energy sector can achieve net zero carbon dioxide emissions
by 2050, and is included in its Net Zero by 2050: A Roadmap for the Global Energy Sector report.
3. Base case: a cash flow projection and valuation exercise by the Group through the LOM, in which the main objective is to optimise the current mining operations (revenues and costs)
and approved capex, and which is included in the assessment (construction and operation). This exercise is undertaken on an annual basis.
4. Development case: reflects the potential value of the Group’s assets beyond the base case, incorporating the cash flows projections from growth alternatives that are in an advanced stage
(but are not yet approved)
TCFD index
The Company has considered the relevant sections of the TCFD all-sector guidance. Additional information relating to the required disclosures
can be found on the pages indicated in the table below:
Pillar Disclosure Page
Governance Description of the Board’s oversight of climate-related risks and opportunities. 103
Description of management’s role in assessing and managing climate-related risks and opportunities. 86
Strategy Description of the climate-related risks and opportunities the Company has identified over the short-,
medium- and long-term.
69-70
Description of the impact of climate-related risks and opportunities on the Company’s businesses,
strategy and financial planning.
69-70
Description of the resilience of the Company’s strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower scenario.
68
Risk Management Description of the Company’s processes for identifying and assessing climate-related risks. 66-70
and 86
Description of the Company’s processes for managing climate-related risks. 66-70
and 86
Description of how processes for identifying, assessing and managing climate-related risks
are integrated into the Company’s overall risk management.
50-51
Metrics
and Targets
Disclosure of the metrics used by the Company to assess climate-related risks and opportunities
consistent with its strategy and risk management process.
66-70
Disclosure of Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions
and the related risks.
62-65
Description of the targets used by the Company to manage climate-related risks and opportunities
and performance against targets.
62-65
Antofagasta plc Annual Report 2024 67
Climate change scenario analysis
The Group’s long-term planning cycle considers a Base Case and
Development Case. These plans incorporate climate change elements
that are significant for each operation and considers mitigation activities
for the impact of climate change, which are reflected through different
adaptation measures with controls already in place, this being our 2
o
C
or lower scenario. These plans are used as a basis for the comparison
against the more severe climate change case scenario (which is
derived from the development case) and used for the evaluation of
physical and transition risks explained in this section, where an
awareness-raising exercise is carried out to obtain a relationship
between climatic and operational variables.
Our climate change case considered a “fossil-fuelled development”
climate change scenario (SSP5-8.5) to assess the financial impact of
the physical risks of climate change; a scenario which was first used in
2023. This scenario takes advantage of the latest-generation climate
models (CMIP-6) and is considered an extreme scenario, leading to
warming by 2100 of 3.6 to 6.2°C compared to pre-industrial
temperatures. The SSP5-8.5 scenario is one of the Shared
Socioeconomic Pathways (SSPs) used in climate modelling to explore
potential future socioeconomic trends and their implications for
greenhouse gas emissions, climate change, and adaptation efforts.
A worst-case scenario is one that projects a 4.4°C increase in global
average temperature by 2100. It is considered a worst-case scenario
because it projects a large increase in global temperature. We chose it
because it is useful for stress-testing climate models and assessing the
maximum potential impacts of unmitigated climate change, so it helps
us to be prepared to address and mitigate even the most severe
potential climate outcomes. To better understand how physical climate
changes could impact our business, we have focused on climate
change vectors, such as higher temperatures, water stress, extreme
rainfall events, and conditions that generate particulate matter, storm
surges and wave events. Each of our operations analysed the potential
effect of these factors on their production, cost performance, and the
cost of adaptation measures and control options, with the base case
and development case as a comparator.
To understand the financial impact of transition risks, our climate
change case considers the International Energy Agency’s “Net Zero
Emissions by 2050” scenario (IEA’s NZE scenario), an ambitious and
widely-recognised scenario that aligns with limiting global warming to
1.5°C and provides a global view and context on a low-carbon transition.
The Net Zero Emissions by 2050 scenario is a normative scenario that
shows a pathway for the global energy sector to achieve net zero
greenhouse gas emissions by 2050, with advanced economies
reaching net zero emissions in advance of others. This scenario also
meets key energy-related Sustainable Development Goals (SDGs) and
is consistent with limiting the global temperature rise to 1.5°C, in line
with emissions reductions assessed in the Intergovernmental Panel on
Climate Change (IPCC)’s Sixth Assessment Report and outlined in the
Paris Agreement. Furthermore, this scenario is aligned with the
Group’s decarbonisation plan efforts, and has been used since 2023 for
our climate change scenario analysis. In the IEA’s NZE scenario, fossil
fuel prices decline due to low demand and lower costs are offset by the
introduction of carbon taxes to encourage the low-carbon transition. In
alignment with this scenario, we have quantified the potential financial
impact of the introduction of a carbon tax, including an analysis of our
decarbonisation plan and identifying opportunities such as changing the
energy source, reducing diesel consumption in haul trucks, and
replacing it with electric power consumption.
To align the potential impact of both physical and transition risks to the
lifetime and planning cycle of our mining operations, we defined short
term as 0–5 years, medium term as 5–15 years and long term as
15–50 years. Once the risks and opportunities were identified, the most
material risks and opportunities were screened and quantified at
an operational level, and their financial impact was estimated using
assumptions from these scenarios. We also assessed the financial
impact of climate change across the lifetime of each mine and over
a 25-year period for the Transport Division (see page 38). In 2024,
the first hydrogen-powered locomotive in South America arrived at
Antofagasta to begin a first stage of trials, which could support the
reduction of CO
2
emissions in the coming years. Climate scenario
analysis was used to better understand and assess the likelihood and
impact of risks and opportunities and was integrated into our risk
assessment processes using ISO 31000 and best practice methodology
(‘bow tie’ analysis, which considers causes, consequences and controls).
The estimated financial impact on operating costs and capital
expenditure was calculated against two views: 1) controls already in
place and actions planned to be implemented in the future (base and
development cases) and 2) plans and actions to be implemented in the
future under a more challenging situation (climate change case). We will
continue to improve our maturity through the studies necessary to refine
capital deployments in mitigation and adaptation. For further information
regarding climate change risk descriptions, please see pages 24 and
25 of our Climate Change Report for 2022, which was published in
November 2023, and in the Group’s Climate Action Plan.
Results of climate scenario analysis, excluding copper
market benefit
Impact calculated over operations’ Life-of-Mines (LOMs)
To improve our understanding of how climate risks may develop and
impact our operations, in 2024 we carried out a climate scenario
analysis exercise with refreshed inputs from the IEA and IPCC, updated
base and development cases, and a more robust decarbonisation plan.
This also helped us develop our investment plans and enhance our
prevention and recovery control measures.
In general, our 2024 analysis found that the potential exposure of our
business under the physical risks scenario shows no major changes
compared to the analysis done in 2023. However, the main results for
the physical risks are listed below.
•
The water supply risk means that Antofagasta’s operations could be
affected by water scarcity, which could mean having to find solutions
(e.g. lease a modular desalination plant) to make up for the
processing loss associated with lower water availability; and also to
comply with the Group’s commitments.
•
The extreme rainfall events risk would mainly affect Centinela
because it would mean a decrease in mine movement, and therefore
lower production; and additional tailings deposits to manage the
excess of accumulated water.
•
High peak temperatures and/or sustained elevated temperatures
risk: this factor principally affects Centinela, because an increase in
temperature raises water evaporation, which in turn decreases
production due to lower water recirculation. Therefore, we should
inject more fresh sea water into the system, which might cause the
pipes to corrode, and consequently more maintenance of the water
collection system would need to be undertaken.
•
Particulate matter risk would impact Los Pelambres in terms of mine
movement, which in turn would affect production. In addition, any
increase in wind, combined with an increase in temperature, would
make additional measures necessary to control particulate matter
generation from the tailings dam wall and/or other sections of the
facility. At Centinela, an Air Quality Master Plan is under review, that
considers our mine plan and potential changes in regulation,
evaluates investment in the mine area (such as water trucks) and
infrastructure (for instance, accommodation camp).
•
Finally, risks relating to logistics mainly relate to Los Pelambres and
the expected impact on operational costs of an increase in the cost of
ship demurrage, due to lower port availability in times of storm
surge. At Centinela, the risk is related to securing the supply of diesel
and sulphuric acid, so investments associated with increasing
storage capacity tanks would need to be considered.
Sustainability review continued
Antofagasta plc Annual Report 202468
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Transition risks
The transition to a low-carbon economy may entail major policy, regulatory, technological and market changes to address climate-change-related
mitigation and adaptation requirements. Given this, we have identified and classified the transition risks for our business into two categories
and present below the possible consequences
.
Category Risk Possible cause Possible consequence
Politics and
legislation
Carbon tax The potential future introduction of
a carbon tax that impacts the Group
from the year 2030, estimated to be
$140/tCO
2
, and rising to $250/tCO
2
by 2050, according to the IEA’s NZE,
applicable if we do not eliminate our
Scope 1 emissions.
Loss of competitiveness due to increased
operational costs (direct and indirect). Reflected in
the medium- to long-term by an estimated decrease
of $1.5-2.0 billion in the modelled net present value
(NPV) of the Mining Division operations, partly offset
by an estimated increase of $0.5-1.0 billion in the
modelled NPV of the Mining Division operations
related to the mitigation of carbon taxes through
lower emissions.
Regulatory changes to
address climate change
Requirements of the Climate Change
Framework Law (Law 21.455) that
introduces mitigation plans for the
mining sector and emissions standards.
Changes in the Energy Efficiency Law
(Law 21.305) and the Green Tax Law
(Law 20.780).
Loss of competitiveness and higher costs due to
new requirements. The Group establishes the goal
of transitioning towards a low greenhouse gas
emissions development scenario, until reaching and
maintaining emissions neutrality by 2050.
The Group has published a decarbonisation plan,
which outlines our intention to reduce CO
2
emissions.
Reputational Greater pressure from
stakeholders for
environmentally responsible
mining
Higher expectations of stakeholders
(investors, clients, communities,
society, etc).
Slower pace of commercial-scale
technological developments to replace
low-carbon technologies.
Clients choose suppliers who demonstrate greater
climate ambition.
The Group has made progress on a more mature
decarbonisation plan.
Greater requirements of the
territory on climate change
Climate events that affect local
communities.
Reputational loss and higher costs due to new
requirements.
Transition opportunities
In addition to identifying, assessing and monitoring the transition and physical risks associated with climate change, we are continually monitoring
and exploring new opportunities that allow us to improve our response to such changes.
Area Transition opportunities
Resilience
•
Improve adaptation and mitigation response through a better understanding of climate-related risks and the
Group’s more mature decarbonisation plan by going into greater detail on new pricing for battery trucks,
trolley-assist costs, stationary loads and retrofits.
•
Opportunity to carry out Nature-based Solutions projects.
Products
•
Increase in copper demand and price as it is a key material for low-carbon technologies.
Resource efficiencies
•
Reduction of costs associated with energy efficiency.
•
Reduction of exposure to the carbon tax due to energy efficiency measures.
•
Low-carbon operational equipment and reduction of greenhouse gas emissions.
•
Increase in capital available to invest in new technologies based on energy efficiency projects, in line with
the Group’s decarbonisation plan, in order to have the infrastructure to support the new electric equipment.
Energy sources
•
Reduction of exposure to the carbon tax by replacing diesel with low-carbon alternatives.
•
Low-carbon operational equipment and reduction of greenhouse gas emissions.
•
Cost reduction due to lower renewable energy prices (where applicable).
•
Development of new technologies facilitating mitigation.
•
Increase in capital available to invest in new technologies from energy efficiency projects.
•
Reduction of operational expenditure; as predicted by the decarbonisation plan, due to the decreasing cost
ofmaintenance of diesel haul trucks’ engine systems.
To analyse the potential financial impact of transition risks we have
considered the following factors: Carbon Tax to be paid if investment
in mitigation is not made, then investment in mitigation necessary
to meet our targets (aligned with our Climate Action Plan), Change in
the price of Diesel delivered by the NZE by 2050 transition scenario,
Change of Energy Source due to investments in mitigation, Carbon
Tax avoided , which would be one of the benefits of investing in
mitigation measures, and finally operational costs associated with
the different operational costs that green technologies bring.
The change in the financial impact of transition risk, compared with
2023, is mainly due to better-quality information used in the 2024
analysis and the longer LOM plans incorporated into the modelling.
Antofagasta plc Annual Report 2024 69
Variable analysis
Variable Range (US$m) Risk timeframe
Carbon tax - (1,500-2,000) Medium- and long-term
Investment in mitigation - (700-1,000) Medium-term
Change in diesel price + (1,500-2,000) Medium- and long-term
Change in energy source due to mitigation + (500-1,000) Medium- and long-term
Carbon tax avoided by mitigation + (500-1,000) Medium- and long-term
Operating costs + (0-500) Medium- and long-term
All figures in the table above are estimated values based on the scenarios and assumptions described in this section.
Although the amount of value-at-risk is uncertain, the analysis provides a useful reference point against which to assess and prioritise the
mitigation and adaptation measures we need to reduce our exposure and strengthen our resilience. During 2024, we retained the concepts
of operating costs to reflect the positive benefits of the use of new technologies and the analysis of more likely technologies to be used towards
the electrification.
Currently, long-term investment in mitigation initiatives is estimated in the range of $700 – 1,000 million, including the decarbonisation plan and
the investment required to support the energy transition. This estimate has evolved compared to 2023, since in 2024 infrastructure studies were
undertaken and we assessed their cost. In addition, we evaluated the purchase of haul trucks according to the fleet replacement of 2024
development case. Investment in decarbonisation will be part of our sustaining capex as we move forward with our plan. The estimated impact
reflects the incremental costs of enabling technologies to be evaluated as part of the normal renewal cycle of our fleets of haul trucks, and
potential improvements to the in-pit electrical systems, among other concepts of operating costs, which reflect the positive benefits of the use
of new technologies and the analysis of more likely technologies to be used towards electrification.
It is anticipated that some of the actions and investments envisaged by the Climate Action Plan may in future lead to cost savings. For example,
apotential reduction in operational costs, such as diesel consumption and maintenance, may offset some or all of the investments.
Physical risks: the IPCC’s SSP5-8.5
Physical risks and opportunities have been identified over the short, medium and long term, and the table below shows the timeframe in which
each physical risk may have the greatest effects.
Northern Zone
(Centinela, Antucoya, Zaldívar, FCAB)
Anto f a ga s t a
Si e r r a Go r d a
San P e dro d e A tacama
Ca l ama
To copilla
María E l ena
Me j i llones
Zaldívar
Antofagasta
Centinela
Antucoya
Bolivi
a
Arg e ntina
Centinela Port
FCAB
Risk timeframe
Risk Short term Medium term Long term
Decrease and/or loss
ofwater supply
-(0-10) US$m -(0-25) US$m -(0-10) US$m
Extreme rainfall events -(0-25) US$m -(0-50) US$m -(0-10) US$m
High and/or sustained
temperatures
-(0-10) US$m -(0-10) US$m -(0-10) US$m
Particulate matter -(0-25) US$m -(0-10) US$m -(0-10) US$m
Logistics disruption -(0-25) US$m +(0-10) US$m +(0-10) US$m
Central Zone
(Los Pelambres)
Lo s Vilos
municipal di stric t
Illape l muni cipal di str ict
Cane la municipal dist r i ct
Los Vilos
Los Pelambres
Punta Chungo port
Arg e ntina
El Mauro
tailings storage facilities
Sa l amanc a municipal di s t r ict
Risk timeframe
Risk Short term Medium term Long term
Decrease and/or loss
ofwater supply
-(0-10) US$m -(100-200) US$m -(50-100) US$m
Extreme rainfall events -(0-10) US$m -(0-25) US$m -(0-10) US$m
High and/or sustained
temperatures
-(0-10) US$m -(0-10) US$m -(0-10) US$m
Particulate matter -(0-10) US$m -(0-25) US$m -(0-10) US$m
Logistics disruption -(0-10) US$m -(0-10) US$m -(0-10) US$m
All figures in the tables above are the estimated NPV impacts arising under the climate case scenario and applying the assumptions described in this section. These figures are inherently
subject to a increased level of estimation uncertainty and will be subject to amendment as further information becomes available. All figures presented are in millions of US dollars.
Physical changes in climate and their associated impact vary by geography and will impact Antofagasta’s operations in different ways.
For further information on climate change, please refer to the Group’s Sustainability Databook for 2024, available on our website (www.antofagasta.co.uk).
Sustainability review continued
Antofagasta plc Annual Report 202470
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Non-financial and sustainability information statement
Non-financial and sustainability
information statement
The 2018 UK Corporate Governance Code (the Code) is a set of
principles of good corporate governance aimed at companies listed
onthe London Stock Exchange. The Non-Financial and Sustainability
Information Statement is a disclosure requirement under the UK
Corporate Governance framework.
The Code is divided into five sections:
•
Board leadership and company purpose.
•
Division of responsibilities.
•
Composition, succession and evaluation.
•
Audit, risk and internal control.
•
Remuneration.
Reporting
requirement
Relevant policies and
standards Content Page
Sustainability Value chart
Sustainability policy
ICMM guidelines
Letter from the Chair
Letter from the CEO
Our approach to
sustainability
Materiality assessment
Sustainability
andStakeholder
Management
Committee
14
16
49
50
134
Environmental matters
Environmental
matters
Environmental
management model
Climate change standard
Water management
standard
Biodiversity standard
Tailings policy
Global Industry Standard
on Tailings Management
Environmental
management
Tailings
Biodiversity
Air quality
Climate change
Carbon footprint
Energy management
Water management
TCFD
62
61
60
62
62
63
65
56
66
Social and employee issues
Our people People strategy Employee wellbeing
Training
Labour relations
53
54
55
Social matters Social management
model
Engagement standard
Management of initiatives
standard
Social management
model
Addressing social
concerns
Flagship programmes
Impact measurement
Culture and heritage
Local jobs
Engagement
mechanisms
58
58
59
58
58
58
50
Reporting
requirement
Relevant policies and
standards Content Page
Health and
Safety
Occupational health and
safety strategy
Special corporate health
and safety
Regulation for contractors
and subcontractors
(RECCS)
Fatal risk standard (ERFT)
Occupational health
standard (ESO)
Occupational health
and safety strategy
Occupational health
risk management
Safety risk
management
Performance
52
52
85
53
Suppliers Purchase and contracts
guidelines
Direct award procedure
Materials management
policy
Sustainability
Local suppliers
Local partnerships
Supplier development
Respectful, diverse and
inclusive work culture
48
58
65
65
54
Anti-bribery and anti-corruption issues
Anti-
corruption and
anti-bribery
Code of Ethics
Compliance model
Anti-Corruption model
Antitrust protocol
Business integrity and
compliance
Code of Ethics
Compliance
management
94
94
94
Description of
principal risks
and impact on
business
activity
Risk management
framework
Principal risks
80
82
Description of
the business
model
Business Model 20
Non-financial
Key
performance
indicators
At a glance
Key performance
indicators
Total economic
contribution
12
26
48
Diversity
Our people Diversity and inclusion
strategy
Women in the workforce
Inclusive culture 54
54
Respect for human rights
Human Rights Code of Ethics
Human rights policy
Modern Slavery Act 94
The table below classifies non-financial information in this Strategic
Report under the headings required by the Non-Financial Reporting
Directive. Asindicated in the report, the effective application of policies
and standards underpins the Group’s management of the risks and
opportunities associated with these matters.
Climate-related financial disclosures
•
Our TCFD disclosures can be found on page 66.
•
Our sustainability framework and governance are on page 134.
•
Our Sustainability and Stakeholder Management Committee has
terms of reference that have been approved by the Board and are
reviewed annually.
Antofagasta plc Annual Report 2024 71
Introduction to Financial review
Revenue
The $288.9 million increase in revenue from $6,324.5 million in 2023
to $6,613.4 million in the current year reflected the following factors:
(All figures $, millions)
Revenue
in 2023
Increase in
realised copper
price
Increase in
treatment and
refining charges
Decrease in
copper sales
volumes
Increase in gold
revenue
Decrease in
molybdenum
revenue
Increase in silver
revenue
Decrease in
Transport
Division revenue
Revenue
in 2024
(1.0)
8.1
(16.0)
(156.6)
39.9
28.3
386.2
6,324.5
6,613.4
Our approach to financing
Our approach to financing our growth portfolio is to enable the Group
to deliver in line with our capital allocation framework. This is achieved
through maintaining the strong cash flow generation of our business
through rigorous control over sustaining capital expenditures, a focus
on competitiveness through cost control measures and a commitment
to shareholder returns in line with our dividend policy. Once these key
criteria are satisfied, the Group is able to assess a range of internal
and external factors, to determine an appropriate level of investment
in growth and additional shareholder returns. This has historically
enabled us to offer an attractive payout ratio to shareholders.
Furthermore, through a focus on financing at the level of individual
operations, the Group aims to protect its ability to distribute cash flows
under its capital allocation framework, as outlined on page 9.
Delivering our growth programme
Our balance sheet and our approach to financing projects are key
enablers for our growth programme. A key challenge is to match the
tenor of our financial structure to our long-life mines, which enables
our operations to generate strong cash flow during the full
development cycle of projects. We aim to enable our growth pipeline
by maintaining a robust balance sheet, which allows the Group to
advance projects when market conditions favour development. The
strength of the Group’s balance sheet is demonstrated through our
investment grade credit rating.
Demonstrating this approach in 2024
During 2024, we were able to implement long-term financing solutions
for our projects, which included the announcement of the financing for
the Second Concentrator Project, whereby Centinela signed definitive
agreements for a $2.5 billion project financing facility on competitive
terms. The facility has a 12-year term, including a four-year drawdown
period that mirrors the expected construction window for the project,
helping to protect the Group’s cash flows during this time. In parallel,
we also announced the completion of a process to outsource Centinela
and Antucoya’s water supply infrastructure and planned expansion,
serving to reduce the Second Concentrator Project’s capital cost.
Furthermore, during the year, we were also able to issue a ten-year
corporate bond for general corporate purposes, following two previous
issuances in 2020 and 2022.
Activities in 2024 were all designed and implemented over the course
of the past two to three years, and collectively facilitate our ability to
advance projects within our growth portfolio. A key objective for 2025
will be to maintain a focus on project delivery and discipline, while
actively monitoring the market for future opportunities to further
develop our approach to financing our pipeline of growth.
Revenue from the Mining Division
Revenue from the Mining Division increased by $289.9 million, or
4.7%, to $6,418.5 million, compared with $6,128.6 million in 2023.
The increase reflected a $257.9 million increase in copper sales and
a $32.0 million increase in by-product revenue.
Revenue from copper sales
Revenue from copper concentrate and copper cathode sales increased
by $257.9 million, or 5.0%, to $5,405.3 million, compared with
$5,147.4 million in 2023. The increase reflected the impact of $386.2
million from higher realised prices and a $28.3 million increase in
revenue from lower treatment and refining charges, partly offset by
a $156.6 million reduction due to lower sales volumes due to the
rescheduling of vessels between periods following adverse weather
conditions(sea swells) during December 2024 in the north of Chile.
“Long-term value creation in mining is about having the right
resources and the ability to develop them. Our financing strategy
is a key enabler for our growth pipeline: it reflects our ability
to deliver growth, based on a robust balance sheet, which we
have maintained in tandem with our commitment to attractive
shareholder returns.”
MAURICIO ORTIZ
Chief Financial Officer
Financial review
Antofagasta plc Annual Report 202472
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
1. EBITDA is calculated by adding back depreciation, amortisation, profit or loss on disposals and impairment charges or reversals to operating profit. This comprises 100% of the EBITDA
from the Group´s subsidiaries, and the Group´s proportional share of the EBITDA of its associates and joint ventures.
(93.9)
(4.1)
89.7
(434.4)
288.9
709.8
(125.3)835.1
63.5 619.5
829.4
209.9
Profit attributable
to the owners of the
parent in 2023
Less: exceptional
items – 2023
Profit attributable to the
owners of the parent in
2023 (excluding
exceptional items)
Increase in revenue
Increase in total operating
costs (excluding
exceptional items)
Increase in net share of
results from associates and
joint ventures (excluding
exceptional items)
Increase in net finance
expense (excluding
exceptional items)
Increase in income tax
expense (excluding
exceptional items)
Decrease in
non-controlling interests
(excluding exceptional
items)
Profit attributable to the
owners of the parent in
2024 (excluding
exceptional items)
Exceptional items
– 2024 (post tax)
Profit attributable
to the owners of the
parent in 2024
Further details of provisional pricing adjustments are given in Note 7 to
the financial statements.
(ii) Treatment and refining charges
Treatment and refining charges (TC/RCs) for copper concentrate
decreased by $28.3 million to $185.3 million in 2024, compared with
$213.6 million in 2023, reflecting lower average TC/RC rates and to a
lesser extent the decrease in concentrate sales volumes, due to lower
grades at Centinela Concentrates.
With sales of concentrates at Los Pelambres and Centinela, which are
sold to smelters and roasting plants for further processing into fully
refined metal, the price of the concentrate invoiced to the customer
reflects the market value of the fully refined metal less a “treatment
and refining charge” deduction, to reflect the lower value of this
partially processed material compared with the fully refined metal.
For accounting purposes, the revenue amount reflects the invoiced
price (the net of the market value of fully refined metal less the
(i) Copper volumes
The average realised copper price increased by 7.4% to $4.18/lb
in 2024 (2023 – $3.89/lb), resulting in a $386.2 million increase in
revenue. This was mainly due to the higher LME average market price,
which increased by 7.8% to $4.15/lb in 2024 (2023 – $3.85/lb).
The realised price was marginally higher than the LME average market
price due to the impact of the timing of sales during the year and
provisional pricing adjustments.
Realised copper prices are determined by comparing revenue (after
adding back treatment and refining charges for concentrate sales) with
sales volumes in the period. Realised copper prices differ from market
prices mainly because, in line with industry practice, concentrate and
cathode sales agreements generally provide for provisional pricing at
the time of shipment with final pricing based on the average market
price in future periods (normally around one month after delivery to
the customer in the case of cathode sales and four months after
delivery to the customer in the case of concentrate sales).
Strong performance with higher year-on-year EBITDA
Year ended 31.12.2024 (Audited) Year ended 31.12.2023 (Audited)
Before
exceptional items
Exceptional
items Total
Before
exceptional items
Exceptional
Items Total
$m $m $m $m $m $m
Revenue 6,613.4 – 6,613.4 6,324.5 – 6,324.5
EBITDA (including share of EBITDA from associates
and joint ventures)
1
3,426.8 – 3,426.8 3,087.2 – 3,087.2
Total operating costs (4,976.1) 371.4 (4,604.7) (4,541.7) – (4,541.7)
Operating profit 1,637.3 371.4 2,008.7 1,782.8 – 1,782.8
Net share of results from associates
and joint ventures 76.2 – 76.2 (13.5) – (13.5)
Operating profit, and share of total results
from associates and joint ventures 1,713.5 371.4 2,084.9 1,769.3 – 1,769.3
Net finance income/(expense) (64.8) 51.0 (13.8) 29.1 167.1 196.2
Profit before tax 1,648.7 422.4 2,071.1 1,798.4 167.1 1,965.5
Income tax expense (628.4) (126.7) (755.1) (624.3) (41.8) (666.1)
Profit from continuing operations 1,020.3 295.7 1,316.0 1,174.1 125.3 1,299.4
Profit for the year 1,020.3 295.7 1,316.0 1,174.1 125.3 1,299.4
Attributable to:
Non-controlling interests 400.8 85.8 486.6 464.3 – 464.3
Profit attributable to the owners of the parent 619.5 209.9 829.4 709.8 125.3 835.1
Basic earnings per share Cents Cents Cents Cents Cents Cents
From continuing operations 62.8 21.3 84.1 72.0 12.7 84.7
The profit for the financial year attributable to the owners of the parent (including exceptional items) decreased from $835.1 million in 2023 to $829.4
million in the current year. Excluding exceptional items, the profit attributable to the owners of the parent decreased by $90.3 million to $619.5 million.
Antofagasta plc Annual Report 2024 73
Financial review continued
treatment and refining charges). However, under the standard industry
definition of unit cash costs, treatment and refining charges are
regarded as part of cash costs.
Accordingly, the decrease in these charges has had a positive impact
on revenue in the year.
(iii) Copper volumes
Copper sales volumes reflected within revenue decreased by 2.9%
from 625,300 tonnes in 2023 to 607,100 tonnes in 2024, decreasing
revenue by $156.6 million. This decrease was mainly due to lower
sales volumes at Centinela (35,400 tonne decrease), as a result of
lower grades at Centinela Concentrates and temporary shipment
delays at the year-end due to bad weather conditions at the port.
Revenue from molybdenum, gold and other by-product sales
Revenue from by-product sales (net of tolling charges) at Los
Pelambres and Centinela relate mainly to molybdenum and gold and, to
a lesser extent, silver. Revenue from by-products increased by $32.0
million or 3.3% to $1,013.2 million in 2024, compared with $981.2
million in 2023. This increase was mainly due to the higher gold
realised price, partly offset by a decrease in gold and molybdenum
sales volumes.
Revenue from gold sales (net of treatment and refining charges) was
$446.8 million (2023 – $406.9 million), an increase of $39.9 million
which reflected a higher realised price, partly offset by lower sales
volumes. The realised gold price was $2,528.3/oz in 2024 compared
with $1,989.5/oz in 2023, reflecting the average market price for
2024 of $2,387.1/oz (2023 – $1,943.1/oz) and a positive provisional
pricing adjustment of $11.3 million. Gold sales volumes decreased
by 13.6% from 204,900 ounces in 2023 to 177,000 ounces in 2024,
reflecting lower grades at Centinela.
Revenue from molybdenum sales (net of treatment and refining
charges) was $488.2 million (2023 – $504.2 million), a decrease of
$16.0 million. The decrease was mainly due to the lower sales volumes
of 10,900 tonnes (2023 – 11,100 tonnes) reflecting the lower
production volumes mainly at Centinela.
Revenue from silver sales increased by $8.1 million to $78.2 million
(2023 – $70.1 million). The increase was due to a 25.0% higher
realised silver price of $30.0/oz (2023 – $24.0/oz), partly offset by a
lower sales volume of 2.6 million ounces (2023 – 3.0 million ounces).
Revenue from the Transport Division
Revenue from the Transport Division (FCAB) decreased by $1.0 million
or 0.5% to $194.9 million (2023 – $195.9 million), mainly due to foreign
exchange differences and lower truck transport volumes.
Total operating costs
The $434.4 million increase in total operating costs from $4,541.7
million in 2023 to $4,976.1 million in the current year is reflected in the
chart shown above.
(All figures $, millions)
Total operating
costs in 2023
(excluding
exceptional items)
Increase in
mine-site
operating costs
Increase in
closure provision
and other mining
expenses
Mining royalty
ad-valorem
element
Decrease in
exploration and
evaluation costs
Decrease in
corporate costs
Increase in
Transport Division
operating costs
Increase in
depreciation,
amortisation and
loss on disposals
Total operating
costs in 2024
(excluding
exceptional items)
(25.9)
(12.2)
28.7
8.8
67.6
4,541.7
4.9
362.5 4,976.1
Operating costs (excluding depreciation, amortisation and
disposals) at the Mining Division
Operating costs (excluding depreciation, amortisation, loss on disposals
and impairments) at the Mining Division increased by $67.0 million to
$3,276.7 million in 2024, an increase of 2.1%.
Of this increase, $67.6 million was attributable to higher mine-site
operating costs. This increase in mine-site costs reflected higher unit
costs mainly due to lower copper grades at Los Pelambres and
Centinela Concentrates and a lower mine development credit at
Centinela, partially offset by cost savings from the Group’s
Competitiveness Programme, lower key input prices and depreciation
of the Chilean peso.
On a unit cost basis, weighted average cash costs excluding treatment
and refining charges and by-product revenues increased from $2.14/lb
in 2023 to $2.21/lb in 2024. As detailed in the Alternative
Performance Measures section, for accounting purposes by-product
credits and treatment and refining charges both impact revenue and
do not therefore affect operating expenses.
The Competitiveness Programme was implemented to reinforce the
operational improvement and reduce the Group’s cost base, improving
its competitiveness within the industry. During 2024, the programme
achieved benefits of $247.6 million in the Mining Division, of which
$210.5 million reflected cost savings and $37.1 million reflected the
value of productivity improvements. Of the $210.5 million of cost
savings, $176.0 million related to Los Pelambres, Centinela and
Antucoya, and therefore impacted the Group’s operating costs, and
$34.5 million related to Zaldívar (on a 100% basis) and therefore
impacted the share of results from associates and joint ventures.
Closure provisions and other mining expenses increased by $8.8
million, mainly reflecting increased medium and long-term drilling
costs and evaluation expenses at Los Pelambres and Centinela.
In the current period, operating costs at the Mining Division include for
the first time the “ad valorem” element of the new mining royalty at
Los Pelambres, with an impact of $28.7 million. As the ad valorem
element is based on revenue rather than profit, it does not meet the
IAS 12 Income Taxes definition of a tax expense, and is therefore
recorded as an operating expense.
Exploration and evaluation costs decreased by $12.2 million to $52.7
million (2023 – $64.9 million), reflecting decreased exploration and
evaluation expenditure principally in respect of Chilean exploration.
Operating costs (excluding depreciation, amortisation and loss
on disposals) at the Transport Division
Operating costs (excluding depreciation, amortisation and loss on
disposals) at the Transport Division increased by $4.9 million to $125.6
million (2023 – $120.7 million), mainly due to higher maintenance
costs of rolling stock compensated by favourable foreign exchange
differences.
Antofagasta plc Annual Report 202474
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Commodity price and exchange rate sensitivities
The following sensitivities show the estimated approximate impact on EBITDA for 2024 of a 10% movement in the average copper, molybdenum
and gold prices and a 10% movement in the average US dollar / Chilean peso exchange rate.
The impact of the movement in the average commodity prices reflects the estimated impact on the relevant revenues during 2024, and the
impact of the movement in the average exchange rate reflects the estimated impact on Chilean peso denominated operating costs during the
year. These estimates do not reflect any impact in respect of provisional pricing or hedging instruments, any potential inter-relationship between
commodity price and exchange rate movements, or any impact from the retranslation or changes in valuations of assets or liabilities held on the
balance sheet at the year-end.
Average market commodity
price/average exchange rate
during the year ended
31.12.24
Impact of a 10% movement in the
commodity price/exchange rate on
EBITDA for the year ended 31.12.24
$m
Copper price $4.15/lb 590
Molybdenum price $21.3/lb 51
Gold price $2,387/oz 42
US dollar/Chilean peso exchange rate 944 157
Net finance income/(expense) (excluding exceptional items)
Net finance expense (excluding exceptional items) of $64.8 million reflected a variance of $93.9 million compared with the $29.1 million income in
2023.
Year ended 31.12.24
$m
Year ended 31.12.23
$m
Investment income 184.2 138.1
Interest expense (312.2) (105.6)
Other finance items 63.2 (3.4)
Net finance income/(expense) (64.8) 29.1
Investment income increased from $138.1 million in 2023 to $184.2 million in 2024, mainly due to higher average cash and liquid investment balances.
Interest expense increased from $105.6 million in 2023 to $312.2 million in 2024, primarily due to higher borrowings and the cessation of the
capitalisation of interest on borrowings relating to Los Pelambres’ Phase 1 Expansion Project following the completion of the project construction,
the interest expense relating to Centinela’s water transportation agreement, and interest relating to the issue of the Group’s $750 million bond in
May 2024.
Other finance items were a net gain of $63.2 million, compared with a net loss of $3.4 million in 2023, a variance of $66.6 million. This was
mainly due to the foreign exchange impact of the retranslation of Chilean peso denominated assets and liabilities, which resulted in a $82.1 million
gain in 2024 compared with a $12.5 million gain in 2023. In addition, there was an expense of $18.8 million in respect of the unwinding of the
discounting of provisions (2023 – expense of $15.8 million).
Profit before tax (excluding exceptional items)
As a result of the factors set out above, profit before tax (excluding exceptional items) decreased by 8.3% to $1,648.7 million (2023 – $1,798.4 million).
Depreciation, amortisation and disposals
The expense for depreciation, amortisation and loss on disposals
(excluding exceptional items) increased by $362.5 million from $1,211.3
million in 2023 to $1,573.8 million. This increase was mainly due to
higher increased IFRIC 20 amortisation at Centinela and the start of
depreciation of the Los Pelambres Phase 1 Expansion Project, as well
as depreciation of new assets at Los Pelambres and Centinela, partially
offset by an increased amount of depreciation capitalised to inventory.
Operating profit (excluding exceptional items)
As a result of the above factors, operating profit (excluding exceptional
items) decreased by $145.5 million or 8.2% in 2024 to $1,637.3 million
(2023 – $1,782.8 million).
Share of results from associates and joint ventures (excluding
exceptional items)
The Group’s share of results from associates and joint ventures
(excluding exceptional items) increased by $89.7 million to a gain of
$76.2 million in 2024, compared with a loss of $13.5 million in 2023.
This reflected the contribution from Compañía de Minas Buenaventura
S.A.A., which has been accounted for as an associate from March
2024 onwards, and also higher earnings from Zaldívar.
EBITDA
EBITDA (earnings before interest, tax, depreciation and amortisation,
and impairments) increased by $339.6 million or 11.0% to $3,426.8
million (2023 – $3,087.2 million). EBITDA includes the Group’s
proportional share of EBITDA from associates and joint ventures.
EBITDA from the Mining Division increased by $345.2 million or 11.5%
from $3,005.7 million in 2023 to $3,350.9 million this year. This
reflected the higher revenue, mainly due to increased realised price, as
well as higher EBITDA from associates and joint ventures, partially
offset by the higher mine-site costs and lower sales volumes.
EBITDA at the Transport Division decreased by $5.6 million to $75.9
million in 2024 ($81.5 million – 2023), due to higher operational costs
and lower performance of the truck transport business.
Antofagasta plc Annual Report 2024 75
The effective tax rate excluding exceptional items for the period was
38.1%, which compares with 34.7% in 2023. The complete
reconciliation between the effective tax rate and the statutory tax rate
reflects the following points:
•
The mining tax (royalty) (net impact of $160.7 million / 9.7%
including the deduction of the mining tax (royalty) as an allowable
expense in the determination of first category tax);
•
The impact of unrecognised tax losses (impact of $77.8 million /
4.7%);
•
The withholding tax relating to the remittance of profits from Chile
(impact of $29.7 million / 1.8%);
•
Adjustments to deferred tax in respect of the mining royalty (impact
of $67.1 million / 4.1%);
•
Items not deductible for Chilean corporate tax purposes, principally
the funding of expenses outside of Chile (impact of $3.9 million /
0.2%);
•
An offsetting impact of the recognition of the Group’s share of
results from associates and joint ventures, which are included in the
Group’s profit before tax net of their respective tax charges (impact
of $20.0 million / 1.1%);
•
Adjustments in respect of prior years (impact of $1.7 million / 0.1%).
The new Chilean mining royalty has taken effect from 1 January 2024.
The new royalty terms include a royalty ranging from 8% to 26%
applied to the “Mining Operating Margin”, depending on each mining
operation’s level of profitability, as well as a 1% ad valorem royalty on
copper sales. As the ad valorem element is based on revenue rather
than profit it does not meet the IAS 12 Income Taxes definition of a tax
expense, and is therefore recorded as an operating expense. The new
royalty terms have a cap, establishing that total taxation, which
includes corporate income tax, the two components of the new mining
royalty, and theoretical withholding tax on assumed distributions of
profits, should not exceed a rate of 46.5% on Mining Operating Margin
less the royalty ad valorem expense.
Los Pelambres has been subject to the new royalty since 1 January
2024. The impact of the new royalty for Los Pelambres in 2024
included the recognition of a $28.7 million expense within operating
expenses in respect of the ad valorem element. Zaldívar (which as a
joint venture is equity accounted for, and so its tax expense is not
consolidated within the above Group tax expense line) was also
subjected to the new royalty from 1 January 2024. Centinela and
Antucoya have tax stability agreements in place, thus the new royalty
rates will only impact their royalty payments from 2030 onwards.
Until then, they continue to be subject to the previous royalty system,
applying a rate from 5% to 14% of taxable operating profit, depending
on the level of operating profit margin.
The Group falls within the scope of the OECD Pillar two model rules,
which introduces a minimum effective tax rate of 15% for multinational
companies. The rules were substantively enacted in the UK in 2023
and became effective from 1 January 2024. Currently, the Antofagasta
Group operates in Chile and is subject to the Chilean first category
(corporate) tax rate of 27%, plus withholding taxes on any profits
distributed from Chile. The Group has evaluated the impact of these
rules on its tax expense, which has indicated no effect on the Group’s
2024 tax expense. Further details are set out in Note 11 to the financial
statements.
Exceptional items
Exceptional items are material items of income and expense which
result from one-off transactions or transactions outside the ordinary
course of business of the Group. These are typically non-cash,
including impairments and profits or losses on disposals. The
classification of these types of items as exceptional is considered to be
useful as it provides an indication of the earnings generated by the
ongoing businesses of the Group.
Antucoya impairment reversal
An exceptional pre-tax gain of $371.4 million (post-tax impact of
$257.4 million) has been recognised in respect of the reversal of
previous impairments recognised at Antucoya. Antucoya recognised
Income tax expense
The tax charge for 2024 excluding exceptional items increased by $4.1 million to $628.4 million (2023 – $624.3 million) and the effective tax rate for
the year was 38.1% (2023 – 34.7%). Including exceptional items, the tax charge for 2024 was $755.1 million and the effective tax rate was 36.5%.
Year ended
excluding exceptional items
31.12.2024
Year ended
including exceptional items
31.12.2024
Year ended
excluding exceptional items
31.12.2023
Year ended
including exceptional items
31.12.2023
$m % $m % $m % $m %
Profit before tax 1,648.7 2,071.1 1,798.4 1,965.5
Profit before tax multiplied by Chilean corporate
tax rate of 27% (445.1) 27.0 (559.2) 27.0 (485.6) 27.0 (530.7) 27.0
Mining Tax (royalty) (216.5) 13.1 (216.5) 10.5 (109.7) 6.1 (109.7) 5.6
Deduction of mining royalty as an allowable
expense in determination of first category tax 55.8 (3.4) 55.8 (2.7) 29.5 (1.6) 29.5 (1.5)
Adjustment to deferred tax in respect of mining
royalty 67.1 (4.1) 67.1 (3.2) (34.3) 1.9 (34.3) 1.7
Items not deductible from first category tax (3.9) 0.2 (3.9) 0.2 (21.4) 1.2 (21.4) 1.1
Adjustment in respect of prior years 1.7 (0.1) 1.7 (0.1) 4.5 (0.3) 4.5 (0.2)
Withholding tax (29.7) 1.8 (29.7) 1.4 (1.4) 0.1 (1.4) 0.1
Tax effect of (loss)/ profit of associates and joint
ventures 20.0 (1.1) 20.0 (1.0) (3.6) 0.2 (3.6) 0.2
Impact of unrecognised tax losses on current tax (77.8) 4.7 (77.8) 3.8 (2.3) 0.1 (2.3) 0.1
Reversal of the provision against carrying value
of assets (exceptional items) – – (13.7) 0.7 – – - -
Difference in overseas tax rate – – 1.1 (0.1) – – – –
Tax expense and effective tax rate
for the year ended (628.4) 38.1 (755.1) 36.5 (624.3) 34.7 (666.1) 33.9
Financial review continued
Antofagasta plc Annual Report 202476
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
impairments totalling $716 million in 2012 and 2016. Of the original
impairment amounts, $371.4 million remained in effect unamortised
as at 31 December 2024. It has been determined that there were
indicators of a potential reversal of this remaining impairment as at
31 December 2024. Accordingly, an estimate of the recoverable
amount of the Antucoya operation has been performed. The
recoverable amount indicated by this assessment was $2,013 million,
which was $583 million above the carrying value of Antucoya’s
relevant assets of $1,431 million. The predominant driver behind this
positive headroom has been the increasingly positive copper price
outlook. Given the level of headroom indicated by this valuation
process it is appropriate to fully reverse the remaining $371.4 million
element of the original impairments, resulting in an exceptional
pre-tax gain of $371.4 million. A deferred tax expense of $114.0
million has been recognised in respect of this reversal, resulting
in a post-tax impact of $257.4 million.
Compañia de Minas Buenaventura S.A.A.
During 2023, the Group entered into an agreement to acquire up to
an additional 30 million shares in Compañía de Minas Buenaventura
S.A.A. An exceptional fair value gain of $51.0 million (2023 – $167.1
million) was recognised during 2024 in respect of this agreement.
A deferred tax expense of $12.7 million (2023 – $41.8 million) has
been recognised in respect of this gain, resulting in a post-tax impact
of $38.3 million (2023 – $125.3 million).
Non-controlling interests
Profit for 2024 attributable to non-controlling interests (excluding exceptional items) was $400.8 million, compared with $464.3 million in 2023,
a decrease of $63.5 million. This reflected the decrease in earnings analysed above.
Earnings per share
Year ended 31.12.24 Year ended 31.12.23
$ cents $ cents
Underlying earnings per share (excluding exceptional items) 62.8 72.0
Earnings per share (exceptional items) 21.3 12.7
Earnings per share (including exceptional items) 84.1 84.7
Earnings per share calculations are based on 985,856,695 ordinary shares.
As a result of the factors set out above, the underlying profit attributable to equity shareholders of the Company (excluding exceptional items)
was $619.5 million compared with $709.8 million in 2023, giving underlying earnings per share of 62.8 cents per share (2023 – 72.0 cents per
share). The profit attributable to equity shareholders (including exceptional items) was $829.4 million (2023 – $835.1 million), resulting in
earnings per share of 84.1 cents per share (2023 – 84.7 cents per share).
Dividends
Dividends per share proposed in relation to the period are as follows:
Year ended 31.12.24 Year ended 31.12.23
$ cents $ cents
Ordinary dividends:
Interim 7.9 11.7
Final 23.5 24.3
Total dividends to ordinary shareholders 31.4 36.0
The Board determines the appropriate dividend each year based on consideration of the Group’s cash balance, the level of free cash flow and
underlying earnings generated during the year and significant known or expected funding commitments. It is expected that the total annual
dividend for each year would represent a payout ratio based on underlying net earnings for that year of at least 35%.
The Board has recommended a final dividend for 2024 of 23.5 cents per ordinary share, which amounts to $231.7 million and will be paid on
12 May 2025 to shareholders on the share register at the close of business on 22 April 2025.
The Board declared an interim dividend for the first half of 2024 of 7.9 cents per ordinary share, which amounted to $77.9 million.
This gives total dividends proposed in relation to 2024 (including the interim dividend) of 31.4 cents per share or $309.6 million (2023 –
36.0 cents per ordinary share or $354.9 million in total), equivalent to a payout ratio of 50% of underlying earnings.
Capital expenditure
Capital expenditure increased by $285.7 million from $2,129.2 million in 2023 to $2,414.9 million in the current year, mainly due to the start
of the Centinela Second Concentrator project and the completion of the Los Pelambres Phase 1 Expansion project, and higher sustaining capex
at Los Pelambres, partly offset by decreased IFRIC 20 mine development at Centinela and Los Pelambres.
Capital expenditure figures quoted in this report are on a cash flow basis, unless stated otherwise.
Derivative financial instruments
The Group periodically uses derivative financial instruments to reduce its exposure to commodity price, foreign exchange and interest rate
movements. The Group does not use such derivative instruments for speculative trading purposes. At 31 December 2024, there were foreign
exchange derivative financial instruments in place in respect of the Centinela Second Concentrator project capital expenditure, with a negative
fair value at that point of $25.5 million (2023 – nil).
Antofagasta plc Annual Report 2024 77
Cash flows
The key features of the cash flow statement are summarised in the following table.
Year ended 31.12.24 Year ended 31.12.23
$m $m
Cash flows from operations 3,276.2 3,027.1
Income tax paid (666.8) (528.1)
Net interest paid (143.1) (48.8)
Purchases of property, plant and equipment (2,414.9) (2,129.2)
Dividends paid to equity holders of the Company (317.4) (613.2)
Dividends paid to non-controlling interests (240.0) (388.0)
Capital increase from non-controlling interest 156.7 –
Dividends from associates and joint ventures 3.5 –
Disposal of joint venture – 944.7
Investment in other financial assets – (290.1)
Acquisition of equity investments – (60.7)
Other items 0.2 (0.8)
Changes in net debt relating to cash flows (345.6) (87.1)
Other non-cash movements (141.6) (187.6)
Effects of changes in foreign exchange rates 17.9 0.7
Movement in net debt in the period (469.3) (274.0)
(Net debt)/net cash at the beginning of the year (1,159.8) (885.8)
Net debt at the end of the year (1,629.1) (1,159.8)
Cash flows from operations were $3,276.2 million in 2024 compared with $3,027.1 million in 2023. This reflected EBITDA from subsidiaries
for the year of $3,211.1 million (2023 – $2,994.1 million) adjusted for the positive impact of a net working capital decrease of $65.9 million
(2023 – positive impact of $47.5 million from a net working capital decrease), partly offset by a non-cash decrease in provisions of $0.8 million
(2023 – negative impact of a decrease in provisions of $14.5 million).
The $65.9 million working capital decrease of 2024 reflected a decrease in receivables, predominantly due to lower sales volumes in December
2024 compared with December 2023 (largely due to temporary shipment delays at Centinela at the 2024 year-end due to bad weather
conditions at the port), offset by an increase of work in progress inventories at Centinela and a decrease in accounts payables.
The net cash outflow in respect of tax in 2024 was $666.8 million (2023 – $528.1 million). This amount differs from the current tax charge in the
consolidated income statement (including exceptional items) of $662.9 million (2023 – $586.8 million) as the cash tax payments reflect payments
on account for the current year based on prior periods’ profit levels of $567.8 million (2023 – $544.3 million), the settlement of outstanding
balances in respect of the previous year’s tax charge of $49.2 million (2023 – $14.7 million) and withholding tax payments of $71.1 million
(2023 – $2.1 million), partly offset by the recovery of $21.3 million relating to prior years (2023 – $33.0 million).
Capital expenditure in 2024 was $2,414.9 million compared with $2,129.2 million in 2023. This included expenditure of $1,414.0 million at
Centinela (2023 – $1,044.6 million), $833.0 million at Los Pelambres (2023 – $897.1 million), $123.4 million at Antucoya (2023 – $121.6 million),
$7.1 million at the corporate centre (2023 – $15.5 million) and $37.4 million at the Transport Division (2023 – $50.4 million). The increase in
capital expenditure reflects the start of the Centinela Second Concentrator project, the completion of the Los Pelambres Phase 1 Expansion
project, and increased sustaining capex at Los Pelambres, partly offset by decreased IFRIC 20 mine development at Centinela and Los
Pelambres.
Dividends paid to equity holders of the Company were $317.4 million (2023 – $613.2 million) of which $239.6 million related to the payment
of the previous year’s final dividend and $77.9 million to the interim dividend declared in respect of the current year.
Dividends paid by subsidiaries to non-controlling shareholders were $240.0 million (2023 – $388.0 million).
A capital contribution of $156.7 million was received from Marubeni, the minority partner at Centinela, in respect of financing for the Centinela
Second Concentrator project.
Dividends received from associates and joint ventures were $3.5 million for 2024 (2023 – nil) related to a dividend received from Compañía
de
Minas Buenaventura S.A.A.
In 2023, there was a $944.7 million cash inflow in respect of the Group’s disposal of its 50% interest in the Tethyan joint venture.
In 2023, there was a $290.1 million cash outflow in respect of investment in other financial assets, related to the agreement to acquire up
to 30 million shares in Compañía de Minas Buenaventura S.A.A. (“Buenaventura”).
Acquisitions of equity investments were nil in 2024 (2023 – $60.7 million).
Financial position
At 31.12.24 At 31.12.23
$m $m
Cash, cash equivalents and liquid investments 4,316.3 2,919.4
Total borrowings and other liabilities from financing activities (5,945.4) (4,079.2)
Net debt at the end of the period (1,629.1) (1,159.8)
Financial review continued
Antofagasta plc Annual Report 202478
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
At 31 December 2024, the Group had combined cash, cash equivalents
and liquid investments of $4,316.3 million (31 December 2023 –
$2,919.4 million). Excluding the non-controlling interest share in each
partly-owned operation, the Group’s attributable share of cash, cash
equivalents and liquid investments was $3,513.5 million (31 December
2023 – $2,490.5 million).
Total Group borrowings and other financial liabilities at 31 December
2024 were $5,945.4 million, an increase of $1,866.2 million on the
prior year (at 31 December 2023 – $4,079.2 million). The increase
was mainly due to $741.7 million from the issue of the new corporate
bond, $670.0 million in respect of short–term loans at Los Pelambres
($475.0 million) and Centinela ($195.0 million), $600.0 million from the
other financial liability in respect of the water transportation agreement
at Centinela, $536.1 million in respect of the project financing at
Centinela, $182.2 million in respect of a senior loan at Los Pelambres,
partly offset by a $559.0 million repayment of the senior loans at Los
Pelambres ($370.7 million), Centinela ($133.3 million), Antucoya ($50.0
million) and the Transport Division ($5.0 million), as well as a $265.0
million repayment of the short-term loan at Centinela and a $4.6
million repayment of the other financial liability at Centinela.
In June 2024, Centinela entered into a water transportation
agreement, involving its existing water supply and future water supply
to the Centinela Second Concentrator Project. Under the terms of the
agreement, Centinela’s existing water transportation assets and rights
have been legally transferred to an international consortium for net
cash proceeds of $600 million. For accounting purposes, the existing
assets remain in the Group’s balance sheet, with the cash receipt
resulting in the recognition of the corresponding other financial liability
balance.
Excluding the non-controlling interest share in each partly-owned
operation, the Group’s attributable share of the borrowings was
$4,447.0 million (31 December 2023 – $2,948.3 million).
These movements resulted in net debt at 31 December 2024 of
$1,629.1 million (31 December 2023 – net debt $1,159.8 million).
Excluding the non-controlling interest share in each partly-owned
operation, the Group had an attributable net debt position of $933.5
million (31 December 2023 – net debt $457.8 million).
Going concern
The consolidated financial information contained in the financial
statements has been prepared on the going concern basis. Details
of the factors which have been taken into account in assessing the
Group’s going concern status are set out in Note 1 to the financial
statements.
Antofagasta plc Annual Report 2024 79
Risk management framework
Effective risk management is an essential part of our culture and strategy.
The accurate and timely identification, assessment and management of principal risks gives
us a clear understanding of the actions required to achieve our objectives.
Risk management
Key elements of integrated risk management
We recognise that risks are inherent to our business
Only through adequate risk management can internal stakeholders be
supported in making key decisions and implementing our strategy.
Exposure to risks must be consistent with our risk appetite
The Board defines and regularly reviews the acceptable level
of exposure to emerging and principal risks. Risks are aligned with
our risk appetite, taking into consideration the balance between threats
and opportunities.
We are all responsible for managing risks
Each business function carries out risk evaluations to ensure the
sound identification, management, monitoring and reporting of risks
that could impact the achievement of our goals.
Risk is analysed using a consistent framework
Our risk management methodology is applied to our operating
companies, projects, exploration activities and support areas so that
we have a comprehensive view of the uncertainties that could affect
the achievement of our strategic goals. The framework is based
on ISO 31000 and COSO ERM.
1
We are committed to continuous improvement
Lessons learned and best practices are incorporated into our
procedures to protect and unlock value sustainably.
Areas of focus and development during 2024
In January, the UK Corporate Governance Code was updated
introducing a new requirement (applicable from 2026 onwards) for
the Board to make an annual declaration as to the effectiveness of the
Group’s material internal controls. A readiness assessment was
undertaken and action plans were established in respect of the
anticipated changes. The assessment process has been concluded
and a dry-run process will be conducted during 2025.
In September, the Chilean “Ley de Delitos Económicos” (Economic
Crimes Law) came into force. We have strengthened our Crime
Prevention Officer organisation to better address the new challenges
arising from the law, with a main focus on prevention in the new
areas of environmental crimes, work accidents and occupational
diseases, fraud and corruption. We are confident that we have robust
controls in place.
We have maintained our commitment to review and update our
principal risks according to our risk methodology. The following
represent a number of the actions that our Risk and Compliance
Management Department undertook during 2024:
•
Updated emerging risks in sessions with senior management and
conducted on-site risk reviews of selected areas during visits,
enhancing the Company’s risk maturity level.
•
Conducted a key control review with the Internal Audit team, testing
65 controls across 10 risks to validate their design, operation, and
effectiveness..
•
Coordinated Contingency Committees in line with our risk
management process.
•
Reviewed the Company’s risk appetite level and statement (all risk
areas remain unchanged). Reported monthly to both the Company’s
Executive Committee and individual risk owners to identify and
manage any deviation from what is expected.
•
Initiated the next phase of copper growth in 2024 with projects in
Centinela and Los Pelambres, supported by a project management
system to ensure best practices at each development phase.
•
Participated in the FQAR (Functional Quality Assurance Review)
process, which consists of a verification and review by independent
reviewers of the project, which is applied to the study stages of a
project and during its execution. The output of each FQAR is a
report that is shared with the project approval team.
•
Continued training of risk owners and users of the framework in
their roles as owners of controls and action plans.
•
Updated and monitored critical controls and action plans.
•
Prepared new action plans to maintain risk exposure within
acceptable limits.
•
Embedded timely and comprehensive risk analysis into each
relevant decision-making processes.
•
Shared best practices across our operating companies.
Governance
The Board has overall responsibility for risk management and
determines the nature and extent of the principal and emerging
risks that we will accept to achieve our strategic objectives.
The Board receives a detailed analysis of each key matter in advance
of Board meetings. This includes, among others, the following areas:
health and safety, financial, environmental, legal and social matters;
key developments in our exploration, project and business
development activities; information on the commodity markets; updates
on talent management; and analysis of financial investments.
The provision of this information allows for the early identification
and assessment of potential issues and the deployment of any
necessary preventive and mitigating actions.
The Audit and Risk Committee assists the Board by reviewing the
effectiveness of the risk management process and monitoring principal
and emerging risks, preventive and mitigation procedures, and action
plans. The Chair of the Committee reports to the Board following each
Committee meeting and, if necessary, the Board discusses the matters
raised in more detail.
1. The Committee of Sponsoring Organisations of the Treadway Commission Enterprise
Risk Management framework.
Antofagasta plc Annual Report 202480
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
These processes allow the Board to monitor Antofagasta’s major risks,
adopt any necessary preventive and mitigating procedures, and assess
whether the level of risk exposure is consistent with the Company’s
defined risk appetite. If a gap is identified, an action plan is prepared
to address it.
The Risk and Compliance Management Department is responsible
for the Company’s risk management systems. It implements the
Company’s risk management policy, vision and purpose to ensure
there is a strong risk management culture at all levels of the
organisation.
The Risk and Compliance Management Department supports business
areas in analysing their risks, identifying existing preventive and
mitigating controls and defining further action plans. It maintains and
regularly updates the Company’s risk register.
The General Manager of each operation, with the Risk and Compliance
Management Department’s support, reports twice a year to the Audit
and Risk Committee on the overall risk management process, with
detailed updates on principal risks, mitigation activities and actions
taken in each subsidiary of the Company.
The General Manager of each operation has overall responsibility for
leading and supporting risk management. Risk owners within each
operation have direct responsibility for the risk management processes
and for regularly updating individual business risk registers, including
relevant mitigation activities. The individual owners of the risks and
controls at each business unit are identified in order to provide
effective and direct risk management.
Each operation holds an annual workshop on risk, at which the
business unit’s risks and mitigation activities are reviewed in detail
and updated as necessary. Workshops are used to assess principal
risks that may affect relationships with stakeholders, limit resources,
interrupt operations and/or negatively affect potential future growth.
Our risk management structure
R
i
s
k
a
p
p
e
t
i
t
e
4. Follow up
1. Identify
3. Treat
2. Assess
Board of Directors
•
Has overall responsibility for risk management and its alignment with Antofagasta’s strategy.
•
Approves the risk management policy.
•
Defines risk appetite.
•
Reviews, challenges and monitors principal risks.
Board Committees
•
Support the Board in monitoring principal risks and exposure relative to our risk appetite.
•
Make recommendations to the Board on the risk management system.
•
Review the implementation of the risk management system.
Executive Committee
•
Assesses risks and their potential impact on the achievement of our strategic goals.
•
Promotes our risk management culture in each of the business areas.
•
Ensures there is transparent and satisfactory dialogue with stakeholders.
Third line of defence
The Internal Audit Department provides assurance on the risk management process,
including the performance of the first and second lines of defence.
Second line of defence
The Risk and Compliance Management Department is accountable for monitoring our overall risk profile
and risk management performance, registering risks and issuing alerts if any deviation is detected.
First line of defence
Each person is responsible for identifying, preventing and mitigating risks in their business area
and escalating their concerns to the appropriate level if required.
Mitigation techniques for significant strategic and business
unit risks are reviewed quarterly by the Risk and Compliance
Management Department.
We promote a consistent risk management process across our
different business units, ensuring that risk is considered at all levels
of the organisation. Risk information flows from the business units
to the centre, and from the Board back to the business units.
Risk management cycle
Risk appetite expresses the exposure to uncertainties that the
organisation is willing to assume in the pursuit of its objectives.
Our risk management cycle has four stages, and allows us to identify,
assess, manage and follow up our risks.
Antofagasta plc Annual Report 2024 81
Risk area Appetite
Risk
level
Change in
risk level
vs 2023 Outlook
People
1. Talent management
2. Labour relations
Safety and sustainability
3. Health and safety
4. Environmental management
5. Climate change
6. Community relations
7. Political, legal and regulatory
8. Corruption
Competitiveness
9. Operations
10. Tailings storage
11. Strategic resources
12. Cyber security
13. Liquidity
14. Commodity prices and
exchange rates
Growth
15. Growth of mineral resource
base and opportunities
16. Project development
and execution
Innovation
17. Innovation and digitalisation
Transversal
18. External risks
Key
Risk appetite Risk level
Low
Medium
High
Very high
Outlook
Decreasing
Unchanged
Increasing
Strategic pillars
Safety and sustainability
People and culture
Competitiveness
Innovation
Growth
Principal risks
We maintain a risk register based on a robust
assessment of the potential principal risks that
could affect the Company’s performance.
This register ensures that principal risks are
identified in a thorough and systematic way
and that agreed definitions of risk are used.
Risk management
We are aware that not all risks can be eliminated and that exposure
to some risk is necessary in the pursuit of our corporate objectives.
Mining is a long-term business and, as part of our process to update
and evaluate principal risks, we identify new or emerging risks which
could impact the Company’s sustainability in the long run, even if
there is only limited information available at the time of the evaluation.
Any identified new or emerging risks that could impact our long-term
strategic objectives are included in the principal risk analysis and are
reviewed and monitored periodically by the Board. As new
information becomes available, based on research, expert analysis
and internal investigations, suitable controls and action plans are
defined and incorporated into the Company’s risk matrix.
We identify, assess and manage the risks critical to the Company’s
success. Overseeing such risks protects our business, people and
reputation. The risk management process provides reasonable
assurance that the relevant risks are recognised and monitored,
allowing the Company to achieve its strategic objectives and
create value.
Because risks are periodically re-evaluated, the risk map shown
here represents the position and controls in place at a specific point
in time, as well as showing the changes that have taken place
since 2023.
Throughout the year, the Board carried out a robust assessment of
the Company’s emerging and principal risks, which are set out on the
following pages with related preventive and mitigation measures.
During 2024, the impact of the Environmental management principal
risk (4) was increased from “Moderate” to “Significant” following the
environmental permitting processes that we are carrying out in some
of our operations.
The impact of the Strategic Resources principal risk (11) was reduced
from “Significant” to “Moderate” following the commissioning of the
Los Pelambres desalination plant, which came into operation during
2023, and achieved design capacity during 2024.
The impact of the Project development and execution principal risk
(16) was increased from “Moderate” to “Significant” following the
greater exposure we have as a result of the large projects approved
during 2024.
Risk management continued
Antofagasta plc Annual Report 202482
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
The risk impact scale rating has five levels of probability and impact:
Probability
Level Quantitative Qualitative
Almost certain Once a week Happens often
Likely Once a month or more Could happen easily and has occurred under similar conditions
Possible Once or twice a year Could happen and has happened in similar conditions
Unlikely Once or twice every 10 years Has not happened yet, but could happen
Very unlikely Once or twice every 50 years Only in extreme circumstances
Impact
Level EBITDA / Safety and Health / Environment / Communities / Legal / Reputation
Severe
•
Any incident with an impact of more than 50% of EBITDA.
•
Accident that causes multiple fatalities or permanent disabilities.
•
Irreversible environmental damage or serious incident that impacts a community, with long-term effects.
•
Regulatory breaches which may lead to a revocation of operating permits or a financial impact exceeding 20% of EBITDA.
•
Severe impact on Company’s international reputation with long-term effects.
Significant
•
Any incident with an impact of between 20% and 50% of EBITDA.
•
Accident that causes a single fatality or permanent disability.
•
Reversible environmental damage or major incident affecting a community, with medium-term effects.
•
Regulatory breaches which may lead to a criminal conviction or a financial impact of between 3% and 20% of EBITDA.
•
High impact on the Company’s national reputation with medium-term effects.
Moderate
•
Any incident with an impact of between 10% and 20% of EBITDA.
•
Accident resulting in lost time.
•
Moderate environmental impact or small incident that affects a community, with short-term effects.
•
Regulatory breaches which may lead to criminal charges or a financial impact of between 0.05% and 3% of EBITDA.
•
Moderate adverse claims and in the national news for a medium-term period.
Low
•
Any incident with an impact of between 5% and 10% of EBITDA.
•
Accident without lost time.
•
Minor environmental or community impact.
•
Regulatory breaches that may result in a financial impact of less than 0.05% of EBITDA.
•
Moderate claims and in national news for a short-term period.
Very low
•
Any incident with an impact of less than 5% of EBITDA.
•
Minor occupational accident.
•
Very minor environmental or community impact, easily resolved.
•
Regulatory breaches that will not result in a financial penalty.
•
Claims that do not reach the formal media.
Risk heat map
PROBABILITY
Very unlikely Unlikely Possible Likely Almost certain
IMPACT
SevereSignificantModerateLowVery low
14
6
1
2
3
17 15
8
10
9
7
5
18
12
13
Legend
Risk level
Low
Medium
High
Very high
4
11
16
Movement since
previous year
Antofagasta plc Annual Report 2024 83
The principal risks, together with related prevention and mitigation
measures, have been presented to the Board and are grouped in line
with our strategic pillars: People and Culture, Safety and Sustainability,
Competitiveness, Growth and Innovation. These pillars are supported
by our corporate governance structures.
Defining risk appetite is key to embedding the risk management system into our
organisational culture.
The Company’s risk appetite statement helps to align our strategy with the objectives of each
business unit, clarifying which risk levels are, or are not, acceptable. It promotes consistent
decision-making on risk, allied to the strategic focus and risk/reward balance
approved by the Board.
The principal risks are outlined in the risk heat map and table on the
previous two pages, and in more detail below.
Description Preventive and mitigation measures Highlights
1. TALENT MANAGEMENT
Risk appetite Risk level Outlook
Managing talent and
maintaining a high-quality
workforce in a fast-
evolving technological
and cultural environment
remains a top priority for
us. Failure to address
these challenges could
negatively impact the
performance of our
current operations and
future growth
opportunities.
As a preventive measure, we invest in developing our
employees’ capabilities through comprehensive training
and career development programmes, alongside
initiatives that expand the talent pool. Our training
initiatives, which included 570,246 total hours with
an average of 72 hours per employee in 2024, are
designed as a preventive measure to enhance skills and
promote safety, productivity and inclusive leadership
across the organisation.
Aligned with our diversity and inclusion policy, we aim
to increase retention and representation of women,
people with disabilities, and employees with international
experience across the organisation.
To attract and retain key talent, our performance
management system incorporates competitive reward
and remuneration structures, coupled with opportunities
for personal and professional growth.
Additionally, our succession management system
identifies and develops internal candidates for leadership
positions, achieving a 34% rate of internal mobility in the
Mining Division and 51% in the Transport Division. This
internal mobility serves as a mitigation measure,
reducing the risks associated with talent shortages,
while enabling us to recruit external talent when
necessary.
The increasing challenge of attracting and retaining
skilled talent – amplified by rapid technological
advancements and evolving workforce demands –
remains a key focus for us.
This year, nearly 4,000 employees participated in our
Leadership and Diversity Academy, a cornerstone
initiative that strengthens critical skills such as feedback,
development conversations, and inclusive leadership.
To embed a culture of continuous improvement, we
implemented masterclasses aligned with each stage of
our performance management cycle, enhancing the
quality of feedback and driving higher performance
standards.
As part of our commitment to leadership continuity, we
updated our succession plan, resulting in a 6% increase
in female representation within our talent pipelines
– demonstrating tangible progress in our diversity
efforts.
Through our Young Professionals Programme, in 2024
we continued to attract and develop young talent,
accelerating the integration of 24 new participants, 17 of
whom were women, and ensuring we nurture the next
generation of leaders who share our values and vision.
Finally, our diversity and inclusion strategy increased
female representation to 26.6%, a three percentage point
rise on 2023.
Risk management continued
Antofagasta plc Annual Report 202484
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Description Preventive and mitigation measures Highlights
2. LABOUR RELATIONS
Risk appetite Risk level Outlook
Our highly skilled
workforce and
experienced management
team are critical to our
current operations,
implementing
development projects and
achieving long-term
growth without major
disruption.
We maintain good relations with our employees and
unions, founded on trust, regular dialogue and good
working conditions. We are committed to safety,
non-discrimination, diversity and inclusion, and we
comply with Chile’s strict labour regulations. There are
long-term labour agreements (usually three years) in
place with all the unions at our operations, which helps
ensure labour stability. We seek to identify and address
any labour issues that may arise during the period
covered by the labour agreements and to anticipate any
potential issues in good time.
Employees of our contractor companies are another
important part of our workforce, and we implement
appropriate measures to verify and ensure compliance
by contractor companies of their obligations as
employees. We treat contractors as strategic associates
and build long-term, mutually beneficial relationships with
them. We maintain constructive relationships with our
employees and their unions through regular
communication and consultation. Union representatives
are regularly involved in discussions about the future
of the workforce.
During 2024, a three-year labour agreement was
successfully negotiated with a workers’ union
at Centinela, in a climate of mutual respect.
In the case of the contractors’ companies, collective
bargaining processes were also carried out according to
agreed schedules and without conflict or impact for the
Group’s companies, except for a contractor company at
Zaldívar that had a brief strike with no impact on
operational continuity.
Labour audits are carried out annually on our contracting
companies, in which compliance with labour standards
regarding salaries and insurance is evaluated. This year
the audit had a compliance rate of over 96%. In cases of
non-compliance, an action plan is prepared that must be
implemented within two months.
3. HEALTH AND SAFETY
Risk appetite Risk level Outlook
Health and safety
incidents could result in
harm to our employees,
contractors and local
communities. Ensuring
their safety and wellbeing
is our ethical obligation,
and one of our core
values.
A poor safety record or
a serious accident could
have a long-term impact
on morale and on our
reputation and
productivity.
Our Safety and Occupational Health Strategy is based
on the following fundamentals:
1. Health and safety risk management: Workers at all
levels are trained to identify hazards and controls, so
that all jobs are carried out safely. Workers at all
levels understand their role and responsibilities to
plan and execute any high-risk tasks according to
standardised working practices, where tools,
equipment and controls are key to safe production.
2. Leadership: All employees and contractors are health
and safety leaders and we demonstrate our
commitment through each individual’s responsible
behaviour.
3. Contractor management: Our contractors are an
integral part of our Safety team and safety culture,
which we work together to improve. We rely on our
contractors and work together as a team, ensuring
our working practices meet the highest health and
safety standards.
4. Learning: We report and investigate all high-potential
unwanted health and safety events and share all
learnings to ensure no repeats; we share good
practices to standardise what we do well.
The strategy strives to achieve our four main goals: zero
fatalities; zero occupational illnesses; the development of
a resilient culture; and the automation of hazardous
processes.
Leadership visibility and strong use of “Planned Task
Risk Assessment” (ARTP) and “Yo Digo No” (I Say No)
tools are part of our safety performance.
Critical controls and verification tools are constantly
strengthened through the verification programme and
through regular audits of critical controls for potential
high-risk activities.
We had no fatalities during 2024.
Our performance indicators continue to improve year on
year in 2024, we registered our lowest numbers of
high-potential incidents and permanent and temporary
occupational illnesses.
We have now rolled out our Operational Excellence
Management System (OEMS) and introduced four key
practices under our Supervisor Leadership Programme
(ARTP, weekly supervisor forum, process confirmation
and role confirmation).
Our digital ARTP library now has more than
900 standardised assessments for high-risk tasks
available.
We have now completed 100% of our direct baseline of
occupational health risk similar exposure groups and
50% of our contractors, enabling effective medical
surveillance preventative programmes.
For more details of the Group’s approach to health and
safety, including the Supervisor Leadership programme
and ARTP, please see the Health and safety section on
page 52 of this report.
Antofagasta plc Annual Report 2024 85
Description Preventive and mitigation measures Highlights
4. ENVIRONMENTAL MANAGEMENT
Risk appetite Risk level Outlook
An operating incident that
impacts the environment
could affect our
relationship with local
stakeholders and our
reputation, reducing the
social value we generate.
We operate in challenging
environments, including
the largely agricultural
Choapa Valley and the
Atacama Desert, where
water scarcity is a key
issue. Environmental
issues directly related to
climate change are
considered under our
specific Climate Change
principal risk.
We have a comprehensive approach to incident
prevention, aligned with the environmental management
model applied by our operations and projects in progress.
Risks are assessed, monitored and controlled to achieve
our goal of zero events with significant environmental
impact. We work to raise awareness among our
employees and contractors by providing training to
promote operating excellence related to the environment
in which we work. The potential environmental impact of
a project is a key consideration when assessing its
viability to obtain our environmental permits, and we
encourage the integration of innovative technology in the
project design to mitigate such impacts.
We prioritise the efficient use of natural resources by
using sea water, favouring the use of renewable power,
and achieving higher rates of reuse and recovery of
water by using thickened tailings technology.
We recognise that environmental performance is key to
our ability to generate social value, and we perform
regular risk assessments to identify our potential impact
and develop preventive and mitigating strategies.
Each site regularly updates its environmental emergency
preparedness and detailed closure plans, complying with
current legislation and applicable international guidelines.
In the event of an environmental operational event, all
appropriate control, containment or corrective measures
would be taken immediately.
During 2024, we published our environmental management
model, which establishes the critical controls that must be
implemented for any activity or project with environmental
risks. This aimed to achieve operational excellence by
integrating environmental considerations into the business,
and transitioning towards preventive environmental
management. Additionally, we incorporated a new pillar in
the standard, focused on obtaining environmental permits,
through which we monitored the implementation of our
new directive. Finally, we progressed in the maturity of our
management model by implementing it comprehensively
across operations and projects, encompassing both the
Mining and Transport Divisions.
As of 2024, two of Antofagasta’s operations, Centinela and
Zaldívar, were the first in the world to obtain the Copper
Mark re-certification with 33 new criteria as of 2024. This
reaffirms our commitment to responsible and sustainable
production, and our alignment with the United Nations’
Sustainable Development Goals.
Los Pelambres’ Development Options Project was
submitted to Chile’s Environmental Impact Assessment
(EIA) system in December 2024. Progress has been made
in the environmental permitting process for Zaldívar’s EIA
with the submission of a Complementary Addendum in
March 2025 in response to enquiries from the government
received in January 2025. For more details of projects
under environmental evaluation, please see the Operating
Review section of this report.
5. CLIMATE CHANGE
Risk appetite Risk level Outlook
The effects of climate
change have had an
increasing impact on our
operations. The current
drought in central Chile is
affecting water availability
at Los Pelambres, while
higher than expected
rainfall in the northern
part of the country is
impacting the
infrastructure in the
region. In addition, the
increasing severity of sea
swells leads to delays in
the delivery of key supply
materials and the export
of our concentrates and
cathodes.
The Chilean
government’s increased
climate ambitions may
result in higher
compliance and operating
costs.
We recognise that climate change is a threat to human life
and the planet as we know it today.
We measure and report our Scope 1, 2 and 3 greenhouse
gas emissions and have set robust reduction targets
through a cost-effective decarbonisation roadmap. We
continue to seek more ways to decarbonise our operations,
which requires greater investment in innovative solutions,
including the development of low-carbon technology, and
this can increase operating costs.
As regards water scarcity, we are reducing our
dependence on continental water through more efficient
water use and the increased use of sea water within our
total water consumption. As each phase of the Los
Pelambres desalination plant is completed, the proportion
of continental water used is anticipated to decrease,
particularly after Phase 2 of the project. This should
significantly lower the potential impact of water scarcity on
the Group, while freeing up water for local communities.
We constantly seek to identify risks associated with climate
change and to adapt to and mitigate their potential impact
with actions such as increasing our stocks of strategic
resources. For each risk evaluated as “High” or “Extreme”
we produce specific action plans and strategies.
As part of our regular communication with local
stakeholders we discuss the material risks and our
controls, action plans and related strategies.
We are focused on contributing to the reduction of
greenhouse gas emissions and water scarcity. We are
doing this by increasing the amount of power and water
we obtain from renewable and sustainable sources.
Our climate change strategy seeks to strengthen our
capacity to adapt to and mitigate climate change. It
enables us to take early action to manage the related
risks and opportunities in such a way as to mitigate the
effects of climate change and adapt to new scenarios.
Since April 2022, all of our power supply contracts for
our mining operations are for electricity from renewable
sources. This has allowed us to meet, earlier than
expected, the target of reducing Scope 1 and 2 emissions
by 30% by 2025 compared to 2020, with emissions
savings equivalent to 730,000 tCO
2
e.
In 2024, we established updated targets: to reduce
Scope 1 and 2 emissions by 50% by 2035 compared to
2020, and to engage with the industry to achieve a 10%
reduction in Scope 3 emissions by 2030.
We are also targeting carbon neutrality by 2050, or
sooner if technology permits.
In the first quarter of 2024, we unveiled Antofagasta’s
Climate Action Plan, titled: “Our Path to Decarbonisation”,
through which we aim to contribute to the global
challenge of transitioning towards lower CO
2
emissions
to achieve carbon neutrality.
Our plan employs cutting-edge technologies and
innovative solutions, including transitioning our haul truck
fleet to low-emission alternatives. The plan also ensures
that every innovation adopted meets our operational
needs and offers a firm foundation for future
technological enhancements.
Risk management continued
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Description Preventive and mitigation measures Highlights
6. COMMUNITY RELATIONS
Risk appetite Risk level Outlook
Failure to identify and
manage local concerns
and expectations could
negatively impact the
Company. Adverse
relations with local
communities and
stakeholders could affect
our reputation and
impede our ability to
grow and generate
social value.
We have a dedicated team that establishes and
maintains relations with local communities. These
relationships are based on trust and mutual benefit
throughout the mining lifecycle, from exploration to final
remediation on closure. We seek to anticipate any
potentially negative operating impacts and minimise
these through responsible behaviour. This means acting
transparently and ethically, prioritising the safety and
health of our employees and contractors, avoiding
environmental incidents, promoting dialogue, complying
with our commitments to stakeholders and establishing
mechanisms to prevent or address a crisis. These steps
are undertaken in the early stages of each project and
continue throughout the life of each operation.
We contribute to the development of communities in the
areas in which we operate, starting with an assessment,
undertaken jointly with the communities, of the existing
situation and their specific needs. We then look to
develop long-term, sustainable relations and to evaluate
the impact of our contributions. We also focus on
developing the potential of members of local
communities through education, training and
employment.
We work to communicate clearly and transparently with
local communities in line with our community relations
plan. This includes a grievance management process,
local perception surveys, and local media and
community engagement.
To mitigate the impact of the drought in the Province of
Choapa, we have strengthened community programmes
related to the availability of water for human
consumption and irrigation.
We aim to stimulate the generation of economic, social,
and human capital in the regions where we operate by
promoting local employment, supporting local suppliers,
and offering education and training opportunities. We run
various programmes to support local entrepreneurs and
micro and small businesses.
We continue to make progress in measuring the impact
of our social programmes in the territory. Through
careful monitoring, we have been able to develop
improvement plans aimed at optimising the performance
of the initiatives and the social value of our operations in
the territory.
In line with our Human Rights policy, in 2024 we carried
out our second due diligence process, with the aim of
updating potential human rights risks identified in the
2019 assessment and developing gap-closing plans to
address them. This process was conducted by an expert
third party and included visits and interviews with
representatives from relevant groups (250 people)
across all our operations and communities. Furthermore,
we renewed our engagement and development
agreements with the indigenous peoples in the northern
region’s area of influence (Salar de Atacama) and
strengthened our relations with the indigenous groups in
the province of Choapa.
We also have a community grievance management
system to address any issues caused by our operations
in neighbouring communities. Concerns can be raised
confidentially and tracked to monitor their progress.
The increase in the outlook is mainly due to the greater
interaction with the community within the framework of
recently commenced projects at Los Pelambres, being
the start of works on the new concentrate pipeline and
the desalination plant expansion.
Antofagasta plc Annual Report 2024 87
Risk management continued
Description Preventive and mitigation measures Highlights
7. POLITICAL, LEGAL AND REGULATORY
Risk appetite Risk level Outlook
Political instability could
affect our operations,
projects and exploration
activities in the countries
in which we operate.
Issues regarding the
granting of permits, or
amendments to permits
already granted, and
changes to the legal
environment or
regulations, could also
adversely affect our
operations and
development projects.
We constantly monitor political, legal and regulatory
developments affecting our operations and projects.
We target compliance with existing laws, regulations,
licences, permits and rights in the countries in which
we operate.
We assess political risk as part of our evaluation
of
potential projects, including any proposed foreign
investment agreements.
We monitor proposed changes in government policies
and regulations, particularly in Chile, and belong to
several associations that engage with governments
on these matters. This helps to improve our internal
processes and keep us prepared to meet any new
regulatory requirements.
We see a lower degree of political uncertainty in Chile.
Since the rejection of the second draft of the constitution
in 2023, the current constitution remains in force. The
Chilean government has announced that it will no longer
pursue constitutional reform within this term of office.
As previously reported, in 2023, the new Chilean mining
royalties bill was enacted, providing certainty on the new
royalty tax framework. Companies without tax stability
agreements started their new royalty payments during
2024. Those payments have increased the Group
consolidated effective tax rate by around three
percentage points. Centinela and Antucoya have tax
stability agreements in place, thus the new royalty rates
will only impact their royalty payments from 2030
onwards. For further tax information, see the Note 11 to
the financial statements.
During 2024, the legislative discussion in Chile focused
on streamlining the Chilean permitting process to
expedite the assessment time. In September 2024, the
new “Ley de Delitos Económicos” (Economic Crimes
Law) came into force. We have strengthened our team
of Crime Prevention Officers to better address the new
challenges arising from the law, focusing on the
prevention of the new environmental crimes, work
accidents and occupational diseases, and fraud and
corruption. We are confident that we have robust
controls in places.
The Group continues to support some Chilean industry
associations, particularly the Consejo Minero (Mining
Council) and SONAMI, in representing the mining
industry and responding to proposed regulations.
8. CORRUPTION
Risk appetite Risk level Outlook
Our operations or
projects around the
world could be affected
by risks related to
corruption or bribery,
including operating
disruptions or delays
resulting from a refusal
to make “facilitation
payments”. The level of
such risks depends, in
part, on the economic or
political stability of the
country in which we are
operating.
We have zero tolerance for any activity that would
contravene anti-bribery and corruption legislation.
We maintain a robust governance regime, open
channels of communication, Group-wide training
programmes, and multiple layers of controls at all our
operations, projects and exploration activities, as well as
in our third-party relationships, using enhanced due
diligence procedures.
A strong, appropriate culture is one of the key aspects
of the Group’s strategic framework. This is emphasised
by messaging from the Board downwards that
inappropriate, corrupt, illegal or unethical behaviour is
totally unacceptable. The Group’s Code of Ethics sets
out our commitment to conducting business in a
responsible and sustainable manner. The Code requires
honesty, integrity and accountability from all employees
and contractors. Our compliance model aims to prevent
actions which may involve us directly or indirectly in any
potential irregularities (including any kind of bribery),
to detect possible risks in a timely fashion and to
respond to any misconduct in an adequate manner.
Internal policies, procedures and controls have been
implemented to prevent corruption.
An anonymous whistleblowing hotline is available to
employees and external parties to report compliance-
related concerns, which are investigated and followed
up by an expert team and reviewed by a senior
management Ethics Committee.
The Group’s compliance model applies to both employees
and contractors. It is clearly defined and is
communicated regularly through internal channels as
well as being available on the Group’s website. New
employees are trained in the compliance model as part of
their induction programme.
The Group’s crime prevention model ensures compliance
with anti-bribery and anti-corruption laws in the United
Kingdom and Chile, and is certified by an external entity.
In September 2024, the Chilean “Ley de Delitos
Económicos” (Economic Crimes Law) became applicable
to legal entities (companies). We have reviewed, and
where necessary updated, our risk matrix to incorporate
the offences established in the new law, and we are
confident that we have robust controls in place in every
operation.
The amended UK Corporate Governance Code
introduces a new requirement (applicable from 2026
onwards) for the Board to make an annual declaration as
to the effectiveness of the Group’s material internal
controls. A readiness assessment and action plans in
respect of the anticipated changes have been developed.
Following this assessment, we will conduct a dry-run
during 2025.
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Description Preventive and mitigation measures Highlights
9. OPERATIONS
Risk appetite Risk level Outlook
Our operations are
subject to some
circumstances not wholly
within our control. These
include damage to, or
breakdown of, equipment
or infrastructure,
unexpected geological
variations, or technical
issues, any of which
could adversely affect
production and/or costs.
Principal risks relating to each operation are identified
as part of the regular risk review processes the
operations undertake. This process also identifies
mitigation measures for such risks. Monthly reports to
the Board provide variance analysis of operating and
financial performance, allowing potential issues to be
identified in good time and any necessary monitoring or
control activities to be implemented to prevent
unplanned downtime.
Our focus is on maximising the availability of equipment
and infrastructure and ensuring the effective use of our
assets in line with their design capability and technical
limits. We require variances to remain within defined
tolerance limits.
We have business continuity and disaster recovery plans
for all key processes within our operations, to mitigate
the consequences of a crisis or natural disaster. We also
have property damage and business interruption
insurance to provide protection from some, although not
all, of the costs that may arise from such events.
Lessons learned from previous cases of community
concern have improved the resilience of our operations
and minimised the impact of incidents this year. Many
years of drought at Los Pelambres has reduced
production in recent years. This climate change impact
has been mitigated with the desalination plant in Los
Pelambres, which came into operation during 2023, and
achieved design capacity during 2024. The fourth
concentrator line at Los Pelambres was commissioned in
2023, achieving design capacity during 2024.
10. TAILINGS STORAGE
Risk appetite Risk level Outlook
Ensuring the stability of
our tailings storage
facilities (TSFs) during
their entire lifecycle is
central to our operations.
A failure or collapse of
any of our TSFs could
result in fatalities,
damage to the
environment, regulatory
violations and
reputational damage,
as well as disruption to
the quality of life of
neighbouring
communities and the
running of our
operations.
We manage our TSFs to ensure that the effectiveness of
their design, operation and closure is monitored at the
highest level of the Company. All our TSFs are built
using the downstream construction method and are
designed to withstand earthquakes and extreme
weather.
Catastrophic failures of TSFs are unacceptable.
Their potential for failure is evaluated and addressed
throughout the life of each facility. Our TSFs are
constantly monitored, and all relevant information is
provided to the authorities, regulating bodies and
communities that could be affected.
We manage our TSFs using data, modelling, and
construction and operating methods validated and
recorded by qualified technical teams. These are
reviewed by independent international experts, whose
recommendations we implement to strengthen the
control environment. Risk management includes timely
risk identification, control definition and verification that
any required action has been taken. Our controls are
based on the consequences of the potential failure of
the tailings facilities.
The Global Industry Standard on Tailings Management
(GISTM) was published in 2020. We are implementing
this standard at all our operations. Our El Mauro and
Centinela TSFs have been in compliance with this
standard since August 2023.
Our tailings policy sets out the guiding principles for the
management of our TSFs and any potential or actual
impact on the environment, based on sound governance
and open communication with stakeholders.
In accordance with the GISTM framework, we continue
to update our risk assessment methods, focusing on
more detailed risk identification, failure modes and
controls in order to avoid catastrophic failures.
Antofagasta plc Annual Report 2024 89
Description Preventive and mitigation measures Highlights
11. STRATEGIC RESOURCES
Risk appetite Risk level Outlook
Disruption or restriction
of the supply of any of
our key strategic inputs,
such as electricity, water,
fuel, sulphuric acid or
mining equipment, could
negatively impact
production.
In the longer term,
restrictions on the
availability of key
strategic resources such
as water and electricity
could also affect our
growth opportunities.
Contingency plans are in place to address any short-
term disruptions to strategic resources and maintain our
security of supply. We negotiate early with suppliers of
key inputs to ensure continuity. Certain key supplies are
purchased from several sources to mitigate potential
disruption arising from exposure to a single supplier.
To achieve cost-competitiveness, we endeavour to buy
the highest possible proportion of our key inputs, such
as fuel and tyres, on as variable a price basis as
possible, and to link costs to underlying commodity
indices where this option exists.
We maintain a rigorous, risk-based supplier
management framework to ensure that we engage
solely with reputable product and service providers,
keeping in place the controls necessary to ensure
the traceability of all supplies (including the avoidance of
any conduct related to modern slavery).
We are committed to incorporating, when economically
viable, sustainable technological and innovative
solutions, such as the use of sea water and renewable
power, to mitigate exposure to potentially scarce
resources.
The war in Ukraine is an issue that currently has no
material impact on the supply of our key inputs; however,
it must continue to be monitored.
Our exposure to water scarcity at Los Pelambres due to
the drought has been mitigated by the desalination plant
inaugurated in March 2024.
We have worked closely with the Choapa River Water
Council (JVRCH) and the National Water Authority (DGA)
to update the water redistribution agreement (AdR)
approved in March 2024. It is expected that the JVRCH
will submit to the DGA by April 2025 an updated version
of the AdR and then await approval. Our joint approach
has been focused on avoiding unnecessary disputes and
conflicts over water resources, and prioritising water for
human consumption, followed by all other productive
activities within the Choapa Province, including mining.
Los Pelambres’ Development Options Project was
submitted to the Environmental Impact Assessment (EIA)
system in December 2024. Having the option to enable
a modular increase of any water requirement for the
enlarged capacity of this operation by up to
800 l/s, after the current expansion.
Zaldívar submitted an EIA application that includes a
plan to change the mine’s water source from the local
aquifer to either sea water or water provided by third
parties, by 2028.
12. CYBER SECURITY
Risk appetite Risk level Outlook
Cyber attacks, or failures
of, our information
security management,
could adversely impact
our business activities.
Malicious interventions
(hacking) of our
information or our
operations’ networks
could affect our
reputation and/or
operational continuity.
Our information security management model provides
defensive structural controls to prevent cyber risks and
mitigate their effects. It employs a set of rules and
procedures, including a disaster recovery plan, to
restore critical IT functions in the event of an attack.
Our systems are regularly audited to identify
any potential weaknesses or threats to our assets,
and specific systems are in place to protect them
and our data.
We have further strengthened our protective controls
and regularly communicate with users to prevent cyber
attacks.
To reinforce our controls during 2024, we organised
“ethical phishing” and “ethical hacking” exercises. We
also run a series of initiatives aimed at raising awareness
and training employees on cyber security matters, with
the goal of fostering self-care behaviour when using
technology. These initiatives include cyber security
e-learning, talks, and multimedia resources.
13. LIQUIDITY
Risk appetite Risk level Outlook
Restrictions in financing
sources available for
future growth could
prevent us from taking
advantage of growth or
other opportunities in the
market.
Security, liquidity and return are the order of priorities
for our treasury investment strategy. We maintain a
strong and flexible balance sheet, consistently returning
capital to shareholders while leaving sufficient funds to
progress our short-, medium- and long-term growth
plans. This gives us the financial flexibility to take
advantage of opportunities as they may arise.
We have a risk-averse investment strategy, managing
our liquidity by maintaining adequate cash reserves and
revolving credit facilities, and by the periodic review of
forecast and actual cash flows. We choose to hold
surplus cash in demand or term deposits or highly
liquid investments.
In 2024, we maintained a robust balance sheet and kept
strong financing ratios, ensuring our ability to secure
debt financing.
Our efforts centred on diversifying funding sources, and
on attracting significant interest from financial institutions
offering competitive financing terms and longer tenors
aligned with the life of the assets being financed.
During the year we also completed several financing
transactions, including project finance for the Centinela
Second Concentrator Project and a bond issuance for
Antofagasta plc. These initiatives expanded our lender
base, diversified funding sources, and extended debt
maturities.
Risk management continued
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Description Preventive and mitigation measures Highlights
14. COMMODITY PRICES AND EXCHANGE RATES
Risk appetite Risk level Outlook
Our results are heavily
dependent on commodity
prices – principally that
of copper and, to a lesser
extent, gold and
molybdenum. The prices
of these commodities are
influenced by many
external factors, including
world economic growth,
inventory balances,
industry supply and
demand, possible
substitution, etc. Our
sales are mainly
denominated in US
dollars, although some of
our operating costs are in
Chilean pesos. Thus any
strengthening of the
Chilean peso may
negatively affect our
financial results.
We consider exposure to commodity price fluctuations
an integral part of our business and our usual policy is
to sell our products at prevailing market prices. We
monitor commodity markets closely to determine the
effect of price fluctuations on earnings, capital
expenditure and cash flows. Very occasionally, when we
feel it is appropriate, we use derivative instruments to
manage our exposure to commodity price fluctuations.
We test our business plans against various commodity
price scenarios and develop contingency plans as
required. As copper exports account for nearly 50% of
Chile’s exports, there is a strong correlation between
the copper price and the US dollar/Chilean peso
exchange rate. This natural hedge partly mitigates our
foreign exchange exposure. However, we monitor the
foreign exchange markets and the macroeconomic
variables that affect them and occasionally implement a
focused currency-hedging programme to reduce
short-term exposure to fluctuations in the US dollar
against the Chilean peso.
The divergence in the management of monetary policies
between Chile and the US during the year, as well as the
expectation of interest rate differentials between the two
countries, together with the effect on the copper price,
were among the main drivers for the US dollar/Chilean
peso exchange rate.
In 2024, we implemented a zero-cost collar hedging
strategy for Centinela in order to manage Chilean
peso-denominated expenses associated with the
Centinela Second Concentrator Project, protecting its
Chilean peso-denominated capital expenditures.
15. GROWTH OF MINERAL RESOURCE BASE AND OPPORTUNITIES
Risk appetite Risk level Outlook
We need to identify new
mineral resources to
ensure continued future
growth. We do this
through exploration and
acquisition. We may fail
to identify attractive
acquisition opportunities
or select inappropriate
targets. The long-term
commodity price
forecast, and other
assumptions used when
assessing potential
projects and other
investment opportunities,
will influence the forecast
return on investments.
Incorrect estimates could
cause poor decision-
making. Regarding
exploration, there is a
risk that we may not
identify sufficient viable
mineral resources.
Our exploration and investment strategy prioritises
exploration and investment in the Americas. To reduce
our risk exposure, we focus on growth opportunities
in stable and secure countries. Our rigorous
assessment processes evaluate and determine the
risks associated with all potential business acquisitions
and exploration opportunities, including stress-test
scenarios conducted for sensitivity analysis. Each
assessment includes a country risk analysis (including
corruption) and analysis of our ability to operate in a
new jurisdiction. At the very least, all joint ventures
must operate in line with, or to the equivalent level of,
our policies and technical standards. Our Business
Development Committee reviews potential
opportunities and transactions, approving or
recommending them within authority levels set by
the Board.
Our exploration activities continued to focus on the
Americas and our risk exposure level was unchanged.
During 2024, two new exploration joint ventures,
covering seven projects to be studied, were signed with
companies with interests in Peru. We have also made
significant progress in obtaining social and environmental
permits to conduct drilling campaigns during 2025 and
2026.
During 2024, at the annual general shareholders meeting
of Compañía de Minas Buenaventura S.A.A.
(“Buenaventura”), two Antofagasta executives were
nominated and elected as directors of Buenaventura.
Buenaventura is Peru’s largest publicly traded precious
and base metals company and a major holder of mining
rights in Peru.
At the beginning of 2024, Twin Metals successfully
executed its exploration plan in the US-state of
Minnesota, identifying areas with potential for further
exploration. While these findings are promising, there is
currently no immediate plan for additional exploration
activities. For further information on Twin Metals, please
see page 46 of this report.
Antofagasta plc Annual Report 2024 91
Description Preventive and mitigation measures Highlights
16. PROJECT DEVELOPMENT AND EXECUTION
Risk appetite Risk level Outlook
Failure to effectively
manage our development
projects or transform our
resources into reserves
could result in delays to
the start of production
and cost overruns.
Delays on information
capture and/or not
achieving required
enablers could limit the
conversion of resources
into reserves.
We have a project management system to ensure that
best practices are applied at each phase of a project’s
development. This provides a common language and
standards to support the decision-making process by
balancing risk with the benefits of growth. In addition, all
geosciences (geology, geometallurgy and geotechnics)
models are reviewed and/or audited by independent
experts.
During the project development lifecycle, quality checks
for each of the standards applied are carried out by a
panel of experts from within the Company. This panel
reviews each completed feasibility study to assess the
technical and commercial viability of the project. It also
assesses how the project can be developed safely and
considers any relevant risks or opportunities that could
potentially impact the schedule, cost or future
performance of the project.
Detailed progress reports on current projects are
regularly reviewed, and include assessments of
progress against key project milestones and
performance against budget.
Project robustness is stress-tested under a range of
copper price scenarios. Joint project/operation teams
are established early in a project’s development to
ensure a smooth transition into the operating phase
once construction is completed.
All new reserves and growth projects must comply with
our internal technical procedures and all applicable
environmental and social laws and regulations.
Our projects are developed in accordance with the
practices set out in our asset delivery system (ADS),
including the functional quality assurance review (FQAR)
process, and are reviewed by internal and external
experts.
Project risks are proactively managed and frequently
evaluated to minimise their impacts on costs.
Project estimates include a contingency provision,
calculated using a probability-based method that
considers the systemic and specific risks of each project.
One of the main focuses of project risk management is
the construction of Los Pelambres’ Future Growth
Enablers (new concentrate pipeline and desalination
plant expansion) and Centinela Second Concentrator
Project, which began full construction in 2024.
The risks associated with converting mineral resources
to reserves are properly identified and managed by
specialist teams to ensure accurate conversion.
Risk management continued
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Description Preventive and mitigation measures Highlights
17. INNOVATION AND DIGITALISATION
Risk appetite Risk level Outlook
Our ability to deliver
on our strategy and meet
our performance targets
may be undermined by
missed opportunities or
delays in adopting new
technologies or
innovations.
We seek value-capturing innovations that realise cost
savings and/or improve the efficiency, reliability and
safety of our processes, while supporting our corporate
strategic pillars. We evaluate the potential of all ideas
using our stage-gate approval process and scrutiny by
our Innovation Board. We maintain partnerships with
academic institutions and companies specialising in
technology and engineering – including peers, when
there is no competitive barrier – to maximise the
potential for improvements in our processes and
systems.
A dedicated team monitors, identifies and analyses
external innovation trends that have potential
applications in our business, including those in
non-operational areas such as product sales and
purchasing. The team also maintains and manages a
portfolio of ongoing innovation projects. We have a
recognition and incentives programme to encourage all
staff to suggest innovative improvements to our
day-to-day operating systems. We also dedicate
resources to evaluating and implementing innovations
which have the potential to positively impact our
business and growth options.
Within the Mining Division, our innovation governance
was strengthened through the formalisation and full
deployment of the operational innovation and
transformational model across all our operations.
This model provides a structured framework for
identifying, developing and implementing initiatives,
ensuring alignment with the Group’s strategic goals
and fostering continuous improvement.
Additionally, our innovation roadmap was updated in
2024, and guides the review and approval of key
strategic initiatives, prioritising technological and
operational challenges. This systematic approach enables
us to seize opportunities, mitigate risks related to
technology adoption, and maintain our competitive edge
in an evolving industry.
We are also currently evaluating the application of
Cuprochlor-T
®
technology to leach primary sulphides at
Zaldívar using existing processing facilities and an area
of existing secondary sulphide leach pad.
Los Pelambres is deploying a robotic solution to replace
the liner at its SAG mill. The first round of robotic
maintenance was completed in June 2024, and the
plan is to roll out four robots for liner replacement
during 2025.
Additionally the Group is undertaking studies to examine
the application of water recovery and dry-stack tailings
for Los Pelambres, including a review of various
technologies and site visits. Work to develop a pre-
feasibility study for the electrification of mining
operations continues (see Trolley-Assist case study
on page 63).
18. EXTERNAL RISKS
Risk appetite Risk level Outlook
We must develop our
ability to manage external
threats that are complex
to predict but can
significantly impact the
Group’s strategic
objectives and its
operational continuity.
Changes in the global or Chilean economic or political
environment can impact the Group’s strategy.
We maintain good practices and adopt lessons learned
during periods of crisis.
We recognise the volatility of the markets where we
operate, and proactively seek to innovate our business
models within the industry, and work to expand our
client base.
We regularly review our business continuity plan.
We use scenario analysis to challenge the principles
on which we base our financial planning, identifying the
potential risks, costs and benefits of proposed
action plans.
We conduct continuous monitoring of alerts at both local
and global levels. Additionally, we have a comprehensive
risk management strategy for our supply chain, and
up-to-date business continuity plans aimed at ensuring
the availability of critical supplies and products for sale.
Emerging risks
In addition to our principal risks, we are constantly on the lookout for emerging risks that may become new principal risks in the future.
Current emerging risks are:
Emerging risk Impact
Geoeconomic confrontation
Geoeconomic confrontation would impact our supply chain and commodities markets.
Commodity substitution
Lower demand for copper could lead to sustained oversupply in the medium- to long-term, in the case
of a substitute product impacting the business strategy.
Global economic recession
Global economic recession could reduce copper prices, leading to difficulties in securing financing.
The above risks are closely monitored and actively managed to minimise their threat.
Antofagasta plc Annual Report 2024 93
Risk management continued
Compliance and
internal controls
Areas of focus and development during 2024
•
In September 2024, the “Ley de Delitos Económicos” (Economic
Crimes Law) started to be applicable to legal entities (companies) in
Chile. We have reviewed, and where necessary updated, our risk
matrix with the offences established under the new law and we are
confident that we have robust controls in place in every operation.
•
In September 2024, Chile introduced “Karin’s Law”, or Law 21.643.
This legislation establishes new provisions to prevent, investigate
and punish workplace harassment, sexual harassment and violence
at work.
•
A proven due diligence process is in place for suppliers and
donations, based on a risk analysis approach.
•
The Company’s crime prevention model was re-certified by an
independent expert.
•
Employees in high-risk areas completed additional in-depth training
on ethics and compliance.
•
New employees were trained in our compliance model and Code
of Ethics as part of their induction programme.
•
Employees updated their conflict-of-interest disclosures.
•
A campaign titled “Let’s talk about integrity” was launched to
discuss issues related to corruption, health and safety, and
environmental management. This included a large-scale
communication.
•
A webinar was hosted to reinforce the Company’s expectations for
work environments based on respect, and to clarify what constitutes
workplace harassment, sexual harassment and violence at work.
•
Anti-corruption events took place at all our operations to reinforce
compliance with our integrity values.
•
The Compliance team have been part of the approval process for
social contributions, to strengthen monitoring and governance.
•
A communication campaign was carried out as part of our focus
on
the prevention of crime in our compliance model.
•
As part of the Suppliers for a Better Future Programme, compliance
courses were available on our supplier learning platform.
•
Whistleblowing investigations, undertaken by a group of experts,
were centralised and standardised, guaranteeing an independent
process.
•
From 2026, amendments to the UK Corporate Governance Code
will require the Board to make an annual declaration of the
effectiveness of the Group’s material internal controls. A readiness
assessment was undertaken and action plans were established in
respect of the anticipated changes. The assessment process was
concluded and a dry-run will be conducted in 2025.
•
For the Company’s current phase of growth projects, including
those at Los Pelambres and Centinela, we focused on prevention
in areas such as compliance and the value of respect.
Code of Ethics
The Code sets out our commitment to conducting business in
a responsible and sustainable manner. It requires honesty, integrity
and accountability from all employees and contractors, and includes
guidelines for identifying and managing potential conflicts of interest.
It is at the core of our compliance model and supports the
implementation of all related activities.
Our Code of Ethics is available on our website
(www.antofagasta.co.uk).
Compliance model
The compliance model applies to both our employees and our
contractors. It is clearly defined and is communicated regularly
through internal channels as well as being available on our website.
All contracts include clauses relating to ethics, modern slavery and
crime prevention, to ensure contractors’ adherence to our
compliance model.
Achieving our objectives in an ethical
manner is vital for the Company’s
business model and the delivery of its
growth ambitions. We maintain a zero-
tolerance policy toward bribery and
corruption and we are dedicated to
upholding integrity and transparency in all
our operations. We adhere to applicable
anti-bribery and anti-corruption laws,
implementing robust controls designed to
prevent any form of unethical conduct.
Image: Haul truck maintenance
activities at Centinela
Antofagasta plc Annual Report 202494
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
We actively promote open communication between all our employees,
contractors and local communities. This helps ensure that our
corporate and value creation objectives are achieved in an ethical and
honest way.
The compliance model is reviewed regularly, both internally and by
third parties, and on corruption-related matters it is certified in
accordance with Chilean anti-corruption legislation.
The model has three pillars:
Prevention: The main focus is to prevent the occurrence of any
irregular or illegal situations. We provide a series of tools and training
opportunities to all employees and contractors to support appropriate
behaviour through:
•
Internal policies and procedures
•
Anti-trust guidelines
•
Management and updating of our compliance risk matrix
•
Robust due diligence processes
•
Anti-corruption clauses in suppliers’ and employees’ contracts
•
Compliance training and communication
•
Access Control tools and governance, risk and compliance (GRC)
tools used as part of our segregation of duties controls
Detection: Detection of any potentially irregular or illegal situation
is boosted by:
•
Robust and open whistleblowing channels, allowing individuals
to register complaints and grievances anonymously in the context
of our non-retaliation policy
•
Data analysis
•
Anti-corruption internal controls
•
Normative instruments, such as internal policies, procedures
or guidelines, which are continually reviewed
•
Internal audit
Action: Immediate action is taken if an irregular or illegal situation is
detected, and we investigate according to our internal procedures
using fact-based, objective and professional standards. An Ethics
Committee, which includes members of the senior management team,
reviews the findings of every investigation and suggests remediation
plans. Compliance programme performance is reported twice a year to
the Audit and Risk Committee and to the Board. The anonymity of the
whistleblowing channels is guaranteed, to safeguard individuals,
achieving a greater degree of transparency and bolstering our
non-retaliation policy.
During the year, we received 638 allegations. Of these, 149 (23%)
were ethics-related and 489 (77%) were non-ethical concerns. The
ethical allegations were classified as: 62% (93) fraud, conflicts of
interest, and other misconduct and 38% (56) workplace and sexual
harassment. There were no allegations received relating to regulatory
non-compliance or modern slavery during the year. Remediation
actions were defined and implemented for all substantiated allegations.
Our crime prevention model mandates compliance with anti-bribery
and anti-corruption laws in the United Kingdom and Chile, and is
certified by an external entity.
Due diligence highlights
During the year, 7,204 suppliers were reviewed and 0.004% were
rejected. Of these, 100% were Chilean suppliers. The reasons for
rejection were mainly due to high financial or tax risk, non-compliance
with Group guidelines or non-compliance with Chile’s Law 20.393
(Criminal Responsibility of Legal Entities).
These background checks did not identify any issues related to modern
slavery or human trafficking.
Antofagasta plc Annual Report 2024 95
Viability statement
Viability statement
To address the requirements of Provision 31 of the 2018 UK Corporate Governance Code,
the Directors have assessed the prospects of the Group over a period of five years.
Mining is a long-term business and timescales can run into decades.
The Group maintains Life-of-Mine models covering the full remaining
mine life for each mining operation. More detailed medium-term
planning is completed for a five-year time horizon (as well as very
detailed annual budgets). Accordingly, five years has been selected as
the appropriate period over which to assess the Group’s prospects.
When taking account of the impact of the Group’s current position on
this viability assessment, the Directors have considered its financial
position, including its significant balance of cash, cash equivalents and
liquid investments and the terms and remaining durations of the
borrowing facilities in place. The Group had a strong financial position
as at 31 December 2024, with combined cash, cash equivalents and
liquid investments of $4,316.3 million. Total borrowings and other
liabilities from financing activities were $5,945.4 million, resulting in a
net debt position of $1,629.1 million. Of the total borrowings, only 22%
is repayable within one year, and 11% repayable between one and two
years. 47% of the borrowings are repayable after more than five
years, beyond the viability review period.
When assessing the prospects of the Group, the Directors have
considered the Group’s copper price forecasts, and the Group’s
expected production levels, operating cost profile and capital
expenditure. These forecasts are based on the Group’s budgets and
Life-of-Mine models, which are also used when assessing relevant
accounting estimates, including depreciation, deferred stripping and
closure provisions, and accounting judgements including potential
indicators of impairment. The copper price forecasts are based on
consensus analyst forecasts, and include a long-term copper price
forecast of $4.15/lb. The analysis has assumed that additional future
borrowing facilities will be put in place in line with the Group’s financial
plans. The forecasts have assumed distributions in line with the
Group’s policy that the total annual dividend for each year would
represent a payout ratio based on underlying net earnings (as defined
in the Alternative Performance Measures section) for that year of at
least 35%.
The Directors have assessed the principal risks which could impact the
prospects of the Group over this period. They consider the most
relevant to be a potential deterioration to the copper price outlook, as
this is the factor most likely to result in significant volatility in earnings
and cash generation. Robust down-side sensitivity analyses have been
performed in relation to the scenarios described above, assessing the
standalone impact of each of the following:
•
a deterioration in the future copper price forecasts by 10%
throughout the five-year period;
•
an even more pronounced short-term reduction of 50 c/lb in the
copper price for a period of three months, in addition to the above
general price deterioration throughout the review period;
•
budget overruns of 20% in the Group’s growth projects;
•
the potential impact of the Group’s most significant individual
operational risks materialising with the most severe scenario
considered being the operational impact of a key infrastructure
failure at Los Pelambres or Centinela with a potential impact lasting
up to 12 months; and
•
a shutdown of any one of the Group’s operations for a period of
three months.
The stability of tailings storage facilities represents a potentially
significant operational risk for mining operations globally. The Group’s
tailings storage facilities are designed to international standards,
constructed using downstream methods, subject to rigorous
monitoring and reporting, and are reviewed regularly by an
international panel of independent experts. Given these standards of
design, development, operation and review, the impact of a potential
tailings dam failure has not been included in the sensitivity analysis.
The above down-side sensitivity analyses indicated results which could
be managed in the normal course of business, including the aggregate
impact of several of the above sensitivities occurring at the same time.
The analysis indicated that the Group is expected to remain in
compliance with all the covenant requirements of its borrowings
throughout the review period and retain sufficient liquidity. Based on
their assessment of the Group’s prospects and viability, the Directors
confirm that they have a reasonable expectation that the Group will be
able to continue in operation and meet its liabilities as they fall due over
the next five years.
The Strategic Report has been approved by the Board and signed
on its behalf by:
JEAN-PAUL LUKSIC
Chairman
FRANCISCA CASTRO
Senior Independent Director
Antofagasta plc Annual Report 202496
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Image: Copper cathodes, Antucoya
Antofagasta plc Annual Report 2024 97
Applying the Code in 2024 100
Board leadership and Company purpose
Chairman’s introduction 102
Senior Independent Director’s
introduction 104
Group corporate governance overview 106
Board activities 108
Stakeholder engagement 110
Workforce engagement 112
Division of responsibilities
Directors’ biographies 114
Board balance and skills 117
Roles in the boardroom 118
Executive Committee biographies 119
Introduction to the Committees 122
Composition, succession and evaluation
Nomination and Governance Committee
report 124
Board effectiveness 127
Audit, risk and internal control
Audit and Risk Committee report 128
Sustainability and Stakeholder
Management Committee report 134
Projects Committee report 138
Remuneration
Remuneration and Talent Management
Committee Chair’s introduction 140
Remuneration at a glance 142
Directors’ and CEO’s remuneration policy 144
Remuneration and Talent Management
Committee report 157
Implementation of the Directors’ and
CEO’s remuneration policy in 2025 159
Directors’ report 161
Statement of Directors’
responsibilities 163
“Our focus remains on safe and sustainable
production, with strong financial performance
enabling a balance of growth and shareholder
returns.”
JEAN-PAUL LUKSIC
Chairman
Governance
Antofagasta plc Annual Report 202498
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Antofagasta plc Annual Report 2024 99
UK Corporate Governance Code compliance
statement
A new version of the UK Corporate Governance Code was issued by
the Financial Reporting Council in January 2024. This new version of
the UK Corporate Governance Code applies to accounting periods
beginning on or after 1 January 2025, with the exception of Provision
29, which is applicable for accounting periods beginning on or after
1 January 2026. The Board plans to report against the relevant
Principles and Provisions of the 2024 Code from those dates.
The UK Corporate Governance Code issued by the Financial Reporting
Council in July 2018 (the ”Code”) sets out the governance principles
and provisions that applied to the Company during 2024.
The Code is not a rigid set of rules; it consists of Principles and
Provisions and offers flexibility through ‘comply or explain’ reporting
against the Provisions. The Listing Rules require companies to apply the
Principles and to explain their compliance in a manner that would enable
shareholders to evaluate how the Principles have been applied. This
Corporate Governance Report shows how these Principles have been
considered and applied to the Company’s specific circumstances.
The Company has applied the Principles of the Code in 2024. The
Company also complied with the detailed Provisions of the Code in
2024, with the exception of Provisions 9 and 19. Provision 9
recommends that the Chairman should be independent on appointment
when assessed against the circumstances set out in Provision 10, and
Provision 19 recommends that the Chairman should not remain in post
beyond nine years from the date of first appointment to the Board.
The Company’s Chairman, Jean-Paul Luksic, was appointed to the
Board in 1990. He served as CEO of the Group’s Mining Division from
1998 until 2004 and was appointed Executive Chairman in 2004.
In 2014, he stepped back from executive responsibilities to become
Non-Executive Chairman, a role he has continued to hold since then.
Mr Luksic’s longstanding UK corporate governance and Chilean mining
and business experience, coupled with his knowledge of the Group’s
businesses, have been for many years, and continue to be, a
cornerstone of the Company’s continuing growth and success.
Mr Luksic is also a member of the family that is interested in the
E. Abaroa Foundation, a controlling shareholder of the Company for the
purposes of the UK Listing Rules, and is therefore uniquely positioned
to ensure that the interests of shareholders, together with the interests
of other stakeholders (many of whom are based in Chile), are taken into
account to promote the long-term sustainable success of the Company
and to promote governance that the Board is convinced isbest for the
Company’s particular circumstances in the long term.
Mr Luksic is committed to wider succession and diversity planning and,
in his roles as Chairman of the Board and Chair of the Nomination and
Governance Committee, he has overseen the design and implementation
of succession plans to increase diversity, including gender, and to
continually refresh the Board. The Board and its Committees meet or
exceed the Code’s recommendations for independent composition and the
Company complies with the UK Listing Rules regarding diversity, with 45%
of the Board comprising women and a female Senior Independent
Director as at the date of this report. There is a Board-approved
succession plan for the Chairman in the event of an unforeseen departure.
The Board considers that Mr Luksic continues to demonstrate objective
judgement and provide constructive challenge and leadership, and believes
that his continued appointment is appropriate without fixing a limit to his
length of service. The Company’s major shareholders are regularly
consulted on this subject, and in meetings with the Senior Independent
Director in December 2024 continued to express their unanimous support
for Mr Luksic’s continued service as Chairman of the Board.
The composition of the Board and its Committees is entirely in line
with the Code provisions and the Chairman is fully supported by the
Board, the Nomination and Governance Committee and the Senior
Independent Director in ensuring that, despite non-compliance with
Code Provisions 9 and 19, good governance is maintained.
Further details on the composition of the Board and its Committees are
set out on page 114 and further details of the role of the Senior
Independent Director are set out on pages 104 and 118.
The UK Corporate Governance Code is available on the Financial
Reporting Council website at www.frc.org.uk.
How the Code principles were applied in 2024
Board leadership and Company purpose
The role of the Board
•
The Company is led by an effective and entrepreneurial Board,
which is collectively responsible for promoting the Company’s
long-term sustainable success, generating value for shareholders
and contributing to wider society as shown throughout this
Corporate Governance Report.
•
The Board has adopted and actively promotes the Group’s purpose,
vision, values and strategy, and has satisfied itself that it is aligned
with the Group’s culture – pages 22-25 and 108-109.
•
The Board has ensured that the necessary resources are in place
for the Company to meet its objectives and measure performance
against them. It has established both its risk appetite and a
framework of prudent and effective controls, which enable risk
to be appropriately assessed and managed – pages 80-93.
•
The Board ensures effective engagement with, and encourages
participation from, shareholders and other stakeholders to ensure
that its responsibilities are met – pages 48-71, 102-104 and 110-111.
•
The Board ensures that workforce policies and practices are
consistent with the Company’s purpose, vision and values and
support its long-term sustainable success. The workforce can
raise anonymously any matters of concern through the Group’s
whistleblowing channels – pages 54-55, 94-95, 112, 133 and 140-160.
•
The Board considers the matters set out in Section 172 of the
Companies Act 2006 in Board discussions and decision-making
– detailed examples can be found on pages 110-111.
Division of responsibilities
•
The Board is structured to ensure that no one individual or small
group of individuals dominates its decision-making, as demonstrated
throughout this Corporate Governance Report.
•
There is a clear division of responsibilities between the Board and
the executive leadership of the Company’s business – pages 106
and 117-118. The CEO is not a Director of the Company and is
therefore not a member of the Board – page 118.
•
The roles of the Board and the Board Committees are recorded in
the schedule of matters reserved for the Board and the terms of
reference for each of the Board’s Committees, all of which were
updated in 2024 and are available on the Company’s website at
www.antofagasta.co.uk.
•
The Board, supported by the Company Secretary, has the policies,
processes, information, time and resources it needs in order to
function effectively and efficiently – pages 102-121.
Applying the Code in 2024
How we apply the Code
Antofagasta plc Annual Report 2024100
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
The Chairman
•
The Chairman leads the Board and is responsible for its overall
effectiveness in directing the Company. His responsibilities are set
out on page 118.
•
The Board considers that the Chairman demonstrates objective
judgement and promotes a culture of openness, healthy challenge
and debate – pages 100 and 104.
•
The Chairman facilitates constructive Board relations and the
effective contribution of all Directors. He is responsible for setting
the Board’s agenda and ensuring that Directors receive accurate,
timely, relevant and clear information – pages 107, 118 and 125.
Non-Executive Directors
•
The Non-Executive Directors provide constructive challenge and
strategic guidance, offer perspectives across various specialisms
and hold management to account – pages 114-117.
Commitment
•
All Directors have confirmed that they are able to allocate enough
time to meet the expectations of their role – page 114.
•
Directors do not undertake additional external appointments without
the Board’s prior approval – page 114.
•
Time commitment is considered during Board effectiveness reviews
and when electing and re-electing Directors – pages 124-127.
•
A review of Directors’ external directorships is carried out annually
– pages 105 and 162.
Information and support
•
The Board is provided with appropriate information in a form and of
a quality to discharge its duties – page 107.
•
The Board has access to independent professional advice and to the
advice and services of the Company Secretary – pages 118 and 125.
•
The Board is regularly updated on the Group’s performance between
scheduled Board meetings – page 107.
Composition, succession and evaluation
Composition of the Board and Committees
•
As at the date of this report the Board had 11 Directors, comprising
a Non-Executive Chairman and ten other Non-Executive Directors,
six of whom are independent – pages 114-118.
•
All members of the Audit and Risk and Remuneration and Talent
Management Committees are independent, and two of the three
Nomination and Governance Committee members are independent
– pages 114-116.
•
The Board and its Committees comprise Directors with the requisite
combination of skills, experience and knowledge to fulfil their roles
– pages 114-118.
•
There is a diverse pipeline for succession. Consideration is given to
the length of service of the Board as a whole and membership is
regularly refreshed – pages 117 and 124-127.
Appointments to the Board and succession planning
•
There is a formal, rigorous and transparent process, led by the
Nomination and Governance Committee, to identify and appoint new
Directors – pages 124-127.
•
Independent external search consultancies are used for
appointments to the Board – pages 125-126.
•
An effective succession plan is maintained for Board and senior
management appointments – pages 125-126 and 158.
•
Appointments and succession plans are based on merit and objective
criteria and promote diversity of gender, social and ethnic backgrounds,
cognitive and personal strengths and experience – pages 124-126.
Development
•
New Directors receive a thorough induction upon joining the
Board – pages 124-127.
•
Directors are regularly updated with information and training and,
as a minimum, receive an annual briefing on legal, regulatory,
market and other developments relevant to directors of UK-listed
companies – page 125.
Evaluation
•
An annual evaluation of the Board considers composition, diversity
and how effectively members work together to achieve objectives
– page 127.
•
Individual evaluation is part of the annual Board evaluation and assesses
whether each Director continues to contribute effectively – page 127.
•
An internal Board and Committee effectiveness review was
conducted in 2024 – page 127.
Re-election
•
All Directors stand for annual re-election by shareholders.
Audit, risk and internal control
Governance
•
The Board has established formal and transparent policies and
procedures to ensure the independence and effectiveness of the
internal and external audit functions and to satisfy itself on the
integrity of financial and narrative statements – pages 128-133.
Financial and business reporting
•
The Board considers that the Annual Report presents a fair,
balanced and understandable assessment of the Company’s position
and prospects – page 163.
Risk and internal control
•
The Board has established procedures to manage risk, oversee the
internal control framework and determine the nature and extent of
the principal risks the Company is willing to take in order to achieve
its long-term strategic objectives – pages 80-95 and 128-133.
Experience and competence
•
All Audit and Risk Committee members are considered to have
recent and relevant financial experience and have competence
relevant to the mining industry. One member is a Qualified
Chartered Accountant – pages 114-118.
Remuneration
Policy
•
The Company has no executive Directors; however, the CEO’s
remuneration is disclosed as if he were a Director.
•
The Directors’ and CEO’s Remuneration Policy, which was approved
by shareholders at the 2023 AGM, is aligned to the Company’s purpose,
vision and values and is clearly linked to the successful delivery of the
Company’s long-term strategy – pages 144-147 and 155.
•
The Remuneration and Talent Management Committee Chair,
Francisca Castro, served as a member of the Committee for more
than 12 months before being appointed as Chair.
•
The CEO’s remuneration includes transparent, stretching and rigorously
applied performance-related elements designed to promote the
Company’s long-term sustainable success – pages 140-159.
Procedure
•
The Board has a formal and transparent procedure for developing
policy on executive remuneration and determining Director and
senior management remuneration – pages 140-160.
•
No Director, nor the CEO, is involved in deciding his or her own
remuneration.
•
Directors exercise independent judgement and discretion when
authorising remuneration outcomes, taking account of Company and
individual performance and wider circumstances, including internal
and external factors – pages 140-147.
Antofagasta plc Annual Report 2024 101
“We always seek continuous improvement in all that we do,
and the Board and its governance are no exceptions to this.”
JEAN-PAUL LUKSIC
Chairman
Dear shareholders
Welcome to the Corporate Governance section of our 2024 Annual
Report.
My introductory letter on pages 14-15 of this Annual Report sets out
some of the Group’s key challenges and achievements in 2024, as well
as the outlook for the Company. Our focus is on safe and sustainable
production, and the Board’s governance structures are designed to
ensure that, as a Board, we regularly review the Group’s plans and
performance in this area, and that we set the tone from the top of the
organisation to make sure that we consistently deliver on this as part
of our core business.
We are proud of our performance during the year, which included a
record low lost time injury frequency rate (as part of our overall safety
performance), strong financial performance and the approval and
progression of key development projects that will secure the long-term
future of our business.
The medium-term outlook for copper is strong and we are at a pivotal
stage in delivering our growth strategy. Our pipeline of projects has
been a key area of focus for the Board and its Committees in 2024.
Shareholder engagement
As a Board, we are keen to hear from our shareholders. We were
pleased to engage directly with shareholders at our AGM in 2024
where we shared the Board’s perspective on the Company’s
performance and the outlook for the year ahead. During the year our
senior management team maintained regular contact with our
shareholders and feedback from these meetings is shared with the
Board at every meeting.
As part of the Board’s shareholder outreach, at the end of 2024
Francisca Castro, our Senior Independent Director and Chair of the
Remuneration and Talent Management Committee, met with
shareholders and proxy advisers in London. In the meetings,
discussions centred on our approach to corporate governance and
provided an opportunity for shareholders and proxy advisers to share
their perspectives on the Company, with a particular focus on
corporate governance. This direct feedback was reported to the
Board and forms an essential input in relation to the Board’s priorities
for the year ahead.
Details of these meetings can be found in the Senior Independent
Director’s introduction on page 104 and the Remuneration and Talent
Management Committee Chair’s introduction on page 140.
Strong and effective
governance
Our commitment to sustainability issues
What is clear for the Board is that sustainability continues to be an
important subject for our shareholders. Environmental and social
stewardship, climate change planning and mitigation and responsible
water sourcing are all key elements of our approach to sustainability.
Our efforts on climate change are an integral part of our Sustainability
strategy, but far from the only ones. The copper we produce has a
key role to play in a net-zero world: our responsibility is to produce it
sustainably, efficiently, and with respect for local communities and the
environment.
In early 2024, we published updated targets covering Scope 1, 2 and
3 emissions, aiming for a 50% reduction in Scope 1 and 2 emissions
by 2035, all while expanding production. Through collaboration with
our suppliers to drive improvements in their business practices, we
are also aiming to lower our Scope 3 emissions in our value chain by
a new target of 10%. At the same time as publishing our updated
targets, we also published our inaugural Climate Action Plan which
sets out a path to decarbonisation, we aim to contribute to the global
challenge of transitioning towards a reduction of carbon dioxide
emissions to achieve carbon neutrality by 2050 and mitigate the
effects of climate change.
Stakeholder engagement
Our Directors visited our operations and projects, including the
concentrator plant expansion at Centinela and Los Pelambres’
growth enablers (desalination plant expansion and concentrate
pipeline) throughout the year. The insights from these visits were
shared at Board and Committee meetings, deepening the Directors’
understanding of our activities and providing direct feedback to
the Board from our stakeholders at site.
Board evaluation
We always seek continuous improvement in all that we do, and the
Board and its governance are no exceptions to this. During 2024,
we carried out an internal evaluation of the Board and Committees.
We also conducted a tender process for the 2025 external evaluation
of the Board.
Further details regarding the evaluation and our progress can be found
on page 127.
Chairman’s introduction
Antofagasta plc Annual Report 2024102
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Board changes and succession planning
A skilled and balanced Board is essential in delivering our strategy.
Tracey Kerr joined the Board in January 2024. Tracey brings
extensive experience in safety, sustainability, operations and
exploration in global mining businesses and has strong governance
experience in UK listed companies. We also made some changes to
the composition of our Committees during the year, in accordance with
our succession plan for Board roles. Eugenia Parot was appointed
Chair of the Sustainability and Stakeholder Management Committee
with effect from 1 January 2025.
As announced on 7 March 2025, Vivianne Blanlot will leave the Board
on 31 March 2025, having served as a Director for 11 years. I would
Board oversight of climate-related risks
and opportunities
The Board has ultimate responsibility for the Company’s climate-
related objectives and strategy, and oversight of climate-related
risks and opportunities is fully integrated within the Company’s
governance structures. This responsibility and oversight includes
specific climate-related activities such as approving and monitoring
the implementation of the Company’s Climate Change Strategy,
approving and monitoring progress towards the achievement of
emission reduction targets and approving and reviewing the
Company’s TCFD disclosures. It also includes more general
approval and oversight responsibilities, which in turn incorporate
climate-related risks and opportunities, such as reviewing and
approving the Company’s capital allocation framework. Within the
framework are criteria relating to climate resilience and an internal
carbon price. Additional Board responsibilities include reviewing
and approving base and development case planning models,
including adjustments for physical and transition risks associated
with climate change; approving the Group’s annual budget;
reviewing the Group’s principal and emerging risks, which include
climate change; and approving KPIs in the Group’s remuneration
structures that reward our employees for progress in achieving the
Group’s climate-related objectives.
In 2024, the Board allocated time to specifically review the financial
implications of climate change on the Group using the TCFD
framework. Further details are set out on page 66.
During 2024, the Board approved the Company’s inaugural Climate
Action Plan, which includes the decarbonisation strategy to
accompany the emissions reduction targets that were published in
February 2024. The report is available on the Company’s website
at www.antofagasta.co.uk.
The Board is supported by all of its Committees in ensuring that
climate-related considerations are fully integrated into the Board’s
governance structures. For example:
•
As shown on pages 124-127, the Nomination and Governance
Committee considers the Board’s skills matrix when making
appointments to the Board. This matrix includes sustainability
experience (which includes competence on climate-related
issues) as a key skill and the Board ensures that there is an
adequate depth of climate change knowledge and awareness
when making new appointments to the Board.
•
As shown on pages 128-133, the Audit and Risk Committee
assists the Board in overseeing the Group’s risk management
framework, including climate change risk and the financial
implications of climate change.
•
As shown on pages 134-136, the Sustainability and Stakeholder
Management Committee considers climate change when
reviewing and monitoring relevant strategy, policies and
performance matters.
•
As shown on pages 138-139, the Projects Committee considers
climate change when reviewing and monitoring the Group’s
major capital projects.
•
As shown on pages 140-159, the Remuneration and Talent
Management Committee monitors executives and managers’
short- and long-term incentive plans, which include KPIs relating
to climate change.
like to thank Vivianne for the tremendous contribution that she has
made to the Board, including her distinguished leadership of the
Sustainability and Stakeholder Management Committee from 2016
until 2024.
At its core, Antofagasta is a long-term business. Our mines operate
on decades-long timelines, and our governance structures and processes
are designed to help us achieve long-term sustainable success.
Thank you for your ongoing engagement. I look forward to seeing
you at our AGM.
JEAN-PAUL LUKSIC
Chairman
Antofagasta plc Annual Report 2024 103
“Shareholder support is, of course, conditional on the strength
of the current corporate governance framework, which
rigorously protects the interests of all shareholders equally.”
FRANCISCA CASTRO
Senior Independent Director
Q.What are your responsibilities as Senior Independent
Director?
I was appointed Senior Independent Director in August 2023.
I have three main responsibilities as Senior Independent Director.
First, I must be available to shareholders to ensure that the Board
considers their views, interests and concerns. Second, I provide
support to the Chairman, ranging from advice on corporate
governance matters to ensure that the views of the other Directors are
conveyed to him and reflected in Board discussions. Third, I lead the
annual review of the Chairman’s performance and oversee the closure
of any gaps identified by internal and externally facilitated reviews of
the Board’s and the Committees’ performance.
I discharge these responsibilities through close co-ordination with
the Chairman, Directors, Company Secretary and management team.
I met with various shareholders and proxy advisers during the year to
understand their views of the Company. This has helped me ensure
that the Chairman, the Board and the management team receive a
balanced view of issues that are relevant and important for our
shareholders.
Q.Why did you meet with shareholders and proxy advisers
during the year and what issues were discussed?
As Senior Independent Director and Chair of the Remuneration and
Talent Management Committee, I aim to meet with shareholders every
year to gain a first-hand understanding of the subjects that matter to
them. During 2024, I invited the Company’s 20 largest investors as
well as the Investment Association, Glass Lewis and Institutional
Shareholder Services to meet to discuss corporate governance
matters and to allow shareholders to raise any concerns that they
would like to discuss. The feedback I received was very positive and
no major concerns were raised. We engaged in discussions relating to
the Company’s strategy, the Board’s independence and the role of the
controlling shareholder in the Board’s governance arrangements, the
role of the CEO and the Board, succession planning, the key issues and
risks considered by the Board to be relevant, the Board’s diversity
policy, and the Board’s oversight of sustainability matters such as
carbon emission reduction targets. The feedback I received from
shareholders was reported to the Board and is reflected in the
decisions that have been made in the preparation of this Corporate
Governance Report.
Independent oversight
and accountability
Q.What impact does the controlling shareholding have on
Company decisions?
Members of the Luksic family have been involved in the Company for
over 40 years. During this time, the Company has demonstrated an
excellent track record in terms of safety, operational performance and
financial strength.
I have discussed the role of the controlling shareholders with other
shareholders. The widely-held view is that the substantial controlling
interest is positive, with shareholders satisfied that the interests of the
controlling shareholders are aligned with theirs, many having invested
based on this interest. They have expressed their appreciation of the
members of the Luksic family who serve on the Board, commending
their long-term vision, which has contributed to the Company’s
prudent operating, financial and growth strategy, as well as its stability.
Shareholder support is, of course, conditional on the strength of the
current corporate governance framework, which rigorously protects
the interests of all shareholders equally.
I, and all the other Independent Directors, guard our independence and
place a strong emphasis on maintaining this governance and protection
regime. We are supported and encouraged by the other Directors who
– like the Independent Directors – bring their own perspectives and
opinions and are committed to the long-term sustainable success of
the Company.
FRANCISCA CASTRO
Senior Independent Director
Senior Independent Director’s introduction
Antofagasta plc Annual Report 2024104
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Independence from controlling shareholders
In accordance with UK Listing Rule 6.6.1R(13), the Directors confirm
that the Company continues to be able to carry on the business
it carries on as its main activity independently from its controlling
shareholders (as defined in the UK Listing Rules) at all times. Details
of the Company’s substantial shareholders are set out on page 161.
Related party transactions
Certain related party transactions outside the ordinary course of
business must be subject to independent assessment and approval.
The Company has for many years presented all such related party
transactions between the Company and the controlling shareholders
or their related entities to a committee of Directors independent from
the controlling shareholders, to assess whether the Company should
enter into such transactions and, if so, to oversee the negotiation
process. In most cases, transactions of this nature will also be subject
to independent review by third-party shareholders in each of the
Group’s mining operations.
During 2024, a committee of Directors independent from the
controlling shareholders convened to oversee, and ultimately approved
in 2025, a transaction with Mineralinvest Establishment, an entity
in which the Luksic family is interested, to acquire mining properties
in the Centinela District of Chile. Further details in relation to this
transaction are set out on page 230.
Any proposed related party transaction over $40 million, whether
or not in the ordinary course of business, is also tabled for Board
approval. Any Director with a potential conflict or connection with the
related party does not take part in the decision on that transaction.
Related party governance in practice
There are several checks and balances to ensure that there is full
transparency in the handling of related party transactions by the
Board. The following table summarises the approach taken to identify
and manage related party transactions and actual or potential conflicts
of interest.
Identifying Directors’ interests
Process How this is managed Responsibility
Monitoring of Directors’
interests
If a Director has an interest in any other entity, the Board will normally
consider that interest under its arrangements for authorising potential
conflicts of interest under section 175 of the Companies Act. See page 161
for more information.
Directors
Managing related party transactions
Process How this is managed Responsibility
Proposed transaction Ongoing monitoring of Directors’ interests and the Company’s related
parties provides information to determine whether a related party approval
is required for a proposed transaction.
Company Secretary, senior
management and the
Executive Committee
Contract negotiation
and verification
The Executive Committee seeks to ensure that the best possible terms
are achieved for a proposed transaction and that, where appropriate
or necessary, they are verified by industry benchmarking reports or
independent third-party valuation or assessment.
If the potential transaction is between the Group and a controlling
shareholder or its associates and is a transaction to which the UK Listing
Rules related party transaction rules apply, a committee of Directors
independent from the controlling shareholder and its associates is formed
to oversee and support management with this process.
Senior management and
the Executive Committee
and, if involving a
controlling shareholder,
Independent Directors
Approval by Independent
Directors
Potential related party transactions outside the ordinary course of business
involving a controlling shareholder, or its associates, are reviewed and,
if appropriate, approved by Directors independent from the controlling
shareholders.
All potential related party transactions over $40 million, whether or not
in the ordinary course of business, are referred to the Board. Any Director
with a potential conflict or connection with the related party will not take
part in the related decision. Transactions within the ordinary course of
business that are below $40 million require approval by the relevant
operating company Board. All the operating company boards in the
Mining Division have directors representing third-party shareholders.
Independent Directors
Antofagasta plc Annual Report 2024 105
Our governance framework
Group corporate governance overview
Antofagasta plc Board
The Board’s role is to promote the long-term, sustainable success of
the Company, generating value for shareholders and contributing to
wider society. The Board has established the Company’s purpose,
values, strategy and risk appetite and monitors the culture of the Group
as well as its performance against defined measures.
The schedule of matters reserved for the Board was updated with
effect from 1 January 2025 and is available on the Company’s website
at antofagasta.co.uk.
Key responsibilities
•
Culture
•
Strategy and management
•
Governance
•
Shareholder engagement
•
Internal controls, risk management and compliance
•
Financial and performance reporting
•
Structure and capital
•
Approving material transactions
Board Committees
The Board is assisted in discharging its responsibilities by five Board
Committees.
The Board has delegated authority to these Committees to perform
certain activities as set out in their terms of reference, which were
updated with effect from 1 January 2025 and are available on the
Company’s website at www.antofagasta.co.uk.
The Chair of each Committee reports to the Board following each
Committee meeting, allowing the Board to understand and, if necessary,
discuss matters in detail and to consider the Committee’s
recommendations.
Key responsibilities
The key responsibilities of each Committee and their focus areas for
2024 are set out on page 122-123.
Audit
and Risk
Projects
Nomination
and Governance
Sustainability
and Stakeholder
Management
Remuneration and Talent
Management
Disclosure
Operating
performance
review
Ethics Project steeringClimate change
Water, energy &
emissions
management
Business
development
The Board has delegated day-to-day responsibility for implementing the
Group’s strategy and fostering the corresponding organisational culture
to the Company’s CEO, Iván Arriagada.
Mr Arriagada is not a Director of the Company but attends all Board
meetings and Board Committee meetings. He is supported by the
members of the Executive Committee, each of whom has executive
responsibility for his or her respective function.
Mr Arriagada chairs the Executive Committee.
The Executive Committee reviews significant matters and approves
expenditure within designated authority levels.
The Executive Committee leads the annual budgeting and planning
processes, monitors the performance of the Group’s operations and
investments, evaluates risk, and establishes internal controls, promoting
the sharing of best practices across the Group.
Members of the Executive Committee also sit on the boards of the
Group’s operating companies and report on the activities of those
companies to the Board, Mr Arriagada and the Executive Committee.
The Board has delegated to the Disclosure Committee primary internal
responsibility for identifying information that may need to be disclosed
to the market and for managing its disclosure in line with the Group’s
current Disclosure Procedures Manual.
The Executive Committee is assisted in its responsibilities by the
following subcommittees:
CEO and Executive Committee
Subcommittees of the Executive Committee
Antofagasta plc Annual Report 2024106
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
01
Chairman and Senior Independent Director agree agenda with
the CEO and the Company Secretary
The Chairman and Senior Independent Director, in consultation with
the CEO and the Company Secretary, maintain an agenda of standing
topics to be considered by the Board and Committees each year,
which is then supplemented, during the year, with agreed key topics
and events requiring consideration.
Ad hoc Board and Committee meetings are also called, as appropriate.
02
Papers circulated in advance of meetings
Materials are sent to Board and Committee members a week in
advance of each meeting.
Presentations include a summary of the objective, background,
proposal, justification, risk analysis and next steps associated with that
topic. Materials include the CEO’s report, which is an open and candid
summary of his views on evolving strategic challenges, changes in risk
assessments and emerging issues, and the management report, which
includes detailed information on the Group’s performance against key
safety, health, environmental, community, financial, workforce, project
development and organisational culture indicators.
03
Board and Committee meetings
Board and Committee meetings include regular in-camera sessions
without management present to allow Directors to set expectations for
the meeting and to reflect on and evaluate the meeting’s progress.
The CEO provides timely updates to the Board on emerging issues,
while executives present to the Board and its Committees on operating
and development matters, allowing close interaction between Directors
and a wide range of executive management.
04
Minutes prepared, circulated and approved
The Company Secretary minutes all Board and Committee meetings,
which are circulated and reviewed by the Board and management,
updated as necessary and tabled for approval at the following meeting.
05
Action lists prepared and updated as key actions are implemented
The Board and each Committee maintain an action list that is reviewed
at the beginning of each meeting to ensure that Directors’ enquiries
and concerns are clearly identified and addressed in a timely manner.
06
Further information provided between meetings
Between Board meetings, Directors receive flash reports with monthly
and year-to-date production and financial results, and separate reports
on the progress of the Group’s major development projects, ensuring
that the Board is regularly updated on the Group’s progress. The
Board also receives an in-depth operations report every six months,
which provides a detailed explanation of the Group’s health and safety
and operational performance in the different areas within the business.
Where appropriate, Directors may receive general information on the
commodity markets and additional reports highlighting key
developments in the Group’s exploration, projects, business
development and innovation activities.
The Group’s management team, led by Iván Arriagada, performs an
essential role in ensuring that the Board has the information required
to make effective decisions, and reporting in real time on the
implementation of the Group’s strategy and the Company’s
performance.
01
Chairman and Senior
Independent Director
agree agenda with the
CEO
02
Papers circulated
in advance of
meetings
03
Board and
Committee meetings
04
Minutes prepared,
circulated and
approved
05
Action lists prepared and
updated as key actions
are implemented
06
Further information
provided between
meetings
Board and Board Committee information flows
Antofagasta plc Annual Report 2024 107
Key Board activities in 2024
Board activities
Culture
•
Monitored operational and project performance and its link with
the Group’s culture, particularly concerning health and safety.
•
Oversaw the continued implementation of the Group’s strategic
framework, including the Group’s purpose, vision, values and
culture.
•
Monitored progress on the implementation of the Group’s
Diversity and Inclusion Strategy.
•
Reviewed workforce engagement survey results.
•
Received feedback on meetings with representatives of the
Group’s labour unions.
Governance and engagement
•
Reviewed Board and Executive Committee succession plans.
•
Approved changes to the composition of the Board’s
Committees.
•
Reviewed Directors’ independence and skills on the Board.
•
Reviewed Directors’ conflict of interest declarations.
•
Oversaw the 2024 Board and Committees internal
effectiveness review.
•
Monitored feedback from investors and proxy agencies
regarding the Group’s corporate governance arrangements.
•
Reviewed and approved the Company’s Modern Slavery Act
statement.
During 2024, the Board provided oversight on the pursuit of the Group’s strategy, addressed critical
issues in a timely manner and advised management on the development of strategic priorities and
plans, while seeking to align these with the values of the Group and stakeholders’ best interests.
Internal controls, risk management and compliance
•
Reviewed the Group’s principal and emerging risks and
conducted an annual review of the Group’s risk appetite
statements, which are aligned with the Group’s strategic pillars.
•
Reviewed and updated the Group’s risk matrix, including
materialised risks and risk mitigation activities.
•
Reviewed budgets for initiatives designed to mitigate material
identified risks.
•
Reviewed physical and transition risks associated with climate
change.
•
Reviewed and confirmed the effectiveness of the Group’s risk
management and internal control systems.
•
Reviewed actions planned for 2025 to implement the Group’s
response to changes to the UK Governance Code.
•
Reviewed compliance reports.
•
Reviewed the results of the Group’s whistleblowing processes.
•
Reviewed Internal Audit’s progress on audits planned for 2024
and approved the 2025 audit plan.
Financial and performance reporting
•
Approved the Group’s 2023 full-year and 2024 half-year
results and corresponding announcements.
•
Recommended and declared dividends paid to shareholders
during 2024.
•
Reviewed and approved the going concern and viability
statements, including stress tests.
Our strategic framework
Developing mining for a better future is the purpose that mobilises us and gives meaning to everything we do.
We are an international mining company focused on copper and its by-products, known for our operating efficiency, creation of sustainable
value, high profitability and as a preferred partner in the global mining industry.
We want to generate a diverse and inclusive culture, with key values shared by all. We have a Code of Ethics and our own way of doing things,
while responsibly managing our risks. To achieve this, we rely on the talent and capabilities of our workforce. Our flexible and resilient
organisation allows us to overcome current and future challenges.
Below are examples of how the Board’s activities in 2024 have furthered the Group’s strategy.
Read more about our strategic framework on page 22.
Antofagasta plc Annual Report 2024108
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Our strategy is designed to enable us to achieve our purpose. It is supported by five pillars: safety and sustainability, people,
competitiveness, innovation and growth and each has defined short- and medium-term goals.
Safety and sustainability
The health and safety of our employees and contractors is our first priority. We are committed to achieving zero fatalities at our operations
and continuing to reduce the number and seriousness of accidents and occupational health issues. In addition, we view sustainability as a source
of value creation that is central to our decision-making processes.
•
Reviewed and monitored the Group’s health and safety performance and
strategic plan.
•
Reviewed the Group’s compliance with its environmental commitments.
•
Monitored the Group’s implementation of its Climate Change Strategy, including
the model for the Group’s Climate Change case, as described on page 66.
•
Reviewed and approved Los Pelambres’ water balance plan and strategy
incorporating an expansion of the desalination plant of up to 800 l/s.
•
Continued to monitor independent reviews of the safety of the Group’s tailings
storage facilities and assessed these versus industry best practice and the ICMM’s
Global Industry Standard on Tailings Management.
•
Continued to monitor the Group’s community engagement model, including
the Somos Choapa Programme at Los Pelambres.
•
Assessed progress in the renewal of key water extraction and mining permits
at Zaldívar.
People and culture
People are central to our business. We want our employees to feel recognised and to maximise their opportunities for personal and
professional growth. We seek to generate a culture of diversity and inclusion which allows our employees to achieve their full potential.
Our goal is to be the best employer in the Chilean mining industry. To achieve this, we understand the importance of creating an environment
of trust and collaboration focused on the long term.
•
Reviewed the results of employee engagement surveys.
•
Reviewed the annual talent management exercise, including succession plans
for Directors, the CEO and the Executive Committee.
•
Reviewed employee performance, including the Company’s short-term and
long-term incentive scorecards.
•
Monitored progress on the implementation of the Group’s Diversity and Inclusion
Strategy, with the goal of women representing 30% of the workforce by the end
of 2025.
•
Monitored labour relations at the Group’s mining and transport operations and
reviewed the results of collective bargaining negotiations, which were completed
in an atmosphere of respect and trust.
•
Monitored progress of the annual human resources plan.
•
Reviewed development of the 2023 Directors’ and CEO’s Remuneration Policy,
which was approved by shareholders at the 2023 AGM.
Competitiveness
Competitiveness is based on making productivity gains, controlling costs and streamlining our processes.
•
Monitored the results of the Group’s Competitiveness Programme.
•
Approved key procurement and the Group’s marketing strategy.
•
Reviewed and monitored the Group’s operating and financial performance.
•
Monitored the impact of the new Chilean law on economic and environmental
crimes.
•
Approved updated commercial parameters.
•
Reviewed and approved the Group’s 2025 budget.
Innovation
We innovate as a means of improving social, environmental and economic performance while delivering strong returns for our shareholders.
Innovation is key to improving productivity and efficiency and promoting growth, especially in the medium and longer term.
•
Oversaw progress on the Group’s innovation portfolio, including operational
and data analytics initiatives.
•
Reviewed progress on the implementation of the Group’s digital transformation
programme.
•
Monitored progress on Centinela’s and Los Pelambres’ Integrated Remote
Operations Centres.
•
Reviewed the status of a pilot project at Los Pelambres to use trolley-assist mining
trucks.
•
Reviewed the potential application of the Group’s proprietary Cuprochlor-T®
primary sulphide leach technology.
Growth
We have a portfolio of growth projects that allows us to remain competitive by developing sustainable operations over the long term.
•
Approved the execution and reviewed the progress of Los Pelambres’
Desalination Plant Expansion to 800 l/s and the construction of a new
concentrate pipeline.
•
Reviewed the close-out report for the Phase 1 Expansion at Los Pelambres,
which was completed during 2024.
•
Approved the filing of an Environmental Impact Assessment (EIA) for the
Los Pelambres Development Options Project (mine life extension).
•
Reviewed the progress of the Centinela Second Concentrator Project.
•
Reviewed Zaldívar’s permitting process to temporarily extend its water extraction
permit beyond 2025.
•
Reviewed Zaldívar’s long-term water supply strategy.
•
Reviewed business development and exploration opportunities and activities.
•
Reviewed progress on the Group’s material EIAs.
•
Reviewed and approved the divestment of mining properties in Chile considered
insufficiently prospective for future exploitation by the Company.
•
Reviewed and approved the Group’s long-term price assumptions and commercial
parameters.
•
Reviewed and approved the base case and development case for the Group’s
assets, including sensitivity to climate change effects.
•
Reviewed the Group’s mineral resources and ore reserves statement.
Antofagasta plc Annual Report 2024 109
Decisions made by the Board in 2024
Three Board decisions in 2024 are provided here as examples of how
stakeholder considerations, and the factors set
out in section 172(1) of the Companies Act 2006, were central to
decision-making processes. The Board took into account the different
interests of stakeholders but with an overarching focus, as required by
section 172(1), on acting in a way that would be most likely to promote
the success of the Company for the benefit of its members as a whole.
The likely long-term consequences of each decision were, among
other things, key considerations for the Board.
Los Pelambres: Approval of next phase
of projects
Following the successful completion of construction and ramp up to
design capacity of Los Pelambres’ Phase 1 Expansion Project, during
2024 the Board approved the next phase of work, which includes an
expansion of the existing (400 l/s) desalination plant to 800 l/s and a
separate project to construct a new concentrate pipeline. Prior to the
approval of these projects, the Board carefully considered the benefits,
financial and non-financial, of these projects and the likely
consequences of these decisions in the long term.
Both projects have been designed taking into account the interests and
impacts conveyed to us by our stakeholders; for example, the new
concentrate pipeline will be rerouted through less-populated areas,
and expansion of the desalination plant will further reduce Minera Los
Pelambres’ continental water requirements, both measures designed
to provide long term benefits for local communities. Financial investors
in the Company are expected to see lower seasonal variability in Los
Pelambres’ copper production thanks to a lower reliance on seasonal
rainfall and upgraded infrastructure, and local authorities will continue
to receive contributions through royalties and taxes.
Los Pelambres represents a significant proportion of the economy of
the Coquimbo Region, and the planned works represent a multi-billion-
dollar direct investment in the local economy, creating continued
employment and long-term value for local businesses.
How the Board considered, and had regard to, the interests
of key stakeholders and the requirements of section 172(1)
The Board has considered the likely consequences of the decision
to approve these projects on the long-term interests of the Company’s
shareholders, local communities and the Group’s employees and
contractors, suppliers, customers and other business partners.
•
In advance of the decision, the Board was regularly updated on the
views of the nearby communities and authorities to understand the
difficulties that they were facing relating to water availability in the
Choapa Valley. This included feedback provided through the citizen
Section 172 – Long-term
strategic decisions
Stakeholder engagement
The Group maintains continuous dialogue with its stakeholders to understand their expectations
and concerns, and their views are carefully considered in the Board’s deliberations. A description
of the Group’s key stakeholders, their importance to the Group’s long-term sustainable success
and the key initiatives that are in place to recognise their interests and concerns is set out in detail
within the Strategic Report on pages 1-96 of this report.
participation process that was part of the environmental approval
for the projects.
•
The Board also considered the changes that have occurred in the
Choapa province and the region over the last 20 years, and
particularly during the recent persistent drought, together with the
increase in the population and productive activities, which has
brought significant water stress to the area.
•
In making this decision, the Board had regard to the need to foster
the Group’s business relationships with the workforce that will work
to construct the project and the local and international suppliers
who will deliver the products required for construction.
•
The expectations of shareholders and the impact of these decisions
in the long-term were key considerations for the Board, seeking to
ensure that Los Pelambres will be able to secure the water it
requires while also advancing to extend the life of the mine beyond
2035, when its current environmental permits expire.
Following these investment decisions, through the Projects Committee
and Sustainability and Stakeholder Management Committee, the Board
will continuously monitor construction progress and the impact that
these projects continue to have on its members a whole under section
172(1) of the Companies Act.
Climate Action Plan
In March 2024, the Company published its Climate Action Plan
(available at www.antofagasta.co.uk/sustainability/
sustainabilityreports-and-policies/), which represents a potential
pathway to achieving the long-term goal of reaching carbon-neutrality.
As part of this process, work to determine the decarbonisation
pathway also involved the development of updated carbon emissions
targets, which were published in February 2024 and are available on
the Company’s website (www.antofagasta.co.uk).
How the Board considered, and had regard to, the interests
of key stakeholders and the requirements of section 172(1)
The effects of climate change on the environment in Chile are clear,
with changing environmental conditions and water availability key
concerns, and therefore the Board understands the need to continue
to build climate resilience into its business model and activities and the
importance of these decisions in the long term.
•
In reviewing the Climate Action Plan, the Board was regularly
updated on the views, expectations and challenges facing the local
communities near our operations, suppliers and customers to
understand the current and future impact of climate change on
these stakeholders and their own capabilities, objectives, capacity
and ambitions to address this global challenge.
•
The Board considered the specific actions that may be required to
achieve the long-term goal of reaching carbon-neutrality and the
impact on stakeholders including suppliers.
Antofagasta plc Annual Report 2024110
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
•
The Senior Independent Director (SID) of the Company hosts
a roadshow on an annual basis to understand the key concerns
relating to the governance and strategy of the Company. Feedback
from these meetings included a clear interest in the Company’s
decarbonisation strategy and future emissions targets, which was
duly reported to the Board.
•
In setting the strategy of the Company relating to climate change,
the Board considers the expectations of different stakeholder
groups, with different levels of ambition shown by individuals and
groups. This is assessed against the practical aspects of delivering
emissions reduction targets, such as the associated costs,
availability (and affordability) of relevant technologies and relevance
in the settings where the Company’s operations are located, with a
suitable balance required to ensure that the Company is responding
appropriately to climate change, but while also setting itself
deliverable goals.
Centinela: Designing an innovative financing
solution
Approval of the Centinela Second Concentrator Project was
announced in late December 2023, with full construction commencing
in 2024, following the signing of definitive financing agreements.
As a major investment for the Company, the Board approved a
financing package that is specifically designed to help support the
Company’s capital allocation framework (as described on page 9), and
our ability to balance shareholder distributions and investments in
sustaining capital and development projects.
Financing of the Second Concentrator Project comprises a package
of funding, comprising a 40% commitment from the project’s equity
partners (70% Antofagasta plc and 30% Marubeni Corporation) and
the remaining 60% financed through a term loan facility at the
project level.
The lending facility, provided by a consortium of lenders, was secured
at a competitive interest rate and is structured over a 12-year period
that includes a four-year grace period that covers the project’s
construction. Through this structure, the Company aims to create
an even distribution of cash flows, with debt repayments only
commencing after capital expenditures on the project’s construction
have concluded.
How the Board considered, and had regard to, the interests of
key stakeholders and the requirements of section 172(1)
•
The financing package for the Second Concentrator Project, reflects
our commitment to maintaining strong relationships with our
financial partners. The competitive interest rate and favourable
terms secured from a consortium of lenders demonstrate our ability
to foster beneficial business relationships.
•
The Board has ensured that the financing and execution of the
project adhere to the highest standards of business conduct.
This includes transparent decision-making processes and rigorous
oversight to ensure the project’s success and integrity.
•
The financing package is designed to support the Company’s
capital allocation framework, balancing shareholder distributions
with investments in sustaining capital and development projects.
This approach ensures that all members of the Company are
treated fairly and that their interests are considered in our
decision-making processes.
Through these actions, the Board remains committed to promoting the
success of Antofagasta plc for the benefit of its members as a whole,
while considering the broader impact of our decisions on employees,
business relationships, the community, and the environment.
Antofagasta plc Annual Report 2024 111
Connecting with our workforce
Workforce engagement
Mining is a long-term business with decades-long timescales. Our relationships with our
stakeholders are central to our long-term success and to our purpose of developing mining
for a better future. The Group’s governance structures ensure that the views and interests
of stakeholders, including our employees and contractors, are discussed in the boardroom
and considered as part of the Board’s deliberations.
The Group maintains strong relations with its workforce, based on
trust, continuous dialogue and favourable working conditions. The
Board has carefully considered and reviewed the mechanisms in place
to allow the Board to understand the views of the Group’s workforce.
Ultimately, the Board has decided not to adopt any of the three
workforce engagement mechanisms recommended in the UK
Corporate Governance Code (a Director appointed from the workforce,
a formal workforce advisory panel or a designated non-executive
director). The Board considers that adopting any of these mechanisms
would interfere with the effective, structured and formal combination
of mechanisms already in place with a highly unionised workforce.
The Group’s workforce comprises 29,877 people, including employees,
permanent contractors and temporary contractors associated with
projects. Approximately 27% of the workforce are Group employees
and 73% are employees of contractor companies. More than 99% of
the Group’s employees are in Chile, and 55% are residents of the
regions in which we operate.
Approximately 76% of the Group’s employees are unionised. This
number is close to 100% at the operator level. The Group maintains
ongoing dialogue with labour unions and key issues are raised with,
and discussed by, the Remuneration and Talent Management
Committee and the Board.
The Group has established control mechanisms to ensure that
contractor companies, whose employees are often members of their
own labour unions, meet the Group’s standards and guidelines on
labour, environmental and social and ethical matters and adopt good
practices with regard to safe workplaces and the quality of
employment. Contractors’ employees receive the same minimum
protections as the Group’s employees under Chilean labour law and
the Group requires contractors to pay their employees ethical wages
– which as of December 2024 were 26% higher in the Mining Division
than the Chilean legal minimum – and to provide other basic benefits,
including life and health insurance. These protections are subject to
regular audits by independent third parties to ensure full compliance
with these standards.
Below is a selection of the workforce engagement mechanisms that
the Board currently has in place:
•
Directors regularly visit the Group’s operations either individually
or in small groups throughout the year and engage informally
with the workforce and other parties to gauge overall workforce
culture. Impressions and views arising from these visits are
reported to the Board and its Committees, and related questions
are raised with the management team.
•
Labour relations matters, proposed labour negotiation limits and
feedback from labour negotiations are reported directly to the
Remuneration and Talent Management Committee and the Board
throughout the year as a key part of the CEO’s general updates
to the Board.
•
The CEO, the Chief Operations Officer, Vice President of Los
Pelambres, Vice President of People and Organisation, and the
General Managers and HR Managers of each relevant operation
meet with union representatives during the year to share relevant
information and listen to concerns and suggestions, the results of
which are shared with the Remuneration and Talent Management
Committee and the Board.
•
The CEO met with union representatives during 2024, enabling him
to share business performance and challenges associated with the
Group’s strategic framework, reinforce shared culture and values
and listen to concerns and ideas. The purpose of these meetings is
to foster a collaborative dialogue and working environment.
•
Group-wide employee engagement surveys are conducted every
two or three years. These surveys are conducted by independent
third parties on behalf of the Group, and the results are reported to
the Remuneration and Talent Management Committee and the
Board. Engagement surveys were conducted across the Mining
Division in 2024, and the results were reviewed with the
Remuneration and Talent Management Committee and the Board.
•
The Group’s workforce is encouraged to report any concerns to the
Ethics Committee through the confidential whistleblowing hotline.
Reports may be made anonymously. All reports are followed up and
investigated and overall figures and trends and any specific cases
involving a potential crime are reported to the Audit and Risk
Committee and the Board.
During 2024, the Board applied feedback received from the workforce
regarding decisions related to talent retention initiatives, the oversight
of labour negotiations and the development of the Group’s Diversity
and Inclusion Strategy.
Antofagasta plc Annual Report 2024112
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
29,877
Total workforce
99%
Live in Chile
55%
Are residents of the regions
in which we operate
Antofagasta plc Annual Report 2024 113
Directors’ biographies
Board of Directors
1
6
2
7
3
8
4
9
5
10
11
Biographical details for all persons who were Directors of the Company during the year are set
out on the following pages. All Directors have confirmed that their other commitments do not
prevent them from devoting sufficient time to their roles and the Board acknowledges that the
skills and experience gained by the Directors from these external appointments are of benefit to
the Group. Additional external appointments cannot be undertaken without the prior approval of
the Board. The Directors’ attendance at regular and ad hoc meetings held throughout the year
demonstrated their commitment.
KEY TO COMMITTEES
Nomination and Governance
Audit and Risk
Sustainability and Stakeholder
Management
Projects
Remuneration and Talent Management
Committee Chair
Chairman of the Board
ANTOFAGASTA PLC DIRECTORS’ BOARD MEETING ATTENDANCE
Number attended
1
Jean-Paul Luksic 8/9
2
Francisca Castro 9/9
3
Ramón Jara 9/9
4
Juan Claro 8/9
5
Andrónico Luksic C 5/9
6
Vivianne Blanlot
1
9/9
7
Michael Anglin 9/9
8
Tony Jensen 9/9
Number attended
9
Eugenia Parot 9/9
10
Heather Lawrence 9/9
11
Tracey Kerr
2
9/9
1. Vivianne Blanlot has resigned from the
Board with effect from 31 March 2025
2. Tracey Kerr joined the Board on 29
January 2024.
Antofagasta plc Annual Report 2024114
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
JEAN-PAUL LUKSIC
Chairman
Independent: No
Appointed to the Board: 1990
Appointed Chairman: 2004
(Non-Executive since 2014)
Over 30 years’ experience with
Antofagasta, including
responsibility for overseeing
development of the Los Pelambres
and El Tesoro (Centinela
Cathodes) mines
Current positions
•
Member of the Board of Consejo
Minero
•
Non-Executive Director of
Quiñenco SA and Quiñenco
group listed companies Banco
de Chile and Sociedad Matriz
SAAM SA
•
Member of the Board of Centro
de Estudios Públicos, a
not-for-profit academic
foundation in Chile
Previous roles
•
Chairman of Consejo Minero,
the industry body representing
the largest mining companies
in Chile
•
CEO of the Group’s Mining
Division
FRANCISCA CASTRO
Non-Executive Director
Independent: Yes
Appointed to the Board: 2016
Commercial engineer with over
25 years’ experience in industry,
including mining, energy, finance
and public/private infrastructure
projects in the United States
and Chile
Current positions
•
Member of the Chilean Pension
Funds Risk Classification
Committee
•
Independent Director of
Conexión Kimal-Lo Aguirre S.A.,
a power transmission company
in Chile
Previous roles
•
Executive Vice-President of
Business and Subsidiaries at
Codelco
•
General Co-ordinator of
Concessions at Chile’s Ministry
of Public Works
•
Various roles within Chile’s
Finance Ministry and the World
Bank, Washington DC
•
Member of the independent
Technical Panel of Chile’s Public
Works Concessions
•
Director of SalfaCorp SA
•
Director of the Fraunhofer Chile
Research Foundation
RAMÓN JARA
Non-Executive Director
Independent: No
Appointed to the Board: 2003
Lawyer with considerable legal
and commercial experience in
Chile
Current positions
•
Chairman of Fundación Minera
Los Pelambres (charitable
foundation)
•
Director of Fundación
Educacional Luksic (charitable
foundation)
•
Member of the Advisory Council
of Centro de Estudios Públicos,
a not-for-profit academic
foundation in Chile
•
Member of the Board of the
Centre of Arbitration of the
Chilean Chamber of Commerce
•
Chairman of the Chile-Japan
Business Committee of Sociedad
de Fomento Fabril (Chilean
Industrial Council)
•
Member of the APEC Business
Advisory Council (ABAC)
Previous roles
•
Partner, Jara del Favero
Abogados
•
Director of Empresa Nacional
del Petróleo (ENAP)
•
Vice President, SONAMI
(National Mining Association)
JUAN CLARO
Non-Executive Director
Independent: No
Appointed to the Board: 2005
Extensive industrial experience in
Chile, including an active role
representing Chilean industrial
interests nationally and
internationally
Current positions
•
Chairman of Coca-Cola
Andina SA
•
Director of Melón SA and
AgrosuperSA
•
Member of the Board of Centro
de Estudios Públicos, a
not-for-profit academic
foundation in Chile
•
Country Adviser, Goldman Sachs
Previous roles
•
Chairman of Energía
Coyanco SA
•
Chairman of the Sociedad de
Fomento Fabril (Chilean
Industrial Council)
•
Chairman of the Confederación
de la Producción y del Comercio
(Chilean Business Confederation)
•
Chairman of the Consejo
Binacional de Negocios
Chile-China (Council for Bilateral
Chile-China Business)
1
2
3
4
Antofagasta plc Annual Report 2024 115
Board of Directors continued
ANDRÓNICO LUKSIC C.
Non-Executive Director
Independent: No
Appointed to the Board: 2013
Extensive experience across
a range of business sectors
throughout Chile, Latin America
and Europe
Current positions
•
Director of Nexans SA, a
company listed on Euronext
Paris and part owned by
Quiñenco SA
•
Member of the International
Business Leaders’ Advisory
Council for the Mayor of
Shanghai; the Chairman’s
International Advisory Council at
the Council of the Americas; the
Global Board of Advisors at the
Council of Foreign Relations; and
the Brookings Institution’s
International Advisory Council
Previous roles
•
Chairman of Quiñenco SA and
Compañía Cervecerías Unidas
SA, and Vice Chairman of Banco
de Chile and Compañía
Sudamericana de Vapores SA,
all of which are listed companies
in the Quiñenco group
EUGENIA PAROT
Non-Executive Director
Independent: Yes
Appointed to the Board: 2021
Civil biochemical engineer with
over 35 years’ experience,
working for leading engineering
and consulting companies
providing services to some of the
largest mining projects in Latin
America in the areas of
environment, sustainability and
mine waste management.
Previous roles
•
Vice President of Latin America,
Regional President for South
America and Managing Director
for Chile, Golder Associates
•
Director on Golder’s holding
company board and member
of the audit and finance and
investments committees.
•
Member of the boards of Golder
South America, Chile, Peru and
Argentina
MICHAEL ANGLIN
Non-Executive Director
Independent: Yes
Appointed to the Board: 2019
Mining engineer with over 30
years’ experience in base metals,
including the development,
construction and operation of
large-scale mining operations in
the Americas
Current positions
•
Director of SSR Mining Inc
•
Adviser to IntelliSense.io
Previous roles
•
Vice President Operations and
Chief Operating Officer of BHP
Base Metals
•
Director of EmberClear Corp
•
Director of Tulla Resources,
Australia
HEATHER LAWRENCE
Non-Executive Director
Independent: Yes
Appointed to the Board: 2023
Qualified as a chartered
accountant with over a decade
working in senior roles within
corporate finance and investment
banking, with particular experience
across industrial and
transportation businesses.
Current positions
•
Non-executive director and audit
committee chair of Melrose
Industries plc
Previous roles
•
Non-executive director of Wizz
Air Holdings
•
Non-executive director and
audit committee chair of FlyBe
Group plc
TONY JENSEN
Non-Executive Director
Independent: Yes
Appointed to the Board: 2020
Mining engineer with over 40
years’ mining experience in the
United States and Chile in
operational, financial, business
development and management
roles
Current positions
•
Director of Black Hills
Corporation
Previous roles
•
Director of Golden Star
Resources Limited
•
President, CEO and Director
of Royal Gold Inc
•
Mine General Manager of the
Cortez joint venture in Nevada;
treasury, business development
and a wide range of other
operating roles with Placer
Dome in the USA and Chile
•
Member of the University
Advisory Board for the South
Dakota School of Mines and
Technology
VIVIANNE BLANLOT
1
Non-Executive Director
Independent: No (since 27 March
2023)
Appointed to the Board: 2014
Economist with extensive
experience in public and private
energy, mining, water and
environmental sectors in Chile
Current positions
Director of Colbún SA, an energy
company listed in Chile
Previous roles
•
Executive Director of the
Comisión Nacional de Medio
Ambiente (Chile’s Environmental
Agency)
•
Undersecretary of the Comisión
Nacional de Energía (Chile’s
National Energy Commission)
•
Chile’s Minister of Defence
•
Director of Scotiabank Chile
•
Director of Empresas CMPC SA,
a pulp, paper and packaging
company listed in Chile
•
Director of Instituto Chileno de
Administración Racional de
Empresas (ICARE), a business
thinktank in Chile
•
Member of Consejo para la
Transparencia (Transparency
Council), the Chilean body
responsible for enforcing
transparency in the public sector
TRACEY KERR
Non-Executive Director
Independent: Yes
Appointed to the Board: 2024
Geophysicist with extensive
experience in safety, sustainability,
operations and exploration in
global mining businesses.
Current positions
•
Non-executive director at
Hochschild Mining plc
•
Non-executive director at Jubilee
Metals Group plc
•
Non-executive director at Weir
Group plc
Previous roles
•
Non-executive director at
Polymetal International Plc
•
Senior executive at major mining
companies including Anglo
American, Vale and BHP
5
6
7
8
9
10
11
1. Vivianne Blanlot resigned from the Board with effect from 31 March 2025.
Antofagasta plc Annual Report 2024116
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Board balance and skills
Relevant experience to deliver
our purpose
Director
Independence
CEO experience
Mining industry
experience
Mining operations
Board governance
Financial
Legal or
accounting
1
Executive
compensation
Latin American
experience
UK market
Project
management
Sustainability
2
Energy experience
Government
relations
Communication
Jean-Paul Luksic
ü ü ü ü ü ü ü ü ü
Francisca Castro
ü ü ü ü ü ü ü ü ü
Ramón Jara
ü ü ü ü ü ü ü ü ü
Juan Claro
ü ü ü ü ü ü ü ü
Andrónico Luksic C
ü ü ü ü ü ü ü
Vivianne Blanlot
3
ü ü ü ü ü ü ü ü ü
Michael Anglin
ü ü ü ü ü ü ü ü ü
Tony Jensen
ü ü ü ü ü ü ü ü ü ü ü ü ü
Eugenia Parot
ü ü ü ü ü ü ü ü ü ü
Heather Lawrence
ü ü ü ü ü ü ü
Tracey Kerr
ü ü ü ü ü ü ü ü ü
1. Ramón Jara is a Lawyer. Heather Lawrence qualified as a Chartered Accountant.
2. Directors considered to have sustainability skills have self-certified that they are, or have been, responsible for sustainability as an executive or as a member of a sustainability committee
of a board. This includes competence on climate-related issues.
3. Vivianne Blanlot has resigned from the Board with effect from 31 March 2025.
Board balance
Board skills matrix
1
6
4
Chairman
Independent
Non-Independent
6
5
Male
Female
5
2
4
0-5 years
6-10 years
11+ years
1
1
2
7
UK
Australia
USA
Chile
Independence
1
Gender diversity
2
Tenure Nationality
3
1. The Board reviews the independence of Directors annually. The Board has carefully
considered the independence of all Directors and is satisfied that Francisca Castro,
Michael Anglin, Tony Jensen, Eugenia Parot, Heather Lawrence and Tracey Kerr
continue to be independent in character and judgement and that there are no
relationships or circumstances that are likely to affect, or could appear to affect, their
judgement. Further details are provided on page 118.
2. Further details on the Board’s diversity policy can be found on pages 125-127.
3. The Company has met the Parker Review target and in 2024 more than half the Board
identified as being from an ethnic minority background according to the criteria in the
Parker Review survey, as shown on page 127. As noted throughout this Annual Report,
the Group’s footprint is primarily in Chile, where ethnicity profiles and representation in
society differ significantly from those in the UK. Nevertheless, the Board recognises that
the mining industry is international, and therefore the Board includes several Directors
from outside Chile in support of its vision and strategy.
The Board comprises 11 Directors with a broad and complementary set of technical skills,
educational and professional experience, nationalities, personalities, cultures and perspectives.
Antofagasta plc Annual Report 2024 117
Board and senior management’s
roles and responsibilities
Non-Executive Chairman
Jean-Paul Luksic
Leads the Board and ensures its
effectiveness overall.
•
Promotes the highest standards of integrity,
probity and corporate governance.
•
Sets the agenda for Board meetings in
consultation with the Senior Independent
Director, CEO and Company Secretary.
•
Chairs meetings and ensures that there is
adequate time for discussion of all agenda
items, focusing on strategic, rather than
routine, issues.
•
Promotes a culture of openness and debate
within the Board by facilitating constructive
Board relations and the effective
contribution of all Directors.
•
Oversees Director induction, development
and performance reviews.
•
Leads relations with shareholders, including
the Group’s controlling shareholders.
Independent Non-Executive
Directors
2
Francisca Castro
Michael Anglin
Tony Jensen
Eugenia Parot
Heather Lawrence
Tracey Kerr
Ensure that no individual or small group
of individuals can dominate the Board’s
decision-making.
•
Meet the independence criteria set out in
the UK Corporate Governance Code.
2
•
Have no connection with the Group or any
other Director which could be perceived to
compromise independence.
•
Provide a range of outside perspectives to
the Group and encourage robust debate
with, and challenge of, the Group’s
executive management.
CEO
Iván Arriagada
Leads the implementation of the Group’s
strategy set by the Board.
•
Manages the overall operations and
resources of the Group.
•
Leads the Executive Committee and
ensures its effectiveness in all aspects
ofitsduties.
•
Provides information and makes
recommendations to the Board regarding
the Group’s day-to-day activities and
long-term plans.
Executive Committee members
Present proposals, recommendations and
information to the Board within their areas
of responsibility.
•
Support the CEO in the implementation of
the Group’s strategy set by the Board.
The Group’s CEO, Iván Arriagada, is not a Director, reflecting the law and practice in Chile.
1
Despite this, interaction between the
Board and executive management is as you would expect between Non-Executive Directors and management in a typical UK-listed
company. The Board considers that there are considerable benefits associated with having a Board of exclusively Non-Executive
Directors; it provides a broad range of perspectives and encourages robust debate with, and independent oversight of, the Group’s
executive management.
Non-Executive Directors
3
Ramón Jara
Juan Claro
Andrónico Luksic C
Vivianne Blanlot
4
Provide a range of outside perspectives
to the Group and encourage robust debate
with, and challenge of, the Group’s
executive management.
•
The Board does not consider these
Directors to be independent because they
do not meet one or more of the
independence criteria set out in the UK
Corporate Governance Code.
•
They ensure that no individual or small
group of individuals can dominate the
Board’s decision-making.
Senior Independent Director
Francisca Castro
Provides a sounding Board for the Chairman
and supports the Chairman in the delivery of
his objectives as required.
•
Where necessary, acts as an intermediary
between the Chairman and the other
members of the Board or the CEO.
•
Acts as an additional point of contact for
shareholders, focusing on the Group’s
governance and strategy, and gives
shareholders an alternative means of
raising concerns other than with the
Chairman or senior management.
Company Secretary
Julian Anderson
Ensures that Directors have access to the
information they need to perform their
roles.
•
Provides a conduit between the Board and
its Committees and a link between the
Board and management.
•
Advises the Board on corporate
governance and supports the Board in
applying the UK Corporate Governance
Code and complying with the UK listing
regime and obligations.
1. Chilean law prohibits CEOs of listed companies from being Directors of those companies.
The CEO and CFO attend all Board meetings. The CEO also attends all Board Committee
meetings and there is regular formal and informal dialogue between management and
the Board.
2. The Board reviews the independence of Directors annually. The Board has carefully
considered the independence of all Directors and is satisfied that Francisca Castro, Mike
Anglin, Tony Jensen, Eugenia Parot, Heather Lawrence and Tracey Kerr continue to be
independent in character and judgement and that there are no relationships or
circumstances that are likely to affect, or could appear to affect, their judgement.
3. Ramón Jara provides advisory services to the Group. Andrónico Luksic C is the brother
of Jean-Paul Luksic, the Chairman of the Company, and until 31 December 2023 served
as Chairman of Quiñenco SA and Chairman or Director of certain of Quiñenco’s other
listed subsidiaries. Jean-Paul Luksic is a Non-Executive Director of Quiñenco and some of
its listed subsidiaries. Like Antofagasta plc, Quiñenco is controlled by a foundation in which
members of the Luksic family are interested. Ramón Jara, Juan Claro and Vivianne Blanlot
have served on the Board for more than nine years from the date of their first election.
4. Vivianne Blanlot was an independent Non-Executive Director until 27 March 2023, the
ninth anniversary of her appointment to the Board. Vivianne Blanlot has resigned from
the Board with effect from 31 March 2025.
The division of responsibilities between the Chairman, the CEO and the Senior Independent Director is available on the Company’s website at antofagasta.co.uk.
Roles in the boardroom
Antofagasta plc Annual Report 2024118
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Members of the
Executive Committee
Executive Committee biographies
IVÁN ARRIAGADA
CEO appointed in 2016
Joined the Group in 2015
•
Commercial engineer and economist with more
than 30 years’ international experience in the
mining and oil and gas industries
Previous roles
•
Chief Financial Officer of Codelco
•
Various positions over six years at BHP Base
Metals, including President of Pampa Norte
(Spence and Cerro Colorado), Vice President
Operations and Chief Financial Officer of the
Base Metals division
•
Almost 15 years’ experience with Shell in Chile,
the United Kingdom, Argentina and the United
States
RODRIGO BRAVO
Vice President of Sales appointed in 2024
Joined the Group in 1999
•
Civil industrial engineer with over 30 years’
experience in the marketing of copper and
by-products
Previous roles
•
Managing Director at Antofagasta Minerals,
Shanghai Office
•
Deputy Commercial Director at Antofagasta
Minerals
•
Senior Sales Manager at Antofagasta Minerals
•
Manager Copper Sales at Codelco
OCTAVIO ARANEDA
COO appointed in 2023
Joined the Group in 2023
•
Mining engineer with a Master’s degree in
Minerals Economics and more than 30 years’
experience in the mining industry
Previous roles
•
CEO of Codelco
•
Operations Vice President (Center-South and
North) at Codelco, General Manager El Teniente
division of Codelco
JORGE BERMÚDEZ
Vice President of Projects appointed in
2024
Joined the Group in 2024
•
Mining engineer with over 40 years’ experience
in open pit and underground mining and
engineering
Previous roles
•
COO Latin America & Caribbean at Canadian
consulting firm WSP Global
•
VP & GM M&M Americas at American
international technical professional services
firm Jacobs
•
Numerous roles over 20 years at Fluor
Corporation
MAURICIO ORTIZ
CFO appointed in 2020
Joined the Group in 2015
•
Electrical engineer with two Master of Sciences
degrees (Metals and Energy Finance and
Electrical Engineering) and 20 years’ experience
in the energy, mining and railway industries
Previous roles
•
General Manager of FCAB (Transport Division)
•
Business Development Manager of Antofagasta
Minerals
•
Finance Manager at Codelco – Chuquicamata
•
Business Development Principal at Rio Tinto plc,
London
•
Various operating project roles at BHP
GEORGEANNE BARCELÓ
Vice President of People and Organisation
appointed in 2022
Joined the Group in 2021
•
Human resources specialist with a degree in Law
and a Master’s degree in Strategic Human
Resources Management and more than 20 years’
experience in international and national companies
across a range of sectors, including insurance
and industry
Previous roles
•
Labour Relations Manager of Antofagasta
Minerals
•
Corporate Director of People at Bupa Chile
•
Human Resources Vice President at Komatsu
Latin America
Antofagasta plc Annual Report 2024 119
ALEJANDRA VIAL
Vice President of Sustainability appointed
in 2024
Joined the Group in 2019
•
Agronomist with over 25 years’ experience in
mining, including in sustainability, environment,
health and safety and communities
Previous roles
•
Corporate Environmental Manager of Antofagasta
Minerals
•
Environmental and Permitting Director of Barrick
Gold Chile
•
Sustainability, Safety and Occupational Health
Manager at Codelco’s Projects Vice-Presidency
DAVID FERNÁNDEZ
General Manager – FCAB (Transport
Division) appointed in 2024
Joined the Group in 2024
•
Commercial engineer, with 35 years’ experience
in the railway transport industry in Chile
Previous roles
•
General Manager of Ferrocarril del Pacífico S.A.
(FEPASA)
•
General Manager Puerto Panul San Antonio
•
General Manager Graneles de Chile Transvia
•
Various commercial, management control and
operations positions at FEPASA, MTS, Shell and
Grupo Arauco
Executive Committee biographies continued
RENÉ AGUILAR
Vice President of Strategy and Innovation
appointed 2024
Joined the Group in 2017
•
Industrial psychologist with 20 years’ experience
in mining, including in sustainability, safety,
human resources and corporate affairs
Previous roles
•
Vice President of Corporate Affairs and
Sustainability
•
Group Head of Safety at Anglo American, London
•
Vice President of Corporate Affairs and
Sustainability at Codelco
•
Health and Safety Director of the International
Council on Mining and Metals (ICMM), London
KATHARINA JENNY
Vice President of Corporate Affairs
appointed in 2024
Joined the Group in 2016
•
Mining engineer and MBA, with over 15 years’
experience in mining
Previous roles
•
General Manager – FCAB (Transport Division)
•
Health and Safety Manager at Antofagasta
Minerals
•
Productivity and Costs Manager, and Safety
Manager at Codelco
•
Various roles at BHP, including mine planning,
health and safety and environment
PATRICIO ENEI
Vice President of Legal appointed in 2014
Joined the Group in 2014
•
Lawyer and MBA, with over 25 years’ experience
in mining
Previous roles
•
General Counsel at Codelco
•
Corporate Affairs Manager at Escondida
•
Senior lawyer at BHP Billiton in Chile
•
Chief Legal Counsel at Collahuasi
•
Lawyer at the Instituto de Normalización
Previsional and in private practice
ANDRÓNICO LUKSIC L.
Vice President of Development appointed
in 2015
Joined the Group in 2006
•
Business administrator with broad mining
experience in sales, exploration, business
development and general management
Previous roles
•
Corporate Manager in the Mining Division
•
Director, Antofagasta Minerals, Toronto Office
•
Various positions at Banco de Chile
Antofagasta plc Annual Report 2024120
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
NICOLÁS RIVERA
General Manager – Centinela appointed
in 2025
Joined the Group in 2025
•
Civil mining and industrial engineer with nearly
20 years’ experience in mining
Previous roles
•
Vice President of Mining Resources at Codelco
•
Vice President of Northern Operations at Codelco
•
General Manager at El Teniente and
Chuquicamata operations, Codelco
•
Operations Manager at El Teniente
•
Various positions at Anglo American
IVO FADIC
General Manager – Antucoya appointed
in 2023
Joined the Group in 2016
•
Mechanical engineer and Masters in Asset
Management and Maintenance, with nearly
20 years’ experience in mining
Previous roles
•
Operations Manager at Los Pelambres
•
Maintenance Manager at Los Pelambres
•
Maintenance Manager – Concentrator Plants
at Minera Escondida
•
Engineering Manager – Concentrator Plants
at Minera Escondida
LEONARDO GONZÁLEZ
General Manager – Zaldívar appointed
in 2023
Joined the Group in 2015
•
Civil mining engineer and MBA, with 25 years’
experience in mining
Previous roles
•
General Manager at Antucoya
•
General Manager at Zaldívar
•
Operations Manager at Zaldívar
•
Mining Superintendent at Minera Doña Inés
de Collahuasi
Grey area denotes members of the Executive Committee that do not report directly to the CEO
MAURICIO LARRAÍN
Vice President of Planning andTechnical
Services appointed in 2023
Joined the Group in 2017
•
Civil mining engineer and Master of Sciences
(Mineral Economics) with over 25 years’
experience in mining
Previous roles
•
Vice President of Northern Operations
•
General Manager of Los Pelambres
•
General Manager at Codelco’s El Teniente division
•
Operations Manager at El Teniente
•
Mine Planning Corporate Manager of Codelco
•
Various positions at Codelco and Los Pelambres
ALEJANDRO VÁSQUEZ
Vice President of Los Pelambres
Operations appointed in 2022
Joined the Group in 2022
•
Civil mining engineer with over 30 years’
experience in mining
Previous roles
•
Vice President, South America at Teck
Resources
•
President of Pampa Norte (BHP’s Spence and
Cerro Colorado operations)
•
General Manager of the Yandi iron ore operation
in Australia
•
Vice President of Operations at Escondida
Antofagasta plc Annual Report 2024 121
Board Committees
Introduction to the Committees
The Board’s Committees ensure that Board deliberations are focused on key issues and that
proposals are submitted after thorough debate and rigorous challenge.
Each Committee provides a forum to allow the views and perspectives of stakeholders to be discussed so that they are accurately represented
in the Board’s deliberations.
Nomination and Governance Committee
Key responsibilities
•
Corporate governance framework
•
Succession planning for the CEO and the Board
•
Board and Committee composition
•
Board nominations
•
Board effectiveness reviews
Focus areas during 2024
•
Monitoring shareholder and proxy adviser feedback on governance
•
Reviewing succession planning for Board and Committee roles
•
Reviewing Board and Committee composition
•
Reviewing Directors’ conflict of interest disclosures
•
Reviewing Board and Committee evaluations
•
Reviewing governance reporting
Audit and Risk Committee
Key responsibilities
•
Financial reporting
•
External audit
•
Internal audit
•
Risk management
•
Internal control
•
Compliance
Focus areas during 2024
•
Monitoring regulatory changes relating to risk management and internal controls
•
Reviewing the Company’s half-year and year-end financial results
•
Reviewing accounting and tax matters
•
Assessing financial controls and reporting
•
Monitoring risk management and compliance
•
Assisting the Board with updates to the Group’s risk appetite assessment
•
Monitoring Internal Audit and the external auditor
Sustainability and Stakeholder Management Committee
Key responsibilities
•
Policies and commitments
•
Health and safety
•
Community relations
•
Environmental and social matters
•
Stakeholder engagement
Focus areas during 2024
•
Reviewing key policies for the Group’s long-term sustainable success
•
Monitoring overall environmental compliance
•
Reviewing social and territorial strategies
•
Overseeing measures to protect the health and safety of the Group’s workforce
•
Reviewing climate change strategy implementation
•
Reviewing the Group’s water strategy
•
Reviewing the Group’s implementation of the Global Industry Standard on Tailings
Management and reports on the Group’s tailings storage facilities
•
Reviewing sustainability reporting
Projects Committee
Key responsibilities
•
Oversight of project standards, guidelines
and best practices
•
Project development lifecycle matters
•
Project reviews
•
Lessons learned from completed projects
Focus areas during 2024
•
Monitoring the progress of projects under construction: Centinela Second
Concentrator Project, Los Pelambres’ Desalination Plant Expansion to 800 l/s
and new concentrate pipeline
•
Overseeing the completion of the Los Pelambres Phase 1 Expansion Project
and the successful transfer to Los Pelambres’ operation
•
Reviewing lessons learnt from the Los Pelambres Phase 1 Expansion Project
•
Reviewing the progress of Los Pelambres’ Development Options Project (mine life
extension) and filing its Environmental Impact Assessment application
Find out more online at www.antofagasta.co.uk/bc
Antofagasta plc Annual Report 2024122
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Remuneration and Talent Management Committee
Key responsibilities
•
Remuneration governance
•
Directors’ remuneration
•
Executive remuneration
•
Group pay structures
•
Talent management and succession planning
for the Executive Committee
•
Employee engagement
•
Talent retention
•
Diversity and inclusion
•
HR planning
Focus areas during 2024
•
Monitoring remuneration-related regulatory changes
•
Reviewing and approving the 2024 Directors’ and CEO’s Remuneration Policy
and 2023 Directors’ and CEO’s Remuneration Report
•
Monitoring Directors’ and CEO’s remuneration and reviewing proposed changes
•
Applying the Group’s executive remuneration framework including reviewing
short-term and long-term incentive plans and market benchmark surveys
•
Reviewing employee engagement survey results
•
Reviewing talent management, retention mechanisms and Executive Committee
succession plans
•
Reviewing performance appraisals for the CEO and Executive Committee
•
Reviewing the 2024 HR plan
•
Reviewing gender pay gap and CEO pay ratio
Antofagasta plc Annual Report 2024 123
“Supporting the Board in maintaining robust governance
structures is achieved through comprehensive annual
performance reviews and diligent oversight of Board and
Committee succession plans and appointments.”
JEAN-PAUL LUKSIC
Chair of the Nomination and Governance Committee
Ensuring Board
effectiveness
Key activities in 2024
Corporate governance
•
Monitored the fulfilment of the UK Corporate Governance Code
requirements.
•
Reviewed the changes to the UK Corporate Governance Code
published in January 2024.
•
Reviewed Directors’ declarations on potential conflicts of interest.
•
Reviewed the Governance section of the 2023 Annual Report and
recommended it to the Board for approval.
•
Reviewed arrangements for the 2024 AGM and publication of the
2024 AGM Notice.
•
Reviewed feedback from investors and proxy advisers on the
shareholder resolutions tabled at the 2024 AGM.
•
Reviewed shareholder and proxy adviser feedback on governance.
Succession planning
•
Reviewed and endorsed detailed succession plans for the Board, the
Senior Independent Director, Committee Chairs, and the CEO.
•
Continued to provide input to the Remuneration and Talent
Management Committee in relation to succession plans for
the Executive Committee (excluding the CEO).
Board and Committee composition
•
Reviewed the independence of all Directors, making recommendations
to the Board.
•
Managed the global search carried out in relation to the appointment
of Independent Non-Executive Director Tracey Kerr.
•
Reviewed and proposed changes to the Committees’ composition.
•
Reviewed and endorsed updates to the Board’s skills matrix.
Board effectiveness reviews
•
Oversaw the tender process which led to the selection of Lintstock
Limited to perform the 2025 external evaluation of the Board and
Committees’ performance.
•
Oversaw the implementation of recommendations arising from the
2023 internal evaluation of the Board and Committees.
•
Oversaw the 2024 internal evaluation of the Board and Committees.
•
Requested a performance review of the Chairman by Directors, led by
the Senior Independent Director, and of individual Directors, led by the
Chairman.
Nomination and Governance Committee report
Key responsibilities
The Nomination and Governance Committee supports the Board in
ensuring that effective governance structures are in place, and that the
Board and its Committees are appropriately staffed and operate
effectively. The Committee monitors feedback from investors in relation
to governance matters, identifies qualified individuals to join the Board,
recommends any changes to the composition of the Board and its
Committees, and implements an annual process to assess Board
effectiveness.
This involves:
•
Monitoring trends, initiatives and proposals in relation to corporate
governance.
•
Reviewing and discussing feedback from investors on the Company’s
corporate governance.
•
Overseeing and facilitating annual reviews of the Chairman, the Board,
its Committees and individual Directors, including externally facilitated
reviews.
•
Evaluating and overseeing the balance of skills, knowledge and
experience on the Board and its Committees.
•
Monitoring the independence of Directors.
•
Overseeing Board succession plans and leading the process to
identify suitable candidates to fill vacancies, nominating such
candidates for approval by the Board and ensuring that appointments
are made on merit and against objective criteria, including gender.
•
Overseeing the induction of new Directors and the development of all
Directors.
•
Overseeing CEO succession plans.
•
Reviewing the Group’s governance reporting.
2024 membership and meeting attendance
Number attended
Jean-Paul Luksic (Chair) 4/4
Tony Jensen 4/4
Francisca Castro 4/4
Other regular attendees included the Company Secretary.
The Committee meets as necessary and at least twice per year.
Except for the Chairman, all Committee members are independent.
Antofagasta plc Annual Report 2024124
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Q.What is the Committee’s role in relation to succession planning?
The Committee oversees and develops succession plans for the
Board and the CEO. Succession planning for the Executive Committee
(excluding the CEO) and broader employee talent management is
overseen by the Remuneration and Talent Management Committee.
The activities of the Remuneration and Talent Management Committee
are set out on pages 140- 159.
During 2024, the Committee reviewed the Board’s succession plan
and recommended changes to Committee memberships and the
appointment of Independent Non-Executive Director Tracey Kerr, who
joined the Board in January.
Q.How does the Committee address the process of CEO succession?
The Committee regularly reviews succession plans for the CEO, in the
case of either a planned or unplanned departure. This involves
defining the character, skills, experience and expertise required to
fulfil the role, as well as monitoring the market for potential external
candidates and the assessment of potential internal candidates and
their development needs. The consideration of both external and
internal candidates for the role of CEO ensures a clear assessment of
relative strengths and weaknesses and provides a useful international
benchmark.
Q.What is the scope of the Board’s succession planning?
The Board’s succession plan is reviewed formally at least once a year
addressing Board size, Committee structure and composition, skills on
the Board, Board and Committee members’ tenure, independence of
Directors, diversity (including gender) and Board roles. Succession
plans include contingency plans in the event of an unexpected
departure, medium-term plans for orderly replacement of current
Board members and long-term plans linking strategy with the skills
needed on the Board in the future.
There is a Board-approved succession plan for my Board roles in the
event of an unexpected departure.
Q.How does the Board identify the appropriate skills for new Board
candidates?
The Board maintains a Board skills matrix and the Committee reviews
the balance of skills, experience and expertise on the Board at least
annually. This process enables the Board and the Committee to
identify the skills required when making new appointments to the
Board and to instruct search firms to identify candidates who fit these
criteria.
Q.What steps does the Committee take to identify and appoint new
Directors?
The Committee discusses relevant profiles for future appointments
and potential candidates, taking into account: the results of Board
effectiveness reviews, as shown on page 127; the Group’s purpose,
vision, values and strategy, as shown on pages 108-109; the Board’s
diversity policy (below); and the core competencies and areas of
expertise on the Board, as shown on page 117-121.
To assist with making new appointments to the Board, the Committee
appoints independent external search consultancies with no
connection to the Group. In 2024, the Committee worked with
Spencer Stuart, a signatory to the voluntary code of conduct for
executive search firms to address gender diversity on corporate
practices for related search processes, to assist with the search that
resulted in the appointment of Independent Non-Executive Director
Tracey Kerr in January 2024.
Spencer Stuart was briefed on the skills and experience of the
existing Directors and asked to identify potential candidates who
would best meet the required criteria, including their relevant
experience, skills, leadership capabilities, contribution to Board
diversity and whether they had sufficient time to devote to the role.
Also important for overall Board effectiveness is that potential
candidates are proficient in Spanish and, preferably, have relevant
mining or extractive industry experience.
The search that resulted in Tracey’s appointment aimed to identify
candidates with UK market experience, mining experience and
sustainability experience. The external search consultancy was
instructed to access the widest possible talent pool and, as has been
the case for many years, to specifically identify potential female
candidates.
Q.What support does the Company provide to facilitate induction and
assist with professional development?
Induction
New Directors receive a thorough induction on joining the Board. This
includes: meetings with the Chairman, other Directors, the Chief
Executive Officer and Executive Committee members; briefings on the
Group’s strategy, UK corporate governance, operations, projects and
exploration activities; and visits to the Group’s operations.
Continuing personal development
Directors receive an annual briefing on governance, legal, regulatory
and market developments that are relevant to directors of UK-listed
companies, complemented by discussions on Board-related matters.
Directors have access to, and are encouraged to regularly attend,
round-table discussions, seminars and other events that cover topics
relevant to the Group and their roles.
Resources
The Company provides Directors with the necessary resources to
maintain and enhance their knowledge and capabilities.
All Directors have access to management and to such information as
they need to discharge their duties and responsibilities fully and
effectively.
Directors are also entitled to seek independent professional advice
concerning the affairs of the Group at the Company’s expense.
Q.What is the Board’s position in relation to diversity?
The Company’s Diversity and Inclusion Policy reflects the Board’s
belief in the benefits of diversity and its conviction that more diverse
companies attract and maintain the best talent and achieve stronger
overall performance. The Board considers a broad definition of
diversity when setting policies, appointing Directors and staffing its
Committees (including the Nomination and Governance, Audit and
Risk and Remuneration and Talent Management Committees),
including gender, disability, nationality, educational and professional
experience, personality type, culture and perspective.
The Committee has worked hard to ensure that the Board and its
Committees are suitably diverse according to these criteria. The
Board reviews its effectiveness in meeting diversity goals each year
as part of the annual Board and Committees’ evaluation process.
The Company has met the Parker Review target and more than half
the Board members identify as being from an ethnic minority
background according to the Parker Review and UK Listing Rules
criteria as shown in the diversity tables on page 127. As noted
throughout this Annual Report, the Group’s activities are focused in
Chile, where ethnicity profiles and representation in society differ
significantly from those in the UK. Nevertheless, the Board recognises
that the mining industry is international, and in support of its vision
and strategy also includes Directors from the United Kingdom, United
States and Australia.
Antofagasta plc Annual Report 2024 125
Gender diversity is a pillar of the Group’s diversity and inclusion
strategy. The Board supports the important work performed by the
FTSE Women Leaders’ Review in pursuing a 40% target for women
on FTSE 350 boards and on executive committees, and their direct
reports by the end of 2025, and has met the Listing Rule targets for
at least 40% of women on the Board and for at least one woman in
Chair, Senior Independent Director, CEO or CFO role, as shown in the
diversity tables on page 127.
Since 2014, five of the eight Board appointees (63%) have been
women, while continuing to ensure that appointments are made on
merit.
As of the date of this report, there are five women on our Board of
11 Directors (45%).
The Nomination and Governance, Audit and Risk and Remuneration
and Talent Management Committees all include female Directors and
Directors from ethnic minority backgrounds, and more than 50% of
the members of the Audit and Risk and Remuneration and Talent
Management Committees are female.
We are committed to promoting the participation of women on our
Board, as well as in senior management positions and, just as
importantly, in the Group’s workforce. We believe that such an
increase will benefit the Group, the industry and Chile.
Q.What policies are in place to promote a diverse pipeline of talent
for the future?
The Group is committed to developing a diverse pipeline of talent that
will widen the pool of female and other diverse candidates for Board
and leadership positions in the future. In this, the Group is leading the
way in Chile, particularly with female participation in the workforce,
where Chile remains behind more developed economies despite
considerable progress in recent years.
In 2019, we sponsored the creation of a Chilean chapter of the 30%
Club, the campaign launched in the UK in 2010 to foster gender
balance on companies’ boards and in senior management positions.
To further promote diversity at the Executive Committee level and
below, the current Diversity and Inclusion Policy was approved
following an in-depth exercise to assess whether the Group’s existing
diversity and inclusion model was appropriate. This included
interviews with stakeholders, a benchmarking exercise and a
comprehensive review of the Group’s policies and processes.
The review identified structural impediments to be addressed in order
to achieve a sustained improvement in the Group’s diversity and
inclusion model and these were addressed in the first years following
approval of the new policy. A Diversity and Inclusion Roadmap was
developed to provide guidelines, best practices and objectives, and
which seeks to integrate diversity and inclusion principles and values
into the Company’s practices. The roadmap includes alliances with
relevant educational institutions and organisations promoting diversity
and inclusion.
Metrics associated with the development of the Diversity and Inclusion
Policy have been part of the Group’s Annual Bonus Plan and formal
talent management and succession planning exercise for many years,
and performance against objective metrics is assessed by the
Remuneration and Talent Management Committee at the end of each
year. In 2024, the Group’s Annual Bonus Plans included key
performance indicators on the number of women in leadership
positions versus a baseline.
The Remuneration and Talent Management Committee is also
responsible for succession planning for the Executive Committee,
which allows for ongoing monitoring of the impact of the Diversity and
Inclusion Policy on new appointments and the individuals’ progress
within the Company, including at the level of those who report to the
Executive Committee.
As part of the policy, female members of senior management have
served on the boards of all our operating companies for many years
and, currently, we have three women on the Executive Committee:
the Vice President of Sustainability, the Vice President of People and
Organisation and the Vice President of Corporate Affairs.
It is important to acknowledge that culture plays a key role in this, and
we have therefore implemented actions and programmes to promote
an inclusive culture, encompassing unconscious bias training,
work-life balance measures, sexual harassment and domestic
violence prevention, and information campaigns. Human resources
processes, such as recruitment and the individual performance
management system, have been reviewed and adjusted to ensure
their inclusiveness and lack of bias. As part of our Inclusion and
Diversity strategy, we recently became the first company in Chile to
conclude the certification process for our Mining Division under the
new Chilean Standard that aims to establish comprehensive
management systems for gender equality and the integration of work,
family and personal life. This milestone reflects our commitment to
fostering an inclusive workplace.
Since 2017, we have more than doubled female participation to over
20% and our goal is to reach 30% female participation by the end of
2025. The gender balance at each level of the Group is monitored and
reported monthly to the Executive Committee.
In 2024, women represented 24% and 33% of the Group’s executive
and supervisory employees respectively (annual average). Women
represented an annual average of 21% of operational roles in 2024.
The Suppliers for a Better Future Programme, which seeks to align
contractor companies’ practices with those of Antofagasta, includes
targets on hiring women. As of 2024, 12% of contractor employees
were women (2023: 13%).
More detail on programmes we have introduced and the gender
balance within the Group is given in the People section on page 54.
The Board will continue to monitor developments in 2025.
45%
of Board members are women
as of 31 December 2024
100%
of our operating companies have female Board
members as of 31 December 2024
>50%
of our Board members identify as being from
an ethnic minority background
Nomination and Governance Committee report continued
Antofagasta plc Annual Report 2024126
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Our review process
2022 (most recent external review)
The external review was a comprehensive assessment of how
the Board is working, focused on evaluating the following key
areas:
•
Board composition and culture (composition, succession
planning, training and inductions, leadership, dynamics and
decision-making)
•
Board oversight (strategy, performance, risk, people and
executive succession, and purpose, values and culture)
•
Stakeholders (workforce engagement, shareholders,
customers and suppliers, sustainability)
•
Board efficiency (Board meetings, agendas and minutes
and secretariat)
•
The Committees
•
Board and Committee papers.
2023 and 2024
The internal reviews in 2023 and 2024 were based on thorough
anonymous questionnaires completed by Directors that included
specific questions relating to improvement opportunities identified
in the 2022 external review to measure progress, as well as
fundamental questions to assure Directors’ perceptions of the
Board and Committee’s culture, governance and performance.
The processes included:
•
Internal evaluations of the Board and its Committees
•
Individual evaluations of Directors
•
Closure of gaps identified in the 2022 and 2023 evaluations
•
Identification of further opportunities to improve.
Diversity tables
1
as at 31 December 2024
Ethnic group
Number of
Board
members
Percentage
of the
Board
Number of senior positions
on the Board (CEO, CFO,
SID and Chair)
2
Number in
executive
management
Percentage
of executive
management
White British or other White (including minority-white groups) 4 36.36% – 2 16.67%
Mixed/Multiple Ethnic Groups 5 45.45% 1 8 66.67%
Asian/Asian British – – – – –
Black/African/Caribbean/Black British – – – – –
Other ethnic group, including Arab 1 9.09% 1 2 16.67%
Not specified/prefer not to say 1 9.09% – – –
Gender
Number of
Board
members
Percentage
of the
Board
Number of senior positions
on the Board (CEO, CFO,
SID and Chair)
2
Number in
executive
management
Percentage
of executive
management
Men 6 54.54% 1 9 75%
Women 5 45.45% 1 3 25%
Non-binary – – – – –
Not specified/prefer not to say – – – – –
1. Data collected via questionnaire.
2. The CEO and CFO are not Directors and therefore are not considered for the purposes of this category.
Board effectiveness
In accordance with the UK Corporate Governance Code, the Board
undertakes an annual effectiveness review, which is externally facilitated
at least once every three years.
The most recent external Board evaluation was performed by Clare
Chalmers of Clare Chalmers Ltd in 2022. The next external effectiveness
review will be conducted by Lintstock Limited in 2025. During 2024,
the Committee oversaw a tender process for the 2025 external review,
selecting three well-qualified candidates for interview by the Senior
Independent Director, who made a recommendation to the Committee,
for approval by the Board.
During the last external review (2022), Ms Chalmers highlighted: the
Board’s strengths in skills, coverage of mining and good mix of other
relevant experience and backgrounds. She noted strong engagement
from the CEO and good access to the senior team, who get airtime in
meetings, and thorough site visits by Non-Executive Directors; and
high-quality support to the Board.
In 2023 and 2024, internal evaluations of the Board and its Committees
were carried out to identify further opportunities for improvement, using
thorough anonymous questionnaires. The survey results in 2023 and
2024 demonstrated how recommendations made in the most recent
external review (2022) had been addressed. Strengths that were
highlighted included the Chairman’s commitment to the Board; the
Board’s effective leadership and strong support framework; and the
effectiveness of, and value added by, the Board’s Committees. Further
opportunities for improvement centred on continuing to focus on
balancing strategy and core business oversight discussions and
continuing to improve presentations and pre-reading materials.
The annual effectiveness review is designed to recognise and raise key
themes identified collectively by the Directors, along with suggestions for
improvement and good practice, and for the Directors to reflect on how
these themes should be addressed going forward. Based on this review,
the Directors were satisfied that the Board and its Committees operated
effectively in 2024.
JEAN-PAUL LUKSIC
Chair of the Nomination and Governance Committee
Antofagasta plc Annual Report 2024 127
“We ensure that the review of risks by the Board is not
compartmentalised into isolated sessions but is integrated into
everything considered by the Board.”
TONY JENSEN
Chair of the Audit and Risk Committee
The Committee assists the Board in undertaking its assessment of
whether the Annual Report is, when taken as a whole, fair, balanced
and understandable and that it provides the necessary information to
allow shareholders to assess the Group’s position and performance,
business model and strategy.
Audit and Risk
Committee report
•
Overseeing internal audit, including monitoring and reviewing the
effectiveness of the Group’s internal audit function, plans, processes
and findings.
•
Oversight of internal policies on the supply of non-audit services.
•
Assisting the Board with its responsibilities with respect to risk
management and internal controls, including reviews of the Group’s
risk appetite and key risks.
•
Monitoring the performance of the Group’s compliance and crime
prevention models.
Key activities in 2024
Financial reporting
•
Reviewed the 2023 year-end and 2024 half-year financial reports,
focusing on significant accounting matters relating to the Group’s
results.
•
Reviewed accounting matters likely to impact the 2024 year-end
results.
•
Reviewed the Group’s 2023 Reserves and Resources Statement
and highlights of the 2024 statement.
•
Assisted the Board in its determination that the 2023 Annual Report
was fair, balanced and understandable.
•
Reviewed analyses to support the 2024 going concern and
long-term viability statements.
•
Reviewed the Group’s tax strategy and tax position, including the
effective tax rate.
•
Reviewed regulatory changes including the changes to be
implemented in the coming years arising from the 2024 Corporate
Governance Code.
•
Reviewed the proposed structure of the Company’s 2024 Annual
Report.
External audit
•
Reviewed and approved the 2024 audit plan, including fees.
•
Assessed the effectiveness of the external audit process and reviewed
the independence and performance of the external auditor.
•
Reviewed non-audit services provided by PwC in connection with the
Company’s $750 million bond issuance in April 2024.
•
Reviewed the key audit findings from the external auditor (PwC) in
respect of the 2023 audit and reviewed progress reports from the
external auditor (Deloitte) in respect of the 2024 audit.
•
Monitored Deloitte’s audit transition activities, to ensure a smooth
transition from PwC to Deloitte as external auditor during the 2024
financial year.
Audit and Risk Committee report
Key responsibilities
The Audit and Risk Committee assists the Board in meeting its
responsibilities relating to financial reporting and control, risk
management and internal control and compliance.
The Committee’s main responsibilities include:
•
Monitoring the overall financial reporting process, which includes
responsibility for reviewing the year-end and half-year financial
reports.
•
Overseeing the external audit process and managing the relationship
with the Group’s external auditor, which transitioned from
PricewaterhouseCoopers (PwC) to Deloitte LLP (Deloitte) in 2024.
•
Reviewing and monitoring the independence and objectivity of the
Company’s external auditor.
2024 membership and meeting attendance
Number attended
Tony Jensen (Chair) 6/6
Francisca Castro 6/6
Heather Lawrence 6/6
Tracey Kerr 2/2
Tracey Kerr joined the Committee on 1 September 2024.
Other regular attendees included representatives from the Group’s external auditor,
the Chief Executive Officer, the Chief Financial Officer, the Group Financial
Controller, the Head of Internal Audit, the Head of Risk, Compliance and Internal
Control and the Company Secretary.
The Committee meets as necessary and at least twice a year. It works within the
framework of a detailed annual work plan derived from the Committee’s terms of
reference. The Committee’s terms of reference were updated during the year to
reflect changes to the UK Corporate Governance Code and developing practices and
are available on the Company’s website at www.antofagasta.co.uk.
All Committee members are independent and are considered to have recent and
relevant financial experience; a majority of Committee members have significant
experience relevant to the mining sector.
Committee members participate in all other Board Committees, allowing the
Committee to consider the full spectrum of risks faced by the Group.
The Committee reviewed its performance and composition during the year based on
input from the Board’s internal performance evaluation questionnaire, identifying
focus areas for 2025 and concluding that no changes to the Committee’s
composition were necessary.
Antofagasta plc Annual Report 2024128
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
•
Met with the external auditor, without management present, to ensure
that the external audit team had the support necessary to effectively
perform their role during the year.
•
Recommended to the Board that Deloitte be put forward for re-election
as the Company’s auditors at the 2025 AGM.
Internal audit
•
Reviewed key findings from the internal audit reviews conducted
during 2024.
•
Reviewed the quality, experience and expertise of the internal audit
function, confirming its suitability for the business.
•
Reviewed actions to co-ordinate audit scope with Deloitte to avoid
duplication or double testing.
•
Agreed the scope and focus areas for the 2025 internal audit plan.
Risk management and internal control
•
Reviewed a readiness assessment and action plans throughout
2024 to prepare for the future requirements of the 2024 UK
Corporate Governance Code.
•
Assisted the Board with its assessment of the Group’s key risks and
its review of the effectiveness of the risk management and internal
control processes.
•
Assisted the Board in conducting the annual review of risk appetite
statements.
•
Conducted detailed reviews with the General Managers of each of
the Group’s operations, covering the operations’ key risks, risk
matrix and residual risks.
•
Reviewed the activities undertaken during the year to further
develop the maturity of the Group’s risk management processes.
•
Met with the Internal Audit Manager, without management present,
to ensure that the function had the support necessary to effectively
perform its role during the year.
Compliance
•
Reviewed the Group’s whistleblowing arrangements, including
details of the most significant reports and actions taken, along with
plans to strengthen the function.
•
Reviewed training on the Group’s compliance model, crime
prevention model and Modern Slavery Policy. Reviewed activities
undertaken during the year to develop their maturity.
•
Reviewed the 2023 Modern Slavery Act statement and the steps
taken to ensure that slavery and human trafficking are not in any
part of the Group’s business, including within supply chains.
•
Monitored the functioning of the Group’s crime prevention model,
considering changes in the UK Corporate Governance Code and the
new Chilean law on economic and environmental crimes,
recommending to the Board additional measures, resources and
controls associated with this model.
Financial reporting
Q.What were the Committee’s main activities in 2024 in respect
of the Group’s financial reporting?
The Committee reviews the year-end financial statements and
half-year financial reports and ensures that the key accounting
policies, estimates and judgements applied in those financial
statements are reasonable. We also monitor the overall financial
reporting process to ensure that it is robust and well-controlled.
This includes efforts to ensure that the Group’s accounting and
finance function is adequately resourced, with the appropriate
segregation of duties and internal review processes, that the
Group’s accounting policies and procedures are appropriate and
clearly communicated, and that the Group’s accounting and
consolidation systems operate effectively.
We continued building our capability to prepare for the new
Corporate Governance Code recommendations regarding the
Board’s confirmation of the effectiveness of internal controls,
including over financial and operational reporting, and compliance
controls, and we will continue to work on this during 2025.
The Committee provides advice to the Board that is taken into
account as part of its assessment of whether the Annual Report, as
a whole, is fair, balanced, and understandable, providing
shareholders with the essential information to evaluate the Group’s
position, performance, business model and strategy. In conducting
this assessment, the Committee drew on its in-depth understanding
of the Company, its financial results, and the key accounting
judgements applied in the financial statements. This ensured that the
tone and content of the narrative accurately and transparently
reflected the financial performance for the year.
We also reviewed:
–
the Ore Reserves and Mineral Resources statement included in
the Annual Report, and the conclusions of the corresponding
reserve and resource independent audits;
–
the going concern basis adopted in the financial statements, as
well as the detailed long-term viability statement in the Annual
Report; and
–
the Group’s tax strategy and tax position, including the effective
tax rate, tax claims, the status of the recovery of tax refunds,
tax-disallowed expenses and the impact of the implementation of
the mining royalty in Chile.
Q.What significant accounting issues in relation to the financial
statements were considered by the Committee during 2024?
In addition to our financial review and risk management
responsibilities, we evaluated several important accounting issues
throughout the year, particularly related to the carrying value of
assets and liabilities.
–
Antucoya impairment reversal: We reviewed the assessment that
there was an indicator of a potential reversal of the previous
impairments. Accordingly, we reviewed the estimate of the
recoverable amount for the operation, including consideration of
the key assumptions: in particular, the forecasts of future copper
prices, assumptions in respect of future production levels,
operating costs and capital expenditure (which are consistent
with the Group’s internal Life-of-Mine model for Antucoya), the
forecast US dollar/Chilean peso exchange rates and the discount
rate used in the model. We considered relevant sensitivities, in
particular in respect of the forecast copper price. The recoverable
amount indicated by this assessment was significantly above the
carrying value of Antucoya’s relevant assets, indicating that a full
reversal of the remaining impairments was appropriate.
–
Buenaventura impairment review: We reviewed the assessment
that there was an indicator of a potential impairment in relation to
the Group’s investment in associate balance in respect of
Buenaventura, given that Buenaventura’s share price had
decreased by approximately 30% between the initial recognition
of the Group’s investment in March 2024 and 31 December
2024. We therefore reviewed the estimate of the recoverable
amount for the investment, including consideration of the key
assumptions, such as the forecasts of future metal prices;
assumptions in respect of future production levels, operating
costs and capital expenditure; and the discount rates used in the
model. We considered relevant sensitivities, in particular in
respect of the forecast copper and gold prices. The recoverable
amount indicated by this assessment was above the carrying
value of the investment in associate balance, indicating that no
impairment is required or appropriate as at 31 December 2024.
–
Zaldívar impairment indicator assessment: We reviewed the
assessment that there was not an indicator of a potential
impairment in respect of Zaldívar, particularly given the ongoing
permitting process. As part of this assessment we considered
Antofagasta plc Annual Report 2024 129
relevant down-side sensitivities, which indicated recoverable
amounts which were above the carrying value of Zaldívar.
–
Accounting for the Group’s interest in Buenaventura as an
investment in associate balance from March 2024 onwards: We
reviewed the relevant factors which supported this classification,
in particular the fact that the Group held an approximately 19%
interest in Buenaventura from that point, and the associated
rights to propose directors for election to Buenaventura’s Board.
–
Deferred tax accounting: We reviewed the assessment that it was
appropriate to not recognise any deferred tax assets in respect of
tax losses in Group entities which are currently loss-making. We
also reviewed the updated estimates of the deferred tax liabilities
relating to the Chilean mining royalty, in particular considering the
forecasts of the relevant future royalty rates, including the
potential application of the cap relating to the new royalty.
–
Tax claims in respect of Minera Centinela’s amortisation of
start-up costs: We continued to monitor the status of the claims
and queries raised by the Chilean Internal Revenue Service with
Minera Centinela in respect of approximately $85 million of tax
deductions recognised in relation to the amortisation of start-up
costs relating to the Encuentro pit.
–
OECD Pillar Two model rules (outlined on page 76): We reviewed
the analysis which indicated that the E. Abaroa Foundation should
be considered the Ultimate Parent Entity for Pillar Two purposes.
We also reviewed the Group’s conclusion that all jurisdictions
within the Antofagasta plc group are expected to meet at least
one of the Transitional Country-by-Country Reporting Safe
Harbour tests.
–
Going concern and viability: We reviewed the going concern and
viability assessments and related disclosures. In particular, we
considered the Group’s strong financial position, its forecast
future performance, and the key risks which could impact the
future results; and we reviewed robust down-side sensitivity
analyses, which all indicated outcomes that could be managed in
the normal course of business.
External audit
Q.What are the Committee’s responsibilities in respect of the
external audit process?
The Committee is responsible for overseeing the Company’s
relationship with the Group’s external auditor. As the Chair of the
Audit and Risk Committee, I have established an effective direct
relationship with Chris Thomas, the incoming lead audit partner at
Deloitte.
The Committee reviews and approves the scope of the external
audit, terms of engagement and fees. The Committee monitors the
effectiveness of the audit process and is responsible for ensuring
the independence of the external auditor. The Committee informs
the Board of the outcome of the external audit and explains how the
external audit contributes to the integrity of the Group’s financial
reporting. The Committee formally meets with the external auditor
without management present at least once a year. We oversee the
performance of the external auditor and make recommendations to
the Board in respect of the appointment, reappointment or removal
of the external auditor.
During 2024, there was a successful transition from PwC to Deloitte
which was overseen by the Committee.
Q.How do you assess the effectiveness of the external audit
process?
We work closely with Deloitte to ensure that external audit quality is
maintained throughout the year. As part of their new engagement,
Deloitte have provided the Committee with audit transition reports
during the year that provided updates on the progress of their audit,
as well as their fresh perspective on relevant aspects of the Group’s
accounting processes, systems, policies and judgements. Deloitte
incorporates feedback from both the Committee and management
and engages extensively with management to align on critical review
matters.
The Committee considers the following factors as part of its review
of the effectiveness of the external audit process during the year:
–
the appropriateness of the proposed audit plan, the significant risk
areas and areas of focus, and the effective performance of the
audit;
–
the technical skills and industry experience of the audit
engagement partner and the wider audit team;
–
the quality of the external auditor’s reporting to the Committee;
–
the effectiveness of the co-ordination between the UK and Chilean
audit teams;
–
the effectiveness of the interaction and relationship between the
Group’s management and the external auditor;
–
feedback from management in respect of the effectiveness of the
audit processes for the individual operations and the Group
overall;
–
the review of reports from the external auditor detailing its own
internal quality control procedures, as well as its annual
transparency report; and
–
the review of the FRC’s annual Quality Inspection Report on
Deloitte.
In light of this assessment, the Committee considered it appropriate
that Deloitte be reappointed as external auditor for 2025. The
Group’s shareholders will be invited to confirm this appointment at
the 2025 Annual General Meeting (AGM).
Q.How do you assess the independence and objectivity of the
external auditor?
The Committee regularly monitors the external auditor’s
independence and objectivity in line with the Group’s policy in
respect of auditor independence and non-audit services.
New regulatory requirements have applied since 2020 in respect of
non-audit services. The FRC issued a “whitelist” of specifically-
permitted services, with all other services prohibited. Permitted
services relate to specific activities required by law or regulation
and a limited number of types of review or verification work, such
as half-year reviews, verification of additional information contained
within the Annual Report or cross-referenced from the Annual
Report, and work as a reporting accountant on transactions or debt
issuances. The provision of non-audit services is also subject to a
cap, so that the total annual fees from non-audit services may not
exceed 70% of the average audit fee over the prior three years.
A breakdown of the audit and non-audit fees is disclosed in Note 8
to the financial statements. PwC provided services as reporting
accountant in connection with the Company’s $750 million bond
issuance in April 2024 and Deloitte did not provide any non-audit
services (excluding audit-related services) during 2024.
In general, where the external auditor is selected to provide
non-audit services, it is because it has specific expertise or
experience in the relevant area and is considered the most suitable
provider. Pre-approval from the Committee is required before
non-audit services can be performed by the external auditor, other
than for services that are considered to be clearly trivial. The
Committee has reviewed the level of these services over the year
and is confident that the objectivity and independence of the auditor
are not impaired by such non-audit work.
The external auditor provides a report to the Committee at least
once a year, setting out its firm’s policies and procedures for
maintaining its independence.
Audit and Risk Committee report continued
Antofagasta plc Annual Report 2024130
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
The Committee considers that Deloitte remained independent and
objective throughout 2024.
The UK regulatory requirements in respect of competitive audit
tendering and other related audit committee responsibilities in
respect of the external auditor are set out in the Competition &
Markets Authority´s “Statutory Audit Services for Large Companies
Market Investigation (Mandatory Use of Competitive Tender
Processes and Audit Committee Responsibilities) Order 2014 (the
Order). The Company complied with the provisions of the Order
during 2024.
Q.What are the plans for external auditor rotation?
We carried out a tender process during 2022, which resulted in
Deloitte replacing PwC, the previous auditor, and being appointed
with effect from 2024 onwards. Chris Thomas is the lead audit
partner at Deloitte.
Under UK regulations, the Company’s next mandatory tender will be
in respect of the 2034 audit, marking the ten-year anniversary of
the original audit rotation regulations.
Internal audit
Q.What are the Committee’s main activities in relation to internal
audit?
The Committee monitors and reviews the effectiveness of the
Group’s internal audit function. The Head of Internal Audit reports
directly to the Committee and a meeting is held without management
present at least once a year.
We also monitor succession planning and the resources available to
the Internal Audit team so that it has an appropriate mix of skills and
experience for the Group’s businesses. Internal Audit utilises a mix
of permanent team members, temporary secondees from elsewhere
in the Group and third parties. The permanent team includes
members with specific expertise in some of the most relevant areas
for the Group, including technical mining experience, IT, risk,
compliance, internal control, sustainability and cyber security.
The Committee reviews and approves internal audit’s work plan for
the coming year, including its focus areas, budget, headcount,
methodology and other resources. Internal audit takes a risk-
focused approach when planning its work, using the risk registers
maintained by each business to monitor and control their key risks.
We ensure the plan is flexible and has sufficient resources to allow
for special reviews that may be required during the year. During
2024, the Committee stewarded the completion of planned audits
and approved the 2025 internal audit plan.
Internal audit presents to the Committee summaries of the key
findings from the reviews conducted during the year and any
actions that have been taken or proposed. All internal audit reports,
when finalised, are distributed to Committee members.
The Committee reviewed actions to co-ordinate internal audit scope
with Deloitte to avoid duplication or double testing, to ensure an
efficient relationship between the internal and external audit
processes, and to achieve the effective and timely sharing of
findings.
Risk management, compliance and internal control
Q.What are the Committee’s responsibilities in relation to risk
management and internal control?
The Committee plays an important role in assisting the Board with
its responsibilities regarding risk management and related controls.
The Board has ultimate responsibility for overseeing the Group’s
emerging and principal risks and its risk appetite, as well as
maintaining adequate control systems – which were in place
throughout the year and up to the date of this report. The
Committee’s terms of reference incorporate the FRC’s Guidance
on Risk Management, Internal Control and Related Financial and
Business Reporting and the Board is satisfied that the Company’s
risk management and internal control systems accord with this
guidance. In order to achieve our business objectives, internal
control systems are designed to identify and manage, rather than
eliminate, the risk of failure, but can only provide reasonable, not
absolute, assurance against material misstatement or loss.
Q.What were the Committee’s main activities in 2024 relating to
risk management?
A considerable portion of the Committee’s agenda throughout 2024
was committed to risk management and reviewing the proposed
response to the new UK Corporate Governance Code published in
January 2024, whose changes to risk management and internal
control requirements will be reported for the first time in February
2027. The risk, compliance and internal control function presented
to the Committee several times during the year to explain progress
and the workplan for the coming years. This process has involved
both bottom-up and top-down inputs and the Committee has
scheduled a workshop with the Board in 2025 to finalise these
proposed improvements, which are expected to be reported in the
2025 Annual Report. The new Code requires the Board to monitor
at least annually the framework of risk management and internal
control. The review now includes financial and non-financial
reporting. As a result of the review, the Committee reviewed and
endorsed, for Board approval, changes to the Committee’s terms of
reference and reviewed and approved the updated annual work plan
of the Committee to be aligned with the new UK Corporate
Governance Code.
Apart from this more fundamental review, we assisted the Board
with its annual update of the Group’s risk appetite assessment and
evaluation of emerging and principal risks. Emerging risks are
identified through the reporting of events that have had an impact on
the Group’s operations and budgets during the year and whether
and by how much the risk has impeded the budget for each risk
mitigation objective. This is complemented by a benchmarking
review of emerging and principal risks identified by our peers.
During 2024, the Committee and the Board reviewed the Group’s 18
key risks, together with their sub-risks, preventative controls and
action plans. The risk appetite levels set by the Board did not change
in 2024.
As in previous years, the Risk, Compliance and Internal Control
function presented on developments in the Group’s risk
management processes and Group-level strategic risks. The General
Managers of the Group’s operations presented to the Committee
their assessments of their respective operations’ top three risks,
risk matrix and residual risks. The meeting served as a forum for
sharing experiences and action steps.
The analysis of emerging and principal risks includes an assessment
of the significance of the risks based on the probability of the risk
materialising and the potential impact of the risk, as well as an
evaluation of the quality of the controls in place in respect of those
specific risks. The evaluation of the potential impact is not limited to
economic factors but includes aspects such as safety, health,
environmental, regulatory, community and reputational issues.
We also examine whether those risks have been increasing or
decreasing in significance and the budget for each risk mitigation
objective to assist with the identification of emerging risks.
The General Managers present their forecasts of any expected
“The Committee plays an important role in
assisting the Board with its responsibilities
regarding risk management and related
controls.”
Antofagasta plc Annual Report 2024 131
change in principal risks over the coming 12 months. This direct
interaction between the Committee and the General Managers is
extremely valuable, not just in terms of the direct insight into each
operation it affords the Committee, but in allowing us to emphasise
the importance we attach to strong risk management processes.
Q.How does the Committee interact with the Board and other
Committees on risk-related matters?
I report to the Board following each Committee meeting,
summarising the main matters reviewed. These regular reports
allow Directors to understand the main issues under consideration
and, when relevant, to discuss them in more detail with the Board.
The Risk, Compliance and Internal Control function also presents
directly to the Board, updating the analysis of the Group’s principal
risks and mitigating actions.
We ensure that the review of risk by the Board is not
compartmentalised into isolated sessions but is integrated into
everything considered by the Board. To this end, the CEO report
provided to the Board at each meeting covers any significant
materialised risk and each proposal presented to the Board
incorporates an analysis of its impact on the principal risks.
These processes have assisted the Board in carrying out a robust
assessment of the emerging and principal risks facing the Company,
including those that could threaten its business model, future
performance, solvency or liquidity; and have enabled it to assess the
acceptability of the level of risks that arise from the Group’s
operations and development activities.
The Board, with the support of the Committee, reviews the
effectiveness of the Group’s risk management and internal control
systems each year. The review covers all material controls,
including financial, operating and compliance controls. The 2024
review considered a readiness assessment in preparation for
changes in the UK Corporate Governance Code in respect of risk
management and internal control processes which included: (1) the
control framework and systems in place across the Group; (2) the
nature of risk and control documentation currently in place and the
processes for their regular review and update; (3) internal testing of
the effectiveness of the relevant internal controls; and (4) integration
of internal audit activities with risk management processes. The
review concluded that there is a robust “three lines of defence”
model implemented which ensures several layers of internal
responsibility and verification; there are standardised frameworks
and systems used consistently across the Group’s operations; there
is appropriate analysis and documentation of key risks and controls,
with regular reviews and updates; internal verification is performed
across all areas on a regular basis; and internal audit activities are
highly integrated into the Group’s risk management and internal
control processes. Nevertheless, the Committee will continue to
oversee specific areas of focus so that the Board is in a strong
position to consider the effectiveness of the Group’s management
and internal control systems in relation to the new Code
requirements that will apply in 2026.
Members of the Audit and Risk Committee participate in all the other
Board Committees, allowing the Committee a good understanding of
risks being considered by these Committees and the full spectrum of
risks faced by the Group.
Compliance
Q.What are the Committee’s main responsibilities relating
to compliance?
The Committee ensures that appropriate compliance policies and
procedures are observed throughout the Group. The Risk,
Compliance and Internal Control function makes regular
presentations to the Committee covering developments in the
Group’s compliance processes and significant compliance issues.
Chilean law requires the Mining Division’s holding Company,
Antofagasta Minerals S.A., and each of the operations to appoint a
Crime Prevention Officer. The Committee makes recommendations
regarding these appointments as well as monitoring and overseeing
the performance of these roles. The Crime Prevention Officer for
Antofagasta Minerals S.A. is currently Patricio Enei, the Vice
President of Legal. As the compliance function reports to the
Group’s Chief Financial Officer, this arrangement provides for the
appropriate independence and segregation of duties.
The Committee receives reports from the Risk, Compliance and
Internal Control function in respect of the Group’s crime prevention
model, in accordance with Chilean and UK anti-corruption
legislation.
The Crime Prevention Officer presents a report directly to the Board
every six months.
Q.What were the Committee’s main activities in 2024 relating
to compliance?
The Committee reviewed and endorsed proposed changes to the
Group’s crime prevention model, considering changes in the UK
Corporate Governance Code and the new Chilean law on economic
and environmental crimes which came into force on 1 September
2024, recommending to the Board additional measures, resources
and controls associated with this model.
Compliance activities centred on the three pillars of prevention,
detection and action. We reviewed training and communications on
the Group’s compliance model, crime prevention model and Modern
Slavery Policy. We reviewed activities undertaken during the year to
develop compliance maturity.
The Committee reviewed the Group’s whistleblowing arrangements,
which encourage employees and contractors to raise concerns in
confidence about possible improprieties or non-compliance with the
Group’s Code of Ethics. We received regular reports on reported
whistleblowing incidents, detailing the number and type of incidents
and outlining the most significant issues and the actions resulting
from their investigation, along with plans to strengthen the function.
We also reviewed steps taken to ensure that slavery and human
trafficking are not occurring in any part of the Group’s business,
including its supply chains.
Audit and Risk Committee report continued
Antofagasta plc Annual Report 2024132
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Q.What were the Committee’s main activities in 2024 relating
to internal control?
During 2024, the Committee reviewed the Company’s internal
control framework, which consists of three lines of defence:
–
First, business units identify and manage risks.
–
Second, the risk, compliance and internal control function
provides oversight and support.
–
Third, the internal audit function provides independent assurance.
In addition to regular reviews, a session was held to review the
effectiveness of risk management, compliance and internal
control, the effectiveness of internal controls over financial
reporting, and the effectiveness of internal audit and the
relationship with external audit.
Audit and Risk Committee, Board, and risk, compliance and internal control function interaction
BOARD
The Chair of the Audit and Risk Committee reports to the Board following each Committee meeting,
allowing a wider discussion of the risk and compliance issues reviewed in detail by the Committee.
The Board also provides feedback on the analysis of emerging and principal risks for Board agenda
items, which is incorporated into the Board’s review of the effectiveness of the Group’s risk
management and internal control systems. Every presentation to the Board includes a risk analysis.
AUDIT AND RISK COMMITTEE
The Committee supports the Board in its review of the effectiveness of the Group’s risk management
and internal control systems.
GENERAL MANAGERS OF THE OPERATIONS
General Managers are responsible for the risks relating to their operation and give detailed
presentations to the Committee at least once a year, including on each operation’s emerging, principal
and materialised risks.
RISK MANAGEMENT
FUNCTION
The risk, compliance and
internal control function
provides regular presentations
covering changes in the
Group’s emerging and
principal risks, major
materialised risks and updates
on risk management and
compliance processes. There
are detailed presentations at
each Committee meeting
covering the risk management
process, significant
whistleblowing reports and
updates on compliance
processes and activities.
We feel confident that the reviews undertaken by the Committee
during 2024 have allowed it to perform an appropriate review of the
effectiveness of the Group’s risk management and internal control
systems during the year. The reporting of these activities by the
Committee to the Board supports the Board’s confirmation that it
has undertaken a review of the effectiveness of the Group’s risk
management and internal control systems during the year as
required by the UK Corporate Governance Code.
TONY JENSEN
Chair of the Audit and Risk Committee
Antofagasta plc Annual Report 2024 133
“The Committee assists the Board to integrate the priorities of our
stakeholders – such as environmental stewardship, climate change,
workforce health and safety, and community engagement – into
informed recommendations to guide the Group’s decision-making
process and shape the development of operational strategies.”
EUGENIA PAROT
Chair of the Sustainability and Stakeholder Management Committee
Sustainability
andstakeholder
management
Key activities in 2024
Policies and commitments
•
Reviewed progress on the implementation plan to adopt the new
Global Industry Standard on Tailings Management (GISTM) in the
Group’s mining operations and the new internal tailings management
organisation led by a new Tailings Manager.
•
Reviewed and endorsed the Group’s Climate Action Plan, which
includes initiatives which aim to reduce Scope 1, 2 and 3 emissions.
For further information, details on the Company’s Climate Action
Plan are provided on page 62 of this report.
•
Reviewed and endorsed the 2023 Sustainability Report and the
Sustainability Databook.
•
Reviewed the new Group guidance for the submission of
environmental permits.
Health and safety
•
Reviewed the Group’s safety and occupational health strategy
performance in 2023, and the 2024 strategic plan with a focus
on risk management, learning, leadership, and contractors.
•
Reviewed the industrial protection plan and its integration into the
Group’s social strategy.
•
Reviewed a report from the independent technical review board
(ITRB) on the Company’s tailings storage facilities.
Community relations
•
Reviewed Los Pelambres’ social strategy which included a review
of the results of the first cycle of the Somos Choapa Programme,
as well as the focus for its second cycle which includes initiatives
focused on water, road management, local development and
environmental management.
Environment
•
Reviewed the proposal of the water distribution agreement with the
Junta de Vigilancia del Río Choapa, approved by the DGA in March
2024 and the impacts of the severe drought condition declared by
the DGA in July 2024.
•
Reviewed and endorsed for submission the Environmental Impact
Assessment (EIA) for Los Pelambres’ Development Options (mine
life extension), which includes work to add further ore processing
capacity, increase the capacity of the El Mauro tailings facility and
additional desalination capacity.
Sustainability and Stakeholder Management Committee report
2024 membership and meeting attendance
Number attended
Vivianne Blanlot (Chair) 6/6
Ramón Jara 4/6
Juan Claro 6/6
Michael Anglin 6/6
Eugenia Parot 6/6
Tracey Kerr 5/5
Tracey Kerr joined the Committee on 1 February 2024.
Eugenia Parot was appointed Chair of the Committee with effect from 1 January 2025.
Vivianne Blanlot resigned from the Board with effect from 31 March 2025.
Other regular attendees included the Chief Executive Officer, the Chief Operating
Officer, the Vice President of Corporate Affairs, the Vice President of Sustainability
and the Company Secretary.
Sessions were also regularly attended by Directors who were not Committee
members.
The Committee meets as necessary and at least twice per year.
Key responsibilities
The Sustainability and Stakeholder Management Committee supports
the Board in providing guidance on the Group’s safety, health,
environmental and social responsibility strategies and policies, in the
oversight of corresponding programmes and in making
recommendations to the Board to ensure the views and interests of
the Group’s stakeholders are considered in the Board’s deliberations.
The Committee reviews the Group’s framework of safety, health,
environmental, human rights and social policies, monitors the Group’s
performance in setting and meeting environmental, social, safety and
occupational health commitments and provides guidance on how the
Company should reflect the views and interests of stakeholders in
relation to operational, projects and other business matters. Feedback
from our stakeholders is reported periodically to the Committee
through standalone reports and as part of broader Committee
discussions.
Antofagasta plc Annual Report 2024134
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
•
Oversaw the progress of the EIA for Zaldívar that aims to extend the
mine’s operational life to 2051. It also includes a plan to transition
water supply from continental sources to sustainable alternatives,
such as sea water or third-party water sources.
Q. What were the Committee’s key focus areas in 2024?
Annual review of sustainability progress
The Committee met in Q1 2024 to review and discuss the progress
made within sustainability during the previous year, including (but
not limited to) the areas of health and safety, environment,
community engagement programmes and water availability.
A key initiative for the Company is the Somos Choapa Programme
in central Chile, which completed its first cycle of activities in 2023.
The committee’s review in early 2024 was before the second cycle
of this programme had begun and was intended to help to ensure
that this work delivers social value for local communities.
Climate Action Plan and updated emissions targets published
Addressing the challenge of climate change sits at the centre of
Antofagasta’s strategy. Our target is to achieve carbon neutrality
by 2050, or sooner if technology allows. In this regard, in March
2024, the Company published its Climate Action Plan, which details
our strategic approach to try to meet newly established greenhouse
gas emissions reduction targets.
The Committee reviewed and endorsed this second standalone
report, which includes targets for reducing Scope 1 and 2 emissions
by 50% by 2035 (based on the 2020 baseline) and reducing Scope
3 emissions by 10% by 2030 (compared with a 2022 “no action
scenario” projection).
For further information, details on the Company’s Climate Action
Plan are provided on page 62 of this report.
Los Pelambres: Development Options (mine life extension)
Environmental Impact Assessment (‘EIA’)
In Q4 2024, the Company submitted its EIA application for the Los
Pelambres’ Development Options Project, which includes work to
add further ore processing capacity, increase the capacity of the
El Mauro tailings facility and create additional desalination capacity.
In advance of this submission, in line with other EIA processes, the
Committee reviewed reports relating to this application process.
For further information, details on the Company’s organic growth
pipeline are provided on page 44 of this report.
Zaldívar: Ongoing EIA application
In 2023, Zaldívar submitted an EIA to extend its mine life to 2051,
which includes a plan to convert Zaldívar’s operations from
continental water sources to either sea water sources or third-party
water sources. During 2024, the Committee reviewed the
Company’s submissions to the authorities in Chile regarding this
application, which included two rounds of responses to queries
raised.
Los Pelambres water distribution agreement
Prior to its submission, the Sustainability and Stakeholder
Management Committee reviewed the proposal of the water
distribution agreement with the Junta de Vigilancia del Río Choapa,
approved by the DGA in March 2024 and also reviewed the impact
of the severe drought condition declared by the DGA in July 2024.
FCAB land rehabilitation project
During 2024, the Sustainability and Stakeholder Management
Committee reviewed the Transport division’s plans to transform a
48-hectare site in the centre of the city of Antofagasta, in the north
of Chile. Under this plan, FCAB will relocate its operations to the
port of Mejillones, and rehabilitate railway yards, eventually
transforming this industrial area into a sustainable and inclusive
residential space in the heart of the city.
Q. How does the Committee ensure that the Board considers the
views and interests of stakeholders?
This is a priority for the Board and the Committee plays an
important role in ensuring that appropriate mechanisms are in place
to allow the Board to understand and respond to the concerns of all
stakeholders. A significant part of the Committee’s agenda is
dedicated to the discussion of key issues affecting our stakeholders,
including local communities, employees, national and local
governments, regulators, shareholders and other interested parties.
Stakeholders views and interests are identified through meetings
with stakeholders’ representatives at various levels throughout the
organisation, community engagement processes conducted by each
operating company and site visits by Directors to the operations.
Effective communication with our stakeholders, particularly during
challenging times, has been pivotal in building and strengthening
mutual trust and understanding. We are committed to respecting
their interests and ensuring transparency regarding our ambitious
goals in safety, occupational health, environmental stewardship,
and social responsibility.
As Chair of the Committee, I report to the Board following each
Committee meeting, summarising the main matters reviewed.
Q. How does the Committee ensure that the Group’s tailings
storage facilities are safe?
The stability and safety of our tailings storage facilities (TSFs) is
a top priority for both the Company and our stakeholders. The
Committee and the Board are responsible for ensuring that the
policies and procedures implemented by our operating companies
uphold the international standards and strict local regulations
designed to maintain the ongoing stability and safety of our TSFs.
As a member of the ICMM, Antofagasta is committed to comply
with the Global Industry Standard on Tailings Management (GISTM),
the highest industry standard issued in 2020. This standard was
developed through the Global Tailings Review, an independent
process convened in 2019 by the United Nations Environmental
Program (UNEP), the office sponsoring the Principles for
Responsible Investments (PRI) and the ICMM. In 2023, the Group’s
two main TSFs, located at Los Pelambres (El Mauro) and Centinela,
reported compliance with the GISTM based on a self-assessment
process. During 2024, the compliance of both facilities was
evaluated by an independent third-party. The self-assessment
process for GISTM compliance of the Group’s other TFSs, Quillayes
at Los Pelambres and Zaldivar’s TSF, is underway and compliance
is expected to be reported in 2025, in accordance with the timeline
set by the GISTM for facilities with these characteristics.
The Committee and the Board meet regularly with the executives
responsible for each TSF, with the renowned international
specialists of the Independent Technical Review Board that oversees
our TSFs, and with the specialist responsible for the Independent
Review for Zaldivar’s TSF. The objective is that the Committee and
the Board have a direct communication with the key bodies and
individuals who are responsible for the design, construction,
operation and closure of our TSF’s according to the
GISTM standard.
Further information on our TSFs, including the risks and the
governance measures in place, can be found on page 61.
Q. How are community relations managed throughout the Group?
The Group’s community relations approach is based on a permanent
dialogue with local communities and a public-private partnership.
Through an open and collaborative dialogue, it is possible to
understand people’s concerns and interests, preventing potential
Antofagasta plc Annual Report 2024 135
disputes. To enhance these efforts, Antofagasta’s operating
companies employ a range of engagement mechanisms, including
direct conversations with community members, roundtable
discussions, community town hall meetings, participation in
environmental monitoring initiatives, and guided site visits by
members of the communities to our operations.
The key topics raised, and outcomes of these engagement activities,
are regularly reported to the Committee through dedicated
standalone reports and incorporated into broader Committee
discussions. This approach ensures that community insights are
effectively integrated into our decision-making processes.
Q. What are the Committee’s priorities in 2025?
1. Health and Safety: Our top priority remains the health and
safety of our employees, contractors, and local communities.
The Committee will continue to review the strategy, plans, and
performance of the Group’s operations and projects, in order not
only to maintain but to continue enhancing our safety culture.
2. Environmental Permits: The Committee will review the
progress of key environmental permits for the Group’s major
development projects throughout the year.
3. Social Programmes and Community Engagement: The
Committee will review and monitor the alignment of the Group’s
social programmes and community engagement initiatives with our
Social Management Model, ensuring sustainable and positive
relationships with the communities near our operations. The
Committee intends to maintain a heighten degree of focus on the
definition and forward planning of the new cycle of the Somos
Choapa Programme at Los Pelambres.
4. Human Rights Due Diligence: We will focus on reviewing the
results of the Group’s human rights due diligence, and the plan to
achieve compliance.
5. Climate Change Strategy: The Committee will continue to
monitor the implementation of our Climate Change Strategy, working
towards achieving our greenhouse gas reduction targets.
These priorities demonstrate our commitment to health and safety,
environmental stewardship, community engagement, human rights,
and climate action.
EUGENIA PAROT
Chair of the Sustainability and Stakeholder Management
Committee
“The Committee plays a fundamental role
in helping the Board to take into account the
perspectives and interests of the Group’s
stakeholders in its deliberations.”
Sustainability and Stakeholder Management Committee report continued
Antofagasta plc Annual Report 2024136
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Antofagasta plc Annual Report 2024 137
“The Committee monitors the Group’s projects pipeline, with
strong oversight of the Group’s current projects in execution,
ensuring that insights from past projects are applied and
relevant factors are considered in Board deliberations.”
MICHAEL ANGLIN
Chair of the Projects Committee
Projects Committee
report
Projects Committee report
Key responsibilities
The Projects Committee is responsible for reviewing major capital
projects that require Board approval. The Projects Committee makes
recommendations on the organisation of any such projects, including
associated policies and strategies, the appropriate application of the
Company’s asset delivery system implementation framework, and any
additional measures deemed necessary.
The Committee adds an important level of governance and control to
the evaluation of the Group’s projects and plays a key role in providing
the Board with additional oversight of the Group’s projects portfolio.
This includes overseeing the establishment of project development
guidelines, and drawing from best practice, industry experience and
lessons learned from other Group projects.
Key focus areas in 2024
Completed in 2024: Los Pelambres: Phase 1 Expansion
Successful completion of the Phase 1 Expansion at Los Pelambres
concluded in early 2024, and the Committee oversaw the smooth
transfer of the project to the operation. The latter stages of this project
required strategic oversight from the Committee to review final costs
and close-out reports. In June 2024, the Committee reviewed a
comprehensive close-out report that included approximately 200
recommendations and lessons learnt. These insights have been shared
with the Group’s other major capital projects and are instrumental in
enhancing the planning and execution of the next phase of project
work across the Company’s portfolio.
In addition, the Committee has monitored production results in this
project, which has helped Los Pelambres to achieve an ore tonnage
throughput rate of 186 ktpd in 2024, representing a year-on-year
increase of 22%.
Projects underway: Centinela Second Concentrator Project
Looking forward, the Company has entered into a new phase of
growth in its development at Centinela, through the decision to
advance the Second Concentrator Project into construction, which
was announced in December 2023.
Full construction commenced in April 2024 following the signature of
definitive finance agreements. The Projects Committee has maintained
rigorous oversight of the project, monitoring progress across key
areas including construction milestones, safety performance and the
management of capital expenditures.
2024 membership and meeting attendance
Number attended
Michael Anglin (Chair) 8/8
Ramón Jara 8/8
Eugenia Parot 8/8
Vivianne Blanlot 7/8
Tony Jensen 7/7
Tony Jensen joined the Committee on 1 February 2024.
Vivianne Blanlot resigned from the Board with effect from 31 March 2025.
Other regular attendees included the CEO, the CFO, the Vice President of Projects,
the Vice President of the Centinela Second Concentrator Project, the Corporate
Projects Manager and the Company Secretary.
Sessions were also regularly attended by Directors who were not Committee
members.
The Committee meets as necessary and at least twice per year.
Antofagasta plc Annual Report 2024138
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Projects underway: Los Pelambres’ desalination plant expansion
to 800 l/s
In Q1 2024, the Projects Committee reviewed and endorsed a proposal
for work to commence on the desalination plant expansion to 800 l/s
(current capacity: 400 l/s) and has since provided input into the
project’s financing and the awarding of major contracts for
construction. This represents clear progress towards the Company’s
aspiration for 90% of the water it uses to come from either
recirculated sources or sea water.
Projects underway: Los Pelambres’ new concentrate pipeline
and El Mauro enclosures
Also at Los Pelambres, work has commenced to construct a new
concentrate pipeline, along a less populated route, which will reduce
the risk of unplanned downtime compared to the existing pipeline
which has now been in operation for more than 20 years. This phase
of work also includes minor works at the El Mauro tailings dam.
The Projects Committee reviewed a proposal for work to commence
on this workstream in Q1 2024, and the Committee has provided input
into the project’s financing and the awarding of major contracts for
construction.
Development stage projects: Los Pelambres Phase 2 Expansion
In addition to the projects that are currently in the construction phase,
progress has been made on the preparatory work for Los Pelambres’
Development Options (mine life extension), which includes the
extension of the operational life of the El Mauro tailings dam, and a
new desalinated water pumping system. As part of this progress, the
Environmental Impact Assessment (EIA) for the project was submitted
and accepted for processing by the relevant Chilean authorities in Q4
2024, marking an important milestone in the project’s development.
The Projects Committee was involved in reviewing the project’s
progress towards making this application, which will allow Los
Pelambres to continue operations beyond 2035. It is envisaged that
construction work will commence in the 2030s. During 2024, the
Projects Committee reviewed the investments required to advance
project studies and to further characterise the mineral resources that
are proposed inclusion in this expansion.
Additional activities in 2024
The Projects Committee has also monitored the development of other
projects in the Group’s portfolio, including:
•
A project at Zaldívar which would extend this mine’s life to 2051 and
would end the use of continental water after a transitional period.
•
Longer term growth projects related to the Group’s exploration
activities, such as Cachorro and Encierro.
•
A review of the status of Los Pelambres’ trolley-assist pilot project.
Q.What is the Projects Committee’s approval authority?
The Committee’s role is to assist the Board by ensuring that projects
adhere to standardised process encompassing consistent analysis,
execution and evaluation practices. The Committee is not
responsible for project approval, which is the responsibility of the
Board. Our responsibilities include overseeing the entire project
lifecycle, from initial stages to operational launch. We assess and
challenge investment proposals before they are presented to the
Board, monitor development and construction progress, and ensure
that lessons learnt are incorporated into future projects. The
Committee encourages management to consider diverse
perspectives, innovative ideas, and enhancements to maximise the
value of the Group’s projects, thereby facilitating focused and
informed deliberation when projects are reviewed by the Board.
Q.What are the Committee’s priorities in 2025?
The Group has initiated construction of a series of long-term
development options within its organic growth pipeline, and the
Projects Committee will continue to oversee the successful delivery
of these projects during 2025.
In addition, the committee will oversee progress on the Group’s
exploration projects, Cachorro and Encierro, to ensure consistency
with the Group’s standard for projects.
MICHAEL ANGLIN
Chair of the Projects Committee
“The Committee adds an important layer of
objective oversight to the Group’s project
portfolio by thoroughly reviewing project
execution decisions prior to Board approval.”
Antofagasta plc Annual Report 2024 139
Dear shareholders,
I am pleased to present the Directors’ and CEO’s Remuneration Report
for the year ended 31 December 2024.
This report comprises:
•
this letter;
•
an ‘At a glance’ section; and
•
the Annual Report on Remuneration. This details the implementation
of our pay policy in 2024 and its proposed implementation for 2025.
This section also contains a summary of the 2024 Directors’ and
CEO’s Remuneration Policy as approved by shareholders at the AGM
in 2023 (the “Remuneration Policy”). Details of the full policy are
available on our website (www.antofagasta.co.uk).
I would like to thank shareholders once again for their support at the
2024 AGM where our Directors’ and CEO’s Remuneration Report for
the year ended 31 December 2023 received 96.75% votes in favour.
We continue to actively engage with shareholders to seek their views
and feedback on Antofagasta’s remuneration arrangements.
Our approach
Throughout 2024, the Remuneration Committee prioritised ensuring that
compensation outcomes accurately reflected Antofagasta Minerals’
performance and the contributions of our employees, while remaining
aligned with shareholder expectations. Our remuneration framework is
designed to support the execution of the Company’s strategy in both the
short and long term, foster a culture consistent with our purpose, and
provide competitive, performance-based compensation that attracts,
retains, and motivates talent. A strong people-centric approach is essential
to advancing the mining industry of the future – one that ensures employee
well-being, develops skills, recognises contributions, and prepares our
teams and emerging talent for the sector’s evolving demands.
The Committee considers a variety of factors and key performance
indicators (KPIs) when determining remuneration, including stakeholder
perspectives and the Company’s overall performance. A summary of these
elements and KPIs can be found in the “at a glance” section on page 142.
However, I would like to highlight some essential aspects of this report:
2024 financial and strategic performance highlights
The financial and operational performance of the Group was carefully
considered when reviewing the incentive outcomes in respect of 2024.
Antofagasta demonstrated its resilience during 2024, maintaining a strong
balance sheet (net debt/EBITDA ratio of 0.48, from 0.38 for 2023),
EBITDA margins (52%) and cash flow generation to fund both our
expansion plans and sustaining capex. Revenue increased by 5% to
$6.6 billion. Our commitment to shareholder returns was demonstrated
by a total dividend in respect of the full-year of 31.4 cents per share.
Remuneration and Talent Management Committee Chair’s introduction
2024 membership and meeting attendance
Number attended
Francisca Castro (Chair)
5/5
Michael Anglin 5/5
Eugenia Parot 5/5
Heather Lawrence 4/4
Tony Jensen 1/1
On 1 February, 2024 Tony Jensen rotated off the Committee and Heather Lawrence
joined the Committee.
Other regular attendees include the CEO, the Vice President of People and
Organisation and the Company Secretary.
At least one Committee member serves on each of the other Board Committees,
which allows the Committee to consider strategic priorities and the views of all
stakeholders in its deliberations.
The Committee meets as necessary and at least four times a year.
All Committee members were independent throughout 2024.
Key report sections:
Remuneration ‘at a glance’ 142
Summary of Remuneration Policy 145
Single figure of remuneration table 148
Remuneration for 2025 159
Rewarding performance
and investing in people to
develop talent for a better
future.
“The Committee seeks to ensure that pay
practices support our ambition to create
sustainable value, high profitability and growth
through innovation and competitive advantage.”
FRANCISCA CASTRO
Chair of the Remuneration and Talent Management Committee
Antofagasta plc Annual Report 2024140
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
The health and safety of our people remains our top priority, and the
Board sets the standard in prioritising the safety and wellbeing of our
employees and contractors. In 2024, we recorded another strong year
of safety performance, with no fatalities across the Group, alongside
historical low levels for lost time injury frequency rate (2024: 0.57;
2023: 0.63).
Operational performance showed year-on-year growth in total copper
production, with growth seen in production by Los Pelambres and
Centinela Cathodes. Development projects at Centinela and Los
Pelambres are progressing well, and are on budget and in line with
expectations, which are expected to enhance our future capacity.
We are strongly committed to sustainability and combating climate
change, with a clear goal of achieving carbon neutrality by 2050 or
earlier. By the end of 2024, we have reduced Scope 1 and 2 emissions
by 41% against our 2020 baseline, consistently achieving interim targets.
During the year we also unveiled our path to decarbonisation, which is
outlined in our Climate Action Plan, and introduced South America’s first
hydrogen-powered locomotive, which is expected to start operating in
2025: two milestones in our commitment to replacing diesel and curb
our carbon print. In 2024, 58% of the water used in the mining process
was sourced from sea water (2023: 60%).
We are committed to producing copper responsibly. We continue to focus
on making our Company accessible to employees with disabilities and
in 2024 disabled employees represented 2% of the workforce (as of 31
December 2024). Additionally, women accounted for 26.6% of the total
workforce, reflecting our commitment to a balanced workforce.
During 2024, as Senior Independent Director and Chair of the
Remuneration and Talent Management Committee, I have remained
committed to fostering growth opportunities at all levels while enhancing
productivity and competitiveness. We strive to create digital
environments that foster skills development and leadership, ensuring
our workforce is prepared for the industry’s ongoing transformation.
The Remuneration Committee will keep these factors in mind when
considering senior executive pay decisions during 2025.
CEO’s performance and incentive outcomes for the year
The Committee is comfortable that the range of incentive outcomes
adequately reflects the performance of the Group and CEO, and
demonstrates the balanced nature of the incentive plan measures and
targets in operation. Discretion was applied to change the date of the
determination of the D&I measure of the annual bonus to be the end
of the financial year, to take into account the changes in the law enacted
in August 2024. For further details, please refer to footnote 14 of the
annual bonus table on page 149.
Annual bonus outcome
The CEO’s total bonus was 72% of the maximum, with the Group
performance element paying out at 52% of the maximum. In
accordance with our Remuneration Policy, a safety adjustment was
applied as there were no fatalities during the year, this increased the
Group performance outcome by 8% to a total of 60% of maximum.
The CEO´s individual objectives were fully achieved.
LTIP outcome:
Vesting of the 2022 LTIP awards was based on total shareholder return
vs global mining peers, mineral resources increase, sustainability
commitments and a number of projects’ portfolio progress targets; all
targets were achieved in full and the 2022 LTIP awards vested at 100%.
Find out more on page 151.
Our approach to the CEO’s remuneration in 2025
Base salary
The CEO’s annual base salary will be $1,240,037 from 1 January 2025 (2024: $1,213,049), paid in Chilean pesos.
The Chilean peso/US dollar exchange rate will continue to be monitored during 2025. The Committee continues to
monitor the overall remuneration package value of the CEO in comparison to peers in the FTSE 100 mining industry
and our core global copper mining peer group.
Find out more
on page 159.
Annual bonus
The Committee considers the annual bonus balanced scorecard works well and focuses on the right KPIs for the business.
The scorecard for 2025 is very similar to the one used in 2024. Considering the challenges the Group will face in project
development during 2025, the sustainability weighting has been reduced by 5%, transferring this percentage to the project
development section of the scorecard. All other weightings remain the same.
Find out more
on page 159.
LTIP
Our fundamental LTIP structure and KPIs remain unchanged and continue to be assessed against a balanced scorecard
measuring relative total returns to shareholders, progression of key long-term projects, replacement of mineral resources, and
performance against environmental and sustainability commitments. Under our Remuneration Policy, the Committee has the
ability to make exceptional LTI awards of up to 325% of base salary. Following considerable discussion, the Committee has
approved an award to the CEO of 300% of base salary in 2025. This decision was made considering the growth challenge
that Antofagasta is facing, where the continuity of the CEO’s leadership is essential during this period of development of major
projects that will ensure the company’s long-term sustainability and maximise shareholder value. Our company is a world-
leading copper producer, and we have a world-leading CEO, recognised across markets for his expertise and experience.
Find out more
on page 159.
Directors’ fees
No changes were made to Directors’ fees for 2025.
Find out more on page 160
Review of Remuneration Policy
The current Remuneration Policy was approved by shareholders at the AGM in 2023, and operates for a three-year period. During 2025, the
Committee will be reviewing the policy, taking into account developments in market practices and investor guidance, in preparation for seeking
shareholders’ approval for a new policy at the 2026 AGM. On behalf of the Committee, I look forward to engaging with shareholders on the new
policy, and welcome feedback on its structure and implementation.
FRANCISCA CASTRO
Chair of the Remuneration and Talent Management Committee
Antofagasta plc Annual Report 2024 141
Performance Award outcome, 2022 cycle
Remuneration at a glance
2024 performance highlights
CEO remuneration in 2024
Actual pay delivered for 2024, $000
Annual bonus outcome
Threshold
0% payout
Maximum
100% payout
Payout %
of element
Payout %
of bonus
Group
performance
70% weighting
Outturn
60%
60% 42%
Personal
performance
30% weighting
Outturn
100%
100% 30%
TOTAL 72%
0
Fatalities during the
year
91.9m
Tonnes of copper
contained in Mineral
Resources
21.5%
TSR* outperformance
over three years
* Total Shareholder Return
26.6%
Female direct employee
participation
Threshold
0% payout
Maximum 100%
payout
Payout %
of element
Payout %
of PSP
2024 TSR
50%
weighting
0% 5% outper-
formance
100% 50%
Outturn: 21.5%
Resources
25%
weighting
83.1m 87.5m 100% 25%
Outturn: 91.9m
Project
portfolio
progress
12.5%
weighting
<50% 100% 100% 12.5%
Outturn: 100%
Sustainability
commitments
12.5%
weighting
<50% 100% 100% 12.5%
Outturn: 100%
TOTAL 100%
Remuneration at a glance
2024 Annual Bonus
2024 Annual Bonus
Element Measure Weighting
Level required for
maximum vesting
Actual
achievement
Achievement
(% of STI maximum)
Core business EBITDA ($m) 15% 4,004 3,351 10.5%
Production (kt) 20% 710 664 15.5%
Cash Costs 10% 202 237 0%
Innovation 5% 80.9%
Business
development
Growth 20%
* Further details provided
on pages 148-149
83.2%
Exploration 5% 71.2%
Sustainability
and
organisational
capabilities
Safety 5% 100%
People 5% 66.7%
Environment 10% 100%
Social 5% 100%
Total outcome – pre-adjustments 52.2%
Adjustment for meeting zero fatality target 7.9%
Total Group Performance (70% of Annual Bonus) 60.1%
Individual Performance (30% of Annual Bonus) 100%
Total Annual Bonus Outcome 72%
0 1,000 2,000 3,000 4,000 5,000 6,000
Fixed remuneration Bonus
Performance Award Restricted Award
CEO
Outcomes are fully explained on page 148 Outcomes are fully explained on page 151
Antofagasta plc Annual Report 2024142
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
How the Policy will be implemented in 2025
Fixed pay
Salary CEO $1,240,037
Benefits Standard suite of benefits, consistent with previous years
Pension The company does not operate a pension scheme for the CEO
2025 Annual Bonus
CEO: 200% of salary
Element Pillar of strategy Measure
Weighting
(as % of total
bonus)
Mining Division’s performance (70% of bonus opportunity)
Core Business
Competitiveness
EBITDA, Copper Production, cash costs
and innovation
35%
Business Development
Growth
Growth and Exploration
21%
Sustainability and
organisational capabilities
Safety and sustainability
Safety and Health, People, Environment
and Social
14%
Individual Performance (30% of bonus opportunity)
Individual performance
People
Safety and sustainability
Competitiveness
Growth
Innovation
The individual objectives for the CEO are based on
critical strategic areas as part of our vision for the
company – talent, culture, core business, growth,
competitiveness, safety & sustainability and innovation.
30%
2025 Long-term incentive plan – restricted award
Level: 90% of salary.
Cycle: Three equal tranches, vesting one, two and three years after the date of grant. Awards are paid in cash.
2025 Long-term incentive plan – performance award
The Committee has decided to award the CEO an award of 210% for 2025.
Cycle: Three – year vesting period.
Element Pillar of strategy Measure Weighting
Relative total shareholder
return
Competitiveness
Antofagasta’s Total Shareholder Return (TSR)
compared to Global X Copper Miners ETF (CopX Index)
over three-year period.
50.0%
Project portfolio progress
Growth
Progress of key projects portfolio, including Los
Pelambres Concentrate Pipeline and Desalination Plant
Expansion, Centinela Second Concentrator and
Zaldívar’s Primary Sulphide Project.
25.0%
Mineral resources
Growth
Mineral resources at the end of the performance period
12.5%
Sustainability Commitments
Safety and sustainability
Social agreements commitments (40%)
Climate change & Environment (60%)
•
Nature Strategy Roadmap (new this year)
•
Energy savings (new this year)
•
Environmental Frequency Index (new this year)
•
Global Industry Standard on Tailings Management
12.5%
Antofagasta plc Annual Report 2024 143
Our remuneration philosophy reflects local
regulations and market practice while seeking
to align with UK best practice and governance.
Local regulations, market practice and remuneration structures
available in Chile are central considerations when structuring the
CEO’s remuneration. Real share awards have not been part of the
executive remuneration structure since the LTIP was first implemented
a decade ago because, until recently, they were taxable in full at the
date of grant in Chile. Considering the potential uncertainty on future
taxation, the use of real shares continues to be uncommon in Chile.
All Company awards continue to be cash-based and the long-term
incentive awards are linked to a notional number of shares and share
price performance through the use of phantom shares to ensure
alignment with shareholders.
Although our CEO is not a Director of the Company, we have
voluntarily disclosed his remuneration since 2014, and provided details
throughout the Remuneration Report to allow shareholders to
understand how our remuneration structures support the strategy
and promote the long-term sustainable success of the Company.
Since the implementation of the European Shareholders’ Rights
Directive II in 2019, these disclosures have become mandatory and
are included in this report. The final decisions in respect of the CEO’s
remuneration are always made by the Committee and the CEO is not
present for this part of the meeting, ensuring that the Committee
makes independent decisions in the best interests of Antofagasta.
The Committee follows the UK Corporate Governance Code. The table
below summarises how we have considered Code Provision 40 when
developing and implementing our remuneration strategy.
Directors’ and CEO Remuneration Policy
Our remuneration philosophy
Factor How the Committee addresses the factor
Clarity
Remuneration arrangements are
transparent and promote effective
engagement with shareholders
and the workforce.
Our rationale for operating two long-term (performance and restricted) incentive awards is
straightforward and well-communicated. The performance measures used in the Annual Bonus Plan
and LTIP are used internally and externally in tracking and communicating business performance,
ensuring that participants understand them well. We are careful not to make unnecessary changes to the
Remuneration Policy; we seek year-on-year consistency which enhances the policy’s simplicity and
effectiveness.
Predictability
The range of possible values of
rewards for the CEO is identified
and explained at the time of
approving the policy.
Target ranges and potential payout levels are disclosed in advance, allowing shareholders and
participants to understand the potential value of the package in different performance scenarios.
The Committee carefully considers the performance measures for the annual bonus and LTIP each year
and seeks to achieve consistency (when appropriate), with only necessary changes being made so that
the plans are sufficiently predictable.
Simplicity
Remuneration structures are
uncomplicated, and their rationale
and operation are both easy to
understand and consistent for the
CEO and, where applicable, those
below the CEO.
Each element of pay is clearly communicated to participants and shareholders and implemented in
a straightforward way.
Where appropriate, incentive arrangements flow down through the organisation to ensure consistency
of approach.
Proportionality
The link between individual
awards, the delivery strategy and
the long-term performance of the
Company is clear.
Performance conditions in the annual bonus and performance share awards require a minimum level
of performance before any payment is made to senior management, and performance targets are
aligned with our business plan and strategy. Remuneration is considered in the context of the wider
employee population, including pay gap information, to assess its appropriateness.
Truly stretching performance is required for the maximum to pay out under our incentive plans.
This ensures that executive rewards align with the experience of shareholders.
There are clearly defined maximum opportunities, as set out in our Remuneration Policy.
Risk
Reputational and other risks from
excessive rewards, and
behavioural risks that can arise
from target-based incentive plans,
are identified and mitigated.
Incentive plan performance measures are balanced to promote the right behaviours and appropriate
safeguards are put in place, including adjustments for safety performance.
Clawback has not been introduced as it is not legally valid in Chile, LTIP awards are subject to malus.
The Committee retains the discretion to adjust outcomes under the plans for variable remuneration.
Alignment to culture
Incentive plans drive behaviours
consistent with the Company’s
purpose, values and strategy.
Our 2023 Policy continues to be aligned with the business objectives to create sustainable value and
high profitability. We reward strong performance aligned with our business objectives, but only if the
methods used align with our safety and sustainability objectives. In 2024, all executive and supervisor
performance bonuses, including the CEO’s, included an assessment of individual performance related
to the Group’s leadership model which defines the behaviours that we require all employees to
demonstrate, and is intended to connect and enhance our excellence management system and the
strength of inclusive leadership.
Antofagasta plc Annual Report 2024144
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
The tables below set out a summary of the Remuneration Policy that was approved by shareholders at the Company’s AGM that took place
on 10 March 2023. The full Policy is available on the Company’s website (www.antofagasta.co.uk).
Policy table for the CEO
Purpose and link to strategy Operation Maximum opportunity Performance measures
Base salary
To retain and attract
high-calibre executives
by offering globally
competitive salary
levels.
Typically, base salaries
are reviewed annually.
Base salaries and any
increases take into
account:
•
the individual’s role,
performance and
experience;
•
the Company’s
performance, the
external environment
and costs;
•
salary increases for the
wider workforce; and
•
salary levels for
comparable roles at
relevant comparator
companies.
•
There is no prescribed
maximum, although
salary increases
consider those of the
wider workforce.
Chilean labour contracts
are adjusted periodically
to reflect Chilean
inflation, and
adjustments may also be
made due to union
labour negotiations.
•
In addition to the salary
increases already
mentioned, there may be
additional increases when
the Committee considers
it appropriate, including
(but not limited to):
–
a significant increase
in the scale, market
comparability or
responsibilities of the
role; and
–
individuals appointed
on a salary lower than
market levels, where
increases above those
of the wider workforce
may be made to
recognise experience
gained and performance
in the role.
•
Such increases will be
explained in the relevant
Annual Report.
Individual and Mining Division performance is
considered when determining base salaries and
increases.
Benefits
To provide market-
competitive benefits.
Benefits typically include
life and health insurance.
Other benefits may be
offered where
appropriate, including,
but not limited to,
car allowance, pension
contribution, professional
fees and relocation
allowances.
Benefits are reviewed
periodically.
There is no maximum
overall.
None
Summary of the Directors’ and CEO’s
Remuneration Policy
Antofagasta plc Annual Report 2024 145
Purpose and link to strategy Operation Maximum opportunity Performance measures
Annual Bonus Plan
To focus on delivering
annual financial and
non-financial targets
designed to align
remuneration with the
Company’s strategy
and to create a
platform for future
sustainable
performance.
The bonus is earned
based on achieving
one-year performance
targets. It is paid in cash.
Maximum of 200%
of salary.
The bonus is based on financial, operational, strategic
and individual measures.
Performance measures and weightings are reviewed
annually to ensure they continue to reflect the
Company’s strategic priorities. At least 50% of the
bonus will be based on the Mining Division’s financial,
operational and strategic performance. Other metrics
include, but are not limited to, business development,
organisational capabilities, sustainability and safety.
In addition, an automatic adjustment applies to the
Mining Division’s performance score under the Annual
Bonus Plan, downwards if there is a fatality during the
year and upwards if there is no fatality. This further
aligns the Mining Division’s incentives with the core
value of safety and our goal of zero fatalities. The
Committee will consider whether this should continue
to apply annually, considering the Mining Division’s
safety culture and performance.
The annual bonus starts accruing at ‘threshold’
performance (0% payout), with a pay-out of 50%
of the maximum when ‘on-target’ performance is
achieved.
The Committee retains the discretion to adjust bonus
outcomes to ensure they reflect underlying business
performance, the impact of the commodity price and
any other relevant factors.
Long-Term Incentive Plan (LTIP)
To align with the
shareholders’
experience and focus
on long-term,
sustainable
performance.
Awards under the LTIP
will typically comprise:
•
Performance Awards
– performance is
measured over a
three-year period with
vesting thereafter,
comprising at least 70%
of the total LTIP
awards.
•
Restricted Awards –
vest one-third each
year over a three-year
period, comprising a
maximum of 30% of the
total LTIP awards.
Awards will usually be
made in the form of a
conditional right to receive
a cash payment by
reference to the value of
a specified number of the
Company’s shares.
Malus may be applied
in exceptional
circumstances, as detailed
in the notes to the Policy
table in the 2022 Annual
Report.
Maximum of 200% of
salary, increased to 325%
in exceptional
circumstances.
Performance Awards will be based on a combination
of shareholder return and strategic performance
measures aligned with the business priorities.
The targets, measures and weightings are determined
by the Committee annually. The shareholder return
measures are at least 50% of the Performance
Awards.
Performance Awards begin vesting at ‘threshold’
performance, with the amount depending on the
performance metric. This level is intended across all
metrics to be 0% at the threshold and an aggregate
average of approximately 50% of the maximum at
‘on-target’ performance.
No performance conditions usually apply to Restricted
Awards.
The Committee retains the discretion to adjust
payments to ensure they reflect underlying business
performance, the impact of the commodity price and
any other relevant factors.
Directors’ and CEO Remuneration Policy continued
Antofagasta plc Annual Report 2024146
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
CEO Contract of Employment
Mr Iván Arriagada is employed under a contract of employment with Antofagasta Minerals SA (AMSA), a subsidiary of the Company. His work
contract is governed by Chilean labour law. It does not have a fixed term and can be terminated by either party on six months’ notice in writing.
Under his employment contract, Mr Arriagada is entitled to 25 working days of paid holidays per year. As Mr Arriagada’s salary is paid in Chilean
pesos and is adjusted quarterly for inflation, at the end of the year, a further adjustment is made if the US dollar/Chilean peso exchange rate has
increased by more than 5% to maintain international competitiveness.
Policy table for the Chair and Non-Executive Directors
Purpose and link to strategy Operation Maximum opportunity Performance measures
Fees
To attract and retain
high-calibre,
experienced Directors
by offering globally
competitive fee levels.
The Chair receives an annual base fee.
Non-Executive Directors receive an annual
base fee.
Directors may receive further fees for serving
as Senior Independent Director, a Board
Committee Chair or a Committee member.
Separate base fees are paid for serving on the
Antofagasta Minerals Board or as a Director or
Chair of any subsidiary or joint-venture
company.
Ramón Jara also receives a base fee (adjusted
for Chilean inflation) for advisory services
provided to Antofagasta Minerals pursuant to
his service agreement.
Fees are subject to review, which will take into
account time commitment, responsibilities and
market practice.
Total fees paid will be
within the limit stated in the
Company’s articles of
association.
Changes may be made to
Chilean-peso-denominated
fees to adjust for Chilean
inflation.
None
Benefits
To provide appropriate
benefits and reimburse
appropriate expenses
that Directors incur in
the performance of
their duties.
Non-Executive Directors are entitled to
reimbursement for reasonable expenses
incurred during the performance of their duties,
including any tax due on the reimbursements.
Benefits may include the provision of life,
accident and health insurance, professional
advice and other minor benefits, including
occasional spousal travel in connection with
the business.
Benefits are set at a level
appropriate to the individual’s
role and circumstances.
The maximum will depend
on the type of benefit and
cost of its provision.
None
Non-Executive Directors do not have service contracts but have a letter of appointment setting out their terms and conditions. Non-Executive
Directors are appointed each year for up to 12 months (subject to re-election at the AGM) and are entitled to one month’s prior written notice
of early termination for which no compensation is payable. Details of the letters for the currently appointed Non-Executive Directors are set
out below:
Date of appointment Date of (re-) election
Jean-Paul Luksic 1 September 2014 20 March 2024
Ramón Jara 12 June 2013 20 March 2024
Juan Claro 12 June 2013 20 March 2024
Andrónico Luksic C 12 June 2013 20 March 2024
Vivianne Blanlot
1
21 May 2014 20 March 2024
Francisca Castro 25 October 2016 20 March 2024
Michael Anglin 23 April 2019 20 March 2024
Tony Jensen 13 March 2020 20 March 2024
Maria Eugenia Parot 20 April 2021 20 March 2024
Heather Lawrence 18 April 2023 20 March 2024
Tracey Kerr 29 January 2024 20 March 2024
1. Vivianne Blanlot has resigned from the Board with effect from 31 March 2025.
Antofagasta plc Annual Report 2024 147
The table below sets out the remuneration received by the CEO in respect of the years ending 31 December 2024 and 31 December 2023.
Salary/Fees
2
$’000
Benefits
3
$’000
Bonus
4
$’000
Restricted
Awards
5
$’000
Performance
Awards
6,7,8
$’000
Total
remuneration
$’000
Total fixed
remuneration
$’000
Total variable
remuneration
$’000
Iván Arriagada 2024
1
1,213 212 1,786 1,043 1,180 5,434 1,425 4,009
Iván Arriagada 2023
1
1,307 136 1,805 802 996 5,046 1,443 3,603
1. Mr Iván Arriagada’s remuneration was calculated based on amounts paid in Chilean pesos each month of the relevant year, converted into US dollars at the closing exchange rate for
the month it was paid.
2. In accordance with the CEO’s contract, an inflationary increase of 4.1% plus a 5.3% exchange rate adjustment has been applied in 2024. Quarterly CPI adjustments were made to the
CEO’s salary during the year: 0.7% in March, 1.2% in June, 0.9% in September and 1.3% in December.
3. Benefits include life and health insurance. Other benefit values are based on what the Company believes would be deemed by HMRC to be taxable benefits in the UK. The Company also
pays the professional fees incurred to complete the CEO’s tax returns and the actual tax incurred by the CEO on these benefits, which are received in connection with fulfilling his duties.
The Company makes no pension contributions on behalf of the CEO. HMRC has deemed certain services to be taxable in the UK and the Company has agreed to compensate the CEO for
any double taxation that is not eventually recoverable from the Chilean revenue under the UK/Chile double tax treaty. This tax equalisation benefit in respect of 2024 is a benefit of
$15,647.
4. Mr Iván Arriagada’s 2023 annual bonus was paid following the date of publication of the 2023 Annual Report and the exchange rate used to pay the bonus was Ch$/USD 981.71 vs the
Ch$/USD 877.12 in December 2023.
5. Restricted Award amounts are reported in the year of the grant based on the face value of the awards on the date of the grant.
6. Performance Awards are reported in the year the performance period ends and are cash awards linked to a notional number of shares and the Company’s share price performance.
There was no entitlement to Dividends or Dividend equivalent.
7. The 2024 Performance Awards value is based on the 100% vesting of the 52,686 notional performance shares granted in 2022 for which the performance period ended 31 December
2024. The awards vested at 100% and are valued at a share price based on the three-month average share price to 31 December 2024, being £17.50 or $22.40.
8. The 2023 Performance Award value is based on the 2021 award of 39,442 notional shares which vested on 29 March 2024. 50% of the award was based on Total Shareholder Return
(TSR) performance, the performance period for which ended on 29 March 2024, after the publication of last year’s Annual Report. Consequently, the figure included in the table has been
restated to reflect the TSR performance vesting outcome of 100%, leading to a total award outcome of 100% of the maximum, instead of the 81.3% reported in 2023. The increase in the
value reported for the 2021 LTIP reflects the change in total award outcome, share price and exchange rate at vesting. The value at grant was $910,000 based on a £16.76/share and
USD/GBP 1.37, and which increased to $996,467 at vest based on a share price and exchange rate of £20.00/share and USD/GBP 1.26. $86k of this award was due to an increase in
share price, partially offset by exchange rate movements. There was no entitlement to dividends or dividend equivalents.
During 2024, Mr Arriagada was entitled to receive fees in his capacity as a Director of Compañía de Minas Buenaventura S.A.A. These fees are not within the scope of remuneration that is
required to be reported in the single figure table above.
Annual bonus – audited
Group performance (70%)
The targets and achievement levels for the 2024 annual bonus are set out below. 70% of the CEO’s 2024 annual bonus was based on the
Group’s performance against the following criteria:
Measure
Weighting
(as % of Group
performance)
Threshold
(0% vesting)
On-target
(50% vesting)
Maximum
(100% vesting)
Actual
achievement
Achievement
(% of maximum)
% of overall
performance
bonus achieved
Core business 50% 17.5% 8.7%
EBITDA – Mining Division ($m)
1
15% 3,276 3,640 4,004 3,351 10.5% 1.6%
Copper production (kt)
2
20% 657.5 678.5-699.5 710.0 664 15.5% 3.1%
Cash costs before by-product credit (c/lb)
3
10% 227.8 214.9 202.0 237 0% 0%
Innovation
Data and analytics
4
2.5% $6.1m $17.5m $22.7m $31.1m 100% 2.5%
Innovation Roadmap
5
2.5% 90% 100% 110% 102% 61.7% 1.5%
Business development 25% 80.8% 20.2%
Growth projects
Los Pelambres Growth Enablers
– Progress in construction
6
3.0%
90% 100% 110%
100% 50% 1.5%
Los Pelambres’ Development Options
Project– EIA processing
7
2.0% 110% 100% 2.0%
Centinela Second Concentrator
Project: Construction progress
8
10.0% 110% 100% 10.0%
Zaldívar: Continuity of water supply
9
2.5% 105% 75% 1.9%
Zaldívar: Business continuity
strategy
10
2.5% 100% 50% 1.3%
Exploration programmes
Cachorro
11
3.0%
90% 100% 110%
104% 71% 2.1%
International Exploration
12
2.0% 104% 71.5% 1.4%
Directors’ and CEO Remuneration Report
CEO’s single figure of remuneration
(audited)
Antofagasta plc Annual Report 2024148
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Measure
Weighting
(as % of Group
performance)
Threshold
(0% vesting)
On-target
(50% vesting)
Maximum
(100% vesting)
Actual
achievement
Achievement
(% of maximum)
% of overall
performance
bonus achieved
Sustainability and organisational
capabilities 25% 93.4% 23.3%
Safety – Mining Division
13
Safety: Accidents and high-potential
incidents 2.5%
90% 100% 110%
110% 100% 2.5%
Health: Management
of Occupational Diseases 2.5% 110% 100% 2.5%
Diversity and Inclusion
14
5% 90% 100% 110% 103% 66.7% 3.3%
Environmental performance
15
Compliance Plan 4%
90% 100% 110%
110% 100% 4%
Decarbonisation Plan 6% 110% 100% 6%
Social Performance: Compliance
Initiatives and Impact Measurement
16
5% 90% 100% 110% 110% 100% 5%
Total outcome – pre adjustments 52.2% 52.2%
Adjustment for meeting zero
fatality target
17
7.9% 7.9%
Total outcome – post adjustments 60.1% 60.1%
18
1. The EBITDA targets was adjusted for fluctuations in exchange rates, inflation, the copper price and the effect of one-off bonuses paid on conclusion of a labour negotiation
at Minera Centinela.
2. The copper production outturn level includes 50% of Zaldívar.
3. The cash cost targets were adjusted for the same factors as the EBITDA targets (except for copper price fluctuations, which do not impact this measure).
4. Based on the additional profits generated through the use of advanced analytics tools.
5. The Innovation Roadmap was equally split between Cuprochlor-T® and tailings innovation. The Cuprochlor-T® target required the Zaldívar mine to have completed a feasibility test and
implemented the technology by July 2024, and for Antofagasta to have contracted the use of this technology with at least 4 third-party mines. The feasibility test was completed in
December 2024, so below target levels were achieved, despite the successful implementation in more than 4 external mines, the third-party portion of the award was capped at the target
level due to the delay in the feasibility study.
Tailings was also assessed against feasibility studies and dry stacking, target required the achievement of all feasibility studies with defined implementation plans for the next stage of the
project. The maximum was payable if a budget was approved for the project. This budget was approved, and the maximum level was awarded. The dry stacking target was achievable if
all milestones in the plan were achieved, maximum was payable if the plan was finalised and the cost for FY25 could be quantified. The plan was achieved but implementation was delayed
so the outcome was between target and maximum.
6. Target required the approval of the project and advances in the construction of the core components of the mine, both of which were met at the target level.
7. Target required the application for an EIA license and for due diligence on indigenous communities to be performed. The maximum achievement considered progress in the work program
at alternative sites with a well-founded recommendation. Maximum levels were achieved as the application was submitted and an option with alternative sites was presented.
8. Target was payable if there was the approval of the construction process, and the project’s implementation was performed according to the budget and timeline. Maximum levels were
achieved as opportunities to enhance project performance were identified.
9. Target required feasibility studies for alternative water supply infrastructure, maximum required the commencement of the tender process for an alternative water supply system. Basic
engineering has been completed; however, the Board presentation was postponed to supplement the information. Additionally, two engineering studies have been completed at a feasibility
level, the camp contract has been awarded, and two offers for the Water System are under evaluation. Therefore, the award vested between the target and the maximum level.
10. Target required the successful environmental evaluation of the project, analysis of the future engineering requirements of the mine, and the successful presentation of the business
continuity strategy during the year. All three requirements were met according to the timelines that were in place, and the target level was achieved.
11. The target required DIA certification and an update to the resources model with the latest geological data. The maximum required DIA approval by November 2024, along with completion
of the scoping study of the project with a forecast capacity increase of 5%, as well as the identification of at least one satellite body with high exploration expectations in 2025. All targets
were met in full, however, maximum performance levels were not fully achieved. The DIA was submitted on 20 January 2025. The information for scoping studies was satisfactorily met.
At least two satellite bodies with high exploratory potential were added for 2025, along with a 2% increase in resources.
12. The target required the review of at least eight exploration offerings and the presentation of at least one new project to the BDCo, conduct generative exploration in the seven prospects
associated with the JV Volcan in Peru, defining drill targets for development in 2025, submit drilling campaign permits for at least the Puy Puy prospect and one project from the pool in
2024. The maximum achievement additionally required obtaining at least one significant result that justifies a budget allocation for advancing to follow-up stages in an international project
for 2025. All targets were met in full, however, maximum performance levels were not fully achieved.
13. Split between performance against targets for High-Potential Incidents (50%) and decrease in similar exposure group (SEG) of occupational hazards (50%). Achievement of this measure
was assessed against targets of: 0.1 High-Potential Incidents Index (0.09 for maximum achievement), decrease in 1 similar exposure group (2 or more for maximum achievement). The
maximum outcome was achieved because the actual High-Potential Incidents Index was 0.06 and decrease in similar exposure group was 2 or more. The Lost Time Injury Frequency
Rate (LTIFR) trigger which applied for a LTIFR of higher than 1 was not triggered.
14. Achievement of this measure was assessed against targets of: 27.1% female employees (28.1% for maximum achievement), 2% disabled employees (2.2% for maximum achievement),
and 21% female employees in executive roles (22.5% for maximum achievement) in the mining companies. The outcome was between target and maximum because the actual percentage
of female employees was 27%, the percentage of disabled employees was 2.02% and the percentage of women in executive roles was 25.7%.
15. Split between compliance with a regulatory requirements action plan (40%), and implementation of the Climate Change Roadmap (60%). This metric was met in full.
– Regulatory requirements action plan: Target required 100% implementation of the Regulatory requirements action plan. Maximum required advance action plans for extreme, high,
and medium regulatory risk requirements in relation to the 2024 planning. This metric was met in full. No operational events with serious environmental consequences occurred
throughout the year.
– Implementation of the Climate Change Roadmap: Split between Energy Efficiency (40%), and Electrification Prefeasibility (60%). This metric was met in full. ISO 50.001 certification
was maintained in 2024, addressing 2023 audit findings. Over two energy efficiency projects were implemented, a portfolio was created to reduce energy consumption by 1.5%
by 2026, and electrification technologies were assessed.
16. The maximum outcome was achieved because a 99.4% of physical milestones were met, along with savings of over 3% (40%) and the Territorial Human Well-being Matrix was
implemented in the northern zone as planned (40%) and a perception study was conducted, showing positive results in the 2024 impact assessment (20%).
17. A standalone adjustment trigger of 15% of the calculated outcome is applied to the Annual Bonus Plan, upwards if there are no fatalities during the year or downwards if there are one
or more fatalities. As there were no fatalities in 2024, the final Mining Division’s outcome was increased by 7.9% (from 52.2% of maximum to 60.1% of maximum).
18. For the purposes of calculation of out-turn results, one decimal place has been used, but for simplicity in reporting, above figures have been shown as rounded to the nearest whole
figure. Performance objectives are evaluated on a twenty-point scale with the minimum (90), target (100) and maximum (110), each point from 90 to 110 corresponding to 5% of the
maximum objective.
As discussed in footnote 14, Committee discretion was applied to measure the percentage of the workforce with disabilities in December rather
than October. This decision was driven by the delay in the legal requirement to have 2% disabled representation in the workforce . Measurement
in December ensured consistency with other bonus measures.
Antofagasta plc Annual Report 2024 149
Individual performance (30%)
The individual objectives for the CEO were based on critical strategic areas that form part of our vision for the Company – organisation,
leadership, culture, people, growth, competitiveness, safety and sustainability and innovation. Based on individual feedback from Directors,
the Committee assessed Mr Iván Arriagada’s performance against his personal objectives as 100 % of maximum for his contribution to the
individual strategic business goals during the year. All his objectives were exceeded, which count towards 30% of his annual bonus.
This outcome reflects exceptional performance during a challenging year in continuing to deliver a culture of excellence as well as develop
the business across its core strategic growth areas establishing a stronger foundation to build future value for all our stakeholders.
Mr Iván Arriagada’s performance against each of his objectives is summarised below:
Key Goals Performance
Keeping the Board well-
informed and responding
to feedback received during
the year
Kept the Board well-informed throughout the year with clear, open, and timely communication using both
formal reports and informal ad hoc communications to ensure the Board was aware of emerging issues.
Demonstrated patience, respect and responsiveness to ideas, suggestions and feedback, ensuring that
the Board’s perspectives were incorporated in decision-making throughout the Group.
Leading the Group’s core
values and developing a culture
of excellence
Demonstrated strong leadership in values and behaviours, serving as a visible leader for the Company.
The Board recognised his hard work, authenticity, and consistent presence, leading by example and
effectively addressing issues within the organisation.
Implementing strategy including
in relation to long-term growth
Demonstrated a strategic view to strengthen and grow the Group by effectively implementing the organic
growth plan and progressing with significant investments in projects, growing resources and future
production.
Focusing on the Group’s
core business
Ensured focus on the core business by effectively managing various projects, addressing operational
challenges, and maintaining strong safety performance. Demonstrated commendable leadership,
particularly in handling unforeseen events and managing the balance sheet during significant capital
expenditures.
Developing talent, ensuring
appropriate succession
planning and performance
management
Demonstrated continued improvements in succession planning and talent initiatives with a consistent
and more diverse talent pool across the business.
Successfully restructured the Executive Committee and senior management positions with the promotion
of internal talent and attracting external talent to prepare the business for current challenges.
Promoting the Group’s
reputation, working with
key stakeholders and local
communities
Played a crucial role in improving and stabilising relationships with communities, local authorities,
and the government.
Outstanding contribution to the visibility and reputation of the Group in Chile, with stakeholders, investors
and in international mining industry.
Performance adjustments, discretion and CEO’s total annual bonus for 2024
Based on Mr Iván Arriagada’s performance achieved against his 2024 targets, the Committee determined that he would receive a bonus payment
of $1,786k. This figure was determined as follows:
Overall performance score (70% x 60%) + (30% x 100%) = 72% of the maximum
(As a percentage of the maximum) 72% of 2,480k
Gross annual bonus = $1,786k
Calculated in US dollars using the exchange rate as of 31 December 2024 of $1 = Ch$996.46
Because the annual bonus is calculated and paid in Chilean pesos, it is subject to exchange rate movements when reported in US dollars.
Directors’ and CEO Remuneration Report continued
Antofagasta plc Annual Report 2024150
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Long-term incentive – audited
Confirmation of 2021 LTIP Performance Awards vesting
The Performance Awards granted to the CEO in 2021 vested on 29 March 2024. As disclosed in last year’s report, the TSR performance
condition, which related to 50% of the Awards, completed on 29 March 2024. Antofagasta’s TSR outperformed the benchmark by 6.9%
warranting full vesting of this component (full information on the vesting details for the other measures is included in last year’s report).
As a result, the overall vesting of the 2021 Performance Awards was 100%. The CEO’s single figure of remuneration summary table for 2023
on page 148 has been restated accordingly.
Vesting of the 2022 LTIP Performance Awards
On 29 March 2022 the CEO was granted an LTIP award over a total of 200% of salary, split 70% on Performance Awards and 30% on
Restricted Awards. The Performance Awards are due to vest on 29 March 2025 subject to criteria summarised below, over a performance
period which ended on 31 December 2024:
Measure Weighting % Basis for measure Threshold On-target Maximum Performance Achievement %
Relative total
shareholder
return
50% TSR vs Global X
Copper Miners
ETF (CopX Index)
Below index Equal to index ≥5% above index 21.5% out
performance
100%
Mineral
resources
increase
1
25% Tonnes of
contained copper
83.1m
tonnes
86.4m tonnes 87.5m tonnes 91.9m tonnes 100%
Projects
portfolio
12.5% (1) Los Pelambres
Concentrate
Pipeline (30%)
(2) Los
Pelambres
Desalination Plant
Expansion (40%)
(3) Centinela
Second
Concentrator
(30%)
50%
completion
75%
completion
Full completion of goals
(1) and (2) with an
environmental impact study
approved and under
construction
(3) Progress in the range of
85% to 100% of the approved
plan
(1) and (2) all
goals achieved
and (3) 100%
progress
achieved.
100%
Environmental
and social
commitments
12.5% (1) Social
management plan
(40%)
Greater
than 50%
compliance
Greater than
75%
compliance
Greater than or equal to 85%
compliance
100% achieved. 100%
(2) Climate
change and
environment
(60%)
50%
compliance
75%
compliance
(1) 100% compliance with
emissions Budget according
to the 2024 emissions
reduction target; overall
reduction of one million
tonnes of Scope 1 and Scope
2 CO
2
emissions by 2024,
compared to the 2021 level.
(2) 85% to 100% compliance
with the roadmap of the
climate change strategy and
circular economy strategy.
(3) Score 75% + 100%
compliance with extreme, high
and moderate risk regulatory
requirements.
(1) 1 million
tonnes of Scope
1 and Scope 2
CO
2
emissions
reduced.
(2) 96%
compliance.
(3) Score 75%
achieved and
100%
compliance with
regulatory
requirements.
100%
Total outcome 100%
1. The 91.9m tonnes achieved represents an increase of 4.4m tonnes from the 2021 baseline of 87.5m tonnes. A score of 100% is awarded for replacing or exceeding 100% of consumed
resources over the three-year period.
Information on the number of shares and share price used, and the impact of vesting % for this award, is disclosed in the notes to the single figure table and the table setting
out long-term incentive awards outstanding for the CEO from prior periods.
The impact of this vesting level on the CEO’s 2024 remuneration is set out in footnote 7 to the CEO single-figure total remuneration table on page 148.
The 2024 Performance Awards value is based on 52,686 notional shares, which vested at 100% and are valued at a share price based on the three-month average share
price to 31 December 2024, being £17.50 or $22.40.
Performance adjustments and discretion
No discretion has been applied to any of the performance calculations for the 2022 LTIP outcome.
Antofagasta plc Annual Report 2024 151
The Directors’ remuneration for 2024 and 2023 is shown below in US dollars for those Directors who served during the year ending 31 December
2024. Unless otherwise noted, amounts paid in Chilean pesos have been converted at the exchange rate on the first working day of the month following
the payment date. Any additional fees payable for serving on subsidiary and joint venture company boards are also included in the amounts below.
Fees Benefits
3
Total
2024
$000
2023
$000
2024
$000
2023
$000
2024
$000
2023
$000
Chairman
Jean-Paul Luksic
1
1,015 1,015 24 19 1,039 1,034
Non-Executive Directors
Ramón Jara
1,2
1,070 1,133 104 99 1,174 1,232
Juan Claro 280 280 23 17 303 297
Andrónico Luksic C 260 260 3 6 263 266
Vivianne Blanlot
4
315 317 12 18 327 335
Francisca Castro 358 337 34 35 392 372
Michael Anglin 335 335 14 7 349 342
Tony Jensen 332 353 17 21 349 374
Maria Eugenia Parot 320 316 13 17 333 333
Heather Lawrence (joined 18 April 2023) 298 196 12 6 310 202
Tracey Kerr (joined 29 January 2024) 265 - 7 - 272 -
Total Board
5
4,848 4,542 263 245 5,111 4,787
1. Amounts for Jean-Paul Luksic include the provision of life and health insurance. Amounts for Ramón Jara include the provision of life insurance. These adjusted insurances are not
in place for the other Directors.
2. During 2024, $770,192 (2023 – $832,582) was paid to Asesorías Ramón F. Jara Ltda. for providing services. The decrease year on year was due to movements in the Ch$/USD
exchange rate. These payments are included in the fees attributable to Ramón Jara shown above.
3. Except as described in footnote 1, all “Benefits” amounts included in this table arose in connection with the fulfilment of Directors’ duties and, in particular, the cost of attending Board
meetings and the Company’s Annual General Meeting in London. These calculations have been based on what the Company believes would be deemed by HMRC to be taxable benefits
in the UK by the Non-Executive Directors or would be if the Director was resident in the United Kingdom for tax purposes, alongside any personal incidental expenses. Given these
expenses are incurred by Directors in connection with the fulfilment of their Directors duties, the Company also pays the professional fees incurred to complete individual tax returns
and the actual tax incurred by Directors on these expenses and these are included in the table. Figures are reported in the year that they are paid, or would be payable, by the Company.
4. Vivianne Blanlot resigned from the Board with effect from 31 March 2025.
5. The 2023 figure is lower than the amount reported in the 2023 Annual Report as Jorge Bande has been removed from the table as he ceased to be a Director on 31 December 2023.
Totals reflect the total fixed remuneration for each Director. Directors did not receive any variable remuneration. Notes relevant to single-figure disclosures for 2023 can be found on page
170 of the 2023 Annual Report. These remain unchanged.
Payments to former Directors (audited)
Jorge Bande in 2024 received tax assistance in the amount of USD
3.8k in relation to payments received in 2023. There were no other
payments made to former Directors.
Payments for loss of office (audited)
There were no payments made for loss of office.
Malus application for the year ending 31 December 2024
Variable remuneration is subject to malus provisions, as explained
in the Remuneration Policy (see 2022 Annual Report for full details).
The malus terms are summarised below:
Malus provisions apply in exceptional circumstances, including:
•
actions by a participant during the vesting period that, in the
reasonable opinion of the Committee, amount to gross misconduct
or a participant having acted fraudulently or dishonestly;
•
a participant’s conduct has resulted in significant losses to the
Company or any Group member;
•
a materially adverse error in the consolidated financial statements
of the Group during the vesting period;
•
the Committee becomes aware of a material error in determining
the grant of an award or determining the extent of vesting of an
award, or becomes aware that it based its decisions on inaccurate
or misleading information; or
•
any reasonable circumstance that the Committee determines in
good faith to have resulted in an unfair benefit to the participant.
No malus provisions were applied during 2024.
Directors and CEO’s shareholding and share interests
(audited)
The Directors who held office on 31 December 2024 had the following
interests in the ordinary shares of the Company:
Ordinary shares of 5p each
31 December
2024
31 December
2023
Jean-Paul Luksic
1
41,963,110 41,963,110
Tony Jensen – –
Ramón Jara – -
Juan Claro – –
Andrónico Luksic C – –
Vivianne Blanlot – –
Heather Lawrence – –
Francisca Castro – –
Tracey Kerr – –
Michael Anglin – –
Eugenia Parot – –
1. Jean-Paul Luksic’s interest relates to shares held by Aureberg Establishment, an entity
he ultimately controls.
Directors’ single figure
of remuneration (audited)
Directors’ and CEO Remuneration Report continued
Antofagasta plc Annual Report 2024152
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
There have been no changes to the Directors’ interests in the shares of the Company between 31 December 2024 and the date of this report.
Other than Jean-Paul Luksic, the Directors and CEO, who is not a Director, had no interests in the shares of the Company during the year other than
those set out on this page. The CEO’s LTIP is awarded through phantom shares resulting in no shareholding arising from the award. The CEO has no
shareholdings in the Company. No Director had any material interest in any contract (other than a service contract in the case of Ramón Jara) with
the Company or its subsidiary undertakings during the year other than in the ordinary course of business.
The Group does not have shareholding guidelines or requirements for Directors, all of whom are Non-Executives.
The Chairman, Mr Jean-Paul Luksic, and Non-Executive Director Mr Andrónico Luksic C., are members of the Luksic family. Members of the Luksic
family are interested in the E. Abaroa Foundation, which controls Metalinvest Establishment and Kupferberg Establishment, which, taken together,
hold approximately 60.66% of the Company’s ordinary shares and approximately 94.12% of the Company’s preference shares. In addition, Mr
Jean-Paul Luksic controls the Severe Studere Foundation, which, in turn, controls Aureberg Establishment (which holds approximately 4.26% of the
Company’s ordinary shares as mentioned above). This creates significant alignment between these members of the Board and shareholders.
During the period, no Non-Executive Director was eligible for any short-term or long-term incentive awards, and no Non-Executive Director owns
any shares as a result of the achievement of performance conditions.
LTIP awards made to the CEO during the financial year (audited)
On 29 March 2024, the CEO was granted an LTIP award over a total of 300% of salary, split 30% on Restricted Awards and 70% on Performance
Awards, both of which are cash awards linked to a notional number of shares and the Company’s share price performance. As disclosed in last
year’s report, the grant level of 300% of salary was agreed by the Committee to maintain the competitiveness of the package and ensure continued
leadership stability of the organisation at this time of growth.
Type of award Date of grant
Number of phantom
shares/options
Award as
% of salary
1
Face value (market
value at date of grant) Performance period Vesting dates
2
Restricted Award 29 March 2024 41,367
90%
$1,043,102 N/A 29 March 2025
29 March 2026
29 March 2027
Performance Award 29 March 2024 96,527 210% $2,433,905 29 March 2024 –
31 December 2026
29 March 2027
1. The number of awards was calculated according to the base salary at the grant date on 29 March 2024 with the total face value shown in the table. The share price used to value these
awards is £19.97/share, using an exchange rate of USD/GBP 1.26, as an average of the five last working days as per the policy.
2. Restricted Awards vest in one-third annual tranches
Performance conditions attaching to long-term incentive plan awards granted to the CEO in 2024 (audited)
Measure Weighting Basis for measure Threshold Target Maximum Vesting at
threshold
Vesting
at target
Vesting at
maximum
Relative total
shareholder
return
50% TSR vs Global X
Copper Miners ETF
(CopX Index)
Performance
below index
Equal to index ≥ 5% above index 0% 33% 100%
Projects
performance:
25% (1) Los Pelambres
Concentrate Pipeline
(12.5%) & (2)
Desalination Plant
Expansion (12.5%)
< 60%
completion
Up to 84.9%
completion
>= 85% compliance 0% 75% 100%
Los Pelambres
Expansion: (3)
Addendum 1 (14%)
& (4) Tailings (6%)
Adenda 1 not
initiated by
December 2026.
Tailings
deposition
solution beyond
Mauro in initial
exploratory stage
by December
2026, with
expected
progress beyond
December 2028
(Alternative site
and technology).
Adenda 1
submitted by
December 2026.
Tailings deposition
solution beyond
Mauro in advanced
exploratory stage
by December
2026, subject to
Project Committee
approval
(Alternative site
and technology).
Environmental
assessment of the
project in Adenda 1
stage completed by
December 2026.
Tailings deposition
solution beyond
Mauro conceptually
defined by
December 2026
(Alternative site and
technology)
(5) DMC (50%) Below 60% of
the commitment
in the approved
plan.
Up to 84.9% of the
commitment in the
approved plan.
≥ 85% of the
commitment in the
approved plan.
(6) CMZ Approved plan
on the feasibility of the
primary sulphurates
project (5%)
≤ 40% of the
approved plan
Feasibility progress
up to 74.9% of the
approved plan.
Feasibility progress
≥ 75% of the
approved plan.
Antofagasta plc Annual Report 2024 153
Measure Weighting Basis for measure Threshold Target Maximum Vesting at
threshold
Vesting
at target
Vesting at
maximum
Mineral
resources
12.5% Tonnes of contained
copper
88.920m tonnes 90.558m tonnes 91.317m tonnes 0% 50% 100%
Environmental
and social
commitments
12.5% (40%) – Compliance
with the social
management plan for
Choapa Valley +
Northern District
< 50%
compliance
75% compliance >= 85% compliance 0% 75% 100%
(60%) – on climate
change and
environment
(15%) Decarbonization
Plan.
(15%) Circular
Economy Strategy.
(15%) Water
Efficiency.
(15%) International
Tailings Standard.
Ongoing
prefeasibility
analysis for
electrification.
Implementation
of one initiative
per pillar in two
companies.
Achieve less than
75% compliance
with the Water
Management
Standard across
all GM
companies.
Non-compliance
with GISTM, with
critical findings
closed beyond
the agreed
timeline and
standard
presented to the
Board.
Conduct
prefeasibility
analysis for
electrification of at
least one open pit.
Implement one
initiative per pillar
in three
companies, plus
one cross-
company initiative.
Increase the
implementation of
the Water
Management
Standard to 75%
across all GM
companies and
establish real-time
water data
monitoring for all
GM companies.
Achieve 75%
compliance with
GISTM, including
closing 75% of
critical findings as
per the timeline
presented to the
Board.
Conduct
prefeasibility analysis
for at least two open
pits and initiate the
first dynamic loading
pilot in the
implementation
process.
Implement one
initiative per pillar
per company, plus
two cross-company
initiatives.
Achieve 85%
implementation of
the Water
Management
Standard across all
GM companies, with
ongoing water
efficiency pilot tests
in each company.
100% compliance
with GISTM,
including the closure
of critical findings as
per the timeline
presented to the
Board.
1. Environmental targets relate to implementation of the decarbonisation plan, water efficiency systems, the circular economy strategy and performance against the Global Industry
Standard on Tailings Management.
The Committee sets stretching targets which incentivise the CEO and Executive Committee members to deliver exceptional performance
and to drive sustainable results. The Committee ensures that targets are appropriately stretching in the context of the business plan and prior
year achievements and that there is an appropriate balance between incentivising the CEO to meet financial targets and to deliver specific
non-financial goals.
Directors’ and CEO Remuneration Report continued
Antofagasta plc Annual Report 2024154
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
The table below summarises the movement in LTIP awards held by Mr. Arriagada.
Year
of grant Type of award Date of grant
Number of awards
as at start of year
Granted during
the year
Vested during
year
Lapsed during
year
Under award as at
31 December 2024 Vesting date
2021 Performance Awards 29 Mar 21 39,442 39,442 0 0 29 Mar 24
2021 Restricted Awards 29 Mar 21 5,635 5,635 0 0 29 Mar 24
2022 Performance Awards 29 Mar 22 52,686 0 0 52,686 29 Mar 25
2022 Restricted Awards 29 Mar 22 7,526
7,526
7,526 0 0
7,526
29 Mar 24
29 Mar 25
2023 Performance Awards 29 Mar 23 99,321 0 0 99,321 29 Mar 26
2023 Restricted Awards 29 Mar 23 14,189
14,189
14,189
14,189 0 0
14,189
14,189
29 Mar 24
29 Mar 25
29 Mar 26
2024 Performance Awards 29 Mar 24 96,527 0 0 96,527 29 Mar 27
2024 Restricted Awards 29 Mar 24 13,789
13,789
13,789
0 0 13,789
13,789
13,789
29 Mar 25
29 Mar 26
29 Mar 27
CEO pay history and Company performance
The total remuneration of the lead executives in the Group for the past ten years is as follows:
Single figure of remuneration
for the Group’s lead executive $000 2015 2016
1
2017 2018 2019 2020 2021 2022 2023
2
2024
CEO – Diego Hernández 2,445 1,525 – – – – – – - -
CEO – Iván Arriagada – 681 1,790 2,513 2,458 4,675 4,134 5,292 5,046 5,434
Annual bonus pay-out (% of maximum) 39% 61% 79% 66% 83% 93% 72% 81% 79% 72%
LTIP pay-out (% of maximum)
3
16% – 85% 60% 65% 99% 99% 100% 100% 100%
1. The single figure remuneration for the Group’s lead executive in 2016 comprises Diego Hernández’s remuneration until 8 April 2016 (when he stepped down as CEO) and Iván Arriagada’s
remuneration from 8 April 2016 (when he became CEO). No Performance Awards vested to the CEO in 2016.
2. 2023 figures have been restated to reflect actual 2023 outcomes, as explained in the CEO single figure of remuneration table on page 148.
3. Based on vesting of the Performance Awards. Restricted Awards do not have a performance element, so they are not included in these calculations.
Relative TSR performance
The chart below sets out the TSR performance of the Company over the past ten years vs the FTSE All-Share Index and the Global X Copper
Miners ETF (CopX Index). The FTSE All-Share Index has been selected as an appropriate broad equity market index for the Company given its
listing on the London Stock Exchange. The Global X Copper Miners ETF is also shown as this index is considered to be the most appropriate
sector comparator group for the Company, and is the LTIP TSR benchmark.
Indexed total shareholder returns
The following graph shows the value of £100 invested in Antofagasta on 31 December 2014 compared with £100 invested in the
comparative indices.
0
50
100
150
200
250
300
350
Dec 24Dec 23Dec 22Dec 21Dec 20Dec 19Dec 18Dec 17Dec 16Dec 15Dec 14
Antofagasta PLC FTSE All-Share Index Global X Copper Miners ETF
Other relevant information
Antofagasta plc Annual Report 2024 155
Change in remuneration of Directors and employees
The table below sets out the percentage change in key elements of the remuneration of the Directors who served during 2024, the CEO and
employees.
Non-Executive
Directors
1
2024 2023 2022 2021 2020
Percentage change in Percentage change in Percentage change in Percentage change in Percentage change in
fees/
base
salary benefits
5
annual
bonus
fees/
base
salary benefits
5
annual
bonus
fees/
base
salary benefits
5
annual
bonus
fees/
base
salary benefits
5
annual
bonus
fees/
base
salary benefits
5
annual
bonus
Jean-Paul Luksic 0% 26% N/A 0% 21% N/A 0% -5% N/A 1% 15% N/A 0% 28% N/A
Ramón Jara -6% 5% N/A 22% 17% N/A -4% 1,054% N/A 7% 2% N/A -4.3% 17% N/A
Juan Claro 0% 35% N/A 0% 548% N/A 1% 9% N/A 2% -32% N/A 0% -64% N/A
Andrónico Luksic C 0% -50% N/A 0% 129% N/A 0% 9% N/A 0% -32% N/A 0% 23% N/A
Vivianne Blanlot
2
-1% -33% N/A -2% 586% N/A 2% 9% N/A 4% -32% N/A 0% -45% N/A
Francisca Castro 6% -3% N/A 7% 67% N/A 2% 771% N/A 6% -73% N/A 1% -29% N/A
Michael Anglin 0% 100% N/A 0% 7% N/A 8% – N/A 9% – N/A 1% -75% N/A
Tony Jensen -6% -19% N/A -3% 74% N/A 10% – N/A 34% – N/A – – N/A
Maria Eugenia
Parot (appointed
20 April 2021) 1% -24% N/A 5% 182% N/A 5% – N/A N/A N/A N/A N/A N/A N/A
Heather Lawrence
(appointed
18 April 2023) 15% 51% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
CEO -7.2% 56% -1.1% 57% 18% 9% 10.4% 218% 38.5% 28.3% 51.5% -5.7% -8% -65% 38.8%
Company
employees
3
-5.5% 2.8% -31.9% 1.7% -26.6% 17.1% -10.3% 2.2% -20.3% 1.6% -0.3% 19.7% 1.8% 19.9% 7.5%
Mining Division
employees
4
-9.1% -9.7% -18.0% 15.7% 22.2% 22.1% -5.8% -11.4% -7.1% 7.2% 16.3% -10.6% -9.8% -10.1% 7%
1. The fee percentage change for Directors who served for only part of a year has been annualised. Tracey Kerr has not been included in the table as she was appointed to the Board
on 29 January 2024.
2. Vivianne Blanlot resigned from the Board with effect from 31 March 2025.
3. The parent company, Antofagasta plc, has fewer than ten employees. Reporting these figures is mandatory, and the parent company is not considered to be an appropriate
comparator group.
4. Mining Division employees are considered to be a relevant comparator group, partly because the Mining Division accounts for more than 97% of the Group’s revenue and partly because
the Annual Bonus Plan that applies to the Executive Committee is the same plan that applies to Mining Division employees at the management and professional levels. This annual bonus
figure relates to the percentage change in the average annual bonus for the Mining Division employees and does not include any one-off bonuses paid to employees due to the conclusion
of collective bargaining agreements with labour unions. The principal reasons for the overall decrease compared with 2023 were the weaker Chilean peso during 2024, and the impact
of one-off bonuses in 2023 paid in respect of the completion of labour negotiation agreements in that year.
5. There has been a small minor update to the methodology applied for reporting Directors’ benefits which has resulted in the restatement of the Directors’ benefits figures for 2020.
Directors’ benefits are all reported in accordance with footnote 3 in the Directors’ single figure of remuneration table on page 152.
Antofagasta has fewer than ten employees in the UK, and therefore there is no requirement to disclose a CEO pay ratio.
The relative importance of remuneration expenditure
The table below shows the total expenditure on employee remuneration, the distributions to shareholders, and tax expenses in 2023 and 2024.
2024 $m 2023 $m Percentage change
Employee remuneration
1
569.3 619.9 -8%
Distributions to shareholders
2
309.6 354.9 -13%
Taxation
3
662.9 586.8 13%
1. Employee remuneration includes salaries and social security costs which were expensed in the income statement in the year, as set out in Note 8 to the financial statements.
The percentage change in employee remuneration reflects several factors including exchange rate, inflation and headcount changes. The principal reason for the overall decrease
compared with 2023 was the weaker Chilean peso.
2. Distributions to shareholders represent the dividends proposed and approved for payment in relation to the year as set out in Note 13 to the financial statements.
3. Tax has been included because it shows the Group’s tax contribution, almost all of which is paid to the Chilean state by the Group’s operations in Chile. The tax expense represents
the current tax charge regarding corporate tax, mining tax (royalty) and withholding tax, as set out in Note 11 to the financial statements.
Directors’ and CEO Remuneration Report continued
Antofagasta plc Annual Report 2024156
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Key responsibilities
The Committee ensures that the Group’s remuneration arrangements support both the Group’s purpose and the effective implementation
of its strategy to enable the recruitment, motivation, reward and retention of talent.
The Committee is responsible for setting remuneration for the Chairman, Directors and CEO and monitoring the compensation strategy, level,
structure and reward outcomes for Executive Committee members.
The Committee actively participates in the Group’s talent management strategy, including reviewing, assessing and implementing succession
plans for the Executive Committee.
The Committee also reviews workforce remuneration and related policies, including the Diversity and Inclusion Policy, the alignment of incentives
and rewards with the Group’s culture, the terms and limits of collective negotiations with the Company’s unions, and the implementation of policy
changes that affect the workforce as a whole.
The responsibilities of the Committee are defined by its terms of reference, which can be found on the Company’s website.
2024 Remuneration and Talent Management Committee activities
The critical matters considered by the Committee are set out in the table below:
Jan 24 Mar 24 (x2) Aug 24 Nov 24
Directors’ and Executive remuneration and governance
2023 annual bonus and LTIP •
2024 annual bonus and LTIP • • •
Review of 2023 performance appraisal of CEO and Executive Committee
individual performance
•
Directors’ Remuneration Report • • •
Annual general meetings season governance update •
Remuneration governance •
CEO and Executive Committee compensation benchmarks • • •
Executive remuneration review •
2025 Mining Division scorecard •
Workforce, HR policies and talent management
Gender pay gap reporting •
CEO to worker pay ratio •
HR plan • • •
Talent management and succession planning •
Work system (Chile’s 40 hours law) • •
Staff engagement plan status •
Activities during the year
Engagement with colleagues
The Committee considers pay conditions across the Group when
reviewing Directors’ and the CEO’s remuneration. Given different
working environments and geographies, this is not a mechanical
process. The Company has no Executive Directors, and the CEO (who
is not a Director) follows the Group’s broader pay policy, including the
same benefits and Annual Bonus Plan. Executive Committee members
and key executives, including the CEO, participate in the LTIP under
the same terms. The CEO’s remuneration principles also apply to
workforce compensation, promoting a unified culture, values, and
behaviors across the Group.
Approximately 76% of the Group’s employees are unionised, and the
number is close to 100% at the operator level. The Committee reviews
the gender pay gap, CEO pay ratio figures and a range of other internal
and external remuneration comparison metrics and benchmarks when
determining the quantum and structure of the CEO’s remuneration.
This review includes feedback from shareholders and regular
engagement with union representatives and oversight of the
parameters for collective bargaining negotiations.
During 2024, in my capacity as Senior Independent Director and Chair
of the Remuneration and Talent Management Committee, I have led
efforts to uphold a fair, transparent, and competitive remuneration
framework aligned with the Group’s strategy and shareholder
interests. Additionally, I have conducted site visits to gain firsthand
insight into employees’ daily experiences and to listen to their
perspectives and ideas.
Our focus remains on strengthening the link between pay and
performance, fostering a culture of recognition and development,
and ensuring the Group attracts and retains top talent for long-term
success.
I appreciate the valuable insights shared by everyone we met with
and have conveyed them to the Board. The Remuneration Committee
will take these insights into account throughout 2025 when making
decisions.
Remuneration and Talent Management
Committee report
Remuneration and Talent Management Committee report
Antofagasta plc Annual Report 2024 157
Besides the mine visits, Directors visit Group operations throughout
the year, individually or in small groups, to hear employees’
perspectives on labour matters, including pay, culture, values, and
the implementation of remuneration policies. The Board’s engagement
with the workforce is detailed on page 112.
The Committee receives regular updates on workforce pay and
benefits from senior management, who engage with employees on
matters such as Remuneration Policy. Throughout the year, the
workforce is kept informed about the Group’s performance targets
and incentive programs. At the same time, senior management gathers
ongoing feedback on workforce performance and actively engages
with employees to understand their perspectives on remuneration
policies and practices.
Consequently, the Committee has multiple touchpoints with the
workforce for feedback on the Group’s workforce Remuneration
Policy, including that of senior management and the CEO. At the
beginning of every Committee meeting, the CEO provides an update
to the Committee on key workforce issues relating to remuneration
and talent. The Committee meetings are focused on these subjects.
Following each Committee meeting, the Committee Chair reports
a summary of matters considered to the full Board.
The Committee receives regular feedback on safety performance,
community relations, the working environment, operations and critical
projects and ensures that the workforce Remuneration Policy
(including senior management and CEO) is fair and transparent, and its
outcomes reflect the desired culture and ensure alignment with the
values and behaviours of the organisation. The Committee also
ensures that the process for setting pay and establishing KPIs and
performance outcomes across the workforce reflects the governance
and outcomes for senior management and the CEO. The Committee
ensures these principles are applied to the whole workforce, including
senior management and the CEO.
Support provided to the Committee
Willis Towers Watson plc (Willis Towers Watson) provided advice to the
Committee during 2024, having been selected through an independent
and competitive process in 2019. 2024 Willis Towers Watson’s fees
for this work were charged in accordance with time and materials
and amounted to £359,966. The Committee is satisfied that the advice
provided by Willis Towers Watson was objective and independent and
that no conflict of interest arose concerning these services. Willis
Towers Watson also provided advice and support to management
during the year, primarily on general remuneration issues,
benchmarking and best HR practices; together with ad hoc advice
on topics such as equality and gender-related pay disclosures.
Ellason LLP (Ellason) took over this advisory role in January 2025
following a competitive tender process in November 2024.
Willis Towers Watson and Ellason are independent professional
services firms that adhere to the Code of Conduct for Remuneration
Consultants and are signatories of the Code, which can be found
at www.remunerationconsultantsgroup.com.
During 2024, the Committee also received assistance from the
Chairman, Jean-Paul Luksic, the CEO, Iván Arriagada, the Vice
President of People and Organisation, Georgeanne Barcelo, and the
Company Secretary, Julian Anderson, none of whom participated
in discussions relating to their own remuneration. Additionally, part
of each Committee meeting is held without management present to
ensure that individual views or areas of concern can be debated
between Committee members.
Talent management and succession planning
The Committee plays a critical role in overseeing talent management
and succession planning, both essential to the Group’s long-term
sustainable performance. The annual talent review refines succession
strategies for key roles, identifies talent pipelines, defines individual
development plans, and aligns recruitment priorities.
In recent years, the Group has enhanced its approach, prioritising the
overall employee experience to strengthen its position as a top
employer, capable of attracting and retaining leading professionals.
Effective talent management ensures the Group can meet both current
and future business needs by focusing on acquiring, developing, and
retaining high-potential individuals. This strategy supports the Group’s
ongoing growth and success.
Remuneration and Talent Management Committee report continued
Antofagasta plc Annual Report 2024158
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Base salary and benefits
The CEO’s annual base salary is paid in Chilean pesos, and presented in this report in US dollars. The CEO’s annual base salary will be $1,240,037
from 1 January 2025. During 2024, the CEO’s base salary was periodically adjusted for inflation, in line with our Remuneration Policy and the CEO’s
employment contract. The CEO’s base salary is also annually reviewed and adjusted to reflect exchange rate adjustments. In November 2024 the
5% hurdle was triggered, as the Chilean Peso fell by 5.3% against the US Dollar during the year. Therefore, the monthly payment to the CEO was
increased by 6.7% to reflect the change in the exchange rate but also the inflation increase for the last quarter. The Chilean peso/US dollar exchange
rate will continue to be monitored during 2025. The Committee also continues to monitor the overall remuneration package value of the CEO in
comparison to peers in the FTSE 100 mining industry and our core global copper mining peer group.
Benefits will be provided in line with the Remuneration Policy and prior years.
Annual bonus
The CEO’s maximum award opportunity will be 200% of salary, consistent with the Remuneration Policy. In line with previous years, 70% of the
award will be based on Group performance. A summary of the 2025 annual bonus Group performance weightings has been disclosed below.
Owing to commercial sensitivity, the targets will only be disclosed in next year’s Annual Report.
Weighting Objective Measures
50% Core business
Mining Division EBITDA (15%)
Copper production (20%)
Cash costs before by-product credits (10%)
Innovation: Cuprochlor-T® (2.5%) & Tailings innovation (2.5%)
30% Business
development
Growth projects (25%)
Exploration programmes (5%)
20% Sustainability
and organisational
capabilities
Health and safety (5%)
People (5%)
Environmental performance (5%)
Social performance (5%)
LTIP
The Committee has approved an award to the CEO of 300% of base salary in 2025; this decision was made considering the growth challenge
that Antofagasta is facing, where the continuity of the CEO’s leadership is essential during this period of development of major projects. For
further details relating to the grant of the 300% LTIP for 2025, refer to page 141. The award will be split:
•
Restricted Awards (30% of the overall award) – vest in one-third annual tranches over a three-year period.
•
Performance Awards (70% of the overall award) – vest subject to a three-year performance period 1 January 2025 to 31 December 2027,
based on the measures, weightings and objectives set out in the table below.
Weighting Objective Basis for measure
50% Relative total
shareholder return
Comparison against Global X Copper Miners ETF (CopX Index) with 0% vesting if the Company’s performance is below
the index, 33% vesting at equal performance to the index and 100% vesting at performance 5% greater than the index.
25% Projects
performance
The maximum is achievable if:
•
The Los Pelambres new Concentrate Pipeline (17.5%) and Desalination Plant Expansion (17.5%) construction progress
is 85% or more of the approved plans.
•
The Centinela Second Concentrator (55%) with progress in the range of 85% – 100% of the approved plan and
submission for the Encuentro Sulphides Development project approval to the Antofagasta plc Board in 2025.
•
The Zaldívar Primary Sulphides Enablers project (10%) with progress in the range of 85% – 100% of the plan to
be approved.
12.5% Mineral resources
Maximum is 91.908 million tonnes of contained copper, with on-target and threshold performances of 90.833 and 87.606
million tonnes, respectively, as of 31 December 2027.
12.5% Environmental
and social
commitments
This KPI is made up of two parts:
1. Social Management Plan (40%).The maximum is payable if there is 85% delivery of the initiatives of the social management
plan. (30%) Choapa Valley & (10%) North district . Full details of the performance measures will be disclosed in the 2025
Annual Report.
2. Climate change and environment (60%).
•
85%-100% compliance with the nature strategy roadmap (15%).
•
Compliance with 2027 energy savings capture and materialisation using ISO 50.001 methodology in the range of 50.6
to 55.7 GWhe (15%).
•
By 2027, achievement of an Environmental Frequency Index <= 0.8 (15%).
•
Operating tailings deposits comply with Global Industry Standard on Tailings Management (15%).
Implementation of the CEO’s
Remuneration Policy in 2025
Implementation of the Director’s and CEO’s Remuneration Policy in 2025
Antofagasta plc Annual Report 2024 159
Chairman
Jean-Paul Luksic’s total fee for 2025 is $1,015,000 (2024 – $1,015,000), comprising:
•
$730,000 per annum for his services as Chairman of the Board;
•
$25,000 per annum for his services as Chairman of the Nomination and Governance Committee; and
•
$260,000 per annum for his services as Chairman of the Antofagasta Minerals board.
This fee level reflects his responsibility, experience and time commitment to the role.
Non-Executive Directors
There has been no change to Non-Executive Director base fees of $130,000 since 2012. Given the core role which Antofagasta Minerals plays
in the management of the mining operations and projects, all Directors also serve as Directors of Antofagasta Minerals. The annual fee payable
to Directors of Antofagasta Minerals remains $130,000 (as it has since 2012). Therefore, the combined base fees payable to Non-Executive
Directors amount to $260,000 per annum. The Board periodically reviews both the structure and levels of fees paid to Non-Executive Directors
and will continue reviewing these fees from time to time, in accordance with the policy.
Additional Director fees payable from 1 January 2025
Role
Additional fees
(US$)
Senior Independent Director 33,000
Audit and Risk Committee Chair 42,000
Audit and Risk Committee member 20,000
Nomination and Governance Committee Chair 25,000
Nomination and Governance Committee member 10,000
Projects Committee Chair 35,000
Projects Committee member 20,000
Remuneration and Talent Management Committee Chair 35,000
Remuneration and Talent Management Committee member 20,000
Sustainability and Stakeholder Management Committee Chair 35,000
Sustainability and Stakeholder Management Committee member 20,000
AGM voting history
2023 Directors’ and CEO Annual Report
on Remuneration (2024 AGM)
2023 Directors’ and CEO Remuneration
Policy (2023 AGM)
Votes for
96.75%
1,067,417,624
94.33%
1,036,351,144
Votes against
3.25%
35,807,989
5.67%
62,339,995
Votes cast as a percentage of issued share capital 93.03% 92.65%
Votes withheld 3,159,341 31,873
I hope this report demonstrates the importance that we place on the transparency of our decisions and how they are reached. I look forward
to meeting shareholders and answering questions at our AGM.
On behalf of the Board
FRANCISCA CASTRO
Chair of the Remuneration and Talent Management Committee
Implementation of the Directors’
Remuneration Policy in 2025
Implementation of the Director’s and CEO’s Remuneration Policy in 2025 continued
Antofagasta plc Annual Report 2024160
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Directors’ report
Directors
Directors who served during the year and summaries of current
Directors’ key skills and experience are set out in the Corporate
Governance Report on pages 114-116.
Post-balance-sheet events
In January 2025, the Group entered into an agreement with
Mineralinvest to acquire its 49% interest in Antomin Investors’ copper
exploration properties in the Centinela District for $80 million. In March
2025, Los Pelambres completed a $2 billion financing associated with
its water assets. Further details are set out in Note 37 to the financial
statements, regarding these post-balance-sheet events.
Financial risk management
Details of the Company’s policies on financial risk management are set
out in Note 25 to the financial statements.
Results and dividends
The consolidated profit before tax increased from $1,965.5 million in
2023 to $2,071.1 million in 2024.
The Board has recommended a final dividend for 2024 of 23.5 cents
per ordinary share, which amounts to $231.7 million and will be paid
on 12 May 2025 to shareholders on the share register at the close of
business on 22 April 2025. The Board declared an interim dividend for
the first half of 2024 of 7.9 cents per ordinary share, which amounted
to $77.9 million. This gives total dividends proposed in relation to 2024
(including the interim dividend) of 31.4 cents per share or $309.6
million (2023 – 36.0 cents per ordinary share or $354.9 million in
total), equivalent to a payout ratio of 50% of underlying earnings.
Preference shares carry the right to a fixed cumulative dividend of 5%
per annum of their nominal value of £1 per share. The preference
shares are classified within borrowings and preference dividends are
included within finance costs. The total cost of dividends paid on
preference shares and recognised as an expense in the income
statement was $0.1 million (2023 – $0.1 million). Further information
relating to dividends is set out in the Financial Review on page 77 and
in Note 13 to the financial statements.
Political contributions
The Group did not make any political donations during the year ended
31 December 2024 (2023 – nil).
Auditor
The Company’s auditor, Deloitte LLP, has indicated its willingness to
continue in office and a resolution seeking its reappointment will be
proposed at the Annual General Meeting.
Disclosure of information to auditor
The Directors in office at the date of this report have each confirmed that:
•
so far as they are aware, there is no relevant audit information of
which the Group’s auditor is unaware; and
•
they have taken all the steps they ought to have taken as Directors in
order to make themselves aware of any relevant audit information
and to establish that the Group’s auditor is aware of that information.
Capital structure
Details of the authorised and issued ordinary share capital are shown
in Note 30 to the financial statements. The Company has one class of
ordinary shares, which carry no right to fixed income. Each ordinary
share carries one vote at any general meeting of the Company.
Details of the preference share capital are shown in Note 23 to the
financial statements. The preference shares are non-redeemable and
are entitled to a fixed cumulative dividend of 5% of their nominal value
of £1 per share per annum.
Each preference share carries 100 votes on a poll at any general
meeting of the Company. When the preference shares were issued,
they each carried one vote at any general meeting of the Company in
parity with the ordinary shares in issue at that time. The number of
ordinary shares in issue has increased since then through stock splits
and bonus issues and the preference shares were not split at the
same time as the ordinary shares. Therefore, in order to maintain
proportionate voting rights attaching to the preference shares, the
voting rights attaching to preference shares have increased to 100
votes on a poll at any general meeting of the Company.
There are no specific restrictions on the transfer of shares or on their
voting rights beyond those standard provisions set out in the
Company’s Articles of Association and other provisions of applicable
laws and regulations (including following a failure to provide the
Company with information about interests in shares as required by the
Companies Act 2006). The Company is not aware of any agreements
between holders of the Company’s shares that may result in
restrictions on the transfer of securities or on voting rights.
With regard to the appointment and replacement of Directors, the
Company is governed by, and has regard to, its Articles of Association,
the UK Corporate Governance Code 2018, the Companies Act 2006
and related legislation. The Articles of Association may be amended by
special resolution of the shareholders. There are no significant
agreements in place that take effect, alter or terminate upon a change
of control of the Company. Except as permitted by the Company’s
remuneration policy, there are no agreements in place between the
Company and its Directors or employees that provide for
compensation for loss of office or employment resulting from a change
of control of the Company.
The percentages of the total nominal share capital of the Company
represented by each class of share are:
Class
Number
in issue
Nominal value
per share
Percentage
of capital
Ordinary shares of 5p each 985,856,695 5p 96.10%
Preference shares of £1.00 each 2,000,000 £1 3.90%
Authority to issue shares and authority to purchase own
shares
At the AGM held on 8 May 2024, authority was given to the Directors
to allot unissued relevant securities in the Company up to a maximum
amount of £16,430,945. This authority expires on the date of this
year’s AGM, scheduled to be held on 8 May 2025. No shares have
been issued pursuant to that authority as at the date of this report or
during the year. The Directors propose to seek renewal of this
authority at this year’s AGM. However, in line with the Investment
Association’s most recent share capital management guidance, this
year’s proposed authority will authorise the Directors to allot one-third
only by way of any fully pre-emptive offer (rather than by way of rights
issue only).
Further special resolutions passed at the 2024 AGM granted authority
to the Directors to allot equity securities in the Company for cash up to
an aggregate nominal amount of £4,929,283 (representing slightly less
than 10% of its issued ordinary share capital) without regard to the
pre-emption provisions of the Companies Act 2006 and for an
additional aggregate nominal amount of £4,929,283 (representing an
Directors’ report
Antofagasta plc Annual Report 2024 161
additional 10% of its issued ordinary share capital) in connection with
the financing or refinancing of an acquisition or specified capital
investment (plus, in each case, an additional 2% for the purposes of a
follow-on offer as described in the Pre-Emption Group’s Statement of
Principles). These authorities also expire on the date of this year’s
AGM. Accordingly, the Directors will seek to renew these authorities in
line with the Pre-Emption Group’s Statement of Principles and the
Investment Association’s guidance.
The Company was also authorised by a shareholders’ resolution
passed at the 2024 AGM to purchase up to 10% of its issued ordinary
share capital. Any shares bought back may be held as treasury shares
or, if not so held, must be cancelled immediately upon completion of
the purchase, thereby reducing the amount of the Company’s issued
and authorised share capital. This authority will expire at this year’s
AGM and a resolution to renew the authority for a further year will be
proposed. No shares were purchased by the Company during the year.
Directors’ interests and indemnities
Details of Directors’ contracts and letters of appointment,
remuneration and emoluments, and their interests in the shares of the
Company as at 31 December 2024, are given in the Directors’
Remuneration Report. No Director had any material interest in a
contract of significance (other than a service contract in respect of
Ramón Jara – see page 152) with the Company or any subsidiary of
the Company during the year.
In accordance with the Company’s Articles of Association and to the
extent permitted by the laws of England and Wales, Directors are
granted an indemnity from the Company in respect of liabilities
personally incurred as a result of their office. These indemnities were
in force during the course of the financial year ended 31 December
2024 and continued to be in force as at the date of this report. The
Company also maintained a Directors’ and Officers’ liability insurance
policy throughout the financial year. A new policy has been entered
into for the current financial year.
Conflicts of interest
Each year, the Directors complete a form identifying interests that may
constitute a conflict of interest, including, for example, directorships in
other companies. Directors are also required to notify the Company
during the year of any relevant changes in those positions or
situations.
The Board, with assistance from the Nomination and Governance
Committee, considers potential and actual conflict situations and
decides the steps, if any, which need to be taken to manage each
situation.
The authorisation process is not regarded as a substitute for managing
an actual conflict of interest if one arises and the monitoring and, if
appropriate, authorisation of actual and potential conflicts of interest is
an ongoing process.
Substantial shareholdings
As at 31 December 2024, the following significant holdings of voting
rights in the share capital of the Company had been disclosed to the
Company under Disclosure Guidance and Transparency Rule 5:
Shareholder
Ordinary share
capital
%
Preference
share capital
%
Total share
capital
%
Metalinvest Establishment 50.72 94.12 58.04
Kupferberg Establishment 9.94 – 8.27
Aureberg Establishment 4.26 – 3.54
Metalinvest Establishment and Kupferberg Establishment are both
controlled by the E. Abaroa Foundation (“Abaroa”), in which members
of the Luksic family are interested. Asexplained in Note 36 to the
financial statements, Metalinvest Establishment is the immediate
Parent Company of the Group and the E. Abaroa Foundation is the
Ultimate Parent Company. Aureberg Establishment is controlled by the
Severe Studere Foundation that, in turn, is controlled by Jean-Paul
Luksic, the Chairman of the Company.
Exploration and research and development
The Group’s subsidiaries carry out exploration and research and
development activities that are necessary to support and expand the
Group’s operations.
Going concern
The Directors, having made appropriate enquiries, have satisfied
themselves that it is appropriate to adopt the going concern basis of
accounting in preparing the financial statements, as detailed in Note 1
to the financial statements. Additionally, the Directors have considered
the Company’s longer-term viability, as described in their statement on
page 96.
Business relationships with suppliers, customers and others
A statement of how the Directors have had regard to the need to
foster the Company’s business relationships with suppliers, customers
and others and the effect of that regard, including on the principal
decisions made by the Company during the year, is set out on pages
48-71 of the Strategic Report and pages 100-163 of the Corporate
Governance Report.
Other statutory disclosures
The Corporate Governance Report on pages 100-162, the Statement
of Directors’ Responsibilities on page 163 and Note 25 to the financial
statements are incorporated into this Directors’ Report by reference.
Other information can be found in the following sections of the
Strategic Report, in addition to the Sustainability Databook, which is
available on the Company’s website (www.antofagasta.co.uk).
Location in
Annual Report
Future developments in the business of the Group Pages 44-47
Viability statement Page 96
Subsidiaries, associates and joint ventures Pages 28-39
Employee engagement Pages 54-55
Greenhouse gas emissions
1
Pages 62-70
Streamlined energy and carbon reporting Pages 62-70
Disclosures required pursuant to Listing Rule 6.6.4R can be found on
the following pages of the Annual Report:
Location in
Annual Report
Statement of interest capitalised by
the Group 6.6.1R(1)
See Notes 10 and 15 to the
financial statements
Long-term Incentive Plan
UKLR 6.6.1R(3)
See pages 140-159 and Note
26 to the financial statements
Independence from controlling
shareholder (UKLR 6.6.1R(13)) Page 105
By order of the Board
JULIAN ANDERSON
Company Secretary
20 March 2025
1. Antofagasta does not report on the proportion of carbon dioxide emissions or energy
consumption associated with the UK and offshore area since it only has an office in the
UK and no operations and as such is below the threshold level for reporting.
Directors’ report continued
Antofagasta plc Annual Report 2024162
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Statement of Directors’
responsibilities in respect
of the financial statements
Statement of Directors’ responsibilities
The Directors are responsible for preparing the 2024 Annual Report
and Financial Statements in accordance with applicable law and
regulation.
Company law requires the Directors to prepare financial statements
for each financial year. Under that law the Directors have prepared
the Group financial statements in accordance with UK-adopted
international accounting standards and the Parent Company financial
statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards,
comprising FRS 101 “Reduced Disclosure Framework”, and
applicable law).
Under company law, Directors must not approve the financial
statements unless they are satisfied that they give a true and fair view
of the state of affairs of the Group and Parent Company and of the
profit or loss of the Group for that period. In preparing the financial
statements, the Directors are required to:
•
select suitable accounting policies and then apply them consistently;
•
state whether applicable UK-adopted international accounting
standards have been followed for the Group financial statements
and United Kingdom Accounting Standards, comprising FRS 101,
have been followed for the Parent Company financial statements,
subject to any material departures disclosed and explained in the
financial statements;
•
make judgements and accounting estimates that are reasonable and
prudent; and
•
prepare the financial statements on the going concern basis unless
it is inappropriate to presume that the Group and Parent Company
will continue in business.
The Directors are responsible for safeguarding the assets of the Group
and Parent Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The Directors are also responsible for keeping adequate accounting
records that are sufficient to show and explain the Group’s and Parent
Company’s transactions and disclose with reasonable accuracy at any
time the financial position of the Group and Parent Company and
enable them to ensure that the financial statements and the Directors’
Remuneration Report comply with the Companies Act 2006.
The Directors are responsible for the maintenance and integrity of the
Parent Company’s website. Legislation in the United Kingdom
governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Directors’ confirmations
The Directors consider that the 2024 Annual Report and Financial
Statements and accounts, taken as a whole, is fair, balanced and
understandable and provides the information necessary for
shareholders to assess the Group’s and Parent Company’s position
and performance, business model and strategy.
Each of the Directors, whose names and functions are listed in the
Corporate Governance Report confirm that, to the best of their
knowledge:
•
the Group financial statements, which have been prepared in
accordance with UK-adopted international accounting standards,
give a true and fair view of the assets, liabilities, financial position
and profit of the Group;
•
the Parent Company financial statements, which have been
prepared in accordance with United Kingdom Accounting Standards,
comprising FRS 101, give a true and fair view of the assets, liabilities
and financial position of the Parent Company; and
•
the Strategic Report includes a fair review of the development and
performance of the business and the position of the Group and
Parent Company, together with a description of the principal risks
and uncertainties that they face.
In the case of each Director in office at the date the Directors’ Report
is approved:
•
so far as the Director is aware, there is no relevant audit information
of which the Group and Parent Company’s auditors are unaware;
and
•
they have taken all the steps that they ought to have taken as a
Director in order to make themselves aware of any relevant audit
information and to establish that the Group and Parent Company’s
auditors are aware of that information.
By order of the Board
JEAN-PAUL LUKSIC
Chairman
FRANCISCA CASTRO
Senior Independent Director
20 March 2025
Antofagasta plc Annual Report 2024 163
Financial performance
Independent auditor’s report 166
Consolidated income statement 174
Consolidated statement of comprehensive
income 175
Consolidated statement of changes
in equity 175
Consolidated balance sheet 176
Consolidated cash flow statement 177
Notes to the financial statements 178
Parent company financial statements 231
Financial
performance
Antofagasta plc Annual Report 2024164
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Antofagasta plc Annual Report 2024 165
Report on the audit of the financial statements
1. Opinion
In our opinion:
•
the financial statements of Antofagasta plc (the ‘Parent Company’)
and its subsidiaries (the ‘Group’) give a true and fair view of the
state of the Group’s and of the Parent Company’s affairs as at 31
December 2024 and of the Group’s profit for the year then ended;
•
the Group financial statements have been properly prepared in
accordance with United Kingdom adopted international accounting
standards;
•
the Parent Company financial statements have been properly
prepared in accordance with United Kingdom Generally Accepted
Accounting Practice, including Financial Reporting Standard 101
“Reduced Disclosure Framework”; and,
•
the financial statements have been prepared in accordance with
the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
•
the consolidated income statement;
•
the consolidated statement of comprehensive income;
•
the consolidated statement of changes in equity;
•
the consolidated balance sheet;
•
the consolidated cash flow statement;
•
the related Notes 1 to 37 to the financial statements;
•
the Parent Company balance sheet;
•
the Parent Company statement of changes in equity; and,
•
the related Notes 1 to 8 to the Parent Company financial statements.
3. Summary of our audit approach
Key audit matters The key audit matters that we identified in the current year were:
•
assessment of indicators of impairment and impairment reversal of non-current assets and recognition of an
impairment reversal on the Antucoya cash generating unit; and
•
impairment valuation of the Buenaventura investment in associate
These key audit matters are consistent with those identified by the predecessor auditor, with the exception of
assessment of indicators of impairment of investments in subsidiaries at the parent company, which we did not
consider a key audit matter in the current year.
Materiality The materiality that we used for the Group financial statements was $77m which was determined on the basis of 5%
of forecast three-year-average profit before tax adjusted for one-off items. This is consistent with the methodology
used by the predecessor auditor.
Scoping Our audit scope for the 2024 audit comprises of audits of the entire financial information for four components and
audits of specified account balances for three components. The components subjected to these audit procedures
represented 97% of the Group’s revenue and 96% of the Group’s profit before tax.
The financial reporting framework that has been applied in the
preparation of the Group financial statements is applicable law and
United Kingdom adopted international accounting standards. The
financial reporting framework that has been applied in the preparation
of the Parent Company financial statements is applicable law and
United Kingdom Accounting Standards, including FRS 101 “Reduced
Disclosure Framework” (United Kingdom Generally Accepted
Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International Standards
on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are further described in the auditor’s
responsibilities for the audit of the financial statements section of
our report.
We are independent of the Group and the Parent Company in
accordance with the ethical requirements that are relevant to our audit
of the financial statements in the UK, including the Financial Reporting
Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public
interest entities, and we have fulfilled our other ethical responsibilities
in accordance with these requirements. The non-audit services
provided to the Group for the year are disclosed in Note 8 to the
financial statements. We confirm that we have not provided any
non-audit services prohibited by the FRC’s Ethical Standard to the
Group or the Parent Company.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independent auditor’s report to the
members of Antofagasta plc
Independent auditor’s report to the members of Antofagasta plc
Antofagasta plc Annual Report 2024166
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
3. Summary of our audit approach
First year audit
transition
The year ended 31 December 2024 is our first year as auditor of the Group. We have been independent since August
2023 and commenced our transition activities from that date. Our work included:
•
Establishing a detailed audit transition plan;
•
Shadowing the predecessor auditor through the 31 December 2023 audit, including attendance at key meetings,
including Audit and Risk Committee meetings;
•
Reviewing the previous auditor’s Group and component audit files;
•
Holding transition workshops with key finance and operational management, including internal audit, treasury, tax,
legal and group finance teams to inform our audit planning;
•
Assessing the appropriateness of the accounting policies and judgements disclosed in the previous year’s financial
statements; and
•
Holding a group audit transition and planning meeting with our component audit team and conducting group audit
team visits to Chile.
These procedures built our understanding of the Group which informed our audit risk assessment, through which we
identified the risks of material misstatement to the Group’s financial statements.
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the
financial statements is appropriate.
Our evaluation of the Directors’ assessment of the Group’s and parent company’s ability to continue to adopt the going concern basis of
accounting included:
•
Challenging the key assumptions used in the base case scenarios by assessing whether a 10% decline in forecast copper prices was
appropriate based on broker forecasts and historical volatility patterns.
•
Challenging the downside sensitivity scenarios, where the effect would stem from a greater than 10% decline in copper prices, by modelling
our own more severe scenarios.
•
Considering market and industry specific factors, including operational risks which could impact production volumes, as well as by-product
pricing volatility, and the effect of changes in FX rates.
•
Analysing the covenants included within the Group’s borrowing facilities, and assessing the forecast compliance with the specified Net
Financial Debt/EBITDA, EBITDA/Interest Expense and Total Indebtedness/Tangible Net Worth ratios.
•
Assessing the appropriateness of the disclosures relating to going concern in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the Group’s and Parent Company’s ability to continue as a going concern for a period of at least twelve
months from when the financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add or draw attention
to in relation to the Directors’ statement in the financial statements about whether the Directors considered it appropriate to adopt the going
concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the
current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These
matters included those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the
efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.
5.1. Assessment of indicators of impairment and impairment reversal of non-current assets and recognition of an impairment
reversal on the Antucoya cash generating unit
Key audit matter
description
In accordance with IAS 36 ‘Impairment of assets’, management performed an assessment of indicators of impairment
and impairment reversal over its non-current assets.
Antucoya
The Group had previously recognised impairments at the Antucoya cash generating unit (“CGU”) totalling $716.0
million in 2012 and 2016. Of the original impairment amounts, $371.4 million was calculated by management to be
unamortised as at 31 December 2024.
Management’s assessment concluded that indicators of impairment reversal existed at 31 December 2024. An IAS 36
impairment valuation was performed on a fair value less cost of disposal basis and this indicated that the full amount
available for reversal should be recognised and a pre-tax impairment reversal of $371.4m was recorded.
Antofagasta plc Annual Report 2024 167
Independent auditor’s report to the members of Antofagasta plc continued
5.1. Assessment of indicators of impairment and impairment reversal of non-current assets and recognition of an impairment
reversal on the Antucoya cash generating unit continued
Key audit matter
description
continued
Judgement is required in determining the key valuation assumptions, the most significant of which is the copper price
forecast used, with other assumptions including the discount rate, the Chilean Peso – US dollar exchange rate, and
key operational assumptions including the reserves and resouces determined by management’s internal experts,
production volumes and unit costs. There is also complexity in determining whether the headroom indicated
represents an increase in the underlying asset value (which would be an indicator of impairment reversal) or whether
it merely arises from the passage of time since the previous impairment.
Zaldívar
Management concluded that overall there were no indicators of impairment for Zaldívar at 31 December 2024 based
on its assessment which included consideration of i) the headroom indicated from its latest life-of-mine (“LOM”)
valuation (with adjustments made to achieve IAS 36 compliance) and ii) its assessment over the probability and timing
of the previously submitted permit application being successfully received, which is required to allow the continued
extraction of water, and mining, beyond May 2025.
Consistent with Antucoya, the valuation of the Zaldívar CGU is dependent on the copper price assumption, as well as
other macroeconomic and operational assumptions. The additional key valuation judgements in respect of Zaldívar
include the risk associated with water and mine permitting extension.
Refer to Note 4 to the Group financial statements which sets out the key valuation assumptions, the impairment
reversal recognised and the sensitivity analysis performed; and Note 3 which sets out the impairment indicator
assessment at Zaldívar and is considered a critical accounting judgement by management with further detail on
the specific judgements included in Note 5. Further information is included in the Audit and Risk Committee report
on page 129.
How the scope of
our audit responded
to the key audit
matter
In response to the key audit matter noted above, we performed the following procedures:
•
We gained an understanding of management’s process for assessing indicators of impairment or impairment
reversal. We obtained an understanding of relevant internal controls over that process.
•
We performed an independent assessment of impairment and impairment reversal indicators considering the
current economic environment, including the volatility in commodity pricing.
•
We assessed management’s determination of relevant CGUs by reference to the requirements of accounting
standards and our understanding of the nature of the Group’s mining operations.
•
With the support of our valuations specialists, we challenged management’s copper price forecast and exchange
rates against third party forecast data, and benchmarked the discount rate used to an independently developed
reasonable range.
•
For Zaldívar specifically, we gained an understanding of the progress of the water and mining permit application
with the responsible individuals within management and inspected supporting correspondence and documentation
with the relevant regulatory body. Based on this evidence we evaluated both the overall probability of the permit
being obtained by May 2025 and the extent of the risk adjustment a market participant would apply in valuing
the CGU.
•
Production and cost assumptions were benchmarked against historical performance and compared to the latest
approved budgets. The minable production tonnage assumptions were assessed against reserves and resources
estimates.
•
We assessed the competence, capability and objectivity of the Group’s internal experts responsible for preparing the
reserves and resources statements.
•
Working with our Deloitte valuation and mining specialists we assessed specific technical assumptions, including the
forecast processing recoveries at Zaldívar and the value attributable to the Zaldívar primary sulphides project.
•
We assessed the mechanical accuracy of the impairment models. In the case of Antucoya, we also evaluated
management’s calculation of the element of the historical impairment which was available for reversal and the
analysis of the amount of headroom which represented an increase in underlying value versus the impact of the
passage of time, as that underpinned the indicators of impairment reversal conclusion.
•
In relation to climate change, we evaluated the modelling for each mine to assess whether costs reflecting probable
climate-related risks and management’s climate change commitments were appropriately included in the cash flows
to the extent these are material.
•
We evaluated the appropriateness of the carrying values of each CGU in scope for an impairment review.
•
We performed a stand back assessment and evaluated management’s valuations for Antucoya and Zaldívar
respectively for any evidence of management bias in assumptions and judgements applied.
•
We evaluated the adequacy of the related disclosures in the financial statements, including the key assumptions used
and the completeness and accuracy of sensitivities disclosed.
Key observations We concluded that management’s assessment of impairment indicators and impairment reversals is appropriate, and
that the methodology applied is in accordance with IAS 36.
We concluded that key assumptions are in a reasonable range and that the recoverable amounts are appropriate.
We considered management’s disclosures to be appropriate.
Antofagasta plc Annual Report 2024168
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
5.2. Impairment valuation of the Buenaventura investment in associate
Key audit matter
description
The Group has a 19% interest in Buenaventura, a publicly traded precious and base metals company. As detailed
further in Notes 4 and 18, this was an acquisition achieved in stages, with the group holding an existing 7% interest in
2023, with a further 12% interest acquired in March 2024. Immediately prior to the transaction completing, the
Group’s existing 7% equity interest and the financial asset relating to the agreement to acquire the additional interest
were carried at a fair value based on the quoted share price of Buenaventura. On completion, these two assets were
derecognised and the investment in associate was initially recognised at an equivalent value of $814.1m.
Between that date and 31 December 2024, the Buenaventura share price decreased by approximately 30%. This has
been assessed as an indicator of impairment of the investment in associate, and accordingly an impairment review has
been performed as at 31 December 2024.
Management developed an internal valuation for the investment based on a discounted cash flow (DCF) model built up
by valuing each of Buenaventura’s directly and indirectly held operations, investments and projects, as well as the
valuation of additional mineral resources based on resource multiples. Based on this exercise management concluded
that the recoverable amount of the investment balance was above its carrying value, and accordingly no impairment
was recognised.
This review was based on the fair value less costs of disposal method. The most significant assumption used in this
valuation was the forecast commodity prices (of which copper was the most relevant for the valuation) given the
sensitivity of the valuation to these inputs. Other assumptions included future production levels, operating costs and
sustaining and development capital expenditure as well as discount rates.
Management identified a critical accounting judgement on this valuation and disclosed further sensitivities of this key
assumption in note 18.
Refer to Notes 3 and 18 to the Group financial statements and the Audit and Risk Committee’s views set out
on page 129.
How the scope of
our audit responded
to the key audit
matter
In response to the key audit matter noted above we performed the following procedures:
•
We obtained an understanding of the relevant internal controls over management’s impairment assessment process.
•
We challenged the appropriateness of using an internally developed detailed DCF valuation rather than the listed
share price which represents an observable market-based valuation with the support of our valuation specialists,
considering the trading volumes and the shareholdings in Buenaventura;
•
With support from our valuations specialists, we assessed:
–
the valuation methodologies adopted in accordance with IAS 36;
–
the appropriateness of management’s commodity price forecasts by benchmarking these against third party
forecast data and benchmarked the discount rate used to an independently developed reasonable range;
–
the consolidated EBITDA for the Buenaventura Group per management’s valuation model by performing a
look-back analysis to FY24 actual results to date and reconciling management’s modelled EBITDA to three-year
forward guidance published by Buenaventura management in Q4 2024;
–
the key operational assumptions by reconciling production, operating cost and capital expenditures assumptions to
publicly available pre-feasibility studies and feasibility studies which were performed by third party mining
engineering consultancies on a mine-by-mine basis, and evaluating reliability of these reports as audit evidence;
–
the level of risk adjustment incorporated into the modelling, specifically in relation to future development projects;
–
the value attributed to additional resources through the use of resource multiples by benchmarking the values to
those obtained on similar assets in market transactions; and
–
the mechanical accuracy of the impairment model.
•
In relation to climate change, we evaluated the modelling to assess whether costs reflecting probable climate-related
risks and Buenaventura management’s climate change commitments were appropriately included to the extent these
are material.
•
In conjunction with our valuation and mining specialists, we performed a stand back exercise to assess the overall
reasonableness of the valuation and to assess whether there was any evidence of management bias in assumptions
and judgements applied. This involved benchmarking valuation multiples including price to net asset value multiple
and equity value to EBITDA multiples to peer companies.
•
We evaluated the adequacy of the related disclosures in the financial statements, including the key assumptions used
and the completeness and accuracy of sensitivities disclosed.
Key observations Based on the results of our assessment of management’s methodology, the modelling complies with accounting
standards and is considered appropriate.
We concluded that key assumptions are reasonable and that the recoverable amount is appropriate.
We considered management’s disclosures to be appropriate.
Antofagasta plc Annual Report 2024 169
6.2. Performance materiality
We set performance materiality at a level lower than materiality to
reduce the probability that, in aggregate, uncorrected and undetected
misstatements exceed the materiality for the financial statements as
a whole.
Group financial statements
Parent Company
financial statements
Performance
materiality
70% (2023: 75%) of
Group materiality
70% (2023: 75%) of
Parent Company
materiality
Basis and rationale
for determining
performance
materiality
In determining performance materiality, we
considered our risk assessment, including
our assessment of the Group’s overall control
environment and the level of corrected and
uncorrected misstatements identified in
previous audits by the predecessor auditor.
6.3. Error reporting threshold
We agreed with the Audit and Risk Committee that we would report to
the Committee all audit differences in excess of $3.9m (2023: $5.8m),
as well as differences below that threshold that, in our view, warranted
reporting on qualitative grounds. We also report to the Audit and Risk
Committee on disclosure matters that we identified when assessing
the overall presentation of the financial statements.
7. An overview of the scope of our audit
7.1. Identification and scoping of components
Our Group audit was scoped by obtaining an understanding of the
Group and its environment and assessing the risks of material
misstatement at the Group level.
3%
97%
Not subject to audit
Subject to audit
Revenue
4%
96%
Profit
before tax
Not subject to audit
Subject to audit
Independent auditor’s report to the members of Antofagasta plc continued
6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of a reasonably
knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit work and in evaluating the results
of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group financial statements Parent Company financial statements
Materiality $77m (2023: $117m) $21m (2023: $21m)
Basis for determining
materiality
5% of the 3-year-average profit before tax, adjusted to remove the
impact of one-off items such as impairment charges and reversals.
In determining materiality, we used the forecast profit before tax for
the year to 31 December 2024. Final materiality equates to
approximately 4.6% of actual 3-year-average profit-before-tax
1% of net assets
Rationale for the
benchmark applied
Using a three-year average continues to be an effective approach
for audits of companies in the mining industry given a single year’s
profits are highly exposed to cyclical commodity price fluctuations.
We have considered net assets as the
appropriate measure given the Parent Company
is primarily a holding Company for the Group.
PBT excluding exceptional items
Group materiality
Audit Committee
reporting threshold
$3.9m
Group materiality
$77m
Component performance materiality
$13m to $40m
$1,649m
$77m
The core mining business comprises four mining operations: Los
Pelambres, Centinela, Antucoya, and Zaldívar, a joint venture with
Barrick Gold Corporation operated by the Group. These mines produce
copper cathodes, copper concentrates and significant volumes of
by-products. In addition to mining, the Group has a transport division
that provides rail and road cargo services in northern Chile,
predominately to mining customers, including to the Group’s own
mining operations. The components in scope represent reporting
entities within the Group’s consolidation and cover the Group’s core
mining operations. All of the above operations are located in Chile.
In addition, the Group has corporate head offices located in Santiago,
Chile and London, United Kingdom. The Group also has exploration
projects in various countries.
In establishing the overall approach to the Group audit, we determined
the type of work that needed to be performed at each of the four mine
sites and corporate offices in Chile, by us, as the Group engagement
team and by our component auditors from Deloitte Chile. Our audit
scope for the 2024 audit comprises of audits of the entire financial
information of four components and audits of specified account
Antofagasta plc Annual Report 2024170
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
balances for three components. Component performance materialities
were capped at $40m, giving a range of $13m to $40m. For the
purposes of the Group audit, we used a $13m performance materiality
for certain balances in the Parent Company component audit.
The components subjected to these audits represented 97% of the
Group’s revenue and 96% of the Group’s profit before tax.
At the parent entity level, we tested the consolidation process and
carried out analytical procedures to obtain further assurance that there
were no significant risks of material misstatement in the aggregated
financial information of the components not subject to audit
procedures.
7.2. Our consideration of the control environment
Antofagasta relies on the effectiveness of a number of IT systems and
applications to ensure that financial transactions are recorded
completely and accurately. The Group uses SAP in all of its legal
entities. With the involvement of our IT specialists, we assessed key
controls over the SAP system. From our walkthroughs and
understanding of the entity and the controls at the business cycle and
account balance levels, we relied on controls in the following business
cycles: revenue, accounts receivable and accounts payable.
The Group continues to invest in its internal controls as part of its
ongoing control improvement activities and its preparations for the
introduction of the Directors’ declaration over the effectiveness of
material internal controls set out in the 2024 UK Corporate
Governance Code and first applicable for the year ending 31 December
2026, with areas of focus including enhancing the precision and
documentation of management review controls over spreadsheet
models. The Audit and Risk Committee has discussed the transition to
the 2024 UK Corporate Governance Code and management’s action
plans on pages 128 to 132.
7.3. Our consideration of climate-related risks
The Group has considered climate change risk as part of their risk
assessment process when considering principal risks and
uncertainties facing the Group. This is set out in the strategic report on
page 86, and in note 1 to the financial statements.
In planning our audit, the financial impacts on the Group of climate
change and the transition to a low carbon economy were considered
where these factors have the potential to directly or indirectly impact
key judgements and estimates within the financial statements. We
worked with our internal environmental specialists in considering
potential climate change risk factors. Our risk assessment was
based on:
•
Enquiries of senior management to understand the potential impact
of climate change risk including physical risks to producing assets,
the potential changes to the macro-economic environment and the
potential for the transition to a low carbon environment to occur
quicker than anticipated;
•
Reading and considering Antofagasta’s Climate Action Plan and
TCFD disclosures;
•
Considering, together with our component team, immediate and
possible longer-term impacts of climate change in the Group’s main
jurisdictions; and
•
Reading and considering external publications by recognised
authorities on climate change.
Climate-related risks have also been considered as part of our key
audit matters. Please refer to section 5 for further details.
7.4. Working with other auditors
Our oversight of the component auditor included directing the planning
of their audit work and understanding their risk assessment process to
identify key areas of estimates and judgement, as well as supervising
the execution of their audit work.
We held a group audit transition and planning meeting. We issued
detailed instructions to Deloitte Chile, reviewed and challenged their
related component inter-office reporting and findings, reviewed
underlying audit files, attended component audit closing meetings with
local management and had regular communications to interact on any
related audit and accounting matters which arose. Members of the
group team, including the senior statutory auditor, also visited Chile on
multiple occasions during the audit.
8. Other information
The other information comprises the information included in the annual
report other than the financial statements and our auditor’s report
thereon. The Directors are responsible for the other information
contained within the annual report.
Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated in our
report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the course of
the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives rise to
a material misstatement in the financial statements themselves. If,
based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to
report that fact.
We have nothing to report in this regard.
9. Responsibilities of Directors
As explained more fully in the Statement of Directors’ responsibilities,
the Directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view,
and for such internal control as the Directors determine is necessary
to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for
assessing the Group’s and the Parent Company’s ability to continue as
a going concern, disclosing as applicable, matters related to going
concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Group or the Parent Company
or to cease operations, or have no realistic alternative but to do so.
10. Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial
statements is located on the FRC’s website at: www.frc.org.uk/
auditorsresponsibilities. This description forms part of our
auditor’s report.
Antofagasta plc Annual Report 2024 171
11. Extent to which the audit was considered capable of
detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with
laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in
respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is
detailed below.
11.1. Identifying and assessing potential risks related to
irregularities
In identifying and assessing risks of material misstatement in respect
of irregularities, including fraud and non-compliance with laws and
regulations, we considered the following:
•
the nature of the industry and sector, control environment and
business performance including the design of the Group’s
remuneration policies, key drivers for Directors’ remuneration,
bonus levels and performance targets;
•
the Group’s own assessment of the risks that irregularities may
occur either as a result of fraud or error;
•
results of our enquiries of senior management, internal audit, group
legal counsel, the Directors and the Audit and Risk Committee about
their own identification and assessment of the risks of irregularities,
including those that are specific to the Group’s sector;
•
any matters we identified having obtained and reviewed the Group’s
documentation of their policies and procedures relating to:
–
identifying, evaluating and complying with laws and regulations
and whether they were aware of any instances of non-
compliance;
–
detecting and responding to the risks of fraud and whether they
have knowledge of any actual, suspected or alleged fraud; and
–
the internal controls established to mitigate risks of fraud or
non-compliance with laws and regulations;
•
the matters discussed among the audit engagement team including
component audit team and relevant internal specialists, including
valuations, tax, IT, financial instrument, environmental and industry
specialists regarding how and where fraud might occur in the
financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and
incentives that may exist within the organisation for fraud and
identified the greatest potential for fraud in the following areas, given
the inherent subjectivity in the determination of the key valuation
assumptions: assessment of indicators of impairment and impairment
reversal of non-current assets and recognition of an impairment
reversal on the Antucoya cash generating unit, and impairment
valuation of the Buenaventura investment in associate.
In common with all audits under ISAs (UK), we are also required to
perform specific procedures to respond to the risk of management
override.
We also obtained an understanding of the legal and regulatory
frameworks that the Group operates in, focusing on provisions of
those laws and regulations that had a direct effect on the
determination of material amounts and disclosures in the financial
statements. The key laws and regulations we considered in this
context included the UK Companies Act, UK Listing Rules, pensions
legislation, tax legislation, UK Corporate Governance Code. In addition,
we considered provisions of other laws and regulations that do not
have a direct effect on the financial statements but compliance with
which may be fundamental to the Group’s ability to operate or to avoid
a material penalty. These included the Group’s operating licences and
environmental regulations.
11.2. Audit response to risks identified
As a result of performing the above, we identified assessment of
indicators of impairment and impairment reversal of non-current
assets and recognition of an impairment reversal on the Antucoya
cash generating unit, and impairment valuation of the Buenaventura
investment in associate as key audit matters related to the potential
risk of fraud. The key audit matters section of our report explains the
matters in more detail and also describes the specific procedures we
performed in response to those key audit matters.
In addition to the above our procedures to respond to risks identified
included the following:
•
reviewing the financial statement disclosures and testing to
supporting documentation to assess compliance with provisions of
relevant laws and regulations described as having a direct effect on
the financial statements;
•
enquiring of management, the Audit and Risk Committee and
in-house legal counsel concerning actual and potential litigation and
claims;
•
performing analytical procedures to identify any unusual or
unexpected relationships that may indicate risks of material
misstatement due to fraud;
•
reading minutes of meetings of those charged with governance,
reviewing internal audit reports and reviewing correspondence with
relevant regulatory authorities; and
•
in addressing the risk of fraud through management override of
controls, testing the appropriateness of journal entries and other
adjustments; assessing whether the judgements made in making
accounting estimates are indicative of a potential bias; and
evaluating the business rationale of any significant transactions that
are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and
potential fraud risks to all engagement team members including
internal specialists and the component audit team, and remained alert
to any indications of fraud or non-compliance with laws and
regulations throughout the audit.
Report on other legal and
regulatory requirements
12. Opinions on other matters prescribed by the
Companies Act 2006
In our opinion the part of the Directors’ remuneration report to be
audited has been properly prepared in accordance with the Companies
Act 2006.
In our opinion, based on the work undertaken in the course of the
audit:
•
the information given in the strategic report and the Directors’
report for the financial year for which the financial statements are
prepared is consistent with the financial statements; and
•
the strategic report and the Directors’ report have been prepared in
accordance with applicable legal requirements.
•
In the light of the knowledge and understanding of the Group and
the Parent Company and their environment obtained in the course
of the audit, we have not identified any material misstatements in the
strategic report or the Directors’ report.
Independent auditor’s report to the members of Antofagasta plc continued
Antofagasta plc Annual Report 2024172
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
13. Corporate Governance Statement
The Listing Rules require us to review the Directors’ statement in
relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Group’s compliance
with the provisions of the UK Corporate Governance Code specified for
our review.
Based on the work undertaken as part of our audit, we have concluded
that each of the following elements of the Corporate Governance
Statement is materially consistent with the financial statements and
our knowledge obtained during the audit:
•
the Directors’ statement with regards to the appropriateness of
adopting the going concern basis of accounting and any material
uncertainties identified set out on page 178;
•
the Directors’ explanation as to its assessment of the Group’s
prospects, the period this assessment covers and why the period is
appropriate set out on page 96;
•
the Directors’ statement on fair, balanced and understandable set
out on page 163;
•
the board’s confirmation that it has carried out a robust assessment
of the emerging and principal risks set out on page 82;
•
the section of the annual report that describes the review of
effectiveness of risk management and internal control systems set
out on page 132; and
•
the section describing the work of the Audit and Risk Committee set
out on pages 128 to 133.
14. Matters on which we are required to report by exception
14.1. Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if, in
our opinion:
•
we have not received all the information and explanations we
require for our audit; or
•
adequate accounting records have not been kept by the Parent
Company, or returns adequate for our audit have not been received
from branches not visited by us; or
•
the Parent Company financial statements are not in agreement with
the accounting records and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006 we are also required to report if in our
opinion certain disclosures of Directors’ remuneration have not been
made or the part of the Directors’ remuneration report to be audited is
not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address
15.1. Auditor tenure
Following the recommendation of the Audit and Risk Committee, we
were appointed by the shareholders at its Annual General Meeting on
8 May 2024 to audit the financial statements for the year ending 31
December 2024 and subsequent financial periods. The period of total
uninterrupted engagement is accordingly one year.
15.2. Consistency of the audit report with the additional report to
the Audit and Risk Committee
Our audit opinion is consistent with the additional report to the Audit
and Risk Committee we are required to provide in accordance with
ISAs (UK).
16. Use of our report
This report is made solely to the company’s members, as a body, in
accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our
audit work has been undertaken so that we might state to the
company’s members those matters we are required to state to them in
an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone
other than the company and the company’s members as a body, for
our audit work, for this report, or for the opinions we have formed.
As required by the Financial Conduct Authority (FCA) Disclosure
Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R, these
financial statements will form part of the Electronic Format Annual
Financial Report filed on the National Storage Mechanism of the FCA in
accordance with DTR 4.1.15R – DTR 4.1.18R. This auditor’s report
provides no assurance over whether the Electronic Format Annual
Financial Report has been prepared in compliance with DTR 4.1.15R
– DTR 4.1.18R.
CHRISTOPHER THOMAS FCA
(Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
20 March 2025
Antofagasta plc Annual Report 2024 173
Financial statements
Consolidated income statement
For the year ended 31 December 2024
0 Antofagasta Annual Report 2024
| Excluding | Exceptional | Excluding | |||||
| exceptional | items | exceptional | Exceptional | ||||
| items | 2024 | items | items | ||||
| 2024 | (Note 4) | 2024 | 2023 | 2023 | 2023 | ||
| Note(s) | $m | $m | $m | $m | $m | $m | |
Revenue | 6, 7 | ||||||
Total operating costs | ( | ( | ( | ( | |||
Operating profit | 6, 4, 8 | ||||||
| Net share of results from associates and joint | |||||||
ventures | 18 | ( | ( | ||||
Operating profit and share of total results from associates and joint ventures | 8 | ||||||
Investment income | 10 | ||||||
Interest expense | 10 | ( | ( | ( | ( | ||
Other finance items | 4,10 | ( | |||||
Net finance income/(expense) | 10 | ( | ( | ||||
Profit before tax | |||||||
Income tax expense | 11 | ( | ( | ( | ( | ( | ( |
| Profit for the year | |||||||
| Attributable to: | |||||||
Non-controlling interests | 31 | ||||||
Owners of the parent | 12 | ||||||
US cents | US cents | US cents | US cents | US cents | US cents | ||
Basic and diluted earnings per share | 12 |
Antofagasta plc Annual Report 2024174
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements
Consolidated income statement
For the year ended 31 December 2024
0 Antofagasta Annual Report 2024
Note(s)
Excluding
exceptional
items
2024
$m
Exceptional
items
2024
(Note 4)
$m
2024
$m
Excluding
exceptional
items
2023
$m
Exceptional
items
2023
$m
2023
$m
Revenue 6, 7 6,613.4 – 6,613.4 6,324.5 – 6,324.5
Total operating costs (4,976.1) 371.4 (4,604.7) (4,541.7) – (4,541.7)
Operating profit 6, 4, 8 1,637.3 371.4 2,008.7 1,782.8 – 1,782.8
Net share of results from associates and joint
ventures 18 76.2 – 76.2 (13.5) – (13.5)
Operating profit and share of total results from
associates and joint ventures 8 1,713.5 371.4 2,084.9 1,769.3 – 1,769.3
Investment income 10 184.2 – 184.2 138.1 – 138.1
Interest expense 10 (312.2) – (312.2) (105.6) – (105.6)
Other finance items 4,10 63.2 51.0 114.2 (3.4) 167.1 163.7
Net finance income/(expense) 10 (64.8) 51.0 (13.8) 29.1 167.1 196.2
Profit before tax 1,648.7 422.4 2,071.1 1,798.4 167.1 1,965.5
Income tax expense 11 (628.4) (126.7) (755.1) (624.3) (41.8) (666.1)
Profit for the year 1,020.3 295.7 1,316.0 1,174.1 125.3 1,299.4
Attributable to:
Non-controlling interests 31 400.8 85.8 486.6 464.3 – 464.3
Owners of the parent 12 619.5 209.9 829.4 709.8 125.3 835.1
US cents US cents US cents US cents US cents US cents
Basic and diluted earnings per share 12 62.8 21.3 84.1 72.0 12.7 84.7
Consolidated statement of
comprehensive income
For the year ended 31 December 2024
antofagasta.co.uk 11
| 2024 | 2023 | ||
| Note | $m | $m | |
Profit for the year | |||
| Items that may be or were subsequently reclassified to profit or loss: | |||
| Losses on cash flow hedging | ( | ||
| Tax effects arising on cash flow hedges deferred in reserves | |||
| Currency translation adjustment | ( | ( | |
Total items that may be or were subsequently reclassified to profit or loss | ( | ( | |
| Items that will not be subsequently reclassified to profit or loss: | |||
Actuarial (losses)/gains on defined benefit plans | 27 | ( | |
Gains on fair value of equity investments | 19 | ||
Tax on items recognised directly in other comprehensive income | 28 | ( | ( |
Share of other comprehensive losses of associates and joint ventures, net of tax | 18 | ( | ( |
| Total items that will not be subsequently reclassified to profit or loss | |||
Total other comprehensive (expense)/income | ( | ||
Total comprehensive income for the year | |||
| Attributable to: | |||
Non-controlling interests | 31 | ||
Owners of the parent |
Consolidated statement
of changes in equity
For the year ended 31 December 2024
| Equity | |||||||
| Other | Retained | attributable | Non-controlling | ||||
| Share | Share | reserves | earnings | to owners of | interests | Total | |
| capital | premium | (Note 30) | (Note 30) | the parent | (Note 31) | equity | |
| $m | $m | $m | $m | $m | $m | $m | |
At 1 January 2023 | |||||||
Profit for the year | |||||||
Other comprehensive income for the year | |||||||
Total comprehensive income for the year | |||||||
Dividends | ( | ( | ( | ( | |||
At 31 December 2023 | |||||||
Profit for the year | |||||||
Other comprehensive income/(expense) for the year | ( | ( | ( | ( | |||
| Total comprehensive income for the year | |||||||
Reclassification 1 | ( | ||||||
Capital increase 2 | |||||||
| Dividends | ( | ( | ( | ( | |||
| At 31 December 2024 | ( |
1. Relates to the reclassification of the fair value gain relating to the equity investment in Buenaventura from the Equity investment revaluation reserve to Retained earnings, following the
completion of the transaction detailed in Notes 18 and 19 in March 2024, which resulted in the derecognition of the equity investment and the Group’s interest in Buenaventura being
accounted for as an investment in associate from that point.
2. Related to Marubeni’s capital contribution of $156.7 million in Centinela and Barrick’s capital contribution of $0.1 million in Encierro.
Antofagasta plc Annual Report 2024 175
Financial statements continued
Consolidated balance sheet
For the year ended 31 December 2024
2 Antofagasta Annual Report 2024
| 2024 | 2023 | ||
| Note | $m | $m | |
| Non-current assets | |||
Property, plant and equipment | 15 | ||
Inventories | 20 | ||
Investment in associates and joint ventures | 18 | ||
Trade and other receivables | 21 | ||
Equity investments | 19 | ||
Deferred tax assets | 28 | ||
| Current assets | |||
Inventories | 20 | ||
Trade and other receivables | 21 | ||
Other financial asset | 18 | ||
| Current tax assets | |||
Liquid investments | 22 | ||
Cash and cash equivalents | 22 | ||
Total assets | |||
| Current liabilities | |||
Short-term borrowings and other financial liabilities | 23 | ( | ( |
Trade and other payables | 24 | ( | ( |
Short-term decommissioning and restoration provisions | 29 | ( | ( |
Derivative financial instruments | 25D | ( | |
| Current tax liabilities | ( | ( | |
( | ( | ||
| Non-current liabilities | |||
Medium and long-term borrowings and other financial liabilities | 23 | ( | ( |
Trade and other payables | 24 | ( | ( |
Derivative financial instruments | 25D | ( | |
Post-employment benefit obligations | 27 | ( | ( |
Decommissioning and restoration provisions | 29 | ( | ( |
Deferred tax liabilities | 28 | ( | ( |
( | ( | ||
Total liabilities | ( | ( | |
Net assets | |||
| Equity | |||
Share capital | 30 | ||
Share premium | 30 | ||
Other reserves | 30 | ( | |
Retained earnings | 30 | ||
| Equity attributable to owners of the parent | |||
Non-controlling interests | 31 | ||
| Total equity |
Antofagasta plc Annual Report 2024176
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
Consolidated balance sheet
For the year ended 31 December 2024
2 Antofagasta Annual Report 2024
Note
2024
$m
2023
$m
Non-current assets
Property, plant and equipment 15 13,917.0 12,678.7
Inventories 20 707.8 457.0
Investment in associates and joint ventures 18 1,776.1 891.1
Trade and other receivables 21 54.4 68.5
Equity investments 19 11.6 288.6
Deferred tax assets 28 9.7 72.0
16,476.6 14,455.9
Current assets
Inventories 20 925.1 671.0
Trade and other receivables 21 899.5 1,117.8
Other financial asset 18 – 457.2
Current tax assets 17.4 25.9
Liquid investments 22 2,127.1 2,274.7
Cash and cash equivalents 22 2,189.2 644.7
6,158.3 5,191.3
Total assets 22,634.9 19,647.2
Current liabilities
Short-term borrowings and other financial liabilities 23 (1,322.5) (901.9)
Trade and other payables 24 (1,320.3) (1,171.5)
Short-term decommissioning and restoration provisions 29 (5.9) (15.2)
Derivative financial instruments 25D (20.4) –
Current tax liabilities (106.4) (100.7)
(2,775.5) (2,189.3)
Non-current liabilities
Medium and long-term borrowings and other financial liabilities 23 (4,622.9) (3,177.3)
Trade and other payables 24 (10.2) (9.8)
Derivative financial instruments 25D (5.1) –
Post-employment benefit obligations 27 (152.2) (139.9)
Decommissioning and restoration provisions 29 (422.1) (425.9)
Deferred tax liabilities 28 (1,692.7) (1,656.6)
(6,905.2) (5,409.5)
Total liabilities (9,680.7) (7,598.8)
Net assets 12,954.2 12,048.4
Equity
Share capital 30 89.8 89.8
Share premium 30 199.2 199.2
Other reserves 30 (18.2) 104.5
Retained earnings 30 9,191.4 8,558.4
Equity attributable to owners of the parent 9,462.2 8,951.9
Non-controlling interests 31 3,492.0 3,096.5
Total equity 12,954.2 12,048.4
The financial statements were approved by the Board of Directors on 20 March 2025 and signed on its behalf by
JEAN-PAUL LUKSIC FRANCISCA CASTRO
Chairman Senior Independent Director
Consolidated cash flow statement
For the year ended 31 December 2024
antofagasta.co.uk 33
Note(s)
2
2
0
0
2
2
4
4
$
$
m
m
| 2023 | |||
| $m | |||
Cash flow from operations | 32 | ||
Interest paid | ( | ( | |
| Income tax paid | ( | ( | |
| Net cash from operating activities | |||
| Investing activities | |||
Capital contributions to associates and joint ventures | 18 | ( | |
Dividends from associates and joint ventures | 18 | ||
| Investment in other financial assets | ( | ||
Acquisition of equity investments | 19 | ( | |
Proceeds from disposal of investment in joint venture | 17 | ||
| Proceeds from sale of property, plant and equipment | |||
| Purchases of property, plant and equipment | ( | ( | |
Net decrease/(increase) in liquid investments | 22 | ( | |
| Interest received | |||
| Net cash used in investing activities | ( | ( | |
| Financing activities | |||
Dividends paid to owners of the Parent | 13 | ( | ( |
Dividends paid to preference shareholders of the Company | 13 | ( | ( |
Dividends paid to non-controlling interests | 31 | ( | ( |
Capital increase from non-controlling interest 1 | |||
Proceeds from issue of other financial liabilities | 32 | ||
Proceeds from issue of new borrowings | 32 | ||
Repayments of borrowings | 32 | ( | ( |
Principal elements of lease payments | 32 | ( | ( |
Repayment of other financial liabilities | 32 | ( | |
| Net cash from/(used) in financing activities | ( | ||
Net increase/(decrease) in cash and cash equivalents | ( | ||
Cash and cash equivalents at beginning of the year | |||
Net increase/(decrease) in cash and cash equivalents | 32 | ( | |
Effect of foreign exchange rate changes | 32 | ( | ( |
Cash and cash equivalents at end of the year | 22,32 |
1. Related to Marubeni’s capital contribution of $156.7 million to Centinela.
Antofagasta plc Annual Report 2024 177
Financial statements continued
Notes to the financial statements
4 Antofagasta Annual Report 2024
Antofagasta plc Annual Report 2024178
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
Notes to the financial statements
4 Antofagasta Annual Report 2024
1 Basis of preparation
The consolidated financial statements of the Antofagasta plc Group have
been prepared in accordance with UK adopted international accounting
standards and with the requirements of the Companies Act 2006 as
applicable to companies reporting under those standards. The financial
statements have been prepared on the going concern basis.
Going concern
The Directors have assessed the going concern status of the Group,
considering a period of at least 12 months from the date of approval of the
31 December 2024 Annual Report and Accounts.
The Group’s business activities, together with those factors likely to affect
its future performance, are set out in the Strategic Report, and in particular
within the Operating Review. Details of the cash flows of the Group during
the period, along with its financial position at the period-end, are set out in
the Financial Review. The consolidated financial statements include details
of the Group’s cash, cash equivalents and liquid investment balances in
Note 22, and details of borrowings are set out in Note 23.
When assessing the going concern status of the Group, the Directors have
considered in particular its financial position, including its significant balance
of cash, cash equivalents and liquid investments and the terms and
remaining durations of the borrowing facilities in place. The Group had a
strong financial position as at 31 December 2024, with combined cash,
cash equivalents and liquid investments of $4,316.3 million. Total
borrowings and other liabilities from financing activities were $5,945.4
million, resulting in a net debt position of $1,629.1 million. Of the total
borrowings, only 22% is repayable within one year, and 11% repayable
between one and two years. In addition, the Group has an undrawn
revolving credit facility (RCF) of $500.0 million which expires in December
2028 and therefore covers all of the going concern review period, which
could provide additional liquidity if required.
When assessing the prospects of the Group, the Directors have considered
the Group’s copper price forecasts, the Group’s expected production levels,
operating cost profile and capital expenditure. These forecasts are based
on the Group’s budgets and life-of-mine models, which are also used when
assessing relevant accounting estimates, including depreciation, deferred
stripping and closure provisions, and accounting judgements including
potential indicators of impairment.
The analysis has focused on the existing asset base of the Group, without
factoring in potential development projects, which is considered
appropriate for an assessment of the Group’s ability to manage the impact
of a depressed economic environment. The analysis has only included the
drawdown of existing committed borrowing facilities and has not assumed
that any new borrowing facilities will be put in place.
The Directors have assessed the key risks which could impact the
prospects of the Group over the going concern period and consider the
most relevant to be risks to the copper price outlook, as this is the factor
most likely to result in significant volatility in earnings and cash generation.
Accordingly, a robust down-side sensitivity analysis has been performed,
assessing the impact of a significant deterioration in the future copper price
forecasts, by an average of approximately 10% throughout the going
concern period, combined with the impact of a shutdown of Los
Pelambres, the Group’s most significant operation, for a period of one
month. This downside analysis included the impacts of conservative
assumptions in respect of possible deferrals to planned capital expenditure
which could be implemented in such a scenario.
The stability of tailings storage facilities represents a potentially significant
operational risk for mining operations globally. The Group’s tailings storage
facilities are designed to international standards, constructed using
downstream methods, subject to rigorous monitoring and reporting, and
reviewed regularly by an international panel of independent experts. Given
these standards of design, construction, operation and review, the impact
of a potential tailings dam failure has not been included in the sensitivity
analysis.
We have considered the risk of capital expenditure overruns in respect of
the Second Concentrator Project at Centinela, and the Desalination Plant
Expansion and Concentrate Pipeline and El Mauro Enclosures Projects at
Los Pelambres, and concluded that this is not likely to result in a significant
impact during the going concern review period.
The above down-side sensitivity analyses indicated results which could be
managed in the normal course of business. The analysis indicated that the
Group is expected to remain in compliance with all of the covenant
requirements of its borrowings throughout the review period and retain
sufficient liquidity. Based on their assessment of the Group’s prospects, the
Directors have formed a judgement, at the time of approving the financial
statements, that there are no material uncertainties that the Directors are
aware of that cast doubt on the Group’s going concern status and that
there is a reasonable expectation that the Group has adequate resources to
continue in operational existence for a period of at least 12 months from
the date of approval of the 31 December 2024 Annual Report and
Accounts. The Directors therefore consider it appropriate to adopt the
going concern basis of accounting in preparing the financial statements.
Company structure
Antofagasta plc is a company limited by shares, incorporated and domiciled
in the United Kingdom at 103 Mount Street, London W1K 2TJ, under
registered number 1627889. The immediate parent company of the Group
is Metalinvest Establishment, and the ultimate parent company the E.
Abaroa Foundation, in which members of the Luksic family are interested.
The nature of the Group’s operations is mining and exploration activities
and the transport of rail and road cargo.
antofagasta.co.uk 55
Antofagasta plc Annual Report 2024 179
Financial statements continued
6 Antofagasta Annual Report 2024
2 Material accounting policies continued
Antofagasta plc Annual Report 2024180
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
6 Antofagasta Annual Report 2024
2 Material accounting policies continued
D) Joint arrangements
A joint arrangement is an arrangement of which two or more parties have
joint control. Joint arrangements are accounted for depending on the
nature of the arrangement.
i. Joint ventures – are accounted for using the equity method in
accordance with IAS 28: Investment in Associates and Joint Ventures,
as described in Note 18.
ii. Joint operations – are accounted for recognising directly the assets,
obligations, revenues and expenses of the joint operator in the joint
arrangement. The assets, liabilities, revenues and expenses are
accounted for in accordance with the relevant IFRS.
When a Group entity transacts with its joint arrangements, profits and
losses resulting from the transactions with the joint arrangements are
recognised in the Group’s consolidated financial statements only to the
extent of interests in the joint arrangements that are not related to the
Group.
E) Currency translation
The functional currency for each entity in the Group is determined as the
currency of the primary economic environment in which it operates.
Transactions in currencies other than the functional currency of the entity
are translated at the exchange rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in currencies other than the
functional currency are retranslated at year end exchange rates. Gains and
losses on retranslation are included in net profit or loss for the period
within other finance items.
The presentational currency of the Group and the functional currency of
the Company is the US dollar. On consolidation, income statement items
for entities with a functional currency other than the US dollar are
translated into US dollars at average rates of exchange. Balance sheet
items are translated at period-end exchange rates. Exchange differences
on translation of the net assets of such entities are taken to equity and
recorded in a separate currency translation reserve. Accumulated
translation differences within equity are reclassified to the income
statement when the related foreign operation is disposed of.
On consolidation, exchange gains and losses which arise on balances
between Group entities are taken to reserves where that balance is, in
substance, part of the net investment in a foreign operation, i.e. where
settlement is neither planned nor likely to occur in the foreseeable future.
All other exchange gains and losses on Group balances are recognised in
the income statement within other finance items.
Fair value adjustments and any goodwill arising on the acquisition of a
foreign entity are treated as assets of the foreign entity and translated
at the period-end rate.
F) Revenue recognition and other income
Revenue represents the value of goods and services supplied to third
parties during the year. Revenue is measured at the fair value of
consideration received or receivable, and excludes any applicable sales tax.
Revenue is recognised when the Group satisfies a performance obligation
by transferring a promised good or service to a customer. An asset is
transferred when (or as) the customer obtains control of that asset.
For the Group’s mining products, the customer generally gains control over
the material when it has been loaded at the port of loading, and so this is
the point of revenue recognition. The Group sells a significant proportion of
its products on Cost, Insurance & Freight (CIF) Incoterms, which means
that the Group is responsible for shipping the product to a destination port
specified by the customer. In these cases, the customer still gains control
over the material when it has been loaded at the port of loading, as they
are able to direct the use of the goods from this point, and so that remains
the point of revenue recognition for the sale of material; however, the
shipping service represents a separate performance obligation, and
revenue in relation to such services is recognised separately from the sale
of the material, with the shipping revenue recognised over time as the
shipping service is provided, along with the associated costs. Shipping
revenue is recognised at the contracted price of the shipping service to the
Group as this reflects the standalone selling price.
Revenue from mining activities is recorded at the invoiced amounts with an
adjustment for provisional pricing at each reporting date, as explained
below. For copper and molybdenum concentrates, which are sold to
smelters and roasting plants for further processing into fully refined metal,
the price of the concentrate invoiced to the customer reflects the market
value of the fully refined metal less a “treatment and refining charge”
deduction, to reflect the lower value of this partially processed material
compared with the fully refined metal. Revenue includes amounts from the
sale of by-products such as gold and silver.
Copper and molybdenum concentrate sale agreements and copper
cathode sale agreements generally provide for provisional pricing of sales
at the time of shipment, with final pricing based on the monthly average
London Metal Exchange (LME) copper price or the monthly average
market molybdenum price for specified future periods. This normally
ranges from one to four months after delivery to the customer. For sales
contracts which contain provisional pricing mechanisms, the initial invoice
typically reflects the month-average market price for the metal in the
month of shipment, with the associated receivable balance subsequently
measured at fair value through profit or loss. Gains and losses from the
marking-to-market of the receivable balance in relation to open sales are
recognised through adjustments to other income presented within revenue
in the income statement and to trade receivables in the balance sheet. The
fair value calculations are based on forward prices at the period end for
copper concentrate and cathode sales, and period-end month average
prices for molybdenum concentrate sales due to the limited futures market
for that commodity.
For the Transport division, revenue in respect of its transportation and
ancillary services is recognised over time in line with the performance of
those services.
Interest income
Interest income is accrued on a time basis, by reference to the principal
outstanding and the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through the expected life
of the financial asset to that asset’s net carrying amount.
Interest received is recognised within investing activities in the consolidated
cash flow statement.
Dividend income
Dividend income from equity investments, associates and joint ventures is
recognised when the shareholders’ right to receive payment has been
established. For equity investments it is recorded in investment income and
for associates and joint ventures, it is recorded as a decrease of the
investment.
antofagasta.co.uk 77
Antofagasta plc Annual Report 2024 181
Financial statements continued
8 Antofagasta Annual Report 2024
2 Material accounting policies continued
Antofagasta plc Annual Report 2024182
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
8 Antofagasta Annual Report 2024
2 Material accounting policies continued
L) Impairment of property, plant and equipment and intangible
assets
Property, plant and equipment and intangible assets relating to exploration
and mining licences are reviewed for impairment if there is any indication
that the carrying amount may not be recoverable. In respect of historical
impairments recognised in prior years, the Group also assesses whether
there is any indication that impairment may no longer exist or may have
decreased.
If any such indications exist, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment or reversal (if
any). Where the asset does not generate cash flows that are largely
independent from other assets, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs of disposal and
value in use. Fair value less costs of disposal reflects the net amount the
Group would receive from the sale of the asset in an orderly transaction
between market participants. For mining assets, this would generally be
determined based on the present value of the estimated future cash flows
arising from the continued use, further development or eventual disposal of
the asset. The estimates used in determining the present value of those
cash flows are those that an independent market participant would
consider appropriate. Value in use reflects the expected present value of
the future cash flows which the Group would generate through the
operation of the asset in its current condition, without taking into account
potential enhancements or further development of the asset. The fair value
less costs of disposal valuation will normally be higher than the value in use
valuation, as realisation of the full potential of the Group’s mining operations
typically requires further capital expenditure and ongoing mine
development, and accordingly the Group typically applies this valuation
estimate in its impairment assessments, unless indicated otherwise. Details
of the valuations and sensitivities of the Group’s mining operations
considered as part of the impairment trigger assessment are included in
Note 5.
If the recoverable amount of an asset or cash-generating unit is estimated
to be less than its carrying amount, the carrying amount is reduced to the
recoverable amount. An impairment charge is recognised in the income
statement immediately. Where an impairment subsequently reverses, the
carrying amount is increased to the revised estimate of recoverable
amount, but so that the increased carrying amount does not exceed the
carrying value that would have been determined if no impairment had
previously been recognised after taking into account the depreciation
and/or amortisation that would otherwise have been recorded in the
intervening period. A reversal is recognised in the income statement
immediately.
M) Inventory
Inventory consists of raw materials and consumables, work-in-progress
and finished goods. Work-in-progress represents material that is in the
process of being converted into finished goods. The conversion process for
mining operations depends on the nature of the copper ore. For sulphide
ores, processing typically includes milling and concentrating, resulting in
the production of copper concentrate. For oxide ores, processing includes
leaching of stockpiles, solvent extraction and electrowinning and results in
the production of copper cathodes. Finished goods consist of copper
concentrate containing gold and silver at Los Pelambres and Centinela and
copper cathodes at Centinela and Antucoya. Los Pelambres and Centinela
also produce molybdenum as a by-product.
Inventory is valued at the lower of cost, on a weighted average basis, and
net realisable value. Net realisable value represents estimated selling price
less all estimated costs of completion and costs to be incurred in
marketing, selling and distribution. Cost of finished goods and work-in-
progress is production cost and for raw materials and consumables it is
purchase price. Production cost includes:
• labour costs, raw material costs and other costs directly attributable to
the extraction and processing of ore
• depreciation of plant, equipment and mining properties directly involved
in the production process, and
• an appropriate allocation of production overheads.
Stockpiles represent ore that is extracted and is available for further
processing. Costs directly attributable to the extraction of ore are generally
allocated as part of production costs in proportion to the tonnes of material
extracted. Operating stripping costs are generally absorbed into inventory,
and therefore expensed as that inventory is processed and sold. If ore is
not expected to be processed within 12 months of the balance sheet date it
is included within non-current assets. If there is significant uncertainty as
to when any stockpiled ore will be processed, it is expensed as incurred.
N) Taxation
Tax expense comprises the charges or credits for the year relating to both
current and deferred tax.
Current tax is based on taxable profit for the year. Taxable profit may differ
from net profit as reported in the income statement because it excludes
items of income or expense that are taxable and deductible in different
years and also excludes items that are not taxable or deductible. The
liability for current tax is calculated using tax rates for each entity in the
consolidated financial statements which have been enacted or
substantively enacted at the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on temporary
differences (i.e. differences between the carrying amount of assets and
liabilities in the financial statements and the corresponding tax basis used in
the computation of taxable profit). Deferred tax is accounted for using the
balance sheet liability method and is provided on all temporary differences,
with certain limited exceptions as follows:
i. tax payable on undistributed earnings of subsidiaries, associates and
joint ventures is provided except where the Group is able to control the
remittance of profits and it is probable that there will be no remittance
of past profits earned in the foreseeable future
ii. deferred tax is not provided on the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither accounting or taxable profit and
does not give rise to equal taxable and deductible temporary
differences; and
iii. the initial recognition of any goodwill.
Deferred tax assets are recognised only to the extent that it is probable that
they will be recovered through sufficient future taxable profit. The carrying
amount of deferred tax assets is reviewed at each balance sheet date.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to
items charged or credited directly to equity, in which case the deferred tax
is also taken directly to equity.
Where tax treatments are uncertain, if it is considered probable that a
taxation authority will accept the Group’s proposed tax treatment, income
taxes are recognised consistent with the Group’s income tax filings. If it is
not considered probable, the uncertainty is reflected within the carrying
amount of the applicable tax asset or liability using either the most likely
amount or an expected value, depending on which method better predicts
the resolution of the uncertainty.
antofagasta.co.uk 99
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Financial statements continued
10 Antofagasta Annual Report 2024
2 Material accounting policies continued
U) Leases continued
Antofagasta plc Annual Report 2024184
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
10 Antofagasta Annual Report 2024
2 Material accounting policies continued
U) Leases continued
V) Other financial instruments
Financial assets and financial liabilities are recognised on the Group’s
balance sheet when the Group becomes a party to the contractual
provisions of the instrument. Financial assets are derecognised when the
contractual rights to the cash flows from the financial asset expire or the
Group has transferred the asset to another party. Financial liabilities are
removed from the Group’s balance sheet when they are extinguished – i.e.
when the obligation specified in the contract has been discharged,
cancelled or expired.
ii. Trade and other receivables – As explained above, for sales contracts
which contain provisional pricing mechanisms the total receivable
balance is measured at fair value through profit or loss. Other
receivable balances are measured at amortised cost.
iii. Trade and other payables – Trade and other payables are generally
not interest-bearing and they are measured at amortised cost.
iv. Other financial assets – Other financial assets are typically measured
at fair value through profit or loss, on the basis that the assets in
question do not typically only generate cash flows that are solely
payments of principal and interest.
v. Borrowings (loans and preference shares) – Interest-bearing loans
and bank overdrafts are initially recognised at fair value which is
typically equal to the proceeds received, net of direct issue costs. They
are subsequently measured at amortised cost using the effective
interest method, with interest expense recognised on an effective yield
basis. Finance charges, including premiums payable on settlement or
redemption and direct issue costs, are accounted for on an accruals
basis using the effective interest rate method. Amounts are either
recorded as financing costs in profit or loss or capitalised in accordance
with the accounting policy set out in Note 2(J). Fees that are paid for
the availability of a facility where the amount and timing of drawdown
can vary at the Group’s discretion, such as a revolving credit facility, are
capitalised and recognised in the income statement on a systematic
basis over the life of the facility.
The total amount of interest paid, both in respect of interest recognised
as an expense in profit or loss or capitalised in accordance with IAS 23:
Borrowing Costs, is recognised within operating activities in the
consolidated cash flow statement.
The Sterling-denominated preference shares issued by the Company
carry a fixed rate of return without the right to participate in any
surplus. They are accordingly classified within borrowings and
translated into US dollars at period-end rates of exchange. Preference
share dividends are included within other finance items within net
finance expense in the income statement.
vi. Equity instruments – Equity instruments issued are recorded at the
proceeds received, net of direct issue costs. Equity instruments of the
Company comprise its Sterling-denominated issued ordinary share
capital and related share premium. As explained in Note 2(E), the
presentational currency of the Group and the functional currency of the
Company is US dollars, and ordinary share capital and share premium
are translated into US dollars at historical rates of exchange based on
dates of issue.
vii. Impairment of financial assets – The Group applies the forward-
looking expected credit loss model to its financial assets, other than
those measured at fair value through profit or loss. The Group applies
the IFRS 9 “simplified approach” to its trade receivables balances which
are measured at cost, measuring the loss allowance at the lifetime
expected credit loss. As explained above, for sales contracts which
contain provisional pricing mechanisms, which reflects the majority of
the Group’s trade receivable balances, the total receivable balance is
measured at fair value through profit or loss, and so potential expected
credit loss allowances are not relevant for these balances. For other
financial assets, where the credit risk has not increased significantly
since initial recognition, the loss allowance is measured at the 12-month
expected credit loss. If there has been a significant increase in credit
risk, the loss allowance is measured at the lifetime expected credit loss.
Increases or decreases to the credit loss allowance are recognised
immediately in profit or loss.
viii. Other financial liabilities – Other financial liabilities are initially
recognised at fair value which is typically equal to the proceeds
received, net of direct issue costs. They are subsequently measured at
amortised cost using the effective interest method, with interest
expense recognised on an effective yield basis.
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Financial statements continued
12 Antofagasta Annual Report 2024
| Income tax | |||||||||
Operating profit | Profit before tax | expenses | Earnings per share | ||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||
$M | $M | $M | $M | $M | $M | cents per share | cents per share | ||
Before exceptional items | 1,637.3 | 1,782.8 | 1,648.7 | 1,798.4 | (628.4) | (624.3) | 62.8 | 72.0 | |
• | Reversal of impairment - Antucoya | 371.4 | – | 371.4 | – | (114.0) | – | 17.4 | – |
• | Fair value gain on other financial | ||||||||
| assets - Buenaventura | – | – | 51.0 | 167.1 | (12.7) | (41.8) | 3.9 | 12.7 | |
| After exceptional items | 2,008.7 | 1,782.8 | 2,071.1 | 1,965.5 | (755.1) | (666.1) | 84.1 | 84.7 |
Antofagasta plc Annual Report 2024186
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12 Antofagasta Annual Report 2024
4 Exceptional items
Exceptional items are material items of income and expense which result from one-off transactions or transactions outside the ordinary course of
business of the Group. These are typically non-cash, including impairments and profits or losses on disposals. The classification of these types of items as
exceptional is considered to be useful as it provides an indication of the earnings generated by the ongoing businesses of the Group.
Operating profit Profit before tax
Income tax
expenses Earnings per share
2024 2023 2024 2023 2024 2023 2024 2023
$M $M $M $M $M $M cents per share cents per share
Before exceptional items 1,637.3 1,782.8 1,648.7 1,798.4 (628.4) (624.3) 62.8 72.0
• Reversal of impairment - Antucoya
371.4 – 371.4 – (114.0) – 17.4 –
• Fair value gain on other financial
assets - Buenaventura – – 51.0 167.1 (12.7) (41.8) 3.9 12.7
After exceptional items 2,008.7 1,782.8 2,071.1 1,965.5 (755.1) (666.1) 84.1 84.7
A) Reversal of Antucoya impairment
An exceptional pre-tax gain of $371.4 million (post-tax impact of $257.4 million) has been recognised in respect of the reversal of previous impairments
recognised in respect of property, plant and equipment of the Antucoya operation.
Antucoya recognised impairments totalling $716 million in 2012 and 2016. Of the original impairment amounts, $371.4 million remained available for
reversal as at 31 December 2024.
It has been determined that there were indicators of a potential reversal of this remaining impairment as at 31 December 2024, with a quantitative
analysis based on Antucoya’s life-of-mine model indicating that the headroom exceeded the valuation benefit arising from the passage of time since the
impairment. Accordingly, an estimate of the recoverable amount of the Antucoya operation has been performed. This estimate has been based on the fair
value less costs of disposal for the operation, reflecting the net amount the Group would expect to receive from the sale of the operation in an orderly
transaction between market participants.
This value has been estimated based on a discounted cash flow model, using Antucoya’s life-of-mine model. This reflects a level 3 fair value measurement
per the IFRS 13 fair value hierarchy. The key assumptions used in this estimation are listed below.
• The copper price forecasts (representing the Group’s estimates of the assumptions that would be used by independent market participants in valuing
the assets) are based on consensus analyst forecasts. A long-term copper price of $4.15/lb (reflecting 2024 real terms) has been used in the model.
• Assumptions in respect of future production levels, operating costs and sustaining and development capital expenditure are consistent with the
Group’s internal life-of-mine model for Antucoya.
• A long-term exchange rate of Ch$850/$1 has been used in the model.
• A real post-tax discount rate of 8%, calculated using relevant market data, has been used in the model.
• Within the Annual Report, the Group discloses in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
This process includes scenario analyses assessing the potential future impact of transition and physical risks. The results of this scenario analysis have
been considered as part of this valuation assessment.
The recoverable amount indicated by this assessment was $2,013 million, which was $583 million above the carrying value of Antucoya’s relevant assets
of $1,431 million. The predominant driver behind this positive headroom has been the increasingly positive copper price outlook.
Given the level of headroom indicated by this valuation process, it is appropriate to fully reverse the remaining $371.4 million element of the original
impairments, resulting in an exceptional pre-tax gain of $371.4 million. A deferred tax expense of $114.0 million has been recognised in respect of this
reversal, resulting in a post-tax impact of $257.4 million.
The assumption to which the estimation of the recoverable amount is most sensitive is the future long-term copper price. A down-side sensitivity was
performed with a long-term copper price of $3.74/lb, reflecting a 10% reduction in the long-term price forecast. This sensitivity indicated a recoverable
amount which was above the carrying value of Antucoya’s relevant assets, after reflecting the impact of the impairment reversal.
B) Compañia de Minas Buenaventura S.A.A.
As detailed in Note 25, during 2023 the Group entered into an agreement to acquire up to an additional 30 million shares in Compañía de Minas
Buenaventura S.A.A. An exceptional fair value gain of $51.0 million (2023 – $167.1 million) was recognised during 2024 in respect of this agreement. A
deferred tax expense of $12.7 million (2023 – $41.8 million) has been recognised in respect of this gain (see Note 11 and 28), resulting in a post-tax impact
of $38.3 million (2023 – $125.3 million).
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Financial statements continued
14 Antofagasta Annual Report 2024
Antofagasta plc Annual Report 2024188
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
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14 Antofagasta Annual Report 2024
6 Segment information
The Group’s reportable segments, which are the same as its operating
segments, are as follows:
• Los Pelambres
• Centinela
• Antucoya
• Zaldívar
• Exploration and evaluation
• Corporate and other items
• Transport division.
For management purposes, the Group is organised into two business
divisions based on their products – Mining and Transport. The Mining
division is split further for management reporting purposes to show results
by mine and exploration activity.
Los Pelambres produces primarily copper concentrate containing gold
and silver as a by-product, and molybdenum concentrate. Centinela
produces copper concentrate containing gold and silver as a by-product,
molybdenum concentrates and copper cathodes. Antucoya and Zaldívar
produce copper cathodes. The Transport division provides rail cargo and
road cargo transport together with a number of ancillary services. All the
operations are based in Chile. The Exploration and evaluation segment
incurs exploration and evaluation expenses. “Corporate and other items”
comprises costs incurred by the Antofagasta plc, Antofagasta Minerals
SA, the Group’s mining corporate centre and other entities that are not
allocated to any individual business segment. Consistent with its internal
management reporting, the Group’s corporate and other items are
included within the Mining division.
The chief operating decision-maker (the Group’s Chief Executive Officer)
monitors the operating results of the business segments separately for the
purpose of making decisions about resources to be allocated and
assessing performance. Segment performance is evaluated based on the
operating profit of each of the segments.
antofagasta.co.uk 1155
| Exploration | Corporate | ||||||||
| Los | and | and other | Transport | ||||||
| Pelambres | Centinela | Antucoya | Zaldívar | evaluation | items | Mining | division | Total | |
| $m | $m | $m | $m | $m | $m | $m | $m | $m | |
Revenue | 3,326.7 | 2,359.2 | 732.6 | – | – | – | 6,418.5 | 194.9 | 6,613.4 |
Operating cost excluding depreciation and loss on disposals and reversal of the provision against carrying value of assets1 1 | (1,465.5) | (1,228.9) | (456.8) | – | (52.7) | (72.8) | (3,276.7) | (125.6) | (3,402.3) |
| Depreciation | (544.1) | (854.9) | (117.7) | – | – | (10.2) | (1,526.9) | (41.3) | (1,568.2) |
| Loss on disposals | (3.6) | (1.9) | – | – | (0.1) | (5.6) | – | (5.6) | |
| Reversal of the provision against carrying | |||||||||
| value of assets (exceptional items) | – | – | 371.4 | – | – | – | 371.4 | – | 371.4 |
| Operating profit/(loss) | 1,313.5 | 273.5 | 529.5 | – | (52.7) | (83.1) | 1,980.7 | 28.0 | 2,008.7 |
| Net share of results from associates | |||||||||
| and joint ventures | – | – | – | 15.1 | – | 61.4 | 76.5 | (0.3) | 76.2 |
Total operating profit from subsidiaries, and share of total results | |||||||||
| from associates and joint ventures | 1,313.5 | 273.5 | 529.5 | 15.1 | (52.7) | (21.7) | 2,057.2 | 27.7 | 2,084.9 |
Investment income | 46.7 | 40.1 | 11.0 | – | – | 85.3 | 183.1 | 1.1 | 184.2 |
| Interest expense | (138.0) | (75.0) | (30.3) | – | – | (68.4) | (311.7) | (0.5) | (312.2) |
| Other finance items (excluding exceptional | |||||||||
| items) | 23.5 | 30.2 | 7.9 | – | – | 4.2 | 65.8 | (2.6) | 63.2 |
| Fair value gain on other financial assets – | |||||||||
exceptional items 2 | – | – | – | – | – | 51.0 | 51.0 | – | 51.0 |
| Profit/(loss) before tax | 1,245.7 | 268.8 | 518.1 | 15.1 | (52.7) | 50.4 | 2,045.4 | 25.7 | 2,071.1 |
Tax – excluding exceptional items | (432.0) | (67.1) | (30.9) | – | – | (91.8) | (621.8) | (6.6) | (628.4) |
| Tax – exceptional items | – | – | (114.0) | – | – | (12.7) | (126.7) | – | (126.7) |
| Profit/(loss) for the year | 813.7 | 201.7 | 373.2 | 15.1 | (52.7) | (54.1) | 1,296.9 | 19.1 | 1,316.0 |
Non-controlling interests | 327.8 | 52.1 | 108.0 | – | – | (1.3) | 486.6 | – | 486.6 |
Profit/(losses) attributable to the owners of the parent | 485.9 | 149.6 | 265.2 | 15.1 | (52.7) | (52.8) | 810.3 | 19.1 | 829.4 |
EBITDA 3 | 1,861.2 | 1,130.3 | 275.8 | 99.9 | (52.7) | 36.4 | 3,350.9 | 75.9 | 3,426.8 |
Capital expenditure (cash basis) 4 | 833.0 | 1,414.0 | 123.4 | – | – | 7.1 | 2,377.5 | 37.4 | 2,414.9 |
| Segment assets and liabilities | |||||||||
Segment assets | 7,886.3 | 8,145.7 | 2,281.2 | – | – | 2,110.5 | 20,423.7 | 435.1 | 20,858.8 |
| Investment in associates and joint | |||||||||
| ventures | – | – | – | 895.1 | – | 872.0 | 1,767.1 | 9.0 | 1,776.1 |
| Segment liabilities | (4,076.8) | (2,877.1) | (591.9) | – | – | (2,064.3) | (9,610.1) | (70.6) | (9,680.7) |
Antofagasta plc Annual Report 2024 189
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16 Antofagasta Annual Report 2024
6 Segment information continued
A) Segment revenues and results continued
| Exploration and | Corporate | Transport | |||||||
| Los Pelambres | Centinela | Antucoya | Zaldívar | Evaluation 2 | and other items | Mining | division | Total | |
| $m | $m | $m | $m | $m | $m | $m | $m | $m | |
Revenue | 2,923.8 | 2,532.5 | 672.3 | – | – | – | 6,128.6 | 195.9 | 6,324.5 |
| Operating cost excluding | (1,231.8) | (1,348.9) | (465.4) | – | (64.9) | (98.7) | (3,209.7) | (120.7) | (3,330.4) |
depreciation and loss on disposals 1 | |||||||||
Depreciation | (318.6) | (727.3) | (109.4) | – | – | (24.3) | (1,179.6) | (31.7) | (1,211.3) |
Operating profit/(loss) | 1,373.4 | 456.3 | 97.5 | – | (64.9) | (123.0) | 1,739.3 | 43.5 | 1,782.8 |
Net share of results from associates and joint ventures | – | – | – | (15.4) | – | – | (15.4) | 1.9 | (13.5) |
Total operating profit from subsidiaries, and share of total | 1,373.4 | 456.3 | 97.5 | (15.4) | (64.9) | (123.0) | 1,723.9 | 45.4 | 1,769.3 |
results from associates and j oint ventures | |||||||||
Investment income | 38.0 | 20.3 | 6.8 | – | – | 72.2 | 137.3 | 0.8 | 138.1 |
Interest expense | (4.3) | (20.3) | (30.7) | – | – | (49.2) | (104.5) | (1.1) | (105.6) |
| Other finance items (excluding | (0.2) | (0.2) | (0.4) | – | – | (1.9) | (2.7) | (0.7) | (3.4) |
| exceptional items) | |||||||||
| Fair value gain on other financial | – | – | – | – | – | 167.1 | 167.1 | – | 167.1 |
assets – exceptional items 2 | |||||||||
Profit/(loss) before tax | 1,406.9 | 456.1 | 73.2 | (15.4) | (64.9) | 65.2 | 1,921.1 | 44.4 | 1,965.5 |
Tax – excluding exceptional items | (465.2) | (143.1) | (14.6) | – | – | 13.7 | (609.2) | (15.1) | (624.3) |
Tax – exceptional items | – | – | – | – | – | (41.8) | (41.8) | – | (41.8) |
Profit/(loss) for the year | 941.7 | 313.0 | 58.6 | (15.4) | (64.9) | 37.1 | 1,270.1 | 29.3 | 1,299.4 |
Non-controlling interests | 372.5 | 89.5 | 5.5 | – | – | (3.2) | 464.3 | – | 464.3 |
Profit/(losses) attributable to the owners of the parent | 569.2 | 223.5 | 53.1 | (15.4) | (64.9) | 40.3 | 805.8 | 29.3 | 835.1 |
EBITDA 3 | 1,692.0 | 1,183.6 | 206.9 | 86.8 | (64.9) | (98.7) | 3,005.7 | 81.5 | 3,087.2 |
| Additions to non-current | |||||||||
| assets | |||||||||
Capital expenditure (cash basis) 4 | 897.1 | 1,044.6 | 121.6 | – | – | 15.5 | 2,078.8 | 50.4 | 2,129.2 |
| Segment assets and liabilities | |||||||||
Segment assets | 7,414.0 | 6,533.6 | 1,732.7 | – | – | 2,657.6 | 18,337.9 | 418.2 | 18,756.1 |
| Investment in associates and joint | – | – | – | 881.3 | – | – | 881.3 | 9.8 | 891.1 |
| ventures | |||||||||
Segment liabilities | (3,829.1) | (1,857.0) | (535.2) | – | – | (1,304.7) | (7,526.0) | (72.8) | (7,598.8) |
Antofagasta plc Annual Report 2024190
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Financial statements continued
16 Antofagasta Annual Report 2024
6 Segment information continued
A) Segment revenues and results continued
For the year ended 31 December 2023
Los Pelambres
$m
Centinela
$m
Antucoya
$m
Zaldívar
$m
Exploration and
Evaluation
2
$m
Corporate
and other items
$m
Mining
$m
Transport
division
$m
Total
$m
Revenue 2,923.8 2,532.5 672.3 – – – 6,128.6 195.9 6,324.5
Operating cost excluding
depreciation and loss on
disposals
1
(1,231.8) (1,348.9) (465.4) – (64.9) (98.7) (3,209.7) (120.7) (3,330.4)
Depreciation (318.6) (727.3) (109.4) – – (24.3) (1,179.6) (31.7) (1,211.3)
Operating profit/(loss) 1,373.4 456.3 97.5 – (64.9) (123.0) 1,739.3 43.5 1,782.8
Net share of results from
associates and joint ventures
– – – (15.4) – – (15.4) 1.9 (13.5)
Total operating profit from
subsidiaries, and share of total
results from associates and
j
oint ventures
1,373.4 456.3 97.5 (15.4) (64.9) (123.0) 1,723.9 45.4 1,769.3
Investment income 38.0 20.3 6.8 – – 72.2 137.3 0.8 138.1
Interest expense (4.3) (20.3) (30.7) – – (49.2) (104.5) (1.1) (105.6)
Other finance items (excluding
exceptional items)
(0.2) (0.2) (0.4) – – (1.9) (2.7) (0.7) (3.4)
Fair value gain on other financial
assets – exceptional items
2
– – – – – 167.1 167.1 – 167.1
Profit/(loss) before tax 1,406.9 456.1 73.2 (15.4) (64.9) 65.2 1,921.1 44.4 1,965.5
Tax – excluding exceptional items (465.2) (143.1) (14.6) – – 13.7 (609.2) (15.1) (624.3)
Tax – exceptional items – – – – – (41.8) (41.8) – (41.8)
Profit/(loss) for the year 941.7 313.0 58.6 (15.4) (64.9) 37.1 1,270.1 29.3 1,299.4
Non-controlling interests 372.5 89.5 5.5 – – (3.2) 464.3 – 464.3
Profit/(losses) attributable to
the owners of the parent
569.2 223.5 53.1 (15.4) (64.9) 40.3 805.8 29.3 835.1
EBITDA
3
1,692.0 1,183.6 206.9 86.8 (64.9) (98.7) 3,005.7 81.5 3,087.2
Additions to non-current
assets
Capital expenditure (cash basis)
4
897.1 1,044.6 121.6 – – 15.5 2,078.8 50.4 2,129.2
Segment assets and liabilities
Segment assets 7,414.0 6,533.6 1,732.7 – – 2,657.6 18,337.9 418.2 18,756.1
Investment in associates and joint
ventures
– – – 881.3 – – 881.3 9.8 891.1
Segment liabilities (3,829.1) (1,857.0) (535.2) – – (1,304.7) (7,526.0) (72.8) (7,598.8)
1.
Operating cash outflow in the Exploration and evaluation segment was $61.8 million.
In order to better reflect the Group’s internal reporting, the Group has changed the classification of certain evaluation costs incurred by the individual mining operations of $76.2 million,
which were previously included in the Exploration and evaluation segment and are now included within the individual mine segments, as follows: Los Pelambres $32.6 million, Centinela
$35.4 million and Antucoya $8.2 million.
2.
An exceptional fair value gain of $167.1 million has been recognised in respect of an agreement the Group entered into during 2023 to acquire up to an additional 30 million shares in
Compañía de Minas Buenaventura S.A.A., as detailed in Note 18.
3.
EBITDA is calculated by adding back depreciation, amortisation, profit or loss on disposals and impairment charges and reversals to operating profit. This comprises 100% of the EBITDA
from the Group’s subsidiaries, and the Group’s proportional share of the EBITDA of its associates and joint ventures (refer to the Alternative Performance Measures section).
4.
In order to better reflect the Group’s internal reporting, the Group has changed the basis of its capital expenditure segment measure to be on a cash basis rather than an accruals basis.
The restated amount changed from $2,307.9 million to $2,129.2 million, reflecting a decrease of $178.7 million, as follows: Los Pelambres $17.2 million, Centinela $137.8 million, Antucoya
$19.1 million, Corporate $3.5 million and Transport division $1.1 million.
antofagasta.co.uk 1177
| 2024 | 2023 | ||
| $m | $m | ||
| Copper | |||
• | Los Pelambres | 2,710.0 | 2,381.1 |
• | Centinela Concentrates | 970.5 | 1,309.8 |
• | Centinela Cathodes | 896.1 | 692.6 |
• | Antucoya | 726.0 | 666.1 |
| Provision of shipping services | |||
• | Los Pelambres | 64.4 | 50.3 |
• | Centinela Concentrates | 24.3 | 35.3 |
• | Centinela Cathodes | 7.4 | 6.0 |
• | Antucoya | 6.6 | 6.2 |
| Gold | |||
• | Los Pelambres | 110.3 | 83.5 |
• | Centinela Concentrates | 336.5 | 323.4 |
| Molybdenum | |||
• | Los Pelambres | 387.4 | 373.2 |
• | Centinela Concentrates | 100.8 | 131.0 |
| Silver | |||
• | Los Pelambres | 54.6 | 35.7 |
• | Centinela Concentrates | 23.6 | 34.4 |
| Total Mining Division | 6,418.5 | 6,128.6 | |
Transport division | 194.9 | 195.9 | |
6,613.4 | 6,324.5 | ||
Antofagasta plc Annual Report 2024 191
Financial statements continued
18 Antofagasta Annual Report 2024
6 Segment information continued
B) Group-wide disclosures continued
| 2024 | 2023 | ||
| $m | $m | ||
| Europe | |||
• | United Kingdom | 23.8 | 22.8 |
• | Switzerland | 367.8 | 386.5 |
• | Spain | 82.9 | – |
• | Germany | 160.8 | 200.0 |
• | Rest of Europe | 170.7 | 89.9 |
| Latin America | |||
• | Chile | 366.9 | 399.5 |
• | Rest of Latin America | 289.7 | 133.0 |
| North America | |||
• | United States | 470.1 | 441.7 |
| Asia | |||
• | Japan | 1,961.4 | 1,989.6 |
• | China | 1,292.2 | 1,417.3 |
• | Singapore | 336.2 | 450.2 |
• | South Korea | 436.7 | 391.1 |
• | Hong Kong | 236.2 | 204.7 |
• | Rest of Asia | 418.0 | 198.2 |
6,613.4 | 6,324.5 | ||
| 2024 | 2023 | |
| $m | $m | |
Chile | 16,392.2 | 14,017.3 |
Other | 8.7 | 9.5 |
16,400.9 | 14,026.8 |
| 2024 | 2023 | ||
| $m | $m | ||
Non-current assets per the balance sheet | 16,476.6 | 14,455.9 | |
| The above amounts by location reflect non-current assets per the balance sheet excluding: | |||
• | Deferred tax assets | (9.7) | (72.0) |
• | Account receivables | (54.4) | (68.5) |
• | Equity investments | (11.6) | (288.6) |
| Total of non-current assets above | (75.7) | (429.1) | |
Non-current assets by location of asset | 16,400.9 | 14,026.8 |
Antofagasta plc Annual Report 2024192
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
18 Antofagasta Annual Report 2024
6 Segment information continued
B) Group-wide disclosures continued
Revenue by location of customer
2024
$m
2023
$m
Europe
• United Kingdom 23.8 22.8
• Switzerland 367.8 386.5
• Spain
82.9 –
• Germany 160.8 200.0
• Rest of Europe 170.7 89.9
Latin America
• Chile 366.9 399.5
• Rest of Latin America 289.7 133.0
North America
• United States 470.1 441.7
Asia
• Japan
1,961.4 1,989.6
• China 1,292.2 1,417.3
• Singapore 336.2 450.2
• South Korea
436.7 391.1
• Hong Kong 236.2 204.7
• Rest of Asia 418.0 198.2
6,613.4 6,324.5
Information about major customers
In the year ended 31 December 2024, the Group’s mining revenue included $860.5 million related to one large customer that individually accounted for
more than 10% of the Group’s revenue (year ended 31 December 2023 – one large customer representing $1,081.0 million).
Non-current assets by location of assets
2024
$m
2023
$m
Chile 16,392.2 14,017.3
Other 8.7 9.5
16,400.9 14,026.8
2024
$m
2023
$m
Non-current assets per the balance sheet 16,476.6 14,455.9
The above amounts by location reflect non-current assets per the balance sheet excluding:
• Deferred tax assets (9.7) (72.0)
• Account receivables
(54.4) (68.5)
• Equity investments (11.6) (288.6)
Total of non-current assets above (75.7) (429.1)
Non-current assets by location of asset 16,400.9 14,026.8
antofagasta.co.uk 1199
| 2024 | 2023 | |
| $m | $m | |
| Revenue from contracts with customers | ||
Sale of products | 6,306.4 | 6,016.2 |
Provision of shipping services associated with the sale of products 1 | 102.7 | 97.8 |
Transport division 2 | 194.9 | 195.9 |
| Provisional pricing adjustments in respect of copper, gold and molybdenum | 9.4 | 14.6 |
| Total revenue | 6,613.4 | 6,324.5 |
Antofagasta plc Annual Report 2024 193
Financial statements continued
20 Antofagasta Annual Report 2024
7 Revenue continued
| Los | Los | Los | Los | ||||||||
| Pelambres | Centinela | Centinela | Antucoya | Pelambres | Centinela | Pelambres | Centinela | Pelambres | Centinela | Total | |
| Copper | Copper | Copper | Copper | Gold in | Gold in | Molybdenum | Molybdenum | Silver | Silver | Mining | |
| concentrate | concentrate | cathodes | cathodes | concentrate | concentrate | concentrate | concentrate | concentrate | concentrate | division | |
| $m | $m | $m | $m | $m | $m | $m | $m | $m | Sm | $m | |
| Provisionally priced | |||||||||||
| sales of products | 2,851.1 | 1,023.1 | 899.7 | 725.9 | 106.3 | 330.0 | 408.8 | 104.0 | 54.7 | 23.4 | 6,527.0 |
| Revenue from freight | |||||||||||
| services | 64.4 | 24.3 | 7.4 | 6.6 | – | – | – | – | – | – | 102.7 |
2,915.5 | 1,047.4 | 907.1 | 732.5 | 106.3 | 330.0 | 408.8 | 104.0 | 54.7 | 23.4 | 6,629.7 | |
| Effects of pricing | |||||||||||
| adjustments to previous | |||||||||||
| year invoices | |||||||||||
Reversal of mark-to- market adjustments at the end of the previous year | (45.1) | (16.2) | (0.3) | (0.2) | – | (2.6) | 1.0 | 0.4 | – | – | (63.0) |
| Settlement of sales | |||||||||||
invoiced in the previous year | 62.5 | 27.0 | (1.0) | (0.9) | (0.3) | 1.6 | 3.4 | 0.7 | (0.6) | . | 92.4 |
Total effect of adjustments to previous | |||||||||||
year invoices in the current year | 17.4 | 10.8 | (1.3) | (1.1) | (0.3) | (1.0) | 4.4 | 1.1 | (0.6) | – | 29.4 |
| Effects of pricing | |||||||||||
adjustments to current year invoices | |||||||||||
| Settlement of sales | |||||||||||
| invoiced in the current | |||||||||||
| year | 10.8 | 14.7 | (0.9) | 2.6 | 4.5 | 8.5 | 2.8 | 5.1 | 1.1 | 0.6 | 49.8 |
| Mark-to-market | |||||||||||
adjustments at the end of the current year | (40.1) | (22.0) | (1.4) | (1.4) | – | (0.4) | (4.0) | (0.5) | – | – | (69.8) |
Total effect of adjustments to current year invoices | (29.3) | (7.3) | (2.3) | 1.2 | 4.5 | 8.1 | (1.2) | 4.6 | 1.1 | 0.6 | (20.0) |
Total pricing adjustments | (11.9) | 3.5 | (3.6) | 0.1 | 4.2 | 7.1 | 3.2 | 5.7 | 0.5 | 0.6 | 9.4 |
Revenues before deducting treatment and refining charges | 2,903.6 | 1,050.9 | 903.5 | 732.6 | 110.5 | 337.1 | 412.0 | 109.7 | 55.2 | 24.0 | 6,639.1 |
| Treatment and refining | |||||||||||
| charges | (129.2) | (56.1) | – | – | (0.2) | (0.6) | (24.6) | (8.9) | (0.6) | (0.4) | (220.6) |
| Revenue net of tolling | |||||||||||
| charges | 2,774.4 | 994.8 | 903.5 | 732.6 | 110.3 | 336.5 | 387.4 | 100.8 | 54.6 | 23.6 | 6,418.5 |
Antofagasta plc Annual Report 2024194
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
20 Antofagasta Annual Report 2024
7 Revenue continued
For the year ended 31 December 2024
Los
Pelambres
Copper
concentrate
$m
Centinela
Copper
concentrate
$m
Centinela
Copper
cathodes
$m
Antucoya
Copper
cathodes
$m
Los
Pelambres
Gold in
concentrate
$m
Centinela
Gold in
concentrate
$m
Los
Pelambres
Molybdenum
concentrate
$m
Centinela
Molybdenum
concentrate
$m
Los
Pelambres
Silver
concentrate
$m
Centinela
Silver
concentrate
Sm
Total
Mining
division
$m
Provisionally priced
sales of products 2,851.1 1,023.1 899.7 725.9 106.3 330.0 408.8 104.0 54.7 23.4 6,527.0
Revenue from freight
services 64.4 24.3 7.4 6.6 – – – – – – 102.7
2,915.5 1,047.4 907.1 732.5 106.3 330.0 408.8 104.0 54.7 23.4 6,629.7
Effects of pricing
adjustments to previous
year invoices
Reversal of mark-to-
market adjustments at the
end of the previous year (45.1) (16.2) (0.3) (0.2) – (2.6) 1.0 0.4 – – (63.0)
Settlement of sales
invoiced in the
previous year 62.5 27.0 (1.0) (0.9) (0.3) 1.6 3.4 0.7 (0.6) . 92.4
Total effect of
adjustments to previous
year invoices in the
current year
17.4 10.8 (1.3) (1.1) (0.3) (1.0) 4.4 1.1 (0.6) – 29.4
Effects of pricing
adjustments to
current year invoices
Settlement of sales
invoiced in the current
year
10.8 14.7 (0.9) 2.6 4.5 8.5 2.8 5.1 1.1 0.6 49.8
Mark-to-market
adjustments at the end of
the current year (40.1) (22.0) (1.4) (1.4) – (0.4) (4.0) (0.5) – – (69.8)
Total effect of
adjustments to
current year invoices
(29.3) (7.3) (2.3) 1.2 4.5 8.1 (1.2) 4.6 1.1 0.6 (20.0)
Total pricing adjustments (11.9) 3.5 (3.6) 0.1 4.2 7.1 3.2 5.7 0.5 0.6 9.4
Revenues before
deducting treatment and
refining charges 2,903.6 1,050.9 903.5 732.6 110.5 337.1 412.0 109.7 55.2 24.0 6,639.1
Treatment and refining
charges (129.2) (56.1) – – (0.2) (0.6) (24.6) (8.9) (0.6) (0.4) (220.6)
Revenue net of tolling
charges 2,774.4 994.8 903.5 732.6 110.3 336.5 387.4 100.8 54.6 23.6 6,418.5
With sales of concentrates at Los Pelambres and Centinela, which are sold to smelters and roasting plants for further processing into fully refined metal,
the price of the concentrate invoiced to the customer reflects the market value of the fully refined metal less a “treatment and refining charge” deduction,
to reflect the lower value of this partially processed material compared with the fully refined metal. For accounting purposes, the revenue amount is the
net of the market value of fully refined metal less the treatment and refining charges. Under the standard industry definition of cash costs, treatment and
refining charges are regarded as an expense and part of the total cash cost figure.
antofagasta.co.uk 2211
| Los | Los | Los | Los | ||||||||
| Pelambres | Centinela | Centinela | Antucoya | Pelambres | Centinela | Pelambres | Centinela | Pelambres | Centinela | ||
| Copper | Copper | Copper | Copper | Gold in | Gold in | Molybdenum | Molybdenum | Silver | Silver | Total Mining | |
| concentrate | concentrate | cathodes | cathodes | concentrate | concentrate | concentrate | concentrate | concentrate | concentrate | division | |
| $m | $m | $m | $m | $m | $m | $m | $m | $m | Sm | $m | |
| Provisionally priced | |||||||||||
sales of products | 2,465.4 | 1,363.1 | 689.5 | 663.9 | 79.2 | 319.3 | 455.4 | 161.1 | 35.6 | 34.3 | 6,266.8 |
| Revenue from freight | |||||||||||
| services | 50.3 | 35.3 | 6.0 | 6.2 | – | – | – | – | – | – | 97.8 |
2,515.7 | 1,398.4 | 695.5 | 670.1 | 79.2 | 319.3 | 455.4 | 161.1 | 35.6 | 34.3 | 6,364.6 | |
| Effects of pricing | |||||||||||
adjustments to previous year invoices | |||||||||||
Reversal of mark-to- market adjustments at the end of the previous | |||||||||||
year | (38.0) | (19.9) | (0.8) | (0.8) | – | (2.7) | (12.6) | (7.6) | – | – | (82.4) |
| Settlement of sales | |||||||||||
invoiced in the previous year | 90.9 | 52.9 | 10.3 | 7.7 | 2.9 | 1.0 | 40.0 | 15.9 | 0.3 | 0.4 | 222.3 |
Total effect of adjustments to previous year invoices | |||||||||||
in the current year | 52.9 | 33.0 | 9.5 | 6.9 | 2.9 | (1.7) | 27.4 | 8.3 | 0.3 | 0.4 | 139.9 |
| Effects of pricing | |||||||||||
adjustments to current year invoices | |||||||||||
| Settlement of sales | |||||||||||
| invoiced in the current | |||||||||||
year | (52.2) | (19.0) | (6.7) | (4.9) | 1.5 | 3.9 | (84.1) | (27.3) | 0.3 | 0.2 | (188.3) |
| Mark-to-market | |||||||||||
adjustments at the end of the current year | 45.1 | 16.2 | 0.3 | 0.2 | – | 2.6 | (1.0) | (0.4) | – | – | 63.0 |
Total effect of adjustments to current | |||||||||||
| year invoices | (7.1) | (2.8) | (6.4) | (4.7) | 1.5 | 6.5 | (85.1) | (27.7) | 0.3 | 0.2 | (125.3) |
Total pricing adjustments | 45.8 | 30.2 | 3.1 | 2.2 | 4.4 | 4.8 | (57.7) | (19.4) | 0.6 | 0.6 | 14.6 |
Revenues before deducting treatment | |||||||||||
and refining charges | 2,561.5 | 1,428.6 | 698.6 | 672.3 | 83.6 | 324.1 | 397.7 | 141.7 | 36.2 | 34.9 | 6,379.2 |
| Treatment and refining | |||||||||||
charges | (130.1) | (83.5) | – | – | (0.1) | (0.7) | (24.5) | (10.7) | (0.5) | (0.5) | (250.6) |
| Revenue net of tolling | |||||||||||
charges | 2,431.4 | 1,345.1 | 698.6 | 672.3 | 83.5 | 323.4 | 373.2 | 131.0 | 35.7 | 34.4 | 6,128.6 |
Antofagasta plc Annual Report 2024 195
Financial statements continued
22 Antofagasta Annual Report 2024
7 Revenue continued
Antofagasta plc Annual Report 2024196
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
22 Antofagasta Annual Report 2024
7 Revenue continued
I) Copper concentrate
The typical period for which sales of copper concentrate remain open until settlement occurs is a range of approximately three to four months from
shipment date.
2024 2023
Sales provisionally priced at the balance sheet date Tonnes 157,300 181,400
Average mark-to-market price $/lb 3.96 3.87
Average provisional invoice price $/lb 4.14 3.72
II) Copper cathodes
The typical period for which sales of copper cathodes remain open until settlement occurs is approximately one month from shipment date.
2024 2023
Sales provisionally priced at the balance sheet date Tonnes 11,600 16,400
Average mark-to-market price $/lb 3.94 3.85
Average provisional invoice price $/lb 4.05 3.84
III) Gold in concentrate
The typical period for which sales of gold in concentrate remain open until settlement occurs is approximately one month from shipment date.
2024 2023
Sales provisionally priced at the balance sheet date Ounces 25,400 32,400
Average mark-to-market price $/oz 2,634 2,072
Average provisional invoice price $/oz 2,650 1,992
IV) Molybdenum concentrate
The typical period for which sales of molybdenum remain open until settlement occurs is approximately two months from shipment date.
2024 2023
Sales provisionally priced at the balance sheet date Tonnes 2,700 2,600
Average mark-to-market price $/lb 21.40 18.50
Average provisional invoice price $/lb 22.00 18.80
As detailed above, the effects of gains and losses from the marking-to-market of open sales are recognised through adjustments to revenue in the income
statement and to trade debtors in the balance sheet. The effect of mark-to-market adjustments on the balance sheet at the end of each period are as
follows.
Effect on debtors of year-end
mark-to-market adjustments
2024
$m
2023
$m
Los Pelambres – copper concentrate (40.1) 45.1
Los Pelambres – molybdenum concentrate (4.0) (1.0)
Centinela – copper concentrate (22.0) 16.2
Centinela – molybdenum concentrate (0.5) (0.4)
Centinela – gold in concentrate (0.4) 2.6
Centinela – copper cathodes (1.4) 0.3
Antucoya – copper cathodes (1.4) 0.2
(69.8) 63.0
antofagasta.co.uk 2233
| 2024 | 2023 | |
| $m | $m | |
Revenue | 6,613.4 | 6,324.5 |
Cost of sales | (4,109.0) | (3,666.4) |
| Gross profit | 2,504.4 | 2,658.1 |
Administrative and distribution expenses | (581.3) | (618.5) |
| Other operating income | 48.2 | 50.8 |
Other operating expenses 1 | (334.0) | (307.6) |
| Operating profit | 1,637.3 | 1,782.8 |
Net share of results from associates and joint ventures | 76.2 | (13.5) |
Total operating profit and share of total results from associates and joint ventures before exceptional items | 1,713.5 | 1,769.3 |
Exceptional item – Reversal of impairment | 371.4 | – |
Total operating profit and share of total results from associates and joint ventures after exceptional items | 2,084.9 | 1,769.3 |
| 2024 | 2023 | ||
| $m | $m | ||
| Foreign exchange losses | |||
• | included in net finance expense | (82.1) | (12.5) |
| Depreciation of property, plant and equipment | |||
• | owned assets | (1,404.6) | (1,127.7) |
• | leased assets | (163.6) | (83.6) |
| Loss on disposal of property, plant and equipment | (5.6) | - | |
| Cost of inventories recognised as an expense | (2,637.3) | (2,457.8) | |
| Employee benefit expense | (569.3) | (619.9) | |
| Decommissioning and restoration (operating expenses) | (0.8) | (12.8) | |
| Severance charges (see Note 27) | (25.4) | (25.7) | |
| Exploration and evaluation expense | (52.7) | (64.9) | |
| Auditor’s remuneration | (2.3) | (2.4) | |
| 2024 | 2023 | ||
| Group | $000 | $000 | |
| Fees payable to the Company’s auditor and their associates for the audit of the Parent Company and consolidated financial | |||
| statements | 854.0 | 1,685.0 | |
| Fees payable to the Company’s auditor and their associates for other services: | |||
• | The audit of the Company’s subsidiaries | 1,214.0 | 598.0 |
• | Audit-related assurance services 1 | 252.0 | 109.0 |
| 2,320.0 | 2,392.0 |
Antofagasta plc Annual Report 2024 197
Financial statements continued
24 Antofagasta Annual Report 2024
| 2024 | 2023 | ||
| Number | Number | ||
Los Pelambres | 1,369 | 1,154 | |
Centinela | 2,573 | 2,503 | |
| Antucoya | 925 | 914 | |
| Exploration and evaluation | 59 | 58 | |
Corporate and other • | Chile | 720 | 591 |
• | United Kingdom | 5 | 4 |
• | Other | 4 | 4 |
Mining and Corporate | 5,655 | 5,228 | |
Transport division | 1,360 | 1,402 | |
7,015 | 6,630 |
| 2024 | 2023 1 | |
| $m | $m | |
Wages and salaries | (627.3) | (674.9) |
Social security costs | (35.7) | (33.9) |
(663.0) | (708.8) |
| 2024 | 2023 | |
| $m | $m | |
Salaries and short-term employee benefits 1 | (18.4) | (18.0) |
Long-term incentive plan | (7.0) | (9.1) |
(25.4) | (27.1) |
Antofagasta plc Annual Report 2024198
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
24 Antofagasta Annual Report 2024
9 Employees
A) Average monthly number of employees
2024
Number
2023
Number
Los Pelambres 1,369 1,154
Centinela 2,573 2,503
Antucoya 925 914
Exploration and evaluation 59 58
Corporate and other
• Chile 720 591
• United Kingdom
5 4
• Other 4 4
Mining and Corporate 5,655 5,228
Transport division 1,360 1,402
7,015 6,630
The average number of employees for the year includes all the employees of subsidiaries. The average number of employees does not include contractors
who are not directly employed by the Group.
The average number of employees does not include employees of associates and joint ventures.
B) Aggregate remuneration
The aggregate remuneration of the employees included in the table above was as follows:
2024
$m
2023
1
$m
Wages and salaries (627.3) (674.9)
Social security costs (35.7) (33.9)
(663.0) (708.8)
1.
The 2023 amounts for wages and salaries have been restated from $589.4 million to $674.9 million, and social security costs have been restated from $30.5 million to $33.9 million to
present the gross salaries and wages (before capitalisations).
C) Key management personnel
In accordance with IAS 24, key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the Group, directly or indirectly, including any Directors (Executive and Non-Executive) of the Company. Key management personnel who are
not Directors have been identified as senior management at the corporate centre and those responsible for the running of the key business divisions of
the Group, specifically the Executive Committee and the General Managers of the Group’s subsidiary operations.
Compensation for key management personnel (including Directors) was as follows:
2024
$m
2023
$m
Salaries and short-term employee benefits
1
(18.4) (18.0)
Long-term incentive plan (7.0) (9.1)
(25.4) (27.1)
1.
The 2023 amounts for salaries and short-term employee benefits have been restated from $27.1 million to $18.0 million to separately present the amounts relating to the long-term
incentive plan.
The aggregate total Board remuneration required by Schedule 5 of the Large and Medium-sized Companies and Group (Financial Statement) Regulations
2008 is presented on page 152 of the Annual Report.
antofagasta.co.uk 2255
| 2024 | 2023 | |
| $m | $m | |
| Investment income | ||
Interest income | 73.0 | 43.1 |
| Gains on liquid investments held at fair value through profit or loss | 111.2 | 95.0 |
184.2 | 138.1 | |
| Interest expense | ||
| Interest expense | (312.2) | (105.6) |
(312.2) | (105.6) | |
| Other finance items | ||
Unwinding of discount on provisions and adjustments to provision discount rates | (18.8) | (15.8) |
| Exceptional fair value gains (see Note 4) | 51.0 | 167.1 |
| Effects of changes in foreign exchange rates | 82.1 | 12.5 |
| Preference dividends | (0.1) | (0.1) |
114.2 | 163.7 | |
Net finance (expense)/income | (13.8) | 196.2 |
| 2024 | 2023 | ||
| $m | $m | ||
| Current tax charge | |||
• | Corporate tax (principally first category tax in Chile) | (385.8) | (472.8) |
• | Mining tax (royalty) | (206.0) | (109.3) |
• | Withholding tax | (71.1) | (4.5) |
• | Exchange rate | – | (0.2) |
(662.9) | (586.8) | ||
| Deferred tax charge | |||
• | Corporate tax (principally first category tax in Chile) | (83.3) | (3.7) |
• | Mining tax (royalty) | 76.4 | (2.7) |
• | Adjustment to deferred tax due to introduction of new royalty | – | (34.3) |
• | Deferred tax on exceptional items (see Note 4) | (126.7) | (41.8) |
• | Withholding tax | 41.4 | 3.2 |
(92.2) | (79.3) | ||
Total tax charge | (755.1) | (666.1) |
Antofagasta plc Annual Report 2024 199
Financial statements continued
26 Antofagasta Annual Report 2024
11 Income tax expense continued
| Year ended | Year ended | |||||||
| 31 December 2024 | 31 December 2024 | Year ended | Year ended | |||||
| Excluding | Including | 31 December 2023 | 31 December 2023 Including | |||||
| exceptional items | exceptional items | Excluding exceptional items | exceptional items | |||||
$m | % | $m | % | $m | % | $m | % | |
Profit before tax | 1,648.7 | 2,071.1 | 1,798.4 | 1,965.5 | ||||
| Profit before tax multiplied by Chilean | ||||||||
| corporate tax rate of 27% | (445.1) | 27.0 | (559.2) | 27.0 | (485.6) | 27.0 | (530.7) | 27.0 |
| Mining tax (royalty) | (216.5) | 13.1 | (216.5) | 10.5 | (109.7) | 6.1 | (109.7) | 5.6 |
Deduction of mining tax (royalty) as an allowable expense in determination of first | ||||||||
| category tax | 55.8 | (3.4) | 55.8 | (2.7) | 29.5 | (1.6) | 29.5 | (1.5) |
| Items not deductible from first category | ||||||||
| tax | (3.9) | 0.2 | (3.9) | 0.2 | (21.4) | 1.2 | (21.4) | 1.1 |
| Adjustment in respect of prior years | 1.7 | (0.1) | 1.7 | (0.1) | 4.5 | (0.3) | 4.5 | (0.2) |
Adjustment to deferred tax in respect of mining royalty | 67.1 | (4.1) | 67.1 | (3.2) | (34.3) | 1.9 | (34.3) | 1.7 |
| Withholding tax | (29.7) | 1.8 | (29.7) | 1.4 | (1.4) | 0.1 | (1.4) | 0.1 |
| Tax effect of (loss)/profit of associates | ||||||||
| and joint ventures | 20.0 | (1.1) | 20.0 | (1.0) | (3.6) | 0.2 | (3.6) | 0.2 |
Impact of unrecognised tax losses on current tax | (77.8) | 4.7 | (77.8) | 3.8 | (2.3) | 0.1 | (2.3) | 0.1 |
| Reversal of the provision against carrying | ||||||||
| value of assets (exceptional items) | – | – | (13.7) | 0.7 | – | – | – | – |
| Difference in overseas tax rates | – | – | 1.1 | (0.1) | – | – | 3.3 | (0.2) |
Tax expense and effective tax rate for the year | 628.4 | 38.1 | 755.1 | 36.5 | (624.3) | 34.7 | (666.1) | 33.9 |
Antofagasta plc Annual Report 2024200
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
26 Antofagasta Annual Report 2024
11 Income tax expense continued
The new Chilean mining royalty has taken effect since 1 January 2024. The new royalty terms include a royalty ranging from 8% to 26% applied to the
‘‘Mining Operating Margin’’, depending on each mining operation’s level of profitability, as well as a 1% ad valorem royalty on copper sales. As the ad
valorem element is based on revenue rather than profit it does not meet the IAS 12: Income Taxes definition of a tax expense and is therefore recorded as
an operating expense. The new royalty terms have a cap, establishing that total taxation, which includes corporate income tax, the two components of the
new mining royalty, and theoretical tax on dividends, should not exceed a rate of 46.5% on Mining Operating Margin less the royalty ad-valorem expense.
Los Pelambres and Zaldívar have been subject to the new royalty from 1 January 2024. The impact of the new royalty for Los Pelambres in 2024
included the recognition of a $28.7 million expense (see Note 8) within operating expenses in respect of the ad valorem element. Zaldívar (which as a joint
venture is equity-accounted for, and so its tax expense is not consolidated within the above Group tax expense line) was also subject to the new royalty
from 1 January 2024. Centinela and Antucoya have tax stability agreements in place, and so the new royalty rates will only impact their royalty payments
from 2030 onwards. Until then, they continue to be subject to the previous royalty system, applying a rate of between 5% to 14% of taxable operating
profit, depending on the level of operating profit margin.
The following table provides a numerical reconciliation between the accounting profit before tax multiplied by the applicable statutory tax rate and the total
tax expense (including both current and deferred tax).
Year ended
31 December 2024
Excluding
exceptional items
Year ended
31 December 2024
Including
exceptional items
Year ended
31 December 2023
Excluding exceptional items
Year ended
31 December 2023 Including
exceptional items
$m % $m % $m % $m %
Profit before tax 1,648.7 2,071.1 1,798.4 1,965.5
Profit before tax multiplied by Chilean
corporate tax rate of 27% (445.1) 27.0 (559.2) 27.0 (485.6) 27.0 (530.7) 27.0
Mining tax (royalty) (216.5) 13.1 (216.5) 10.5 (109.7) 6.1 (109.7) 5.6
Deduction of mining tax (royalty) as an
allowable expense in determination of first
category tax
55.8 (3.4) 55.8 (2.7) 29.5 (1.6) 29.5 (1.5)
Items not deductible from first category
tax (3.9) 0.2 (3.9) 0.2 (21.4) 1.2 (21.4) 1.1
Adjustment in respect of prior years 1.7 (0.1) 1.7 (0.1) 4.5 (0.3) 4.5 (0.2)
Adjustment to deferred tax in respect of
mining royalty
67.1 (4.1) 67.1 (3.2) (34.3) 1.9 (34.3) 1.7
Withholding tax (29.7) 1.8 (29.7) 1.4 (1.4) 0.1 (1.4) 0.1
Tax effect of (loss)/profit of associates
and joint ventures 20.0 (1.1) 20.0 (1.0) (3.6) 0.2 (3.6) 0.2
Impact of unrecognised tax losses on
current tax
(77.8) 4.7 (77.8) 3.8 (2.3) 0.1 (2.3) 0.1
Reversal of the provision against carrying
value of assets (exceptional items) – – (13.7) 0.7 – – – –
Difference in overseas tax rates – – 1.1 (0.1) – – 3.3 (0.2)
Tax expense and effective tax rate for
the year 628.4 38.1 755.1 36.5 (624.3) 34.7 (666.1) 33.9
The effective tax rate (excluding exceptional items) of 38.1% varied from the statutory rate principally due to:
• The mining tax (royalty) (net impact of $160.7 million/9.7% including the deduction of the mining tax (royalty) as an allowable expense in the
determination of first category tax)
• The withholding tax relating to the remittance of profits from Chile (impact of $29.7 million / 1.8%)
• Adjustments to deferred tax in respect of the mining royalty (impact of $67.1 million / 4.1%)
• Items not deductible for Chilean corporate tax purposes, principally the funding of expenses outside Chile (impact of $3.9 million / 0.2%)
• Adjustments in respect of prior years (impact of $1.7 million / 0.1%)
• The impact of unrecognised tax losses (impact of $77.8 million / 4.7%) and
• An offsetting impact of the recognition of the Group’s share of results from associates and joint ventures, which are included in the Group’s profit
before tax net of their respective tax charges (impact of $20.0 million / 1.1%).
The effective tax rate (including exceptional items) of 36.5% varied from the statutory rate due to the factors outlined above, and due to the impact of the
difference in the overseas tax rate which applied to the exceptional item (tax effect of 25% in the UK versus the 27% Chilean rate).
antofagasta.co.uk 2277
| 2024 | 2023 | |
| $m | $m | |
Profit for the period attributable to owners of the parent (excluding exceptional items) | 619.5 | 709.8 |
Exceptional items | 209.9 | 125.3 |
| Profit for the period attributable to owners of the parent (including exceptional items) from operations | 829.4 | 835.1 |
| 2024 | 2023 | |
| Number | Number | |
Ordinary shares in issue throughout each year | 985,856,695 | 985,856,695 |
| 2024 | 2023 | |
| Cents | Cents | |
Basic earnings per share (excluding exceptional items) from operations | 62.8 | 72.0 |
Basic earnings per share (exceptional items) from operations | 21.3 | 12.7 |
Basic earnings per share (including exceptional items) from operations | 84.1 | 84.7 |
Antofagasta plc Annual Report 2024 201
Financial statements continued
28 Antofagasta Annual Report 2024
| 2024 | 2023 | ||||
| 2024 | 2023 | Cents | Cents | ||
| $m | $m | per share | per share | ||
| Final dividend paid in June (proposed in relation to the previous year) | |||||
• | Ordinary | 239.6 | 497.9 | 50.5 | |
| Interim dividend paid in September | |||||
• | Ordinary | 77.9 | 115.3 | 7.9 | 11.7 |
317.4 | 613.2 | 32.2 | 62.2 |
| 2024 | 2023 | ||||
| 2024 | 2023 | Cents | Cents | ||
| $m | $m | per share | per share | ||
| Final dividend proposed in relation to the year | |||||
• | Ordinary | 231.7 | 239.6 | 23.5 | 24.3 |
| Accumulated | |||
| depreciation | |||
| Cost | and impairment | Net book value | |
| $m | $m | $m | |
At 31 December 2023 | 150.1 | (150.1) | – |
At 31 December 2024 | 150.1 | (150.1) | – |
Antofagasta plc Annual Report 2024202
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
28 Antofagasta Annual Report 2024
13 Dividends
Amounts recognised as distributions to equity holders in the year:
2024
$m
2023
$m
2024
Cents
per share
2023
Cents
per share
Final dividend paid in June (proposed in relation to the previous year)
• Ordinary 239.6 497.9 24.3 50.5
Interim dividend paid in September
• Ordinary 77.9 115.3 7.9 11.7
317.4 613.2 32.2 62.2
The recommended final dividend for each year, which is subject to approval by shareholders at the Annual General Meeting and has therefore not been
included as a liability in these financial statements, is as follows:
2024
$m
2023
$m
2024
Cents
per share
2023
Cents
per share
Final dividend proposed in relation to the year
• Ordinary 231.7 239.6 23.5 24.3
Total dividends proposed in relation to 2024 (including the interim dividend) are 31.4 cents per share or $309.6 million (2023 – 36.0 cents per share or
$354.9 million).
In accordance with IAS 32, preference dividends have been included within net finance income/(expense) (see Note 10) and amounted to $0.1 million
(2023 – $0.1 million).
14 Intangible assets
Cost
$m
Accumulated
depreciation
and impairment
$m
Net book value
$m
At 31 December 2023 150.1 (150.1) –
At 31 December 2024 150.1 (150.1) –
The intangible asset relates to Twin Metals’ mining licence assets (included within the corporate segment). A full impairment provision was recognised in
respect of the $150.1 million cost of this asset as at 31 December 2021, as a result of the US federal government’s cancellation of certain of Twin Metals’
mining leases. Twin Metals believes it has a valid legal right to the mining leases and a strong case to defend its legal rights. Although the Group is
pursuing validation of those rights, considering the time and uncertainty related to any legal action to challenge the government decisions, a full impairment
provision continues to be recognised in respect of the carrying value of the asset.
antofagasta.co.uk 2299
| Wagons | Machinery, | |||||||||
| Mining | Stripping | Buildings and | Railway | and rolling | equipment | Assets under | Right-of- | |||
| Land | properties | costs | infrastructure | track | stock | and other | construction | use assets | Total | |
| $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | |
| Cost | ||||||||||
At 31 December 2022 | 61.9 | 672.0 | 3,535.3 | 5,978.9 | 134.7 | 207.4 | 7,241.3 | 4,322.7 | 531.1 | 22,685.3 |
Reclassification to opening balance 1 | (9.6) | (23.0) | – | (388.1) | (0.1) | 0.7 | 1,052.2 | (734.4) | 1.4 | (100.9) |
At 1 January 2023 | 52.3 | 649.0 | 3,535.3 | 5,590.8 | 134.6 | 208.1 | 8,293.5 | 3,588.3 | 532.5 | 22,584.4 |
Additions | 11.9 | – | 792.5 | 1.5 | 12.2 | 13.6 | 5.3 | 1,293.2 | 177.7 | 2,307.9 |
Additions – capitalised depreciation | – | – | 90.3 | – | – | – | – | – | – | 90.3 |
| Adjustment to capitalised | ||||||||||
decommissioning provisions | – | – | – | (27.2) | – | – | (4.7) | – | – | (31.9) |
Capitalisation of interest | – | – | – | – | – | – | – | 112.1 | – | 112.1 |
Reclassifications | (0.4) | – | – | 10.7 | – | – | (10.6) | (0.1) | – | (0.4) |
Reclassifications – restatement 2 | – | – | – | 1,071.4 | – | – | 390.9 | (1,378.1) | (84.2) | – |
Asset disposals | – | – | – | – | – | – | (1.9) | – | (0.7) | (2.6) |
At 31 December 2023 | 63.8 | 649.0 | 4,418.1 | 6,647.2 | 146.8 | 221.7 | 8,672.5 | 3,615.4 | 625.3 | 25,059.8 |
At 1 January 2024 | 63.8 | 649.0 | 4,418.1 | 6,647.2 | 146.8 | 221.7 | 8,672.5 | 3,615.4 | 625.3 | 25,059.8 |
Additions | – | 0.2 | 388.6 | – | – | – | – | 2,226.5 | 119.6 | 2,734.9 |
| Additions – capitalised depreciation | – | – | 87.9 | – | – | – | – | – | – | 87.9 |
| Adjustment to capitalised | ||||||||||
| decommissioning provisions | – | – | – | – | – | – | (13.1) | – | – | (13.1) |
| Capitalisation of interest | – | – | – | – | – | – | – | 67.1 | – | 67.1 |
| Reclassifications | (7.1) | – | – | 2,437.8 | 26.9 | 24.9 | 269.4 | (2,719.3) | (32.6) | – |
| Asset disposals | (0.9) | – | (2,197.4) | – | – | – | (7.7) | (1.4) | (120.8) | (2,328.2) |
At 31 December 2024 | 55.8 | 649.2 | 2,697.2 | 9,085.0 | 173.7 | 246.6 | 8,921.1 | 3,188.3 | 591.5 | 25,608.4 |
Accumulated depreciation and impairment | ||||||||||
At 31 December 2022 | (25.0) | (648.2) | (1,725.2) | (3,209.1) | (52.2) | (124.9) | (4,970.7) | – | (386.5) | (11,141.8) |
Reclassification to opening balance 1 | 25.5 | 43.0 | (192.0) | 459.7 | 0.3 | 4.8 | (235.5) | – | (4.9) | 100.9 |
At 1 January 2023 | 0.5 | (605.2) | (1,917.2) | (2,749.4) | (51.9) | (120.1) | (5,206.2) | – | (391.4) | (11,040.9) |
Charge for the year | – | (13.7) | (366.1) | (342.1) | (8.7) | (16.8) | (380.3) | – | (83.6) | (1,211.3) |
Depreciation capitalised in inventories | – | – | – | – | – | – | (41.2) | – | – | (41.2) |
Depreciation capitalised in property, plant and equipment | – | – | – | – | – | – | (90.3) | – | – | (90.3) |
Reclassifications – restatement | – | – | – | – | – | – | (83.0) | – | 83.0 | – |
Asset disposals | – | – | – | – | – | – | 1.9 | – | 0.7 | 2.6 |
At 31 December 2023 | 0.5 | (618.9) | (2,283.3) | (3,091.5) | (60.6) | (136.9) | (5,799.1) | – | (391.3) | (12,381.1) |
At 1 January 2024 | 0.5 | (618.9) | (2,283.3) | (3,091.5) | (60.6) | (136.9) | (5,799.1) | – | (391.3) | (12,381.1) |
Charge for the year | – | 1.8 | (692.3) | (371.0) | (11.6) | (19.9) | (311.6) | – | (163.6) | (1,568.2) |
| Depreciation capitalised in inventories | – | 0.9 | – | (184.4) | – | – | (154.9) | – | – | (338.4) |
Depreciation capitalised in property, plant and equipment | – | – | (87.9) | – | – | – | – | – | – | (87.9) |
| Reclassifications | – | – | – | – | – | – | (32.2) | – | 32.2 | – |
| Reverse of impairments | – | – | – | – | – | – | 371.4 | – | – | 371.4 |
| Asset disposals | – | – | 2,197.4 | – | – | – | 5.7 | – | 109.7 | 2,312.8 |
At 31 December 2024 | 0.5 | (616.2) | (866.1) | (3,646.9) | (72.3) | (156.8) | (5,920.7) | – | (412.9) | (11,691.4) |
| Net book value | ||||||||||
At 31 December 2024 | 56.3 | 33.0 | 1,831.1 | 5,438.1 | 101.5 | 89.8 | 3,000.4 | 3,188.3 | 178.5 | 13,917.0 |
At 31 December 2023 | 64.3 | 30.1 | 2,134.8 | 3,555.7 | 86.2 | 84.8 | 2,873.4 | 3,615.4 | 234.0 | 12,678.7 |
Antofagasta plc Annual Report 2024 203
Financial statements continued
30 Antofagasta Annual Report 2024
15 Property, plant and equipment continued
| Economic | Economic | |||||
| interest at | interest at | |||||
| Country of | Country of | Registered | 31 December | 31 December | ||
| incorporation | operations | office | Nature of business | 2024 | 2023 | |
| Direct subsidiaries of the Parent Company | ||||||
Antofagasta Railway Company plc | UK | Chile | 1 | Railway | 100% | 100% |
Andes Trust Limited (The) | UK | UK | 1 | Investment | 100% | 100% |
Andean LFMA Investment Limited | UK | Chile | 1 | Investment | 100% | 100% |
Alfa Estates Limited | Jersey | Jersey | 3 | Investment | 100% | 100% |
Andes Re Limited | Bermuda | Bermuda | 4 | Insurance | 100% | 100% |
| Indirect subsidiaries of the Parent Company | ||||||
Minera Los Pelambres SCM | Chile | Chile | 2 | Mining | 60% | 60% |
Minera Centinela SCM | Chile | Chile | 2 | Mining | 70% | 70% |
Minera Antucoya SCM | Chile | Chile | 2 | Mining | 70% | 70% |
Antofagasta Minerals S.A. | Chile | Chile | 2 | Mining | 100% | 100% |
Energía Andina Geothermal SpA | Chile | Chile | 2 | Energy | 100% | 100% |
MLP Transmisión S.A. | Chile | Chile | 2 | Energy | 100% | 100% |
Sociedad Contractual Minera El Encierro | Chile | Chile | 2 | Mining | 61.90% | 57.17% |
Northern Minerals Investment (Jersey) Limited | Jersey | Jersey | 3 | Investment | 100% | 100% |
Northern Metals (UK) Limited | UK | UK | 1 | Investment | 100% | 100% |
Northern Minerals Holding Co | USA | USA | 5 | Investment | 100% | 100% |
Duluth Metals Limited | Canada | Canada | 7 | Investment | 100% | 100% |
Twin Metals (UK) Limited | UK | UK | 1 | Investment | 100% | 100% |
Twin Metals (USA) Inc | USA | USA | 6 | Investment | 100% | 100% |
Twin Metals Minnesota LLC | USA | USA | 6 | Mining | 100% | 100% |
Franconia Minerals (US) LLC | USA | USA | 6 | Mining | 100% | 100% |
Duluth Metals Holdings (USA) Inc | USA | USA | 13 | Investment | 100% | 100% |
Duluth Exploration (USA) Inc | USA | USA | 14 | Investment | 100% | 100% |
DMC LLC (Minnesota) | USA | USA | 13 | Investment | 100% | 100% |
DMC (USA) LLC (Delaware) | USA | USA | 13 | Investment | 100% | 100% |
DMC (USA) Corporation | USA | USA | 13 | Investment | 100% | 100% |
Antofagasta Investment Company Limited | UK | Jersey | 1 | Investment | 100% | 100% |
Minprop Limited | Jersey | Jersey | 3 | Mining | 100% | 100% |
Antomin 2 Limited | BVI | BVI | 8 | Mining | 51% | 51% |
Antomin Investors Limited | BVI | BVI | 8 | Mining | 51% | 51% |
Minera Anaconda Peru S.A. | Peru | Peru | 10 | Mining | 100% | 100% |
Los Pelambres Holding Company Limited | UK | Jersey | 1 | Investment | 100% | 100% |
Los Pelambres Investment Company Limited | UK | Jersey | 1 | Investment | 100% | 100% |
Lamborn Land Co | USA | USA | 5 | Investment | 100% | 100% |
Antofagasta plc Annual Report 2024204
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
30 Antofagasta Annual Report 2024
15 Property, plant and equipment continued
The Group has no (2023 – nil) assets pledged as security against bank loans provided to the Group.
At 31 December 2024, the Group had entered into contractual commitments for the acquisition of property, plant and equipment amounting to $3,773.4
million (2023 – $978.3 million) of which $1,291.6 million was related to Los Pelambres and $2,383.9 million to Centinela.
The average interest rate for the interest capitalised was 6.42% (2023 – 6.0%).
At 31 December 2024, the net book value of assets capitalised relating to the decommissioning provision was $128.9 million (2023 – $158.6 million).
Depreciation capitalised in property, plant and equipment of $87.9 million related to the depreciation of assets used in mine development (capitalised
stripping costs) (2023 – $90.3 million).
During the year ended 31 December 2024, the total amount of depreciation capitalised within Property, plant and equipment or inventories was $426.4
million (year ended 31 December 2023 – $131.5 million), and has accordingly been excluded from the depreciation charge recorded in the income
statement as shown in Note 6.
At 31 December 2024, the Group leases various assets including machinery and equipment leases of $174.6 million (2023 – $228.6 million) and office
leases of $3.9 million (31 December 2023 – $5.3 million). The depreciation charge for right-of-use assets for machinery and equipment leases was $162.1
million (2023 – $82.2 million) and for office leases was $1.5 million (2023 – $1.4 million).
16 Investments in subsidiaries
The subsidiaries of the Group, the percentage of equity owned and the main country of operation are set out below. These interests are consolidated
within these financial statements.
Country of
incorporation
Country of
operations
Registered
office Nature of business
Economic
interest at
31 December
2024
Economic
interest at
31 December
2023
Direct subsidiaries of the Parent Company
Antofagasta Railway Company plc UK Chile 1 Railway 100% 100%
Andes Trust Limited (The) UK UK 1 Investment 100% 100%
Andean LFMA Investment Limited UK Chile 1 Investment 100% 100%
Alfa Estates Limited Jersey Jersey 3 Investment 100% 100%
Andes Re Limited Bermuda Bermuda 4 Insurance 100% 100%
Indirect subsidiaries of the Parent Company
Minera Los Pelambres SCM Chile Chile 2 Mining 60% 60%
Minera Centinela SCM Chile Chile 2 Mining 70% 70%
Minera Antucoya SCM Chile Chile 2 Mining 70% 70%
Antofagasta Minerals S.A. Chile Chile 2 Mining 100% 100%
Energía Andina Geothermal SpA Chile Chile 2 Energy 100% 100%
MLP Transmisión S.A. Chile Chile 2 Energy 100% 100%
Sociedad Contractual Minera El Encierro Chile Chile 2 Mining 61.90% 57.17%
Northern Minerals Investment (Jersey) Limited Jersey Jersey 3 Investment 100% 100%
Northern Metals (UK) Limited UK UK 1 Investment 100% 100%
Northern Minerals Holding Co USA USA 5 Investment 100% 100%
Duluth Metals Limited Canada Canada 7 Investment 100% 100%
Twin Metals (UK) Limited UK UK 1 Investment 100% 100%
Twin Metals (USA) Inc USA USA 6 Investment 100% 100%
Twin Metals Minnesota LLC USA USA 6 Mining 100% 100%
Franconia Minerals (US) LLC USA USA 6 Mining 100% 100%
Duluth Metals Holdings (USA) Inc USA USA 13 Investment 100% 100%
Duluth Exploration (USA) Inc USA USA 14 Investment 100% 100%
DMC LLC (Minnesota) USA USA 13 Investment 100% 100%
DMC (USA) LLC (Delaware) USA USA 13 Investment 100% 100%
DMC (USA) Corporation USA USA 13 Investment 100% 100%
Antofagasta Investment Company Limited UK Jersey 1 Investment 100% 100%
Minprop Limited Jersey Jersey 3 Mining 100% 100%
Antomin 2 Limited BVI BVI 8 Mining 51% 51%
Antomin Investors Limited BVI BVI 8 Mining 51% 51%
Minera Anaconda Peru S.A. Peru Peru 10 Mining 100% 100%
Los Pelambres Holding Company Limited UK Jersey 1 Investment 100% 100%
Los Pelambres Investment Company Limited UK Jersey 1 Investment 100% 100%
Lamborn Land Co USA USA 5 Investment 100% 100%
antofagasta.co.uk 3311
| Economic | Economic | |||||
| interest at | interest at | |||||
| Country of | Country of | Registered | 31 December | 31 December | ||
| incorporation | operations | office | Nature of business | 2024 | 2023 | |
Anaconda South America Inc | USA | USA | 15 | Investment | 100% | 100% |
El Tesoro (SPV Bermuda) Limited | Bermuda | Bermuda | 4 | Investment | 100% | 100% |
Antofagasta Minerals (Shanghai) Co. Limited | China | China | 16 | Agency | 100% | 100% |
Andes Investments Company (Jersey) Limited | Jersey | Jersey | 3 | Investment | 100% | 100% |
Bolivian Rail Investors Co Inc | USA | USA | 5 | Investment | 100% | 100% |
Inversiones Los Pelambres Chile Limitada | Chile | Chile | 2 | Investment | 100% | 100% |
Equatorial Resources SpA | Chile | Chile | 2 | Investment | 100% | 100% |
Minera Santa Margarita de Astillas SCM | Chile | Chile | 2 | Mining | 98.01% | 98.01% |
Minera Penacho Blanco SA | Chile | Chile | 2 | Mining | 66.6% | 66.6% |
Michilla Costa SpA | Chile | Chile | 2 | Logistics | 99.9% | 99.9% |
Minera Pampa Fenix SCM | Chile | Chile | 2 | Investment | 90.0% | 90.0% |
Minera Mulpun Limitada | Chile | Chile | 2 | Mining | 100% | 100% |
Fundación Minera Los Pelambres | Chile | Chile | 2 | Community development | 100% | 100% |
Inversiones Punta de Rieles Limitada | Chile | Chile | 12 | Investment | 100% | 100% |
Ferrocarril Antofagasta a Bolivia | Chile | Chile | 12 | Railway | 100% | 100% |
| Inversiones Mineras Northern Mines y Compañía | ||||||
Limitada | Chile | Chile | 12 | Investment | 100% | 100% |
The Andes Trust Chile SA | Chile | Chile | 12 | Investment | 100% | 100% |
Bosques Panguipulli S.A. | Chile | Chile | 12 | Forestry | 100% | 100% |
Servicios de Transportes Integrados Limitada | Chile | Chile | 12 | Road transport | 100% | 100% |
Inversiones Train Limitada | Chile | Chile | 12 | Investment | 100% | 100% |
Servicios Logisticos Capricornio Limitada | Chile | Chile | 12 | Transport | 100% | 100% |
Embarcadores Limitada | Chile | Chile | 12 | Transport | 100% | 100% |
FCAB Ingenieria y Servicios DOS Limitada | Chile | Chile | 12 | Transport | 100% | 100% |
Inmobiliaria Parque Estación S.A. | Chile | Chile | 12 | Real Estate | 100% | 100% |
Emisa Antofagasta SA | Chile | Chile | 12 | Transport | 100% | 100% |
Antofagasta plc Annual Report 2024 205
Financial statements continued
32 Antofagasta Annual Report 2024
16 Investments in subsidiaries continued
| Buenaventura | ||||
| (i) | ATI (ii) | Zaldívar (iii) | Total | |
| 2024 | 2024 | 2024 | 2024 | |
| $m | $m | $m | $m | |
Balance at the beginning of the year | – | 9.8 | 881.3 | 891.1 |
Recognition of new investment | 814.1 | – | – | 814.1 |
Dividends received | (3.5) | (0.4) | – | (3.9) |
| Share of profit/(loss) from joint venture and associates | 61.4 | (0.3) | 15.1 | 76.2 |
| Share of other comprehensive loss of associates and joint ventures, net of tax | – | (0.1) | (1.3) | (1.4) |
| Balance at the end of the year | 872.0 | 9.0 | 895.1 | 1,776.1 |
| ATI (ii) | Zaldívar (iii) | Total | |
| 2023 | 2023 | 2023 | |
| $m | $m | $m | |
Balance at the beginning of the year | 7.3 | 897.3 | 904.6 |
Capital contribution | 0.6 | – | 0.6 |
Share of profit/(loss) from joint venture and associates | 1.9 | (15.4) | (13.5) |
Share of other comprehensive loss of associates and joint ventures, net of tax | – | (0.6) | (0.6) |
Balance at the end of the year | 9.8 | 881.3 | 891.1 |
Antofagasta plc Annual Report 2024206
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
32 Antofagasta Annual Report 2024
16 Investments in subsidiaries continued
With the exception of the Antofagasta Railway Company plc, all of the above Group companies have only one class of ordinary share capital in issue. The
Antofagasta Railway Company plc has ordinary and preference share capital in issue, with the ordinary share capital representing 76% of the Company’s
total share capital, and the preference share capital representing 24%. Antofagasta plc holds 100% of both the ordinary and preference shares.
The proportion of voting rights is proportional to the economic interest for the companies listed above.
17 Disposal of investment in Tethyan joint venture (Reko Diq project)
In May 2023, the Group received the $944.7 million cash proceeds associated with its agreement to exit its 50% interest in the Tethyan joint venture,
which was a joint venture with Barrick Gold Corporation (Barrick) in respect of the Reko Diq project in Pakistan.
18 Investment in associates and joint ventures
Buenaventura
(i)
2024
$m
ATI (ii)
2024
$m
Zaldívar (iii)
2024
$m
Total
2024
$m
Balance at the beginning of the year – 9.8 881.3 891.1
Recognition of new investment 814.1 – – 814.1
Dividends received (3.5) (0.4) – (3.9)
Share of profit/(loss) from joint venture and associates 61.4 (0.3) 15.1 76.2
Share of other comprehensive loss of associates and joint ventures, net of tax – (0.1) (1.3) (1.4)
Balance at the end of the year 872.0 9.0 895.1 1,776.1
ATI (ii)
2023
$m
Zaldívar (iii)
2023
$m
Total
2023
$m
Balance at the beginning of the year 7.3 897.3 904.6
Capital contribution 0.6 – 0.6
Share of profit/(loss) from joint venture and associates 1.9 (15.4) (13.5)
Share of other comprehensive loss of associates and joint ventures, net of tax – (0.6) (0.6)
Balance at the end of the year 9.8 881.3 891.1
The investments, which are included in the $1,776.1 million balance at 31 December 2024, are set out below:
Investment in associates
1. (i) Buenaventura – The Group has an 18.94% interest in Buenaventura. Buenaventura is Peru’s largest, publicly traded precious and base
metals company and a major holder of mining rights in Peru. During 2023, the Group entered into an agreement to acquire up to 30 million
shares in Buenaventura, representing approximately 12% of Buenaventura’s issued share capital. In addition, the Group held as of 31
December 2023 an existing holding of approximately 18.1 million shares in Buenaventura, representing approximately 7% of Buenaventura’s
issued share capital (see Note 19). As at 31 December 2023, an “other financial asset” balance was recognised on the balance sheet in
respect of the agreement, at its fair value of $457.2 million. A fair value gain of $167.1 million was recognised during 2023 in respect of this
asset (see Note 4). In March 2024, the transaction pursuant to the agreement completed, resulting in the Group holding approximately 48.1
million shares in Buenaventura, representing approximately 19% of Buenaventura’s issued share capital. Iván Arriagada and Andrónico Luksic
Lederer were elected to Buenaventura’s board in March 2024. Taking into account relevant factors including the Group’s approximately 19%
interest in Buenaventura’s issued share capital and the associated rights to propose directors for election to Buenaventura’s board and to
vote in favour of the election of those individuals accordingly, the Group is considered for accounting purposes to have significant influence (in
accordance with the IAS 28: Investments in Associates and Joint Ventures definition) over Buenaventura from March 2024 onwards.
Accordingly, the Group’s interest in Buenaventura has been accounted for as an investment in associate from that point (see Note 3).
Immediately prior to the transaction completing in March 2024, the Group’s existing 7% equity interest was carried at a fair value of $305.9 million and
the financial asset relating to the agreement to acquire the 12% interest was carried at a fair value of $508.2 million, with both valuations being based
on the quoted share price of Buenaventura on that date. On completion, these two assets were de-recognised and the investments in associate was
initially recognised at an equivalent value of $814.1 million with no gain or loss arising.
A fair value gain of $51.0 million in respect of the “other financial asset” balance recognised in respect of the transaction was recognised between 1
January 2024 and the completion of the agreement in March 2024.
The Group has undertaken an exercise to recognise the identifiable assets and liabilities effectively included within the investments in associate balance
at their acquisition-date fair values. No goodwill or gain on bargain purchase has been recognised as a result of this exercise.
antofagasta.co.uk 3333
| Buenaventura | ATI | ATI | ||
| 2024 | 2024 | 2024 | 2023 | |
| $m | $m | $m | $m | |
Current assets | 838.4 | 23.8 | 862.2 | 21.6 |
Non-current assets | 5,253.8 | 78.2 | 5,332.0 | 84.3 |
| Current liabilities | (479.7) | (12.8) | (492.5) | (13.6) |
Non-current liabilities | (1,008.5) | (59.1) | (1,067.6) | (62.1) |
| Net assets | 4,604.0 | 30.1 | 4,634.1 | 30.2 |
| Assets and liabilities above include: | ||||
| Cash and cash equivalents | 478.4 | 8.8 | 487.2 | 5.9 |
| Revenue | 1,154.6 | 64.3 | 1,218.9 | 65.9 |
Profit from continuing operations | 417.3 | 5.3 | 422.6 | 6.2 |
| Total comprehensive income | 417.3 | 5.3 | 422.6 | 6.2 |
Antofagasta plc Annual Report 2024 207
Financial statements continued
34 Antofagasta Annual Report 2024
18 Investment in associates and joint ventures continued
Investment in joint ventures continued
| Buenaventura | ATI | Zaldivar | Total | ATI | Zaldivar | Total | |
| 2024 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
| Group interest | |||||||
Net assets (100%) | 4,604.0 | 30.1 | 1,790.2 | 5,380.0 | 32.7 | 1,762.6 | 1,795.3 |
| Group’s ownership interest | 18.94% | 30.00% | 50.00% | - | 30.00% | 50.00% | - |
| Carrying value of Group’s interest | 872.0 | 9.0 | 895.1 | 1,578.3 | 9.8 | 881.3 | 891.1 |
| 2024 | 2023 | |
| $m | $m | |
Balance at the beginning of the year | 288.6 | 90.5 |
Acquisition | – | 60.7 |
Movements in fair value 1 | 29.7 | 137.0 |
| Reallocation to associates | (305.9) | – |
| Foreign currency exchange differences | (0.8) | 0.4 |
| Balance at the end of the year | 11.6 | 288.6 |
Antofagasta plc Annual Report 2024208
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
34 Antofagasta Annual Report 2024
18 Investment in associates and joint ventures continued
Investment in joint ventures continued
Summarised financial information for the joint venture is as follows:
Minera
Zaldívar
2024
$m
Minera
Zaldívar
2023
$m
Revenue 719.9 718.6
Depreciation and amortisation (181.3) (164.4)
Other operating costs (518.8) (550.3)
Operating profit 19.8 3.9
Finance expense 5.1 (6.2)
Income tax (0.1) (28.4)
Profit/(loss) after tax 24.8 (30.7)
Other comprehensive expense (3.7) (1.2)
Total comprehensive income/(expense) 21.1 (31.9)
Non-current assets 1,488.6 1,626.7
Current assets 709.5 640.6
Current liabilities (189.3) (231.0)
Non-current liabilities (218.6) (273.7)
Net assets 1,790.2 1,762.6
The assets and liabilities above include:
• Cash and cash equivalents 96.7 38.4
• Current financial liabilities
(189.3) (57.8)
• Non-current financial liabilities (218.6) (38.1)
Dividends received from joint venture – –
The above summarised financial information is based on the amounts included in the IFRS financial statements of the joint venture (100% of the results or
balances of the joint venture, rather than the Group’s proportionate share), after the Group’s fair value adjustments and applying the Group’s accounting
policies.
Reconciliation of the above amounts to the investment recognised in the Group balance sheet
Buenaventura
2024
ATI
2024
Zaldivar
2024
Total
2024
ATI
2023
Zaldivar
2023
Total
2023
Group interest
Net assets (100%) 4,604.0 30.1 1,790.2 5,380.0 32.7 1,762.6 1,795.3
Group’s ownership interest 18.94% 30.00% 50.00% - 30.00% 50.00% -
Carrying value of Group’s interest 872.0 9.0 895.1 1,578.3 9.8 881.3 891.1
The above net asset figures are based on the amounts included in the IFRS financial statements of the associate or joint venture (100% of the results or
balances of the associate or joint venture, rather than the Group’s proportionate share), after the Group’s fair value adjustments and applying the Group’s
accounting policies.
19 Equity investments
2024
$m
2023
$m
Balance at the beginning of the year 288.6 90.5
Acquisition – 60.7
Movements in fair value
1
29.7 137.0
Reallocation to associates (305.9) –
Foreign currency exchange differences (0.8) 0.4
Balance at the end of the year 11.6 288.6
1.
A deferred tax expense of $7.7 million has been recognised in respect of the movements in the fair value of equity investments, resulting in a post-tax gain of $22.0 million (see Note 28).
antofagasta.co.uk 3355
| 2024 | 2023 | |
| $m | $m | |
| Current | ||
Raw materials and consumables | 266.6 | 231.0 |
| Work-in-progress | 499.7 | 375.4 |
| Finished goods | 158.8 | 64.6 |
925.1 | 671.0 | |
| Non-current | ||
| Work-in-progress | 707.8 | 457.0 |
| Total | 1,632.9 | 1,128.0 |
Due in one year | Due after one year | Total | ||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| $m | $m | $m | $m | $m | $m | |
| Trade receivables | 699.6 | 950.1 | – | – | 699.6 | 950.1 |
| Other receivables | 199.9 | 167.7 | 54.4 | 68.5 | 254.3 | 236.2 |
899.5 | 1,117.8 | 54.4 | 68.5 | 953.9 | 1,186.3 |
| 2024 | 2023 | |
| $m | $m | |
Balance at the beginning of the year | (1.2) | (1.0) |
Utilised in year | (0.1) | (0.3) |
| Foreign currency exchange difference | 0.1 | 0.1 |
Balance at the end of the year | (1.2) | (1.2) |
Antofagasta plc Annual Report 2024 209
Financial statements continued
36 Antofagasta Annual Report 2024
21 Trade and other receivables continued
| Up to | More than | Total excluding | |||||
| 3 months | 3-6 months | 6 months | expected credit | Expected credit | |||
| Not due | past due | past due | past due | loss provision | loss provision | Total | |
| $m | $m | $m | $m | $m | $m | $m | |
2024 | 790.9 | 6.7 | 0.5 | 1.5 | 799.6 | (1.2) | 798.4 |
2023 1 | 1,056.2 | 13.9 | 0.5 | 4.2 | 1,074.8 | (1.2) | 1,073.6 |
| 2024 | 2023 | ||
| $m | $m | ||
Cash and cash equivalents | 2,189.2 | 644.7 | |
• | Cash on hand | 0.5 | 0.7 |
• | Mutual funds | 122.6 | – |
• | Term deposits | 1,146.9 | 226.3 |
• | Bank (on-demand deposits) | 919.2 | 417.7 |
| Liquid investments | 2,127.1 | 2,274.7 | |
4,316.3 | 2,919.4 |
| 2024 | 2023 | |
| $m | $m | |
US dollars | 4,190.6 | 2,895.3 |
Chilean pesos | 124.5 | 22.3 |
| Sterling | 0.7 | 1.2 |
| Other | 0.5 | 0.6 |
4,316.3 | 2,919.4 |
| 2024 | 2023 1 | |
| $m | $m | |
AAA | 1,769.8 | 2,075.1 |
AA+ | 122.6 | – |
| AA | 43.0 | – |
| AA- | 146.7 | 118.6 |
| A+ | 1,218.1 | 290.0 |
| A | 1,016.1 | 435.7 |
| Total cash, cash equivalents and liquid investments | 4,316.3 | 2,919.4 |
Antofagasta plc Annual Report 2024210
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
36 Antofagasta Annual Report 2024
21 Trade and other receivables continued
The ageing analysis of the trade and other receivables balance, excluding non-financial assets (as reconciled in Note 25(A)), is as follows:
Not due
$m
Up to
3 months
past due
$m
3-6 months
past due
$m
More than
6 months
past due
$m
Total excluding
expected credit
loss provision
$m
Expected credit
loss provision
$m
Total
$m
2024 790.9 6.7 0.5 1.5 799.6 (1.2) 798.4
2023
1
1,056.2 13.9 0.5 4.2 1,074.8 (1.2) 1,073.6
1.
The balances as of 2023 have been restated by $112.7 million, from $1,186.3 million to $1,073.6 million, to exclude “non-financial assets” (see Note 25(A)).
As explained above, for sales contracts which contain provisional pricing mechanisms, which reflects the majority of the Group’s trade receivable balances, the total
receivable balance is measured at fair value through profit or loss, and so potential expected credit loss allowances are not relevant for these balances.
The carrying value of the trade receivables recorded in the financial statements represents the Group’s maximum exposure to credit risk in relation to
these items. Other than the expected credit loss provision amount set out above, the expected credit loss risk for other trade and other receivable
balances is considered to be immaterial to the Group.
22 Cash and cash equivalents, and liquid investments
The fair value of cash and cash equivalents, and liquid investments is not materially different from the carrying values presented. The credit risk on cash and
cash equivalents is considered to be limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.
Cash and cash equivalents, and liquid investments comprised:
2024
$m
2023
$m
Cash and cash equivalents 2,189.2 644.7
• Cash on hand 0.5 0.7
• Mutual funds 122.6 –
• Term deposits
1,146.9 226.3
• Bank (on-demand deposits) 919.2 417.7
Liquid investments 2,127.1 2,274.7
4,316.3 2,919.4
At 31 December 2024 and 2023 there is no cash which is subject to restriction.
The denomination of cash, cash equivalents and liquid investments was as follows:
2024
$m
2023
$m
US dollars 4,190.6 2,895.3
Chilean pesos 124.5 22.3
Sterling 0.7 1.2
Other 0.5 0.6
4,316.3 2,919.4
The credit quality of cash, cash equivalents and liquid investments are as follow:
2024
$m
2023
1
$m
AAA 1,769.8 2,075.1
AA+ 122.6 –
AA 43.0 –
AA- 146.7 118.6
A+ 1,218.1 290.0
A 1,016.1 435.7
Total cash, cash equivalents and liquid investments 4,316.3 2,919.4
1.
The above 2023 comparatives have been restated to allocate $105.5 million of amounts relating to certain short-term operational bank accounts which had previously been presented
separately, into the various credit rating categories.
There have been no impairments recognised in respect of cash or cash equivalents in the year ended 31 December 2024 (year ended 31 December
2023 – nil).
antofagasta.co.uk 3377
| 2024 | 2023 | |||
| Note | $m | $m | ||
| Borrowings | ||||
• | Senior loans | (2,584.8) | (2,412.6) | |
Los Pelambres | (i) | (1,887.6) | (2,067.2) | |
Centinela | (ii) | (572.6) | (166.3) | |
Antucoya | (iii) | (124.6) | (174.1) | |
| Transport division | – | (5.0) | ||
• | Subordinated debt | (205.5) | (187.6) | |
Antucoya | (iv) | (205.5) | (187.6) | |
• | Other loans | (670.0) | (265.0) | |
Los Pelambres | (v) | (475.0) | – | |
Centinela | (vi) | (195.0) | (265.0) | |
• | Bonds | (1,729.0) | (986.8) | |
Corporate | (vii) | (1,729.0) | (986.8) | |
(5,189.3) | (3,852.0) | |||
| Leases | ||||
• | Los Pelambres | (vii) | (19.2) | (45.2) |
• | Centinela | (ix) | (114.1) | (142.8) |
• | Antucoya | (x) | (13.4) | (17.4) |
• | Corporate | (xi) | (12.1) | (18.4) |
• | Transport division | (xii) | (0.9) | (0.9) |
(159.7) | (224.7) | |||
| Other financial liabilities | ||||
• | Centinela | (xiii) | (594.0) | – |
(594.0) | – | |||
| Preference shares | ||||
• | Corporate | (xiv) | (2.4) | (2.5) |
(2.4) | (2.5) | |||
Total | (5,945.4) | (4,079.2) | ||
Antofagasta plc Annual Report 2024 211
Financial statements continued
38 Antofagasta Annual Report 2024
23 Borrowings and other financial liabilities
A) Analysis by type of borrowing and other financial liabilities continued
Antofagasta plc Annual Report 2024212
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
38 Antofagasta Annual Report 2024
23 Borrowings and other financial liabilities
A) Analysis by type of borrowing and other financial liabilities continued
• Three US dollar denominated senior loans were issued in December 2023 for a total amount of $810 million. The first loan is a $200 million bullet
with a remaining duration of 2 years and an interest rate of Term SOFR six-month rate plus 1.60%. The second loan is a $200 million bullet with a
remaining duration of 4 years and an interest rate of Term SOFR six-month rate plus 1.69%. The third loan is a $410 million amortising balance,
with a remaining duration of 4 years, and an interest rate of Term SOFR six-month rate plus 1.70%. The amount outstanding at the end of the
period is $810.0 million.
(ii) The senior loans at Centinela represent:
• Centinela has a US dollar denominated senior loan with an amount outstanding of $33.3 million with a duration of less than 1 year and an interest
rate of Term SOFR six-month rate plus an all-in margin of 1.38%. The loan is subject to financial covenants requiring the maintenance of specified
Net Financial Debt/EBITDA, EBITDA/Interest Expense and Total Indebtedness/Tangible Net Worth (being the net asset value less any intangible
asset value) ratios, which have been complied with, with significant headroom, throughout the period.
• Centinela’s project finance in respect of the Second Concentrator Project, which has a committed amount of $2.5 billion. During 2024 there were
three debt disbursements totalling $619.5 million (less initial arrangement fees). The borrowing has a remaining 11-year duration and is divided in to
six different tranches with interest rates of Term SOFR six-month rate plus margins of between 0.85% and 1.90%. The amount outstanding (net of
initial arrangements fees) is $539.3 million.
(iii) The senior loan at Antucoya represents a US dollar denominated syndicated loan with an amount outstanding of $125 million. This loan has a
remaining duration of 2.5 years and has an interest rate of Term SOFR six-month rate plus 1.40%. The loan is subject to financial covenants which
requiring the maintenance of specified Net Financial Debt/EBITDA, EBITDA/Interest Expense and Total Indebtedness/Tangible Net Worth (being
the net asset value less any intangible asset value) ratios, which have been complied with, with significant headroom, throughout the period.
(iv) Subordinated debt at Antucoya is US dollar denominated, provided to Antucoya by Marubeni Corporation with a remaining duration of 2.5 years
and an interest rate of Term SOFR six-month rate plus an all-in margin of 4.08%. The outstanding amount at the end of the period is $206 million.
Subordinated debt provided by Group companies to Antucoya has been eliminated on consolidation.
(v) In April 2024, Los Pelambres issued two short-term loans for a total amount of $185 million, with a remaining duration of less than 1 year. In May
2024, Los Pelambres issued three short-term loans for a total amount of $290 million, with a remaining duration of less than 1 year.
(vi) In March 2024, Centinela issued a short-term loan for a total amount of $45 million and a remaining duration of less than 1 year. In July 2024,
Centinela issued a short-term loan for a total amount of $150 million. This loan has a remaining term of less than 1 year.
(vii) Antofagasta plc in October 2020 issued a corporate bond for $500 million with a 10-year tenor with a coupon rate of 2.375%. In May 2022,
Antofagasta plc issued a corporate bond for $500 million with a 10-year tenor with a coupon rate of 5.625%. In May 2024, Antofagasta plc issued
a corporate bond for $750 million with a 10-year tenor with a coupon rate of 6.250%.
(viii) Los Pelambres: Equipment leases embedded within wider service contracts, denominated in UF (Unidad de Fomento – i.e. inflation-linked Chilean
pesos), Chilean pesos and dollars.
(ix) Centinela: Equipment leases embedded within wider service contracts, denominated in UF (Unidad de Fomento – i.e. inflation-linked Chilean pesos),
Chilean pesos and dollars.
(x) Antucoya: Equipment leases embedded within wider service contracts, denominated in UF (Unidad de Fomento – i.e. inflation-linked Chilean
pesos), Chilean pesos and dollars.
(xi) Financial Leases at Corporate and other items which are denominated in Unidades de Fomento (i.e. inflation-linked Chilean pesos) and have a
remaining duration of 2 years and are at fixed rates with an average interest rate of 5.2%, and property lease agreements and equipment leases
embedded within wider service contracts within Corporate and other items which are denominated in different currencies.
(xii) Transport division: equipment leases embedded within wider service contracts, denominated in UF (Unidad de Fomento – i.e. inflation-linked
Chilean pesos) and Chilean pesos.
(xiii) In June 2024 Centinela entered into an 18-year water transportation agreement, involving its existing water supply and future water supply to the
Centinela Second Concentrator Project. Under the terms of the agreement, Centinela’s existing water transportation assets have been legally
transferred to an international consortium for net cash proceeds of $598.6 million. For accounting purposes, it has been determined that Centinela
continues to control the assets, as it will continue to obtain substantially all the remaining benefits from the assets. Accordingly, the existing assets
remain in Centinela’s balance sheet, with the cash receipt resulting in the recognition of the corresponding other financial liability balance, which
will be repaid over the 18-year agreement term.
(xiv) The preference shares are Sterling-denominated and issued by Antofagasta plc. There are 2 million shares of £1 each authorised, issued and fully
paid. The preference shares are non-redeemable and are entitled to a fixed cumulative dividend of 5% per annum. On winding up they are entitled
to repayment and any arrears of dividend in priority to ordinary shareholders but are not entitled to participate further in any surplus. Each
preference share carries 100 votes in any general meeting of the Company.
antofagasta.co.uk 3399
| Chilean | 2024 | |||
| pesos | Sterling | US dollars | Total | |
| At 31 December 2024 | $m | $m | $m | $m |
Senior loans | – | – | (2,584.8) | (2,584.8) |
Bonds | – | – | (1,729.0) | (1,729.0) |
| Other loans (including short-term loans) | – | – | (875.5) | (875.5) |
| Other financial liabilities | – | – | (594.0) | (594.0) |
| Leases | (141.0) | (3.0) | (15.7) | (159.7) |
| Preference shares | – | (2.4) | – | (2.4) |
(141.0) | (5.4) | (5,799.0) | (5,945.4) |
| Chilean | 2023 | |||
| pesos | Sterling | US dollars | Total | |
| At 31 December 2023 | $m | $m | $m | $m |
Senior loans | – | – | (2,412.6) | (2,412.6) |
Bonds | – | – | (986.8) | (986.8) |
Other loans (including short-term loans) | – | – | (452.6) | (452.6) |
Leases | (174.8) | (3.5) | (46.4) | (224.7) |
Preference shares | – | (2.5) | – | (2.5) |
(174.8) | (6.0) | (3,898.4) | (4,079.2) |
| 2024 | |||
| Fixed | Floating | Total | |
| At 31 December 2024 | $m | $m | $m |
Senior loans | – | (2,584.8) | (2,584.8) |
Bonds | (1,729.0) | – | (1,729.0) |
| Other loans (including short-term loans) | (670.0) | (205.5) | (875.5) |
| Other financial liabilities | (594.0) | – | (594.0) |
| Leases | (159.7) | – | (159.7) |
| Preference shares | (2.4) | – | (2.5) |
(3,155.1) | (2,790.3) | (5,945.4) |
| 2023 | |||
| Fixed | Floating | Total | |
| At 31 December 2023 | $m | $m | $m |
Senior loans | (5.0) | (2,407.6) | (2,412.6) |
Bonds | (986.8) | – | (986.8) |
Other loans (including short-term loans) | – | (452.6) | (452.6) |
Leases | (224.7) | – | (224.7) |
Preference shares | (2.5) | – | (2.5) |
(1,219.0) | (2,860.2) | (4,079.2) |
Antofagasta plc Annual Report 2024 213
Financial statements continued
40 Antofagasta Annual Report 2024
23 Borrowings and other financial liabilities continued
| Within | Between | Between | After | 2024 | |
| 1 year | 1-2 years | 2-5 years | 5 years | Total | |
| At 31 December 2024 | $m | $m | $m | $m | $m |
Senior loans | (549.9) | (596.9) | (908.1) | (529.9) | (2,584.8) |
Bonds | – | – | – | (1,729.0) | (1,729.0) |
| Other loans | (670.0) | – | (205.5) | – | (875.5) |
| Other financial liabilities | (6.1) | (12.2) | (47.3) | (528.4) | (594.0) |
| Leases | (96.5) | (28.5) | (34.5) | (0.2) | (159.7) |
| Preference shares | – | – | – | (2.4) | (2.4) |
(1,322.5) | (637.6) | (1,195.4) | (2,789.9) | (5,945.4) |
| Within | Between | Between | After | 2023 | |
| 1 year | 1-2 years | 2-5 years | 5 years | Total | |
| At 31 December 2023 | $m | $m | $m | $m | $m |
Senior loans | (529.1) | (570.9) | (1,287.6) | (25.0) | (2,412.6) |
Bonds | – | – | – | (986.8) | (986.8) |
Other loans | (265.0) | – | (187.6) | – | (452.6) |
Leases | (107.8) | (73.0) | (42.6) | (1.3) | (224.7) |
Preference shares | – | – | – | (2.5) | (2.5) |
(901.9) | (643.9) | (1,517.8) | (1,015.6) | (4,079.2) |
| 2024 | 2023 | |
| $m | $m | |
Within 1 year | (105.2) | (121.0) |
Between 1 – 2 years | (30.8) | (79.0) |
| Between 2 – 5 years | (37.1) | (47.4) |
| After 5 years | – | – |
Total minimum lease payments | (173.1) | (247.4) |
Less amounts representing finance charges | 13.4 | 22.7 |
Present value of minimum lease payments | (159.7) | (224.7) |
Facility available | Drawn | Undrawn | ||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| $m | $m | $m | $m | $m | $m | |
| Revolving credit facility | (500.0) | (500.0) | – | - | (500.0) | (500.0) |
(500.0) | (500.0) | – | - | (500.0) | (500.0) |
Antofagasta plc Annual Report 2024214
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
40 Antofagasta Annual Report 2024
23 Borrowings and other financial liabilities continued
E) Maturity profile
The maturity profile of the Group’s borrowings is as follows:
At 31 December 2024
Within
1 year
$m
Between
1-2 years
$m
Between
2-5 years
$m
After
5 years
$m
2024
Total
$m
Senior loans (549.9) (596.9) (908.1) (529.9) (2,584.8)
Bonds – – – (1,729.0) (1,729.0)
Other loans (670.0) – (205.5) – (875.5)
Other financial liabilities (6.1) (12.2) (47.3) (528.4) (594.0)
Leases (96.5) (28.5) (34.5) (0.2) (159.7)
Preference shares – – – (2.4) (2.4)
(1,322.5) (637.6) (1,195.4) (2,789.9) (5,945.4)
At 31 December 2023
Within
1 year
$m
Between
1-2 years
$m
Between
2-5 years
$m
After
5 years
$m
2023
Total
$m
Senior loans (529.1) (570.9) (1,287.6) (25.0) (2,412.6)
Bonds – – – (986.8) (986.8)
Other loans (265.0) – (187.6) – (452.6)
Leases (107.8) (73.0) (42.6) (1.3) (224.7)
Preference shares – – – (2.5) (2.5)
(901.9) (643.9) (1,517.8) (1,015.6) (4,079.2)
Medium and long-term borrowings and other financial liabilities are items that are due beyond one year.
The amounts included above for leases are based on the present value of minimum lease payments.
The total minimum lease payments for these leases may be analysed as follows:
2024
$m
2023
$m
Within 1 year (105.2) (121.0)
Between 1 – 2 years (30.8) (79.0)
Between 2 – 5 years (37.1) (47.4)
After 5 years – –
Total minimum lease payments (173.1) (247.4)
Less amounts representing finance charges 13.4 22.7
Present value of minimum lease payments (159.7) (224.7)
All leases are on a fixed payment basis and no arrangements have been entered into for contingent rental payments.
The Group has different types of equipment leases embedded within wider contracts mainly in respect of contracts for earth and mineral movement
services, maintenance services, truck rentals, machinery rental and operation, property lease agreements and equipment lease agreements.
There are no variable lease payments that are based on an index or a rate.
F) Financing facilities
On 30 December 2022, Antofagasta plc agreed a revolving credit facility (RCF) of $500 million which had a term of three years, expiring on 30 December
2025.
Subsequent to 31 December 2024, the RCF was extended for a further three years, and now expires on 30 December 2028.
Facility available Drawn Undrawn
2024
$m
2023
$m
2024
$m
2023
$m
2024
$m
2023
$m
Revolving credit facility
(500.0) (500.0)
– -
(500.0) (500.0)
(500.0) (500.0)
– -
(500.0) (500.0)
antofagasta.co.uk 4411
Due in one year | Due after one year | Total | ||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| $m | $m | $m | $m | $m | $m | |
| Trade creditors | (938.1) | (788.1) | – | - | (938.1) | (788.1) |
| Other creditors and accruals | (382.2) | (383.4) | (10.2) | (9.8) | (392.4) | (393.2) |
(1,320.3) | (1,171.5) | (10.2) | (9.8) | (1,330.5) | (1,181.3) |
| Derivative | |||||
At fair value | instruments at | ||||
At fair value through other | fair value, | Total | |||
through profit | comprehensive | designated as | Held at amortised 2024 | ||
and loss | income | hedges | cost | $m | |
| Financial assets | |||||
Equity investments | – | 11.6 | – | – | 11.6 |
| Trade and other receivables | 669.1 | – | – | 129.3 | 798.4 |
| Cash and cash equivalents | 124.3 | – | – | 2,064.9 | 2,189.2 |
| Liquid investments | 2,127.1 | – | – | – | 2,127.1 |
2,920.5 | 11.6 | – | 2,194.2 | 5,126.3 | |
| Financial liabilities | |||||
Borrowings and other financial liabilities | – | – | – | (5,945.4) | (5,945.4) |
| Derivative financial instruments | – | – | (25.5) | – | (25.5) |
| Trade and other payables | – | – | – | (1,177.4) | (1,177.4) |
– | – | (25.5) | (7,122.8) | (7,148.3) |
| Derivative | |||||
At fair value | instruments at | ||||
At fair value through other | fair value, | Total | |||
through profit | comprehensive | designated as | Held at | 2023 | |
and loss | income | hedges | amortised cost | $m | |
| Financial assets | |||||
Equity investments | - | 288.6 | - | - | 288.6 |
Trade and other receivables | 916.5 | - | - | 157.1 | 1,073.6 |
Other financial assets | 457.2 | - | - | - | 457.2 |
Cash and cash equivalents | 1.1 | - | - | 643.6 | 644.7 |
Liquid investments | 2,274.7 | - | - | - | 2,274.7 |
3,649.5 | 288.6 | - | 800.7 | 4,738.8 | |
| Financial liabilities | |||||
Borrowings and other financial liabilities | - | - | - | (4,079.2) | (4,079.2) |
Trade and other payables 1 | - | - | - | (1,029.2) | (1,029.2) |
- | - | - | (5,108.4) | (5,108.4) |
Antofagasta plc Annual Report 2024 215
Financial statements continued
42 Antofagasta Annual Report 2024
25 Financial instruments and financial risk management continued
A) Categories of financial instruments continued
| 2024 | 2023 | |
| $m | $m | |
| Financial assets | ||
Trade and other receivables (non-current) per balance sheet | 54.4 | 68.5 |
| Trade and other receivables (current) per balance sheet | 899.5 | 1,117.8 |
| Total trade and other receivables per balance sheet | 953.9 | 1,186.3 |
Less: non-financial assets (including prepayments and VAT receivables) | (155.5) | (112.7) |
| Total trade and other receivables (financial assets) | 798.4 | 1,073.6 |
| Financial liabilities | ||
| Trade and other payables (current) per balance sheet | (1,320.3) | (1,171.5) |
| Trade and other payables (non-current) per balance sheet | (10.2) | (9.8) |
Total trade and other payables per balance sheet | (1,330.5) | (1,181.3) |
Less: non-financial liabilities (including employee benefit and VAT liabilities) 1 | 153.1 | 152.1 |
| Total trade and other payables (financial liabilities) | (1,177.4) | (1,029.2) |
| Total | ||||
| Level 1 | Level 2 | Level 3 | 2024 | |
| $m | $m | $m | $m | |
| Financial assets | ||||
Equity investments (a) | 11.6 | – | – | 11.6 |
| Trade and other receivables (b) | – | 669.1 | – | 669.1 |
| Cash and cash equivalents (d) | 124.3 | – | – | 124.3 |
| Liquid investments (e) | – | 2,127.1 | – | 2,127.1 |
135.9 | 2,796.2 | – | 2,932.1 |
| Total | ||||
| Level 1 | Level 2 | Level 3 | 2024 | |
| $m | $m | $m | $m | |
| Financial liabilities | ||||
Derivative financial instruments (f) | – | (25.5) | – | (25.5) |
– | (25.5) | – | (25.5) |
Antofagasta plc Annual Report 2024216
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
42 Antofagasta Annual Report 2024
25 Financial instruments and financial risk management continued
A) Categories of financial instruments continued
The fair value of the fixed rate bonds included within the “Borrowings” category was $1,630.5 million at 31 December 2024 compared with their carrying
value of $1,729.0 million (year ended 31 December 2023 – fair value of $908.3 million compared with their carrying value of $986.8 million). This fair
value was calculated using market rates at the period end. These are level 2 inputs as described below.
The fair value of the fixed rate borrowings included within the “Other loans” category was $700.5 million at 31 December 2024 compared with their
carrying value of $670.0 million. This fair value was calculated using market rates at the period end. These are level 2 inputs as described below.
The fair value of the fixed rate other financial liabilities balance was $756.9 million at 31 December 2024 compared with its carrying value of $594.0
million. This fair value was calculated using market rates at the period end. These are level 2 inputs as described below.
The fair value of all other financial assets and financial liabilities carried at amortised cost approximates the carrying value presented above.
The following tables reconcile between the total trade and other receivables and trade and other payables balances on the balance sheet with the financial
instrument amounts included in this note.
2024
$m
2023
$m
Financial assets
Trade and other receivables (non-current) per balance sheet 54.4 68.5
Trade and other receivables (current) per balance sheet 899.5 1,117.8
Total trade and other receivables per balance sheet 953.9 1,186.3
Less: non-financial assets (including prepayments and VAT receivables) (155.5) (112.7)
Total trade and other receivables (financial assets) 798.4 1,073.6
Financial liabilities
Trade and other payables (current) per balance sheet (1,320.3) (1,171.5)
Trade and other payables (non-current) per balance sheet (10.2) (9.8)
Total trade and other payables per balance sheet (1,330.5) (1,181.3)
Less: non-financial liabilities (including employee benefit and VAT liabilities)
1
153.1 152.1
Total trade and other payables (financial liabilities) (1,177.4) (1,029.2)
1.
The comparative 2023 non-financial liabilities amount has been restated from $27.0 million to $152.1 million to include relevant employee benefit liabilities.
B) Fair value of financial instruments
An analysis of financial assets and financial liabilities measured at fair value is presented below:
Level 1
$m
Level 2
$m
Level 3
$m
Total
2024
$m
Financial assets
Equity investments (a) 11.6 – – 11.6
Trade and other receivables (b) – 669.1 – 669.1
Cash and cash equivalents (d) 124.3 – – 124.3
Liquid investments (e) – 2,127.1 – 2,127.1
135.9 2,796.2 – 2,932.1
Level 1
$m
Level 2
$m
Level 3
$m
Total
2024
$m
Financial liabilities
Derivative financial instruments (f) – (25.5) – (25.5)
– (25.5) – (25.5)
antofagasta.co.uk 4433
| Total | ||||
| Level 1 | Level 2 | Level 3 | 2023 | |
| $m | $m | $m | $m | |
| Financial assets | ||||
Equity investments (a) | 288.6 | - | - | 288.6 |
Trade and other receivables (b) | - | 916.5 | - | 916.5 |
Other financial assets (c) | - | 457.2 | - | 457.2 |
Cash and cash equivalents (d) | 1.1 | - | - | 1.1 |
Liquid investments (e) | - | 2,274.7 | - | 2,274.7 |
289.7 | 3,648.4 | - | 3,938.1 |
Antofagasta plc Annual Report 2024 217
Financial statements continued
44 Antofagasta Annual Report 2024
25 Financial instruments and financial risk management continued
C) Financial risk management continued
Antofagasta plc Annual Report 2024218
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
44 Antofagasta Annual Report 2024
25 Financial instruments and financial risk management continued
C) Financial risk management continued
Commodity price sensitivity
The sensitivity analysis below shows the impact of a reasonably possible change in the copper price on the financial instruments held as at the reporting
date. A movement in the copper market price as at the reporting date will affect the final pricing adjustment to sales that remain open at that date,
impacting the trade receivables balance and consequently the income statement. A movement in the copper market price will also affect the valuation of
commodity derivatives, impacting the hedging reserve in equity if the fair value movement relates to an effective designated cash flow hedge, and
impacting the income statement if it does not. The calculation assumes that all other variables, such as currency rates, remain constant.
• If the copper market price as at the reporting date had increased by 10 c/lb, profit attributable to the owners of the parent would have increased by
$15.3 million (2023 – increase by $19.0 million).
• If the copper market price as at the reporting date had decreased by 10 c/lb, profit attributable to the owners of the parent would have decreased by
$15.3 million (2023 – decrease by $19.0 million).
In addition, a movement in the average copper price during the year would impact revenue and earnings. A 10 c/lb change in the average copper price
during the year would have affected profit attributable to the owners of the parent by $58.0 million (2023 – $60.6 million) and earnings per share by 5.9
cents (2023 – 6.1 cents), based on production volumes in 2024, without taking into account the effects of provisional pricing. A $1/lb change in the
average molybdenum price for the year would have affected profit attributable to the owners of the parent by $9.1 million (2023 – $10.2 million), and
earnings per share by 0.9 cents (2023 – 1.0 cents), based on production volumes in 2024, and without taking into account the effects of provisional
pricing. A $100 /oz change in the average gold price for the year would have affected profit attributable to the owners of the parent by $8.4 million (2022
– $9.6 million), and earnings per share by 0.8 cents (2023 – 1.0 cents), based on production volumes in 2024, and without taking into account the effects
of provisional pricing.
II) Currency risk
The Group is exposed to a variety of currencies. The US dollar, however, is the currency in which the majority of the Group’s sales are denominated.
Operating costs are influenced by the countries in which the Group’s operations are based (principally Chile) as well as those currencies in which the
costs of imported goods and services are determined. After the US dollar, the Chilean peso is the most important currency influencing costs and to a
lesser extent sales.
Given the significance of the US dollar to the Group’s operations, this is the presentational currency of the Group for internal and external reporting. The
US dollar is also the currency for borrowing and holding surplus cash, although a portion of this may be held in other currencies, notably Chilean pesos
and Sterling, to meet short-term operating and capital commitments and dividend payments.
When considered appropriate, the Group uses forward exchange contracts and currency swaps to limit the effects of movements in exchange rates in
foreign-currency-denominated assets and liabilities. The Group may also use these instruments to reduce currency exposure on future transactions and
cash flows. Details of any exchange rate derivatives entered into by the Group in the year are given in Note 25(D).
The currency exposure of the Group’s cash, cash equivalents and liquid investments is given in Note 22, and the currency exposure of the Group’s
borrowings is given in Note 23(C). The effects of exchange gains and losses included in the income statement are given in Note 10. Exchange differences
on translation of the net assets of entities with a functional currency other than the US dollar are taken to the currency translation reserve and are
disclosed in the Consolidated Statement of Changes in Equity.
Currency sensitivity
The sensitivity analysis below shows the impact of a movement in the US dollar/Chilean peso exchange rate on the financial instruments held as at the
reporting date.
The impact on profit or loss is as a result of the retranslation of non-US dollar monetary financial instruments (including cash, cash equivalents, liquid
investments, trade receivables, trade payables and borrowings). The impact on equity is as a result of changes in the fair value of derivative instruments
which are effective designated cash flow hedges, and changes in the fair value of equity investments. The calculation assumes that all other variables,
such as interest rates, remain constant.
At 31 December 2024, the Group had a net liability position in respect of Chilean peso denominated financial assets and liabilities of Ch$518 billion,
equivalent to $520 million (31 December 2023 – Ch$536 billion, equivalent to $610 million). If the US dollar had strengthened by 10% against the Chilean
peso as at the reporting date, profit attributable to the owners of the parent would have increased by $19.8 million (2023 – increase of $23.8 million). If the
US dollar had weakened by 10% against the Chilean peso as at the reporting date, profit attributable to the owners of the parent would have decreased by
$24.2 million (2023 – decrease of $29.1 million).
III) Interest rate risk
The Group’s borrowings reflect a mixture of fixed and floating rate facilities. Fluctuations in interest rates may impact the Group’s net finance income or
cost, and to a lesser extent the value of financial assets and liabilities. The Group occasionally uses interest rate swaps and collars to manage interest rate
exposures on a portion of its existing borrowings.
The interest rate exposure of the Group’s borrowings is given in Note 23.
antofagasta.co.uk 4455
Antofagasta plc Annual Report 2024 219
Financial statements continued
46 Antofagasta Annual Report 2024
25 Financial instruments and financial risk management continued
C) Financial risk management continued
| Less than | Between | Between | After | 2024 | |
| 1 year | 1-2 years | 2-5 years | 5 years | Total | |
| At 31 December 2024 | $m | $m | $m | $m | $m |
Senior loans | (729.1) | (3,572.4) | (380.8) | (337.6) | (5,019.9) |
| Other loans (including short-term loans and bond) | (84.2) | (1,263.5) | (766.9) | (192.1) | (2,306.7) |
Leases | (30.8) | (34.3) | (60.4) | (43.5) | (169.0) |
Preference shares 1 | (0.1) | (0.1) | (0.3) | (2.5) | (3.0) |
| Trade and other payables | (1,167.2) | (10.2) | – | – | (1,177.4) |
| Derivative financial instruments | (20.4) | (5.1) | – | – | (25.5) |
(2,031.8) | (4,885.6) | (1,208.4) | (575.7) | (8,701.5) |
| Less than | Between | Between | After | 2023 | |
| 1 year | 1-2 years | 2-5 years | 5 years | Total | |
| At 31 December 2023 | $m | $m | $m | $m | $m |
| Senior loans | (704.8) | (705.8) | (1,460.0) | (25.9) | (2,896.5) |
| Other loans (including short-term loans and bond) | (305.0) | (40.0) | (306.8) | (1,122.2) | (1,774.0) |
Leases | (122.0) | (79.0) | (45.6) | (0.9) | (247.5) |
Preference shares 1 | (0.1) | (0.1) | (0.3) | (2.6) | (3.1) |
Trade and other payables | (1,019.4) | (9.5) | (0.3) | – | (1,092.2) |
(2,151.3) | (834.4) | (1,813.0) | (1,151.6) | (5,950.3) |
Antofagasta plc Annual Report 2024220
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
46 Antofagasta Annual Report 2024
25 Financial instruments and financial risk management continued
C) Financial risk management continued
The following table analyses the maturity of the Group’s contractual commitments in respect of its financial liabilities and derivative financial instruments.
The table has been drawn up based on the undiscounted cash flows on the earliest date on which the Group can be required to pay. The table includes
both interest and principal cash flows.
At 31 December 2024
Less than
1 year
$m
Between
1-2 years
$m
Between
2-5 years
$m
After
5 years
$m
2024
Total
$m
Senior loans (729.1) (3,572.4) (380.8) (337.6) (5,019.9)
Other loans (including short-term loans and bond)
(84.2) (1,263.5) (766.9) (192.1) (2,306.7)
Leases (30.8) (34.3) (60.4) (43.5) (169.0)
Preference shares
1
(0.1) (0.1) (0.3) (2.5) (3.0)
Trade and other payables (1,167.2) (10.2) – – (1,177.4)
Derivative financial instruments (20.4) (5.1) – – (25.5)
(2,031.8) (4,885.6) (1,208.4) (575.7) (8,701.5)
At 31 December 2023
Less than
1 year
$m
Between
1-2 years
$m
Between
2-5 years
$m
After
5 years
$m
2023
Total
$m
Senior loans
(704.8) (705.8) (1,460.0) (25.9) (2,896.5)
Other loans (including short-term loans and bond)
(305.0) (40.0) (306.8) (1,122.2) (1,774.0)
Leases (122.0) (79.0) (45.6) (0.9) (247.5)
Preference shares
1
(0.1) (0.1) (0.3) (2.6) (3.1)
Trade and other payables (1,019.4) (9.5) (0.3) – (1,092.2)
(2,151.3) (834.4) (1,813.0) (1,151.6) (5,950.3)
1.
The preference shares pay an annual dividend of £100,000 in perpetuity, and accordingly it is not possible to determine total amounts payable for periods without a fixed end date.
VIII) Capital risk management
The Group’s objectives are to return capital to shareholders while leaving the Group with sufficient funds to progress its short, medium and long-term
growth plans as well as preserving the financial flexibility to take advantage of opportunities as they may arise. This policy remains unchanged.
The Group monitors capital on the basis of net cash/debt (defined as cash, cash equivalents and liquid investments less borrowings) which was net debt
of $1,629.1 million at 31 December 2024 (2023 – net debt $1,159.8 million), as well as gross cash (defined as cash, cash equivalents and liquid
investments) which was $4,316.3 million at 31 December 2024 (2023 – $2,919.4 million). The Group’s total cash is held in a combination of interest-
bearing accounts, term deposits and managed funds investing in high-quality, fixed income instruments. The managed funds are held primarily for
investment purposes rather than meeting short-term cash commitments and accordingly these amounts are presented as liquid investments; however,
they are included in net cash for monitoring and decision-making purposes. The Group has a risk-averse investment strategy. The Group’s borrowings
are detailed in Note 23. Additional project finance or shareholder loans are taken out by the operating subsidiaries to fund projects on a case-by-case
basis.
Under the terms of some of the borrowing facilities, the Group is required to comply with the following financial covenants:
1. Net Financial Debt/EBITDA.
2. EBITDA/Interest Expense.
3. Total Indebtedness/Tangible Net Worth (being the net asset value less any intangible asset value).
antofagasta.co.uk 4477
Nominal | Carrying amount | ||||||||
| Line item in the | Amount removed | ||||||||
| statement of | Change in the value | from cash flow | Amount removed | ||||||
| financial position | of hedging | hedge reserve to | from cost of hedging | ||||||
| where the hedging | instrument | Costs of hedging | initial cost of hedged | reserve to initial | Line item in balance | ||||
| Amount | Assets | Liabilities | instrument is | recognised in OCI | recognised in OCI | item | cost of hedged item | sheet affected by | |
| $m | $m | $m | included | $m | $m | $m | $m | the removal | |
| Foreign | |||||||||
| currency risk | |||||||||
| Foreign | 847.0 | – | (25.5) | Derivative | 25.5 | – | – | – | Property, plant |
| exchange | financial | and equipment | |||||||
| option contract | instruments | ||||||||
| (liabilities) |
| Hedging | Hedging | ||
| reserve | reserve | ||
| 2024 | 2023 | ||
| $m | $m | ||
Balance at 1 January | – | - | |
| Cash flow hedges | |||
• | Foreign currency risk - Derivative financial instruments | 25.5 | - |
| Amount included in the cost of non-financial items | |||
| Tax on movements on reserves during the year | (6.9) | - | |
| Balance at 31 December | 18.6 | - |
Antofagasta plc Annual Report 2024 221
Financial statements continued
48 Antofagasta Annual Report 2024
26 Long-term incentive plan continued
2024 | 2023 | |
Weighted average forecast share price at vesting date | $22.6 | $21.6 |
Expected volatility | 37.01% | 37.21% |
| Expected life of awards | 3 years | 3 years |
| Expected dividend yields | 4.60% | 5.32% |
| Discount rate | 1.48% | 2.93% |
| Restricted | Performance | Restricted | Performance | |
| Awards | Awards | Awards | Awards | |
| Number | Number | Number | Number | |
| 2024 | 2024 | 2023 | 2023 | |
Outstanding at 1 January | 459,508 | 997,018 | 438,519 | 1,176,947 |
Granted during the year | 238,893 | 392,428 | 291,060 | 468,967 |
| Cancelled during the year | (36,147) | (55,713) | (25,178) | (49,510) |
| Payments during the year | (197,647) | (238,993) | (244,893) | (599,386) |
| Outstanding at 31 December | 464,607 | 1,094,740 | 459,508 | 997,018 |
| Number of awards that have vested | 188,479 | – | 171,803 | – |
| 2024 | 2023 | |
| % | % | |
Average nominal discount rate 1 | 5.3% | 6.2% |
Average rate of increase in salaries | 1.7% | 1.9% |
| Average staff turnover | 3.2% | 3.2% |
Antofagasta plc Annual Report 2024222
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
48 Antofagasta Annual Report 2024
26 Long-term incentive plan continued
Valuation process and accounting for awards
The fair value of the awards is determined using a Monte Carlo simulation model. The inputs into the Monte Carlo simulation model are as follows:
2024 2023
Weighted average forecast share price at vesting date $22.6 $21.6
Expected volatility 37.01% 37.21%
Expected life of awards 3 years 3 years
Expected dividend yields 4.60% 5.32%
Discount rate 1.48% 2.93%
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the previous one year. The expected life of awards
used in the model has been adjusted based on management’s best estimate for the effects of non-transferability and compliance with the objectives
determined according to the characteristics of each plan.
The number of awards outstanding at the end of the year is as follows:
Restricted
Awards
Number
2024
Performance
Awards
Number
2024
Restricted
Awards
Number
2023
Performance
Awards
Number
2023
Outstanding at 1 January 459,508 997,018 438,519 1,176,947
Granted during the year 238,893 392,428 291,060 468,967
Cancelled during the year (36,147) (55,713) (25,178) (49,510)
Payments during the year (197,647) (238,993) (244,893) (599,386)
Outstanding at 31 December 464,607 1,094,740 459,508 997,018
Number of awards that have vested 188,479 – 171,803 –
The Group has recorded a liability of $17.9 million at 31 December 2024, of which $8.9 million is due after more than one year (31 December 2023 –
$13.9 million of which $7.5 million was due after more than one year) and total expenses of $15.0 million for the year (2023 – expense of $12.6 million).
27 Post-employment benefit obligations
A) Defined contribution schemes
The Group operates defined contribution schemes for a limited number of employees. The amount charged to the income statement in 2024 was $0.1
million (2023 – $0.1 million), representing the amount paid in the year. There were no outstanding amounts which remain payable at the end of either
year.
B) Severance provisions
Employment terms at some of the Group’s operations provide for payment of a severance payment when an employment contract comes to an end. This
is typically at the rate of one month for each year of service (subject in most cases to a cap as to the number of qualifying years of service) and based on
the final salary level. The severance payment obligation is treated as an unfunded defined benefit plan, and the obligation recognised is based on valuations
performed by an independent actuary using the projected unit credit method, which are regularly updated. The obligation recognised in the balance sheet
represents the present value of the severance payment obligation. Actuarial gains and losses are immediately recognised in other comprehensive income.
The most recent valuation was carried out in 2024 by Ernst & Young, a qualified actuary in Santiago, Chile which is not connected with the Group.
The main assumptions used to determine the actuarial present value of benefit obligations were as follows:
2024
%
2023
%
Average nominal discount rate
1
5.3% 6.2%
Average rate of increase in salaries 1.7% 1.9%
Average staff turnover 3.2% 3.2%
1.
The average nominal discount rate shown in the table above is a weighted average of the discount rates applied to the individual companies, weighted by the number of employees per
company. The table below showing the assumptions applied in the calculation of the provision shows the simple average of the discount rates applied to the individual companies, which
therefore differs from the weighted average rate shown in the table above..
antofagasta.co.uk 4499
| 2024 | 2023 | |
| $m | $m | |
Current service cost (charge to operating profit) | (25.4) | (25.7) |
Interest cost (charge to other finance items) | (8.1) | (7.2) |
| Foreign exchange credit to other finance items | 16.9 | 3.6 |
| Total charge to income statement | (16.6) | (29.3) |
| 2024 | 2023 | |
| $m | $m | |
Balance at the beginning of the year | (139.9) | (137.3) |
Current service cost | (25.4) | (25.7) |
| Actuarial (losses)/gains | (12.2) | 10.7 |
| Unwinding of discount on provisions | (8.1) | (7.2) |
| Paid in the year | 16.3 | 16.0 |
| Foreign currency exchange difference | 17.1 | 3.6 |
| Balance at the end of the year | (152.2) | (139.9) |
| 31 December 2023 | ||
Nominal discount rate | 5.25% | 6.52% |
Reference rate name | 20-year Chilean Central Bank Bonds | 20-year Chilean Central Bank Bonds |
Governmental or corporate rate | Governmental | Governmental |
Reference rating | AA–/AA+ | AA–/AA+ |
Corresponds to an issuance market (primary) or secondary market | Secondary | Secondary |
Issuance currency associated to the reference rate | Chilean peso | Chilean peso |
Date of determination of the reference interest rate | 08 November 2024 | 31 October 2023 |
Source of the reference interest rate | Bloomberg | Bloomberg |
Antofagasta plc Annual Report 2024 223
Financial statements continued
50 Antofagasta Annual Report 2024
| Accelerated | Temporary | ||||||
| capital | differences | Withholding | Short-term | Mining tax | |||
| allowances | on provisions | tax | differences | (royalty) | Tax losses | Total | |
| $m | $m | $m | $m | $m | $m | $m | |
At 1 January 2023 | (1,467.1) | 129.1 | (71.6) | (67.8) | (111.9) | 124.5 | (1,464.8) |
(Charge)/credit to income | (34.4) | 14.0 | 3.2 | (1.1) | (2.6) | 18.0 | (2.9) |
Adjustment due to introduction of new royalty | – | – | – | 50.8 | (85.1) | – | (34.3) |
Tax on exceptional items | – | – | – | (41.8) | – | – | (41.8) |
Reclassification | 95.3 | (77.1) | 1.8 | (30.0) | 11.3 | (1.3) | – |
Charge deferred in equity | – | (2.9) | – | (37.0) | (0.9) | – | (40.8) |
| At 31 December 2023 and 1 January 2024 | (1,406.2) | 63.1 | (66.6) | (126.9) | (189.2) | 141.2 | (1,584.6) |
(Charge)/credit to income | (95.0) | 13.6 | 41.4 | 80.7 | (15.2) | (58.4) | (32.9) |
| Adjustment due to introduction of new royalty | – | – | – | (24.6) | 91.7 | – | 67.1 |
Tax on exceptional items 1 | (114.0) | – | – | (12.7) | – | – | (126.7) |
Charge deferred in equity 2 | – | 2.9 | – | (9.4) | 0.6 | – | (5.9) |
At 31 December 2024 | (1,615.2) | 79.6 | (25.2) | (92.9) | (112.1) | 82.8 | (1,683.0) |
| 2024 | 2023 | |
| $m | $m | |
Net deferred tax assets | 9.7 | 72.0 |
Net deferred tax liabilities | (1,692.7) | (1,656.6) |
| Net deferred tax balances | (1,683.0) | (1,584.6) |
Antofagasta plc Annual Report 2024224
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
50 Antofagasta Annual Report 2024
28 Deferred tax assets and liabilities
Accelerated
capital
allowances
$m
Temporary
differences
on provisions
$m
Withholding
tax
$m
Short-term
differences
$m
Mining tax
(royalty)
$m
Tax losses
$m
Total
$m
At 1 January 2023 (1,467.1) 129.1 (71.6) (67.8) (111.9) 124.5 (1,464.8)
(Charge)/credit to income (34.4) 14.0 3.2 (1.1) (2.6) 18.0 (2.9)
Adjustment due to introduction of new royalty – – – 50.8 (85.1) – (34.3)
Tax on exceptional items – – – (41.8) – – (41.8)
Reclassification 95.3 (77.1) 1.8 (30.0) 11.3 (1.3) –
Charge deferred in equity – (2.9) – (37.0) (0.9) – (40.8)
At 31 December 2023 and 1 January 2024 (1,406.2) 63.1 (66.6) (126.9) (189.2) 141.2 (1,584.6)
(Charge)/credit to income (95.0) 13.6 41.4 80.7 (15.2) (58.4) (32.9)
Adjustment due to introduction of new royalty – – – (24.6) 91.7 – 67.1
Tax on exceptional items
1
(114.0) – – (12.7) – – (126.7)
Charge deferred in equity
2
– 2.9 – (9.4) 0.6 – (5.9)
At 31 December 2024 (1,615.2) 79.6 (25.2) (92.9) (112.1) 82.8 (1,683.0)
1.
A deferred tax expense of $126.7 million has been recognised in respect of the exceptional items, reflecting a fair value gain of $12.7 million in respect of the agreement the Group
entered into during 2024 to acquire up to an additional 30 million shares in Compañía de Minas Buenaventura S.A.A. (see Note 4) and $114.0 million of deferred tax relating to the
Antucoya impairment reversal.
2.
The $5.9 million of deferred tax recognised directly in equity relates to $7.7 million of deferred tax expense in respect of the movements in the fair value of equity investments (see Note
19) and $1.8 million of deferred tax income in respect of actuarial loss on defined benefit plans.
The charge to the income statement of $32.7 million (2023 – $2.9 million) included an impact from foreign exchange differences of $0.3 million (2023 –
$0.3 million). Additionally, the deferred tax balance includes a gain from a change in criteria for the royalty deferred tax in 2024, totalling $67.1 million
(2023 – $91.9 million).
Certain deferred tax assets and liabilities have been offset. Deferred tax assets and liabilities are offset where there is a legally enforceable right to do so,
which under Chilean tax regulations is only possible within individual legal entities.
The following is the analysis of the deferred tax balance (after offset):
2024
$m
2023
$m
Net deferred tax assets 9.7 72.0
Net deferred tax liabilities (1,692.7) (1,656.6)
Net deferred tax balances (1,683.0) (1,584.6)
The $9.7 million net deferred tax asset balance (2023 – $72.0 million) relates to the total deferred tax position of those individual Group entities which
have a net deferred tax asset position. In general, these net deferred tax asset positions reflect tax losses, which in some cases are partly offset by
deferred tax liabilities in respect of accelerated capital allowances and other temporary differences.
At 31 December 2024, the Group had unused tax losses of $661.4 million in respect of which no deferred tax asset has been recognised, as the relevant
entities are currently loss-making; $141.1 million (2023 – $24.8 million) of these tax losses relate to Chilean entities where the tax losses can be carried
forward indefinitely, and $520.3 million (2023 – $496.8 million) relate to entities outside Chile, predominantly in respect of the Twin Metals project.
$267.5 million (2023 – $267.5 million) of the Twin Metals tax losses expire in the period from 2030 – 2037, and the remainder can be carried
forward indefinitely.
The value of the remaining undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognised, because the Group is in a
position to control the timing of distributions and it is likely that distributions will not be made in the foreseeable future, was $7,397.9 million (31 December
2023 – $7,101.1 million).
At 31 December 2024, the Group has recognised a $99.2 million deferred tax liability in respect of fair value gains in relation to the Group’s interests in
Buenaventura, prior to the Group accounting for its interest in Buenaventura as an investment in associate from March 2024 onwards. In March 2025, if
the Group maintains its existing interest in Buenaventura, it will qualify for the UK Substantial Shareholding Exemption in respect of its holding in
Buenaventura, as it will have held an interest of more than 10% in Buenaventura for a period of 12 months, exempting the Group from UK capital gains tax
in respect of its investment. Accordingly, it is expected that in March 2025 the Group will de-recognise its existing deferred tax liability.
Temporary differences arising in connection with interests in associates are insignificant.
The deferred tax balance of $1,683.0 million (2023 – $1,584.6 million) includes $1,535.0 million (2023 – $1,567.2 million) due in more than one year.
The deferred tax assets of $9.7 million are all due in more than one year (2023 – $72.0 million).
The deferred tax liabilities of $1,692.7 million (2023 – $1,656.6) include $208.8 million due in less than 1 year and $1,571.5 million due in more than one year.
All amounts are shown as non-current on the face of the balance sheet, as required by IAS 12: Income Taxes.
antofagasta.co.uk 5511
| 2024 | 2023 | |
| $m | $m | |
Balance at the beginning of the year | (441.1) | (488.2) |
Charge to operating profit in the year | (0.8) | (12.8) |
| Unwind of discount to net interest in the year | (10.8) | (10.2) |
| Adjustment to provision discount rates | 0.1 | 1.6 |
Capitalised adjustment to provision 1 | 13.0 | 31.9 |
| Utilised in year | 10.7 | 36.8 |
| Foreign currency exchange difference | 0.9 | (0.2) |
| Balance at the end of the year | (428.0) | (441.1) |
Short-term provisions | (5.9) | (15.2) |
| Long-term provisions | (422.1) | (425.9) |
| Total | (428.0) | (441.1) |
| 2024 | 2023 | 2024 | 2023 | |
| Number | Number | $m | $m | |
| Authorised | ||||
Ordinary shares of 5p each | 1,300,000,000 | 1,300,000,000 | 118.9 | 118.9 |
| 2024 | 2023 | 2024 | 2023 | |
| Number | Number | $m | $m | |
| Issued and fully paid | ||||
Ordinary shares of 5p each | 985,856,695 | 985,856,695 | 89.8 | 89.8 |
Antofagasta plc Annual Report 2024 225
Financial statements continued
52 Antofagasta Annual Report 2024
30 Share capital and other reserves continued
| 2024 | 2023 | |
| $m | $m | |
| Share premium | ||
At 1 January and 31 December | 199.2 | 199.2 |
Hedging reserves 1 | ||
At 1 January | – | – |
Change in fair value of hedging instruments 2 | (17.9) | – |
| Tax on the above | 4.8 | – |
| At 31 December | (13.1) | – |
Equity investment revaluation reserve 3 | ||
At 1 January | 108.4 | 8.4 |
| Gains on equity investment | 22.0 | 100.0 |
Reclassification 4 | (130.4) | – |
| At 31 December | – | 108.4 |
Foreign currency translation reserves 5 | ||
At 1 January | (3.9) | (3.4) |
| Currency translation adjustment | (1.2) | (0.5) |
| At 31 December | (5.1) | (3.9) |
Total other reserves per balance sheet | (18.2) | 104.5 |
| Retained earnings | ||
At 1 January | 8,558.4 | 8,333.5 |
| Parent and subsidiaries’ profit for the period | 753.2 | 848.6 |
| Equity-accounted units’ (loss)/profit after tax for the period | 76.2 | (13.5) |
Actuarial gains/(losses) 6 | (9.4) | 3.0 |
Reclassification 4 | 130.4 | – |
| Total comprehensive income for the year | 950.4 | 838.1 |
Dividends paid | (317.4) | (613.2) |
At 31 December | 9,191.4 | 8,558.4 |
Antofagasta plc Annual Report 2024226
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
52 Antofagasta Annual Report 2024
30 Share capital and other reserves continued
II) Other reserves and retained earnings
The share premium account, fair value and translation reserves and retained earnings for both 2024 and 2023 are included within the consolidated
statement of changes in equity as follows:
2024
$m
2023
$m
Share premium
At 1 January and 31 December 199.2 199.2
Hedging reserves
1
At 1 January – –
Change in fair value of hedging instruments
2
(17.9) –
Tax on the above 4.8 –
At 31 December (13.1) –
Equity investment revaluation reserve
3
At 1 January 108.4 8.4
Gains on equity investment 22.0 100.0
Reclassification
4
(130.4) –
At 31 December – 108.4
Foreign currency translation reserves
5
At 1 January (3.9) (3.4)
Currency translation adjustment (1.2) (0.5)
At 31 December (5.1) (3.9)
Total other reserves per balance sheet (18.2) 104.5
Retained earnings
At 1 January 8,558.4 8,333.5
Parent and subsidiaries’ profit for the period 753.2 848.6
Equity-accounted units’ (loss)/profit after tax for the period 76.2 (13.5)
Actuarial gains/(losses)
6
(9.4) 3.0
Reclassification
4
130.4 –
Total comprehensive income for the year 950.4 838.1
Dividends paid (317.4) (613.2)
At 31 December 9,191.4 8,558.4
1.
Hedging reserves comprise cash flow hedge reserve of $13.1m and cost of hedging of nil. See Note 25(D) for further information.
2.
Change in fair value of hedging instruments is net of the non-controlling interest impacts of $7.6 million.
3.
The equity investments revaluation reserves record fair value gains or losses relating to equity investments, as described in Note 19.
4.
Corresponds to the reclassification of the fair value gain relating to the Buenaventura shares from the Equity investment revaluation reserve to Retained earnings, as explained in Note 19.
5.
Exchange differences arising on the translation of the Group’s net investment in foreign-controlled companies are taken to the foreign currency translation reserve. The cumulative
differences relating to an investment are transferred to the income statement when the investment is disposed of.
6.
Actuarial gains or losses relating to long-term employee benefits of the Group and associates and joint ventures are as described in Note 26, and these figures are net of the non-
controlling interest impacts.
antofagasta.co.uk 5533
| Share of | ||||||||
| profit/(loss) | ||||||||
| Non-controlling | At | for the financial | Capital | Share of | Hedging and | At 31 December | ||
| interest | 1 January 2024 | year | increase | dividends | actuarial gains | 2024 | ||
% | Country | $m | $m | $m | $m | $m | $m | |
Minera Los Pelambres SCM | 40.0 | Chile | 1,429.6 | 329.1 | – | (240.0) | (0.9) | 1,517.8 |
Minera Centinela SCM | 30.0 | Chile | 1,448.3 | 52.1 | 156.7 | – | (7.0) | 1,650.1 |
| Minera Antucoya SCM | 30.0 | Chile | 224.9 | 108.0 | – | – | – | 332.9 |
| Sociedad Contractual Minera El Encierro | 42.8 | Chile | (6.3) | (2.6) | 0.1 | – | – | (8.8) |
| Total | 3,096.5 | 486.6 | 156.8 | (240.0) | (7.9) | 3,492.0 |
| Share of | |||||||
| profit/(loss) | |||||||
| Non-controlling | At | for the financial | Share of | Hedging and | At 31 December | ||
| interest | 1 January 2023 | year | dividends | actuarial losses | 2023 | ||
% | Country | $m | $m | $m | $m | $m | |
Minera Los Pelambres SCM | 40.0 | Chile | 1,443.0 | 373.4 | (388.0) | 1.2 | 1,429.6 |
Minera Centinela SCM | 30.0 | Chile | 1,356.8 | 89.5 | – | 2.0 | 1,448.3 |
Minera Antucoya SCM | 30.0 | Chile | 219.3 | 5.5 | – | 0.1 | 224.9 |
Sociedad Contractual Minera El Encierro | 42.8 | Chile | (2.2) | (4.1) | – | – | (6.3) |
Total | 3,016.9 | 464.3 | (388.0) | 3.3 | 3,096.5 |
| Los Pelambres | Centinela | Antucoya | |
| 2024 | 2024 | 2024 | |
| $m | $m | $m | |
Non-controlling interest (%) | 40.0% | 30.0% | 30.0% |
Cash and cash equivalents | 497.4 | 825.2 | 149.3 |
Current assets 1 | 1,472.3 | 2,111.9 | 533,4 |
Non-current assets | 6,414.0 | 6,033.8 | 1,747.8 |
| Current liabilities | (1,541.5) | (935.1) | (160.2) |
| Non-current liabilities | (2,535.3) | (1,942.0) | (431.6) |
| Net cash from operating activities | 1,418.9 | 771.3 | 286.4 |
Net cash used in investing activities | (792.0) | (1,374.0) | (112.3) |
| Net cash (used in)/from financing activities | (332.5) | 1,238.2 | 41.6 |
| Los Pelambres | Centinela | Antucoya | |
| 2023 | 2023 | 2023 | |
| $m | $m | $m | |
Non-controlling interest (%) | 40.0% | 30.0% | 30.0% |
Cash and cash equivalents | 222.2 | 156.5 | 52.0 |
Current assets 1 | 1,320.8 | 1,256.7 | 340.2 |
Non-current assets | 6,093.2 | 5,276.8 | 1,392.8 |
Current liabilities | (970.8) | (926.8) | (160.1) |
Non-current liabilities | (2,858.4) | (930.3) | (375.1) |
Net cash from operating activities | 1,206.8 | 1,069.1 | 209.7 |
Net cash used in investing activities | (862.4) | (1,031.6) | (117.0) |
Net cash (used in)/from financing activities | (409.0) | 124.1 | (67.8) |
Antofagasta plc Annual Report 2024 227
Financial statements continued
54 Antofagasta Annual Report 2024
| 2024 | 2023 | |
| $m | $m | |
Profit before tax | 2,071.1 | 1,965.5 |
Depreciation | 1,568.2 | 1,211.3 |
| Net loss on disposals | 5.6 | – |
| Net finance expense/(income) – excluding exceptional items | 64.8 | (29.1) |
| Net share of loss/(profit) of associates and joint ventures | (76.2) | 13.5 |
| Exceptional items (see Note 4) | (422.4) | (167.1) |
| Increase in inventories | (166.5) | (31.6) |
| Decrease/(Increase) in debtors | 243.1 | (57.9) |
| (Decrease)/Increase in creditors | (10.7) | 137.0 |
| Decrease in provisions | (0.8) | (14.5) |
| Cash flow generated from operations | 3,276.2 | 3,027.1 |
| Movement | |||||||||
| between | At | ||||||||
| At | Amortisation of | Capitalisation of | maturity | 31 December | |||||
| 1 January 2024 | Cash flow | New leases | finance costs | interest | categories | Fair value gains | Exchange | 2024 | |
| $m | $m | $m | $m | $m | $m | $m | $m | $m | |
| Cash and cash | 644.7 | 1,550.1 | – | – | – | – | – | (5.6) | 2,189.2 |
| equivalents | |||||||||
Liquid investments | 2,274.7 | (148.5) | – | – | – | – | 0.9 | – | 2,127.1 |
| Total cash and cash | 2,919.4 | 1,401.6 | – | – | – | – | 0.9 | (5.6) | 4,316.3 |
| equivalents | |||||||||
| and liquid investments | |||||||||
| Borrowings due within | (794.1) | 154.0 | – | – | – | (579.8) | – | – | (1,219.9) |
| one year | |||||||||
| Borrowings due after one | (3,057.9) | (1,459.9) | – | (13.5) | (17.9) | 579.8 | – | – | (3,969.4) |
| year | |||||||||
| Other financial liabilities | – | 4.6 | – | – | – | (10.7) | – | – | (6.1) |
| due within one year | |||||||||
| Other financial liabilities | – | (598.6) | – | – | – | 10.7 | – | – | (587.9) |
| due after one year | |||||||||
| Leases due within one | (107.8) | 152.7 | – | – | – | (141.4) | – | – | (96.5) |
| year | |||||||||
Leases due after one year | (116.9) | – | (111.1) | – | – | 141.4 | – | 23.4 | (63.2) |
Preference shares | (2.5) | – | – | – | – | – | – | 0.1 | (2.4) |
Total borrowings and other liabilities from financing activities | (4,079.2) | (1,747.2) | (111.1) | (13.5) | (17.9) | – | – | 23.5 | (5,945.4) |
Net (debt) | (1,159.8) | (345.6) | (111.1) | (13.5) | (17.9) | – | 0.9 | 17.9 | (1,629.1) |
Antofagasta plc Annual Report 2024228
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
54 Antofagasta Annual Report 2024
32 Notes to the consolidated cash flow statement
A) Reconciliation of profit before tax to cash flow from operations
2024
$m
2023
$m
Profit before tax 2,071.1 1,965.5
Depreciation 1,568.2 1,211.3
Net loss on disposals 5.6 –
Net finance expense/(income) – excluding exceptional items 64.8 (29.1)
Net share of loss/(profit) of associates and joint ventures (76.2) 13.5
Exceptional items (see Note 4) (422.4) (167.1)
Increase in inventories (166.5) (31.6)
Decrease/(Increase) in debtors 243.1 (57.9)
(Decrease)/Increase in creditors (10.7) 137.0
Decrease in provisions (0.8) (14.5)
Cash flow generated from operations 3,276.2 3,027.1
B) Analysis of changes in net debt
At
1 January 2024
$m
Cash flow
$m
New leases
$m
Amortisation of
finance costs
$m
Capitalisation of
interest
$m
Movement
between
maturity
categories
$m
Fair value gains
$m
Exchange
$m
At
31 December
2024
$m
Cash and cash
equivalents
644.7 1,550.1 – – – – – (5.6) 2,189.2
Liquid investments 2,274.7 (148.5) – – – – 0.9 – 2,127.1
Total cash and cash
equivalents
and liquid investments
2,919.4 1,401.6 – – – – 0.9 (5.6) 4,316.3
Borrowings due within
one year
(794.1) 154.0 – – – (579.8) – – (1,219.9)
Borrowings due after one
year
(3,057.9) (1,459.9) – (13.5) (17.9) 579.8 – – (3,969.4)
Other financial liabilities
due within one year
– 4.6 – – – (10.7) – – (6.1)
Other financial liabilities
due after one year
– (598.6) – – – 10.7 – – (587.9)
Leases due within one
year
(107.8) 152.7 – – – (141.4) – – (96.5)
Leases due after one year (116.9) – (111.1) – – 141.4 – 23.4 (63.2)
Preference shares (2.5) – – – – – – 0.1 (2.4)
Total borrowings and
other liabilities from
financing activities
(4,079.2) (1,747.2) (111.1) (13.5) (17.9) – – 23.5 (5,945.4)
Net (debt) (1,159.8) (345.6) (111.1) (13.5) (17.9) – 0.9 17.9 (1,629.1)
antofagasta.co.uk 5555
| Movement | |||||||||
| between | At | ||||||||
| At | Amortisation of | Capitalisation | maturity | 31 December | |||||
| 1 January 2023 | Cash flow | New leases | finance costs | of interest | categories | Other | Exchange | 2023 | |
| $m | $m | $m | $m | $m | $m | $m | $m | $m | |
| Cash and cash | 810.4 | (162.0) | – | – | – | – | – | (3.7) | 644.7 |
| equivalents | |||||||||
Liquid investments | 1,580.8 | 674.2 | – | – | – | – | 19.7 | – | 2,274.7 |
| Total cash and cash | 2,391.2 | 512.2 | – | – | – | – | 19.7 | (3.7) | 2,919.4 |
| equivalents | |||||||||
| and liquid investments | |||||||||
| Borrowings due within | (377.4) | 116.7 | – | – | – | (533.4) | – | – | (794.1) |
| one year | |||||||||
| Borrowings due after one | (2,765.4) | (797.2) | – | (12.7) | (16.0) | 533.4 | – | – | (3,057.9) |
| year | |||||||||
| Leases due within one | (55.1) | 81.2 | – | – | – | (133.9) | – | – | (107.8) |
| year | |||||||||
Leases due after one year | (76.6) | – | (178.6) | – | – | 133.9 | – | 4.4 | (116.9) |
Preference shares | (2.5) | – | – | – | – | – | – | – | (2.5) |
Total borrowings and other liabilities from financing activities | (3,277.0) | (599.3) | (178.6) | (12.7) | (16.0) | – | – | 4.4 | (4,079.2) |
Net debt | (885.8) | (87.1) | (178.6) | (12.7) | (16.0) | – | 19.7 | 0.7 | (1,159.8) |
| 2024 | 2023 | |
| $m | $m | |
Cash, cash equivalents and liquid investments | 4,316.3 | 2,919.4 |
Total borrowings and other financial liabilities | (5.945.4) | (4,079.2) |
| Net debt | (1,629.1) | (1,159.8) |
2024 | 2023 | |
Year-end rates | $1.254 = £1; | $1.275 = £1; |
| $1 = Ch$996.5 | $1 = Ch$877.12 | |
Average rates | $1.277 = £1; | $1.244 = £1; |
| $1 = Ch$944.1 | $1 = Ch$839.2 |
Antofagasta plc Annual Report 2024 229
Financial statements continued
56 Antofagasta Annual Report 2024
34 Related party transactions continued
Antofagasta plc Annual Report 2024230
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements continued
56 Antofagasta Annual Report 2024
34 Related party transactions continued
• The Group made purchases of technology services from ARTIKOS CHILE SA, a subsidiary of Quiñenco, of $0.3 million (2023 – $0.2 million). The
balance due to ARTIKOS CHILE SA at the end of the year was nil (2023 – nil).
B) Compañía de Inversiones Adriático SA
In 2024, the Group leased office space on normal commercial terms from Compañía de Inversiones Adriático SA, a company in which members of the
Luksic family are interested, at a cost of $0.6 million (2023 – $0.8 million).
C) Antomin 2 Limited and Antomin Investors Limited
The Group holds a 51% interest in Antomin 2 Limited (“Antomin 2”) and Antomin Investors Limited (“Antomin Investors”), which own a number of copper
exploration properties. The Group originally acquired its 51% interest in these properties for a nominal consideration from Mineralinvest Establishment
(“Mineralinvest”), a company in which members of the Luksic family are interested, which continues to hold the remaining 49% of Antomin 2 and Antomin
Investors. During the year ended 31 December 2024, the Group incurred $0.1 million (year ended 31 December 2023 – $0.1 million) of exploration
expense at these properties. As detailed in Note 37, subsequent to the year-end, in January 2025 the Group entered into an agreement with Mineralinvest
to acquire its 49% interest in Antomin Investors.
D) Compañia Minera Zaldívar SpA
The Group has a 50% interest in Zaldívar (see Note 18), which is a joint venture with Barrick Gold Corporation. Antofagasta is the operator of Zaldívar.
The balance due from Zaldívar to Group companies at the end of the year was $2.2 million (2023 – $6.7 million). During 2024, Zaldívar declared
dividends of nil to the Group (2023 – nil).
E) Compañia de Minas Buenaventura S.A.A
The Group has a 18.94% interest in Compañía de Minas Buenaventura S.A.A, which is an associate. During the year ended 31 December 2024, the Group
has received dividends from Buenaventura of $3.5 million.
F) Directors and other key management personnel
Information relating to Directors’ remuneration and interests is included in the Remuneration Report, which does not form part of these financial
statements. Information relating to the remuneration of key management personnel including the Directors is given in Note 9.
35 Litigation and contingent liabilities
The Group is subject from time to time to legal proceedings, claims, complaints and investigations arising out of the ordinary course of business. The
Group cannot predict the outcome of individual legal actions or claims or complaints or investigations. As a result, the Group may become subject to
liabilities that could affect our business, financial position and reputation. Litigation is inherently unpredictable and large judgements may at times occur.
The Group may incur, in the future, judgement or enter into settlements of claims that could lead to material cash outflows. The Group does not expect a
material loss from the legal proceedings, claims, complaints and investigations that the Group is currently subject to. Provisions are recognised when it is
probable that the Group will be required to settle an obligation arising as a result of a legal claim against the Group.
Details of any significant potential tax uncertainties are set out in Note 11.
36 Ultimate Parent Company
The immediate parent company of the Group is Metalinvest Establishment and the ultimate parent company is the E. Abaroa Foundation, in which
members of the Luksic family are interested. Both Metalinvest Establishment and the E. Abaroa Foundation are domiciled in Liechtenstein. Information
relating to the interests of Metalinvest Establishment and the E. Abaroa Foundation is given in the Directors’ Report.
37 Post-balance-sheet events
A) Antomin Investors Limited
As detailed in Note 34, the Group holds a 51% interest in Antomin Investors, which owns a number of copper exploration properties. The Group originally
acquired its 51% interest in these properties for a nominal consideration from Mineralinvest, a company in which members of the Luksic family are
interested, which continues to hold the remaining 49% of Antomin Investors. In January 2025, the Group entered into an agreement with Mineralinvest to
acquire its 49% interest in Antomin Investors’ copper exploration properties in the Centinela District for $80 million. Properties currently held by Antomin
Investors that are outside the Centinela District will be demerged into a new entity, held 51% by the Group and 49% by Mineralinvest. The acquisition of
Antomin Investors is expected to complete later in 2025, following that demerger. This transaction further consolidates the Group’s mining property
interests in the Centinela District, providing flexibility for future growth options. This transaction was overseen and approved by a committee of
independent Directors who sought and received confirmation from a financial adviser, a major international investment bank with extensive experience in
advising UK issuers on such matters, that the terms of the transaction were fair and reasonable as far as the shareholders of the companies were
concerned.
B) Los Pelambres financing
In March 2025, Los Pelambres completed a $2 billion financing associated with its water assets. Through a structured financing solution, Los Pelambres,
via a wholly owned subsidiary, has secured a $2 billion facility, which comprises an initial tranche of $1,550 million with a private placement bond with a
20-year term in addition to a second tranche with a group of commercial banks, amounting to the remaining $450 million with a term of approximately
9 years.
Financial statements of the parent company (Antofagasta plc)
Parent Company balance sheet
As at 31 December 2024
antofagasta.co.uk 5577
Note
2024
$m
2023
$m
Non-current assets
Investment in subsidiaries 5 1,304.0 938.3
Other receivables 5
55.3 53.6
Property, plant and equipment
3.2 3.8
1,362.5 995.7
Current assets
Other receivables 5 195.4 311.7
Liquid investments 6
964.9 773.3
Cash and cash equivalents 6
423.0 61.0
1,583.3 1,146.0
Total assets 2,945.8 2,141.7
Current liabilities
Amounts payable to subsidiaries 7 (345.0) (345.2)
Other payables
(19.6) (10.4)
(364.6) (355.6)
Non-current liabilities
Medium and long-term borrowings 8 (1,735.6) (992.5)
(1,735.6) (992.5)
Total liabilities (2,098.8) (1,348.1)
Net assets 845.6 793.6
Equity
Share capital 89.8 89.8
Share premium
199.2 199.2
Retained earnings
At 1 January 504.6 182.1
Profit for the year attributable to the owners 369.4 935.7
Dividends
(317.4) (613.2)
At 31 December
556.6 504.6
Total equity 845.6 793.6
The financial statements were approved by the Board of Directors on 20 March 2025 and signed on its behalf by
JEAN-PAUL LUKSIC FRANCISCA CASTRO
Chairman Senior Independent Director
Antofagasta plc Annual Report 2024 231
Financial statements of the parent company (Antofagasta plc) continued
Parent Company statement of
changes in equity
58 Antofagasta Annual Report 2024
Share capital
$m
Share premium
$m
Retained
earnings
$m
Total equity
$m
At 1 January 2023 89.8 199.2 182.1 471.1
Comprehensive income for the year – – 935.7 935.7
Dividends – – (613.2) (613.2)
At 31 December 2023 89.8 199.2 504.6 793.6
Comprehensive income for the year – – 369.4 369.4
Dividends
– – (317.4) (317.4)
At 31 December 2024 89.8 199.2 556.6 845.6
The ordinary shares rank after the preference shares in entitlement to dividends and on a winding-up. Each ordinary share carries one vote at any
general meeting.
Antofagasta plc is a company limited by shares, incorporated and domiciled in the United Kingdom at 103 Mount Street, London W1K 2TJ.
Antofagasta plc Annual Report 2024232
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements of the parent company (Antofagasta plc) continued
Parent Company statement of
changes in equity
58 Antofagasta Annual Report 2024
Share capital
$m
Share premium
$m
Retained
earnings
$m
Total equity
$m
At 1 January 2023 89.8 199.2 182.1 471.1
Comprehensive income for the year – – 935.7 935.7
Dividends – – (613.2) (613.2)
At 31 December 2023 89.8 199.2 504.6 793.6
Comprehensive income for the year – – 369.4 369.4
Dividends – – (317.4) (317.4)
At 31 December 2024 89.8 199.2 556.6 845.6
The ordinary shares rank after the preference shares in entitlement to dividends and on a winding-up. Each ordinary share carries one vote at any
general meeting.
Antofagasta plc is a company limited by shares, incorporated and domiciled in the United Kingdom at 103 Mount Street, London W1K 2TJ.
antofagasta.co.uk 5599
1 Basis of preparation of the Parent Company financial statements
The Antofagasta plc Parent Company financial statements have been prepared in accordance with the Companies Act 2006 as applicable to companies
using FRS 101, which applies the recognition and measurement bases of IFRS with reduced disclosure requirements. The financial information has been
prepared on a historical cost basis. The financial statements have been prepared on a going concern basis. The functional currency of the Company and
the presentation currency adopted is US dollars.
The following exemptions from the requirements of IFRS have been applied in the preparation of these financial statements, in accordance with FRS 101:
• Paragraphs 45(b) and 46 to 52 of IFRS 2, ‘Share-based payment’ (details of the number and weighted-average exercise prices of share options and
how the fair value of goods or services received was determined)
• IFRS 7, ‘Financial Instruments: Disclosures’
• Paragraphs 91 to 99 of IFRS 13, ‘Fair value measurement’ (disclosure of valuation techniques and inputs used for fair value measurement of assets
and liabilities)
• Paragraph 38 of IAS 1, ‘Presentation of financial statements’ comparative information requirements in respect of:
(i) paragraph 79(a)(iv) of IAS 1, ‘Presentation of financial statements’
(ii) paragraph 73(e) of IAS 16, ‘Property, plant, and equipment’
(iii) paragraph 118(e) of IAS 38, Intangible assets (reconciliations between the carrying amount at the beginning and end of the period)
• The following paragraphs of IAS 1, ‘Presentation of financial statements’:
• 10(d) (statement of cash flows)
• 10(f) (a statement of financial position as at the beginning of the preceding period when an entity applies an accounting policy retrospectively or
makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements)
• 16 (statement of compliance with all IFRS)
• 38A (requirement for minimum of two primary statements, including cash flow statements)
• 38B-D (additional comparative information)
• 40A-D (requirements for a third statement of financial position)
• 111 (cash flow statement information), and
• 134-136 (capital management disclosures)
• IAS 7, ‘Statement of cash flows’
• Paragraphs 30 and 31 of IAS 8 ‘Accounting policies, changes in accounting estimates and errors’ (requirement for the disclosure of information when
an entity has not applied a new IFRS that has been issued but is not yet effective)
• Paragraph 17 of IAS 24, ‘Related party disclosures’ (key management compensation)
• The requirements in IAS 24, ‘Related party disclosures’ to disclose related party transactions entered into between two or more members of a group.
All of the Parent Company’s intercompany transactions and balances are with wholly-owned subsidiaries of the Group.
As permitted by section 408 of the Companies Act 2006, the profit and loss account of the Parent Company is not presented as part of these financial
statements. The profit after tax for the year of the Parent Company amounted to $370.8 million (2023 – $935.7 million).
Antofagasta plc Annual Report 2024 233
Financial statements of the parent company (Antofagasta plc) continued
60 Antofagasta Annual Report 2024
2 Principal accounting policies of the Parent Company
A summary of the principal accounting policies is set out below. These accounting policies have been applied consistently.
A) Currency translation
The Company’s functional currency is the US dollar. Transactions in currencies other than the functional currency are translated at the exchange rate
ruling at the date of the transaction. Monetary assets and liabilities, including amounts due from or to subsidiaries, denominated in currencies other than
the functional currency (being US dollars) are retranslated at year-end exchange rates. Gains and losses on retranslation are included in net profit or loss
for the year.
B) Income recognition
Dividends proposed by subsidiaries are recognised as income by the Company when they represent a present obligation of the subsidiaries in the period
in which they are formally approved for payment.
Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.
C) Dividends payable
Dividends proposed are recognised when they represent a present obligation in the period in which they are formally approved for payment. Accordingly,
an interim dividend is recognised when paid and a final dividend is recognised when approved by shareholders.
D) Investments in subsidiaries
Investments in subsidiaries represent equity holdings in subsidiaries and long-term amounts owed by subsidiaries. Such investments are valued at cost
less any impairment provisions. Investments relating to equity holdings in subsidiaries are reviewed for impairment if events or changes in circumstances
indicate that the carrying amount may not be recoverable; the recoverable amount of the investment is the higher of fair value less costs of disposal and
value in use. Investments relating to long-term amounts owed by subsidiaries are reviewed to assess if a material expected credit loss provision is
required in respect of these balances.
E) Liquid investments and cash and cash equivalents
Liquid investments represent highly liquid current asset investments such as term deposits and managed funds invested in high-quality fixed income
instruments. They do not meet the IAS 7 definition of cash and cash equivalents, normally because even if readily accessible the underlying investments
have an average maturity profile greater than 90 days from the date first entered into, or because they are held primarily for investment purposes rather
than meeting short-term cash commitments. Cash and cash equivalents comprise cash on hand, deposits held on call with banks, highly liquid investments
that are readily convertible into known amounts of cash, and which are subject to insignificant risk of changes in value and are held for the purpose of
meeting short-term cash commitments rather than for investment or other purposes. The cash balance is presented net of bank overdrafts which are
repayable on demand. Cash and cash equivalents have a maturity period of 90 days or less.
F) Borrowings
Interest-bearing loans and bank overdrafts are initially recorded at the proceeds received, net of direct issue costs. They are subsequently measured at
amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method
of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Finance
charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis using the effective
interest rate method.
G) Borrowings – preference shares
The Sterling-denominated preference shares issued by the Company carry a fixed rate of return without the right to participate in any surplus. They are
accordingly classified as borrowings and translated into US dollars at year-end rates of exchange. Preference share dividends are included within finance
costs.
H) Equity instruments – ordinary share capital and share premium
Equity instruments issued are recorded at the proceeds received, net of direct issue costs. Equity instruments of the Company comprise its Sterling-
denominated issued ordinary share capital and related share premium.
The presentational and the functional currency of the Company is US dollars, and ordinary share capital and share premium are translated into US dollars
at historical rates of exchange based on dates of issue.
I) Financing facilities
On 30 December 2022, Antofagasta plc agreed a revolving credit facility (RCF) of US$500 million which had a term of three years, expiring on 30
December 2025.
Subsequent to 31 December 2024, the RCF was extended for a further three years, and now expires on 30 December 2028 (see Note 23(F)).
J) Guarantees
Antofagasta plc has provided a guarantee in respect of 70% of Centinela’s $2.5 billion project financing, in respect of the Second Concentrator Project, in
line with the Group’s 70% ownership interest in Centinela. The guarantee applies during the project construction period, and will be lifted following
successful completion of the relevant completion tests following the completion of construction. The expected credit loss risk for the Company in respect
of this guarantee is considered to be immaterial.
Antofagasta plc Annual Report 2024234
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements of the parent company (Antofagasta plc) continued
60 Antofagasta Annual Report 2024
2 Principal accounting policies of the Parent Company
A summary of the principal accounting policies is set out below. These accounting policies have been applied consistently.
A) Currency translation
The Company’s functional currency is the US dollar. Transactions in currencies other than the functional currency are translated at the exchange rate
ruling at the date of the transaction. Monetary assets and liabilities, including amounts due from or to subsidiaries, denominated in currencies other than
the functional currency (being US dollars) are retranslated at year-end exchange rates. Gains and losses on retranslation are included in net profit or loss
for the year.
B) Income recognition
Dividends proposed by subsidiaries are recognised as income by the Company when they represent a present obligation of the subsidiaries in the period
in which they are formally approved for payment.
Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.
C) Dividends payable
Dividends proposed are recognised when they represent a present obligation in the period in which they are formally approved for payment. Accordingly,
an interim dividend is recognised when paid and a final dividend is recognised when approved by shareholders.
D) Investments in subsidiaries
Investments in subsidiaries represent equity holdings in subsidiaries and long-term amounts owed by subsidiaries. Such investments are valued at cost
less any impairment provisions. Investments relating to equity holdings in subsidiaries are reviewed for impairment if events or changes in circumstances
indicate that the carrying amount may not be recoverable; the recoverable amount of the investment is the higher of fair value less costs of disposal and
value in use. Investments relating to long-term amounts owed by subsidiaries are reviewed to assess if a material expected credit loss provision is
required in respect of these balances.
E) Liquid investments and cash and cash equivalents
Liquid investments represent highly liquid current asset investments such as term deposits and managed funds invested in high-quality fixed income
instruments. They do not meet the IAS 7 definition of cash and cash equivalents, normally because even if readily accessible the underlying investments
have an average maturity profile greater than 90 days from the date first entered into, or because they are held primarily for investment purposes rather
than meeting short-term cash commitments. Cash and cash equivalents comprise cash on hand, deposits held on call with banks, highly liquid investments
that are readily convertible into known amounts of cash, and which are subject to insignificant risk of changes in value and are held for the purpose of
meeting short-term cash commitments rather than for investment or other purposes. The cash balance is presented net of bank overdrafts which are
repayable on demand. Cash and cash equivalents have a maturity period of 90 days or less.
F) Borrowings
Interest-bearing loans and bank overdrafts are initially recorded at the proceeds received, net of direct issue costs. They are subsequently measured at
amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method
of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Finance
charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis using the effective
interest rate method.
G) Borrowings – preference shares
The Sterling-denominated preference shares issued by the Company carry a fixed rate of return without the right to participate in any surplus. They are
accordingly classified as borrowings and translated into US dollars at year-end rates of exchange. Preference share dividends are included within finance
costs.
H) Equity instruments – ordinary share capital and share premium
Equity instruments issued are recorded at the proceeds received, net of direct issue costs. Equity instruments of the Company comprise its Sterling-
denominated issued ordinary share capital and related share premium.
The presentational and the functional currency of the Company is US dollars, and ordinary share capital and share premium are translated into US dollars
at historical rates of exchange based on dates of issue.
I) Financing facilities
On 30 December 2022, Antofagasta plc agreed a revolving credit facility (RCF) of US$500 million which had a term of three years, expiring on 30
December 2025.
Subsequent to 31 December 2024, the RCF was extended for a further three years, and now expires on 30 December 2028 (see Note 23(F)).
J) Guarantees
Antofagasta plc has provided a guarantee in respect of 70% of Centinela’s $2.5 billion project financing, in respect of the Second Concentrator Project, in
line with the Group’s 70% ownership interest in Centinela. The guarantee applies during the project construction period, and will be lifted following
successful completion of the relevant completion tests following the completion of construction. The expected credit loss risk for the Company in respect
of this guarantee is considered to be immaterial.
antofagasta.co.uk 6611
3 Significant accounting estimates and judgements
We do not consider there to be critical accounting judgements or key sources of estimation uncertainty which could have a significant risk of causing a
material adjustment to the carrying amounts of the Company’s assets and liabilities within the next financial year. We have set out below the most
significant judgements and estimates applied in the preparation of the Company’s balance sheet.
The most significant accounting judgement is whether there are impairment indicators in respect of the carrying value of the Company’s investments in
subsidiaries, which have a total carrying value as at 31 December 2024 of $1,304.0 million.
The most significant accounting estimate is whether a credit loss provision is required in respect of any of the Company’s receivable balances. Over 99%
of the receivable balances relate to intercompany balances, primarily with Group holding companies which hold the Group’s investments in the operating
companies. There is not considered to be any significant risk of a material overstatement of these carrying values. In assessing this, the Group has
considered the overall market capitalisation of the Group, which was $20.1 billion at 31 December 2024, the cash and other assets held by the relevant
Group companies and the level of earnings generated by the Group’s operations.
4 Employee benefit expense
I) Average number of employees
The average monthly number of employees was 5 (2023 – 4), engaged in management and administrative activities.
II) Aggregate remuneration
The aggregate remuneration of the employees mentioned above was as follows:
2024
$m
2023
$m
Wages and salaries 1.8 2.7
Social security costs 0.2 0.3
Other pension costs
0.1 0.1
2.1 3.1
The above employee figures exclude Directors who receive Directors’ fees from Antofagasta plc. Details of fees payable to Directors are set out in the
Remuneration Report.
5 Subsidiaries
I) Investment in subsidiaries
2024
$m
2023
$m
Shares in subsidiaries at cost
1
835.5 469.8
Amounts owed by subsidiaries due after more than one year 468.5 468.5
1,304.0 938.3
Shares
$m
Loans
$m
Total
$m
1 January 2024 469.8 468.5 938.3
31 December 2024 835.5 468.5 1,304.0
1. The $349.2 million increase in the shares in subsidiaries balance reflects the acquisition by the Company of additional shares issued by the Company’s direct subsidiary Andean LFMA
Limited during 2023.
The above amount of $468.5 million (31 December 2023 – $468.5 million) in respect of amounts owed by subsidiaries due after more than one year
relates to long-term funding balances for which the Company does not expect to demand repayment in the foreseeable future and which form an integral
part of the Company’s long-term investment in those subsidiary companies.
The Company has reviewed whether there are any indicators of impairment in respect of the equity investment balance and concluded that there are no
such indicators. The expected credit loss risk for the element of the investment balance relating to amounts owed by subsidiaries due after more than one
year is considered to be immaterial to the Company.
Antofagasta plc Annual Report 2024 235
Financial statements of the parent company (Antofagasta plc) continued
62 Antofagasta Annual Report 2024
5 Subsidiaries continued
II) Trade and other receivables – non-current amounts owed by subsidiaries
At 31 December 2024, an amount of $55.3 million (31 December 2023 – $53.6 million) was owed to the Company by subsidiaries. This amount is not
expected to be realised within 12 months after the reporting period. The expected credit loss risk for the amounts owed by subsidiaries is considered to be
immaterial to the Company.
III) Trade and other receivables – current amounts owed by subsidiaries
At 31 December 2024, amounts owed by subsidiaries due within one year were $192.3 million (31 December 2023 – $310.0 million). These balances
principally relate to $191.7 million of intercompany dividends declared but not yet paid to the Company by its immediate subsidiary companies. The
expected credit loss risk for the amounts owed by subsidiaries is considered to be immaterial to the Company.
6 Cash and cash equivalents, and liquid investments
The fair value of cash and cash equivalents, and liquid investments is not materially different from the carrying values presented. The credit risk on cash
and cash equivalents is considered to be limited because the counterparties are banks with high credit ratings assigned by international credit rating
agencies.
Cash and cash equivalents, and liquid investments comprised:
2024
$m
2023
$m
Cash and cash equivalents 423.0 61.0
• Cash – -
• Term deposits
292.0 -
• Bank (on-demand deposits) 131.0 61.0
Liquid investments
964.9 773.3
1,387.9 834.3
At 31 December 2024 and 2023 there is no cash which is subject to restriction.
The credit quality of cash, cash equivalents and liquid investments are as follows:
2024
$m
2023
$m
AAA 801.6 652.9
AA 20.0 -
AA-
53.8 68.7
A+
209.2 27.9
A
303.3 84.8
Subtotal
1,385.7 831.1
There have been no impairments recognised in respect of cash or cash equivalents in the year ended 31 December 2024 (year ended 31 December
2023: nil).
7 Amounts payable to subsidiaries
At 31 December 2024, amounts payable to subsidiaries due within one year were $345.0 million (31 December 2023 – $345.2 million).
8 Borrowings – preference shares
The authorised, issued and fully paid preference share capital of the Company comprised 2,000,000 5% cumulative preference shares of £1 each at both
31 December 2024 and 31 December 2023. As explained in Note 23(C), the preference shares are recorded in the balance sheet in US dollars at period-
end rates of exchange.
The preference shares are non-redeemable and are entitled to a fixed 5% cumulative dividend, payable in equal instalments in June and December of
each year. On a winding-up, the preference shares are entitled to repayment and any arrears of dividend in priority to ordinary shareholders, but are not
entitled to participate further in any surplus. Each preference share carries 100 votes (see Note 23(A) (xiv)) at any general meeting.
Antofagasta plc Annual Report 2024236
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Financial statements of the parent company (Antofagasta plc) continued
62 Antofagasta Annual Report 2024
5 Subsidiaries continued
II) Trade and other receivables – non-current amounts owed by subsidiaries
At 31 December 2024, an amount of $55.3 million (31 December 2023 – $53.6 million) was owed to the Company by subsidiaries. This amount is not
expected to be realised within 12 months after the reporting period. The expected credit loss risk for the amounts owed by subsidiaries is considered to be
immaterial to the Company.
III) Trade and other receivables – current amounts owed by subsidiaries
At 31 December 2024, amounts owed by subsidiaries due within one year were $192.3 million (31 December 2023 – $310.0 million). These balances
principally relate to $191.7 million of intercompany dividends declared but not yet paid to the Company by its immediate subsidiary companies. The
expected credit loss risk for the amounts owed by subsidiaries is considered to be immaterial to the Company.
6 Cash and cash equivalents, and liquid investments
The fair value of cash and cash equivalents, and liquid investments is not materially different from the carrying values presented. The credit risk on cash
and cash equivalents is considered to be limited because the counterparties are banks with high credit ratings assigned by international credit rating
agencies.
Cash and cash equivalents, and liquid investments comprised:
2024
$m
2023
$m
Cash and cash equivalents 423.0 61.0
• Cash – -
• Term deposits
292.0 -
• Bank (on-demand deposits) 131.0 61.0
Liquid investments 964.9 773.3
1,387.9 834.3
At 31 December 2024 and 2023 there is no cash which is subject to restriction.
The credit quality of cash, cash equivalents and liquid investments are as follows:
2024
$m
2023
$m
AAA 801.6 652.9
AA 20.0 -
AA- 53.8 68.7
A+ 209.2 27.9
A 303.3 84.8
Subtotal 1,385.7 831.1
There have been no impairments recognised in respect of cash or cash equivalents in the year ended 31 December 2024 (year ended 31 December
2023: nil).
7 Amounts payable to subsidiaries
At 31 December 2024, amounts payable to subsidiaries due within one year were $345.0 million (31 December 2023 – $345.2 million).
8 Borrowings – preference shares
The authorised, issued and fully paid preference share capital of the Company comprised 2,000,000 5% cumulative preference shares of £1 each at both
31 December 2024 and 31 December 2023. As explained in Note 23(C), the preference shares are recorded in the balance sheet in US dollars at period-
end rates of exchange.
The preference shares are non-redeemable and are entitled to a fixed 5% cumulative dividend, payable in equal instalments in June and December of
each year. On a winding-up, the preference shares are entitled to repayment and any arrears of dividend in priority to ordinary shareholders, but are not
entitled to participate further in any surplus. Each preference share carries 100 votes (see Note 23(A) (xiv)) at any general meeting.
Alternative performance measures
Alternative performance measures
(not subject to audit or review)
antofagasta.co.uk 6633
This Annual Report includes a number of alternative performance measures, in addition to amounts in accordance with UK-adopted International
Accounting Standards. These measures are included because they are considered to provide relevant and useful additional information to users of the
financial statements. Set out below are definitions of these alternative performance measures, explanations as to why they are considered to be relevant
and useful, and reconciliations to the IFRS figures.
A) Underlying earnings per share
Underlying earnings per share is earnings per share from continuing operations, excluding exceptional items. This measure is reconciled to earnings per
share from continuing operations (including exceptional items) on the face of the income statement. This measure is considered to be useful as it provides
an indication of the earnings generated by the ongoing businesses of the Group, excluding the impact of exceptional items which are one-off transactions
outside the ordinary course of business of the Group.
B) EBITDA
EBITDA is calculated by adding back depreciation, amortisation, profit or loss on disposals and impairment charges or reversals to operating profit. This
comprises 100% of the EBITDA from the Group’s subsidiaries, and the Group’s proportional share of the EBITDA of its associates and joint ventures.
EBITDA is considered to provide a useful and comparable indication of the current operating earnings performance of the business, excluding the impact
of the historical cost of property, plant and equipment or the particular financing structure adopted by the business.
For the year ended 31 December 2024
Los Pelambres
$m
Centinela
$m
Antucoya
$m
Zaldívar
$m
Exploration and
evaluation
$m
Corporate and
other items
$m
Mining
$m
Transport
division
$m
Total
$m
Operating profit/(loss) 1,313.5 273.5 529.5 – (52.7) (83.1) 1,980.7 28.0 2,008.7
Depreciation 544.1 854.9 117.7 – – 10.2 1,526.9 41.3 1,568.2
Loss on disposals
3.6 1.9 – – – 0.1 5.6 – 5.6
Reversal of impairments
– – (371.4) – – – (371.4) – (371.4)
EBITDA from
subsidiaries
1,861.2 1,130.3 275.8 – (52.7) (72.8) 3,141.8 69.3 3,211.1
Proportional share of
the EBITDA from
associates and joint
venture
– – – 99.9 – 109.2 209.1 6.6 215.7
EBITDA
1,861.2 1,130.3 275.8 99.9 (52.7) 36.4 3,350.9 75.9 3,426.8
For the year ended 31 December 2023
Los Pelambres
$m
Centinela
$m
Antucoya
$m
Zaldívar
$m
Exploration and
evaluation
1
$m
Corporate and
other items
$m
Mining
$m
Transport
division
$m
Total
$m
Operating profit/(loss) 1,373.4 456.3 97.5 - (64.9) (123.0) 1,739.3 43.5 1,782.8
Depreciation 318.6 727.3 109.4 - - 24.3 1,179.6 31.7 1,211.3
EBITDA from
subsidiaries
1,692.0 1,183.6 206.9 - (64.9) (98.7) 2,918.9 75.2 2,994.1
Proportional share of
the EBITDA from
associates and joint
venture - - - 86.8 - - 86.8 6.3 93.1
EBITDA 1,692.0 1,183.6 206.9 86.8 (64.9) (98.7) 3,005.7 81.5 3,087.2
1. In order to better reflect the Group’s internal reporting, the Group has changed the classification of certain evaluation costs incurred by the individual mining operations in $76.2 million,
which were previously included in the Exploration and evaluation segment and are now included within the individual mine segments.
Antofagasta plc Annual Report 2024 237
Alternative performance measures continued
64 Antofagasta Annual Report 2024
C) Cash costs
Cash costs are a measure of the cost of operating production expressed in terms of cents per pound of payable copper produced.
This is considered to be a useful and relevant measure as it is a standard industry measure applied by most major copper mining companies which
reflects the direct costs involved in producing each pound of copper. It therefore allows a straightforward comparison of the unit production cost of
different mines, and allows an assessment of the position of a mine on the industry cost curve. It also provides a simple indication of the profitability of a
mine when compared against the price of copper (per lb).
With sales of concentrates at Los Pelambres and Centinela, which are sold to smelters and roasting plants for further processing into fully refined metal,
the price of the concentrate invoiced to the customer reflects the market value of the fully refined metal less a “treatment and refining charge” deduction,
to reflect the lower value of this partially processed material compared with the fully refined metal. For accounting purposes, the revenue amount reflects
the invoice price (the net of the market value of fully refined metal less the treatment and refining charges). Under the standard industry definition of cash
costs, treatment and refining charges are regarded as an expense and as part of the total cash cost figure.
2024
$m
2023
$m
Reconciliation of cash costs excluding treatment and refining charges and by-product revenue:
Total Group operating cost (Note 6) 4,976.1 4,541.7
Zaldívar operating costs (attributable basis – 50%)
267.6 263.1
Less:
Depreciation (Note 6)
(1,568.2) (1,211.3)
Loss on disposal (Note 6)
(5.6) -
Elimination of non-mining operations:
Corporate and other items – Total operating cost (excluding depreciation) (Note 6)
(72.8) (98.7)
Exploration and evaluation – Total operating cost (excluding depreciation) (Note 6)
1
(52.7) (64.9)
Transport division – Total operating cost (excluding depreciation) (Note 6)
(125.6) (120.7)
Closure provision and other expenses not included within cash costs
(117.5) (102.7)
Inventories variation
39.9 (13.6)
Medium and long-term drilling costs & evaluation
1
(98.9) (76.2)
Total cost relevant to the mining operations’ cash costs
3,242.3 3,116.7
Copper production volumes (tonnes)
2
663,950 660,600
Cash costs excluding treatment and refining charges and by-product revenue ($/tonne)
4,883 4,718
Cash costs excluding treatment and refining charges and by-product revenue ($/lb)
2.21 2.14
Reconciliation of cash costs before deducting by-product revenue:
Treatment and refining charges – copper and by-product – Los Pelambres
154.7 155.3
Treatment and refining charges – copper and by-product – Centinela
65.9 95.4
Treatment and refining charges – copper – total
220.6 250.7
Copper production volumes (tonnes)
2
663,950 660,600
Treatment and refining charges ($/tonne)
332.2 379.4
Treatment and refining charges ($/lb)
0.16 0.17
Cash costs excluding treatment and refining charges and by-product revenue ($/lb)
2.21 2.14
Treatment and refining charges ($/lb)
0.16 0.17
Cash costs before deducting by-product revenue ($/lb)
2.37 2.31
1.
In order to better reflect the Group’s internal reporting, the Group has changed the classification of certain evaluation costs incurred by the individual mining operations, which were
previously included in the Exploration and evaluation segment and are now included within the individual mine segments.
2.
The 663,500 tonnes includes 40,100 tonnes of production at Zaldívar on a 50% attributable basis.
Antofagasta plc Annual Report 2024238
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Alternative performance measures continued
64 Antofagasta Annual Report 2024
C) Cash costs
Cash costs are a measure of the cost of operating production expressed in terms of cents per pound of payable copper produced.
This is considered to be a useful and relevant measure as it is a standard industry measure applied by most major copper mining companies which
reflects the direct costs involved in producing each pound of copper. It therefore allows a straightforward comparison of the unit production cost of
different mines, and allows an assessment of the position of a mine on the industry cost curve. It also provides a simple indication of the profitability of a
mine when compared against the price of copper (per lb).
With sales of concentrates at Los Pelambres and Centinela, which are sold to smelters and roasting plants for further processing into fully refined metal,
the price of the concentrate invoiced to the customer reflects the market value of the fully refined metal less a “treatment and refining charge” deduction,
to reflect the lower value of this partially processed material compared with the fully refined metal. For accounting purposes, the revenue amount reflects
the invoice price (the net of the market value of fully refined metal less the treatment and refining charges). Under the standard industry definition of cash
costs, treatment and refining charges are regarded as an expense and as part of the total cash cost figure.
2024
$m
2023
$m
Reconciliation of cash costs excluding treatment and refining charges and by-product revenue:
Total Group operating cost (Note 6) 4,976.1 4,541.7
Zaldívar operating costs (attributable basis – 50%) 267.6 263.1
Less:
Depreciation (Note 6) (1,568.2) (1,211.3)
Loss on disposal (Note 6) (5.6) -
Elimination of non-mining operations:
Corporate and other items – Total operating cost (excluding depreciation) (Note 6) (72.8) (98.7)
Exploration and evaluation – Total operating cost (excluding depreciation) (Note 6)
1
(52.7) (64.9)
Transport division – Total operating cost (excluding depreciation) (Note 6) (125.6) (120.7)
Closure provision and other expenses not included within cash costs (117.5) (102.7)
Inventories variation 39.9 (13.6)
Medium and long-term drilling costs & evaluation
1
(98.9) (76.2)
Total cost relevant to the mining operations’ cash costs 3,242.3 3,116.7
Copper production volumes (tonnes)
2
663,950 660,600
Cash costs excluding treatment and refining charges and by-product revenue ($/tonne) 4,883 4,718
Cash costs excluding treatment and refining charges and by-product revenue ($/lb) 2.21 2.14
Reconciliation of cash costs before deducting by-product revenue:
Treatment and refining charges – copper and by-product – Los Pelambres 154.7 155.3
Treatment and refining charges – copper and by-product – Centinela 65.9 95.4
Treatment and refining charges – copper – total 220.6 250.7
Copper production volumes (tonnes)
2
663,950 660,600
Treatment and refining charges ($/tonne) 332.2 379.4
Treatment and refining charges ($/lb) 0.16 0.17
Cash costs excluding treatment and refining charges and by-product revenue ($/lb) 2.21 2.14
Treatment and refining charges ($/lb) 0.16 0.17
Cash costs before deducting by-product revenue ($/lb) 2.37 2.31
1.
In order to better reflect the Group’s internal reporting, the Group has changed the classification of certain evaluation costs incurred by the individual mining operations, which were
previously included in the Exploration and evaluation segment and are now included within the individual mine segments.
2.
The 663,500 tonnes includes 40,100 tonnes of production at Zaldívar on a 50% attributable basis.
antofagasta.co.uk 6655
2024
$m
2023
$m
Reconciliation of cash costs (net of by-product revenue):
Gold revenue – Los Pelambres 110.5 83.6
Gold revenue – Centinela
337.1 324.2
Molybdenum revenue – Los Pelambres
412.0 397.6
Molybdenum revenue – Centinela
109.7 141.7
Silver revenue – Los Pelambres
55.2 36.2
Silver revenue – Centinela
23.9 34.9
Total by-product revenue
1,048.4 1,018.2
Copper production volumes (tonnes)
1
663,950 660,600
By-product revenues ($/tonne)
1,579.2 1,541.3
By-product revenues ($/lb)
0.73 0.70
Cash costs before deducting by-product revenue ($/lb)
2.37 2.31
By-product revenue ($/lb)
(0.73) (0.70)
Cash costs (net of by-product revenue) ($/lb)
1.64 1.61
1. The 663,950 tonnes includes 40,100 tonnes of production at Zaldívar on a 50% attributable basis.
The totals in the tables above may include some small apparent differences as the specific individual figures have not been rounded.
D) Attributable cash, cash equivalents and liquid investments, borrowings and net debt
Attributable cash, cash equivalents and liquid investments, borrowings and net debt reflects the proportion of those balances which are attributable to the
owners of the parent, after deducting the proportion attributable to the non-controlling interests in the Group’s subsidiaries.
This is considered to be a useful and relevant measure as the majority of the Group’s cash tends to be held at the corporate level and therefore 100%
attributable to the owners of the parent, whereas the majority of the Group’s borrowings tends to be at the level of the individual operations, and hence
only a proportion is attributable to the owners of the parent.
2024 2023
Total
amount
$m
Attributable
share
$m
Attributable
amount
$m
Total
amount
$m
Attributable
share
$m
Attributable
amount
$m
Cash, cash equivalents and liquid investments:
Los Pelambres
887.2 60% 532.3 587.0 60% 352.2
Centinela
1,148.1 70% 803.7 516.9 70% 361.8
Antucoya
345.0 70% 241.5 129.9 70% 90.9
Corporate
1,895.0 100% 1,895.0 1,668.3 100% 1,668.3
Transport division
41.0 100% 41.0 17.3 100% 17.3
Total (Note 22)
4,316.3 3,513.5 2,919.4 2,490.5
Borrowings:
Los Pelambres (Note 23)
(2,381.8) 60% (1,429.1) (2,112.4) 60% (1,267.4)
Centinela (Note 23)
(1,475.7) 70% (1,033.0) (574.1) 70% (401.9)
Antucoya (Note 23)
(343.5) 70% (240.5) (379.1) 70% (265.4)
Corporate (Note 23)
(1,743.5) 100% (1,743.3) (1,007.7) 100% (1,007.7)
Transport division (Note 23)
(0.9) 100% (0.9) (5.9) 100% (5.9)
Total (Notes 23 and 32) (5,945.4) (4,447.0) (4,079.2) (2,948.3)
Net debt (1,629.1) (933.5) (1,159.8) (457.8)
Antofagasta plc Annual Report 2024 239
Five year summary
Five year summary
66 Antofagasta Annual Report 2024
2024
$m
2023
$m
2022
$m
2021
$m
2020
$m
Consolidated balance sheet
Intangible assets – - - - 150.1
Property, plant and equipment
13,917.0 12,678.7 11,543.5 10,538.5 9,851.9
Other non-current assets
– - 1.1 1.3 2.6
Inventories
707.8 457.0 347.0 270.4 278.1
Investment in associates and joint ventures
1,776.1 891.1 904.6 905.8 914.6
Trade and other receivables
54.4 68.5 51.0 51.2 55.9
Derivative financial instruments
– - - - 0.3
Equity investments
11.6 288.6 90.5 8.7 11.1
Deferred tax assets
9.7 72.0 78.5 96.8 6.4
Non-current assets
16,476.6 14,455.9 13,016.2 11,872.7 11,271.0
Current assets 6,158.3 5,191.3 5,222.1 5,405.7 5,333.3
Current liabilities
(2,775.5) (2,189.3) (1,605.8) (1,574.2) (1,625.7)
Non-current liabilities
(6,905.2) (5,409.5) (4,988.1) (4,675.2) (4,897.5)
12,954.2 12,048.4 11,644.4 11,029.0 10,081.1
Share capital 89.8 89.8 89.8 89.8 89.8
Share premium
199.2 199.2 199.2 199.2 199.2
Reserves (retained earnings and hedging, translation and fair value reserves)
9,173.2 8,662.9 8,338.5 8,061.2 7,461.6
Equity attributable to owners of the parent 9,462.2 8,951.9 8,627.5 8,350.2 7,750.6
Non-controlling interests 3,492.0 3,096.5 3,016.9 2,678.8 2,330.5
12,954.2 12,048.4 11,644.4 11,029.0 10,081.1
2024
$m
2023
$m
2022
$m
2021
$m
2020
$m
Consolidated income statement
Revenue 6,613.4 6,324.5 5,862.0 7,470.1 5,129.3
Total profit from operations and associates 2,084.9 1,769.3 2,627.1 3,461.1 1,516.5
Profit before tax 2,071.1 1,965.5 2,558.9 3,477.1 1,413.1
Income tax expense
(755.1) (666.1) (603.6) (1,242.3) (526.5)
Profit from continuing operations 1,316.0 1,299.4 1,955.3 2,234.8 886.6
Profit from discontinued operations
– - - - 7.3
Profit for the year
1,316.0 1,299.4 1,955.3 2,234.8 893.9
Non-controlling interests (486.6) (464.3) (422.3) (944.6) (387.5)
Net earnings (profit attributable to owners of the parent)
829.4 835.1 1,533.0 1,290.2 506.4
EBITDA 3,426.8 3,087.2 2,929.7 4,836.2 2,739.2
2024
cents
2023
cents
2022
cents
2021
cents
2020
cents
Earnings per share
Basic and diluted earnings per share 84.1 84.7 155.5 130.9 51.3
Antofagasta plc Annual Report 2024240
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Five year summary
Five year summary
66 Antofagasta Annual Report 2024
2024
$m
2023
$m
2022
$m
2021
$m
2020
$m
Consolidated balance sheet
Intangible assets – - - - 150.1
Property, plant and equipment 13,917.0 12,678.7 11,543.5 10,538.5 9,851.9
Other non-current assets – - 1.1 1.3 2.6
Inventories 707.8 457.0 347.0 270.4 278.1
Investment in associates and joint ventures 1,776.1 891.1 904.6 905.8 914.6
Trade and other receivables 54.4 68.5 51.0 51.2 55.9
Derivative financial instruments – - - - 0.3
Equity investments 11.6 288.6 90.5 8.7 11.1
Deferred tax assets 9.7 72.0 78.5 96.8 6.4
Non-current assets 16,476.6 14,455.9 13,016.2 11,872.7 11,271.0
Current assets 6,158.3 5,191.3 5,222.1 5,405.7 5,333.3
Current liabilities (2,775.5) (2,189.3) (1,605.8) (1,574.2) (1,625.7)
Non-current liabilities (6,905.2) (5,409.5) (4,988.1) (4,675.2) (4,897.5)
12,954.2 12,048.4 11,644.4 11,029.0 10,081.1
Share capital 89.8 89.8 89.8 89.8 89.8
Share premium 199.2 199.2 199.2 199.2 199.2
Reserves (retained earnings and hedging, translation and fair value reserves) 9,173.2 8,662.9 8,338.5 8,061.2 7,461.6
Equity attributable to owners of the parent 9,462.2 8,951.9 8,627.5 8,350.2 7,750.6
Non-controlling interests 3,492.0 3,096.5 3,016.9 2,678.8 2,330.5
12,954.2 12,048.4 11,644.4 11,029.0 10,081.1
2024
$m
2023
$m
2022
$m
2021
$m
2020
$m
Consolidated income statement
Revenue 6,613.4 6,324.5 5,862.0 7,470.1 5,129.3
Total profit from operations and associates 2,084.9 1,769.3 2,627.1 3,461.1 1,516.5
Profit before tax 2,071.1 1,965.5 2,558.9 3,477.1 1,413.1
Income tax expense (755.1) (666.1) (603.6) (1,242.3) (526.5)
Profit from continuing operations 1,316.0 1,299.4 1,955.3 2,234.8 886.6
Profit from discontinued operations – - - - 7.3
Profit for the year 1,316.0 1,299.4 1,955.3 2,234.8 893.9
Non-controlling interests (486.6) (464.3) (422.3) (944.6) (387.5)
Net earnings (profit attributable to owners of the parent) 829.4 835.1 1,533.0 1,290.2 506.4
EBITDA 3,426.8 3,087.2 2,929.7 4,836.2 2,739.2
2024
cents
2023
cents
2022
cents
2021
cents
2020
cents
Earnings per share
Basic and diluted earnings per share 84.1 84.7 155.5 130.9 51.3
antofagasta.co.uk 6677
2024
cents
2023
cents
2022
cents
2021
cents
2020
cents
Dividends per share proposed in relation to the year
Ordinary dividends (interim and final) 31.4 36.0 59.7 142.5 54.7
31.4 36.0 59.7 142.5 54.7
Dividends per share paid in the year and deducted from equity 32.2 62.2 128.1 72.1 13.3
2024
$m
2023
$m
2022
$m
2021
$m
2020
$m
Consolidated cash flow statement
Cash flow from continuing operations 3,276.2 3,027.1 2,738.3 4,507.7 2,431.1
Interest paid
(324.1) (166.0) (74.3) (60.7) (52.7)
Income tax paid
(666.8) (528.1) (787.1) (776.9) (319.7)
Net cash from operating activities
2,285.3 2,333.0 1,876.9 3,670.1 2,058.7
Investing activities
Capital contributions to associates and joint ventures
3.5 (0.7) 50.0 142.5 -
Equity investments, investing activities and recovery of VAT
148.5 (80.3) 1,322.4 (577.2) (893.5)
Purchases and disposals of intangible assets, property, plant and equipment
(2,414.6) (2,129.2) (1,879.0) (1,776.0) (1,306.6)
Interest received
181.0 117.2 29.1 7.4 12.6
Net cash used in investing activities
(2,081.6) (2,093.0) (477.5) (2,203.3) (2,187.5)
Financing activities
Dividends paid to owners of the parent
(317.4) (613.2) (1,262.9) (710.8) (131.1)
Dividends paid to preference holders and non-controlling interests
(240.1) (388.1) (80.1) (604.6) (280.1)
Capital increase from non-controlling interest
156.7 - - - 210.0
New borrowings less repayment of borrowings and leases
1,747.2 599.3 9.2 (634.5) 918.3
Net cash (used in)/generated from financing activities
1,346.4 (402.0) (1,333.8) (1,949.9) 717.1
Net (decrease)/increase in cash and cash equivalents 1,550.1 (162.0) 65.6 (483.1) 588.3
2024
$m
2023
$m
2022
$m
2021
$m
2020
$m
Consolidated net cash
Cash, cash equivalents and liquid investments 4,316.3 2,919.4 2,391.2 3,713.1 3,672.8
Short-term borrowings (1,322.5) (901.9) (432.5) (337.1) (603.4)
Medium and long-term borrowings
(4,622.9) (3,177.3) (2,844.5) (2,835.5) (3,151.4)
(5,945.4) (4,079.2) (3,277.0) (3,172.6) (3,754.8)
Net (debt)/cash at the year-end (1,629.1) (1,159.8) (885.8) 540.5 (82.0)
Antofagasta plc Annual Report 2024 241
Production statistics
Production statistics
68 Antofagasta Annual Report 2024
Production Sales Net cash costs Realised prices
Production and sales volumes, realised prices and cash costs by mine
2024
‘000
tonnes
2023
‘000
tonnes
2024
‘000
tonnes
2023
‘000
tonnes
2024
$/lb
2023
$/lb
2024
$/lb
2023
$/lb
Copper
Los Pelambres 319.6 300.3 315.4 299.0 1.26 1.14 4.18 3.89
Centinela
223.8 242.0 212.5 247.9 1.60 1.63 4.17 3.89
Antucoya
80.5 77.8 79.1 78.4 2.53 2.63 4.19 3.89
Zaldívar (attributable basis – 50%)
40.1 40.5 38.5 41.9 3.02 2.95 – -
Group total
664.0 660.6 645.5 667.2 1.64 1.61 4.18 3.89
Group weighted average (net cash costs)
Group weighted average (excluding treatment and refining
charges and before by-products)
2.22 2.14
Group weighted average (before by-product credits)
2.37 2.31
Cash costs at Los Pelambres comprises
Cash costs before by-product credits
2.09 1.92
By-product credits (principally molybdenum and gold) (0.83) (0.78)
Net cash costs 1.26 1.14
Cash cost at Centinela comprises
Cash costs before by-product credits
2.60 2.57
By-product credits (principally gold) (1.00) (0.94)
Net cash costs 1.60 1.63
LME average 4.15 3.85
Production Sales Realised prices
2024
‘000
ounces
2023
‘000
ounces
2024
‘000
ounces
2023
‘000
ounces
2024
$/oz
2023
$/oz
Gold
Los Pelambres 46.6 43.3 43.8 42.1 2,523 1,983
Centinela
140.3 165.8 133.2 162.8 2,530 1,991
Group total
186.9 209.1 177.0 204.9 2,528 1,990
Market average price 2,387 1,943
2024
‘000
tonnes
2023
‘000
tonnes
2024
‘000
tonnes
2023
‘000
tonnes
2024
$/lb
2023
$/lb
Molybdenum
Los Pelambres 8.3 8.1 8.6 8.1 21.8 22.0
Centinela
2.4 2.9 2.3 3.0 21.7 21.7
Group total/average realised price
10.7 11.0 10.9 11.1 21.8 22.0
Market average price 21.3 24.1
2024
‘000
ounces
2023
‘000
ounces
2024
‘000
ounces
2023
‘000
ounces
2024
$/oz
2023
$/oz
Silver
Los Pelambres 1,970.3 1,613.5 1,847.8 1,509.2 29.8 24.1
Centinela
853.5 1,461.0 791.1 1,469.9 30.3 23.8
Group total/average realised price 2,823.8 3,074.5 2,638.9 2,979.1 30.0 24.0
Market average price 28.2 23.4
Antofagasta plc Annual Report 2024242
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Ore reserves and mineral resources estimates
Ore reserves and mineral
resources estimates
At 31 December 2024
Introduction
The ore reserves and mineral resources estimates presented in this
report, comply with the requirements of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves
2012 edition (the JORC Code) which has been used by the Group as
minimum standard for the preparation and disclosure of the
information contained herein. The definitions and categories of ore
reserves and mineral resources are set out below.
The information on ore reserves and mineral resources was prepared
by or under the supervision of Competent Persons as defined in the
JORC Code. The Competent Persons have sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which they are undertaking. The
Competent Persons consent to the inclusion in this report of the
matters based on their information in the form and context in which it
appears. The Competent Person for Exploration Results and Mineral
Resources is Osvaldo Galvez (CP, Chile), Mineral Resource Evaluation
Deputy Manager for Antofagasta Minerals SA. The Competent Person
for Ore Reserves is Sofia Orellana (CP, Chile), Long-Term Mine
Planning Deputy Manager for Antofagasta Minerals SA.
The Group’s operations and projects are subject to a comprehensive
programme of audits aimed at providing assurance in respect of ore
reserves and mineral resource estimates. The audits are conducted by
suitably qualified Competent Persons from within an operation, another
operation of the Company or independent consultants. The ore
reserves and mineral resource estimates are the total reserves and
resources, with the Group’s attributable share for each mine shown
in the ‘Attributable tonnage’ column. The Group’s economic interest
in each mine is disclosed in the notes following the estimates on
pages 252-253. The totals in the table may include some small
apparent differences due to rounding.
Definitions and categories of ore reserves and
mineral resources
A ‘Mineral Resource’ is a concentration or occurrence of material of
intrinsic economic interest in or on the Earth’s crust in such form,
quality and quantity that there are reasonable prospects for eventual
economic extraction. The location, quantity, grade, geological
characteristics and continuity of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and
knowledge. Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured
categories.
An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for
which tonnage, grade and mineral content can be estimated with a low
level of confidence. It is inferred from geological evidence and
assumed but not verified geological and/or grade continuity. It is based
on information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes, which may
be limited or of uncertain quality and reliability.
An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for
which tonnage, densities, shape, physical characteristics, grade and
mineral content can be estimated with a reasonable level of
confidence. It is based on exploration, sampling and testing information
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes. The locations are too
widely or inappropriately spaced to confirm geological and/or grade
continuity but are spaced closely enough for continuity to be assumed.
A ‘Measured Mineral Resource’ is that part of a Mineral Resource for
which tonnage, densities, shape, physical characteristics, grade and
mineral content can be estimated with a high level of confidence. It is
based on detailed and reliable exploration, sampling and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. The
locations are spaced closely enough to confirm geological and grade
continuity.
An ‘Ore Reserve’ is the economically mineable part of a Measured
and/or Indicated Mineral Resource. It includes diluting materials and
allowances for losses, which may occur when the material is mined.
Appropriate assessments and studies have been carried out and
include realistic consideration of modifying factors such as mining
method, metallurgical process and economic, marketing, legal,
environmental, social and governmental factors. These assessments
demonstrate at the time of reporting that extraction could reasonably
be justified. Ore Reserves are sub-divided in order of increasing
confidence into Probable Ore Reserves and Proved Ore Reserves.
A ‘Probable Ore Reserve’ is the economically mineable part of an
Indicated, and in some circumstances, a Measured Mineral Resource. It
includes diluting materials and allowances for losses which may occur
when the material is mined. Appropriate assessments and studies
have been carried out and include realistic consideration of modifying
factors such as mining method, metallurgical process and economic,
marketing, legal, environmental, social and governmental factors.
These assessments demonstrate at the time of reporting that
extraction could reasonably be justified.
A ‘Proved Ore Reserve’ is the economically mineable part of a
Measured Mineral Resource. It includes diluting materials and
allowances for losses which may occur when the material is mined.
Appropriate assessments and studies have been carried out and
include realistic consideration of modifying factors such as mining
method, metallurgical process and economic, marketing, legal,
environmental, social and governmental factors. These assessments
demonstrate at the time of reporting that extraction could reasonably
be justified.
Antofagasta plc Annual Report 2024 243
Ore reserves and mineral resources estimates continued
Group subsidiaries
Tonnage
(millions of tonnes)
Copper
(%)
Molybdenum
(%)
Gold
(g/tonne)
Attributable tonnage
(millions of tonnes)
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Ore Reserves
Los Pelambres (see note (a))
Proved 559.9 574.0 0.59 0.59 0.022 0.020 0.05 0.05 336.0 344.4
Probable 221.6 274.6 0.54 0.55 0.020 0.020 0.05 0.05 132.9 164.8
Total 781.5 848.6 0.58 0.58 0.021 0.020 0.05 0.05 468.9 509.2
Centinela (see note (b))
Centinela Cathodes (oxides)
Proved 19.9 34.7 0.46 0.55 13.9 24.3
Probable 132.9 157.2 0.34 0.33 93.0 110.0
Subtotal 152.7 191.9 0.35 0.37 106.9 134.3
Centinela Concentrates
(sulphides)
Proved 963.6 542.5 0.47 0.43 0.014 0.012 0.18 0.17 674.5 379.8
Probable 1,436.9 1,163.5 0.37 0.38 0.013 0.012 0.12 0.12 1,005.8 814.4
Subtotal 2,400.6 1,706.0 0.41 0.40 0.013 0.012 0.14 0.13 1,680.4 1,194.2
Proved 983.5 577.2 0.47 0.44 688.5 404.0
Probable 1,569.8 1,320.7 0.37 0.37 1,098.8 924.5
Total 2,553.3 1,897.9 0.41 0.39 1,787.3 1,328.5
Antucoya (see note (c))
Proved 397.4 438.9 0.32 0.32 278.2 307.2
Probable 294.0 287.7 0.28 0.28 205.8 201.4
Total 691.4 726.5 0.30 0.31 484.0 508.6
Total Group subsidiaries 4,026.2 3,473.0 0.42 0.42 2,740.2 2,346.3
Group joint ventures
Tonnage
(millions of tonnes)
Copper
(%)
Molybdenum
(%)
Gold
(g/tonne)
Attributable tonnage
(millions of tonnes)
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Ore Reserves
Zaldívar (see note (n))
Proved 218.2 199.8 0.44 0.45 109.1 99.9
Probable 132.8 153.1 0.41 0.38 66.4 76.5
Total 351.0 352.9 0.43 0.42 175.5 176.4
Total Group 4,377.2 3,825.9 0.42 0.42 2,915.7 2,522.7
Ore reserves estimates
Antofagasta plc Annual Report 2024244
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Group subsidiaries
Tonnage
(millions of tonnes)
Copper
(%)
Molybdenum
(%)
Gold
(g/tonne)
Attributable tonnage
(millions of tonnes)
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Los Pelambres (see note (a))
Sulphides
Measured 1,170.5 1,142.4 0.56 0.56 0.020 0.020 0.05 0.04 702.3 685.4
Indicated 2,166.1 2,282.4 0.49 0.49 0.016 0.016 0.05 0.05 1,299.7 1,369.4
Measured + Indicated 3,336.7 3,424.8 0.51 0.51 0.017 0.017 0.05 0.05 2,002.0 2,054.9
Inferred 2,729.1 2,704.2 0.43 0.43 0.016 0.016 0.05 0.05 1,637.5 1,622.5
Total 6,065.8 6,129.0 0.48 0.48 0.017 0.017 0.05 0.05 3,639.5 3,677.4
Los Pelambres total
Measured 1,170.5 1,142.4 0.56 0.56 0.020 0.020 0.05 0.04 702.3 685.4
Indicated 2,166.1 2,282.4 0.49 0.49 0.016 0.016 0.05 0.05 1,299.7 1,369.4
Measured + Indicated 3,336.7 3,424.8 0.51 0.51 0.017 0.017 0.05 0.05 2,002.0 2,054.9
Inferred 2,729.1 2,704.2 0.43 0.43 0.016 0.016 0.05 0.05 1,637.5 1,622.5
Total 6,065.8 6,129.0 0.48 0.48 0.017 0.017 0.05 0.05 3,639.5 3,677.4
Centinela (see note (b))
Oxides
Measured 33.3 63.2 0.45 0.50 – – – – 23.3 44.2
Indicated 209.1 240.1 0.31 0.31 – – – – 146.4 168.0
Measured + Indicated 242.4 303.2 0.33 0.35 – – – – 169.7 212.3
Inferred 13.7 14.0 0.30 0.30 – – – – 9.6 9.8
Subtotal 256.2 317.2 0.33 0.35 – – – – 179.3 222.1
Sulphides
Measured 970.9 942.5 0.47 0.47 0.014 0.014 0.18 0.18 679.7 659.8
Indicated 1,854.0 1,879.6 0.36 0.36 0.013 0.013 0.12 0.12 1,297.8 1,315.7
Measured + Indicated 2,825.0 2,822.1 0.40 0.40 0.013 0.013 0.14 0.14 1,977.5 1,975.5
Inferred 2,104.2 1,912.2 0.28 0.29 0.011 0.011 0.07 0.08 1,473.0 1,338.5
Subtotal 4,929.2 4,734.3 0.35 0.36 0.012 0.012 0.11 0.11 3,450.4 3,314.0
Centinela total
Measured 1,004.2 1,005.7 0.47 0.48 – – – – 703.0 704.0
Indicated 2,063.2 2,119.6 0.36 0.36 – – – – 1,444.2 1,483.8
Measured + Indicated 3,067.4 3,125.3 0.39 0.40 – – – – 2,147.2 2,187.7
Inferred 2,118.0 1,926.2 0.28 0.29 – – – – 1,482.6 1,348.3
Total 5,185.4 5,051.5 0.35 0.35 – – – – 3,629.8 3,536.1
Mineral resources estimates (including ore reserves)
Antofagasta plc Annual Report 2024 245
Ore reserves and mineral resources estimates continued
Mineral resources estimates (including ore reserves) continued
Group subsidiaries
Tonnage
(millions of tonnes)
Copper
(%)
Molybdenum
(%)
Gold
(g/tonne)
Attributable tonnage
(millions of tonnes)
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Antucoya (see note (c))
Oxides
Measured 412.6 460.0 0.32 0.32 – – – – 288.8 322.0
Indicated 354.4 360.7 0.28 0.28 – – – – 248.1 252.5
Measured + Indicated 767.0 820.8 0.30 0.30 – – – – 536.9 574.5
Inferred 280.9 280.5 0.25 0.25 – – – – 196.7 196.3
Total 1,047.9 1,101.2 0.29 0.29 – – – – 733.5 770.9
Antucoya total
Measured 412.6 460.0 0.32 0.32 – – – – 288.8 322.0
Indicated 354.4 360.7 0.28 0.28 – – – – 248.1 252.5
Measured + Indicated 767.0 820.8 0.30 0.30 – – – – 536.9 574.5
Inferred 280.9 280.5 0.25 0.25 – – – – 196.7 196.3
Total 1,047.9 1,101.2 0.29 0.29 – – – – 733.5 770.9
Polo Sur (see note (d))
Oxides
Measured 61.0 61.0 0.47 0.47 – – – – 61.0 61.0
Indicated 45.4 45.4 0.37 0.37 – – – – 45.4 45.4
Measured + Indicated 106.4 106.4 0.43 0.43 – – – – 106.4 106.4
Inferred 6.5 6.5 0.34 0.34 – – – – 6.5 6.5
Subtotal 112.9 112.8 0.42 0.42 – – – – 112.9 112.8
Sulphides
Measured 258.9 258.9 0.40 0.40 0.007 0.007 0.07 0.07 258.9 258.9
Indicated 676.6 675.9 0.33 0.33 0.007 0.007 0.05 0.05 676.6 675.9
Measured + Indicated 935.5 934.7 0.35 0.35 0.007 0.007 0.06 0.06 935.5 934.7
Inferred 673.4 621.7 0.27 0.27 0.006 0.006 0.04 0.04 673.4 621.7
Subtotal 1,608.9 1,556.4 0.32 0.32 0.006 0.006 0.05 0.05 1,608.9 1,556.4
Polo Sur total
Measured 319.9 319.9 0.41 0.41 – – – – 319.9 319.9
Indicated 722.0 721.2 0.34 0.34 – – – – 722.0 721.2
Measured + Indicated 1,041.9 1,041.1 0.36 0.36 – – – – 1,041.9 1,041.1
Inferred 679.9 628.2 0.27 0.27 – – – – 679.9 628.2
Total 1,721.8 1,669.3 0.33 0.33 – – – – 1,721.8 1,669.3
Penacho Blanco (see note (e))
Oxides
Measured - - - - – – – – - -
Indicated - - - - – – – – - -
Measured + Indicated - - - - – – – – - -
Inferred 18.3 18.3 0.29 0.29 – – – – 9.3 9.3
Subtotal 18.3 18.3 0.29 0.29 – – – – 9.3 9.3
Sulphides
Measured - - - - – – – – - -
Indicated - - - - – – – – - -
Measured + Indicated
- - - - – – – – - -
Inferred 541.2 452.3 0.34 0.35 – – 0.05 0.05 276.0 230.7
Subtotal 541.2 452.3 0.34 0.35 – – 0.05 0.05 276.0 230.7
Penacho Blanco total
Measured - - - - – – – – - -
Indicated - - - - – – – – - -
Measured + Indicated - - - - – – – – - -
Inferred 559.5 470.6 0.34 0.35 – – – – 285.4 240.0
Total 559.5 470.6 0.34 0.35 – – – – 285.4 240.0
Antofagasta plc Annual Report 2024246
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Group subsidiaries
Tonnage
(millions of tonnes)
Copper
(%)
Molybdenum
(%)
Gold
(g/tonne)
Attributable tonnage
(millions of tonnes)
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Mirador (see note (f))
Oxides
Measured 1.9 2.0 0.28 0.28 – – – – 1.4 1.4
Indicated 25.5 26.0 0.27 0.27 – – – – 19.5 19.3
Measured + Indicated 27.4 28.0 0.27 0.27 – – – – 20.9 20.7
Inferred 17.5 14.2 0.25 0.25 – – – – 14.1 10.2
Subtotal 44.9 42.2 0.26 0.26 – – – – 35.0 30.9
Sulphides
Measured 42.0 40.0 0.32 0.33 0.007 0.006 0.11 0.12 42.0 40.0
Indicated 28.9 25.7 0.27 0.27 0.008 0.008 0.07 0.07 28.9 25.7
Measured + Indicated 70.8 65.7 0.30 0.31 0.007 0.007 0.10 0.10 70.8 65.7
Inferred 12.7 8.5 0.24 0.24 0.009 0.009 0.04 0.05 12.7 8.5
Subtotal 83.5 74.2 0.29 0.30 0.008 0.007 0.09 0.10 83.5 74.2
Mirador total
Measured 43.8 42.0 0.32 0.32 – – – – 43.3 41.5
Indicated 54.4 51.6 0.27 0.27 – – – – 48.4 45.0
Measured + Indicated 98.3 93.6 0.29 0.29 – – – – 91.7 86.4
Inferred 30.2 22.7 0.24 0.25 – – – – 26.7 18.7
Total 128.4 116.4 0.28 0.29 – – – – 118.5 105.1
Los Volcanes (see note (g))
Oxides
Measured – – – – – – – – – –
Indicated – – – – – – – – – –
Measured + Indicated – – – – – – – – – –
Inferred 30.8 30.8 0.31 0.31 – – – – 15.7 15.7
Subtotal 30.8 30.8 0.31 0.31 – – – – 15.7 15.7
Sulphides
Measured – – – – – – – – – –
Indicated – – – – – – – – – –
Measured + Indicated – – – – – – – – – –
Inferred 1,902.8 1,902.3 0.50 0.50 0.011 0.011 – – 970.4 970.2
Subtotal 1,902.8 1,902.3 0.50 0.50 0.011 0.011 – – 970.4 970.2
Los Volcanes total
Measured – – – – – – – – – –
Indicated – – – – – – – – – –
Measured + Indicated – – – – – – – – – –
Inferred 1,933.6 1,933.1 0.49 0.49 – – – – 986.1 985.9
Total 1,933.6 1,933.1 0.49 0.49 – – – – 986.1 985.9
Mineral resources estimates (including ore reserves) continued
Antofagasta plc Annual Report 2024 247
Ore reserves and mineral resources estimates continued
Mineral resources estimates (including ore reserves) continued
Group subsidiaries
Tonnage
(millions of tonnes)
Copper
(%)
Molybdenum
(%)
Gold
(g/tonne)
Attributable tonnage
(millions of tonnes)
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Brujulina (see note (h))
Oxides
Measured – – – – – – – – – –
Indicated – – – – – – – – – –
Measured + Indicated – – – – – – – – – –
Inferred 88.7 88.5 0.49 0.49 – – – – 45.2 45.1
Total 88.7 88.5 0.49 0.49 – – – – 45.2 45.1
Brujulina total
Measured – – – – – – – – – –
Indicated – – – – – – – – – –
Measured + Indicated – – – – – – – – – –
Inferred 88.7 88.5 0.49 0.49 – – – – 45.2 45.1
Total 88.7 88.5 0.49 0.49 – – – – 45.2 45.1
Sierra (see note (i))
Oxides
Measured – – – – – – – – – –
Indicated – – – – – – – – – –
Measured + Indicated – – – – – – – – – –
Inferred 54.9 54.7 0.67 0.68 – – – – 54.9 54.7
Total 54.9 54.7 0.67 0.68 – – – – 54.9 54.7
Sierra total
Measured – – – – – – – – – –
Indicated – – – – – – – – – –
Measured + Indicated – – – – – – – – – –
Inferred 54.9 54.7 0.67 0.68 – – – – 54.9 54.7
Total 54.9 54.7 0.67 0.68 – – – – 54.9 54.7
Encierro (see note (j))
Sulphides
Measured – – – – – – – – – –
Indicated – – – – – – – – – –
Measured + Indicated – – – – – – – – – –
Inferred 522.3 522.3 0.65 0.65 0.007 0.007 0.22 0.22 323.3 298.6
Subtotal 522.3 522.3 0.65 0.65 0.007 0.007 0.22 0.22 323.3 298.6
Encierro total
Measured – – – – – – – – – –
Indicated – – – – – – – – – –
Measured + Indicated – – – – – – – – – –
Inferred 522.3 522.3 0.65 0.65 0.007 0.007 0.22 0.22 323.3 298.6
Total 522.3 522.3 0.65 0.65 0.007 0.007 0.22 0.22 323.3 298.6
Antofagasta plc Annual Report 2024248
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Group subsidiaries
Tonnage
(millions of tonnes)
Copper
(%)
Molybdenum
(%)
Silver
(g/tonne)
Attributable tonnage
(millions of tonnes)
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Cachorro (see note (k))
Oxides
Measured – – – – – – – – – –
Indicated 11.1 10.9 1.15 1.15 – – – – 11.1 10.9
Measured + Indicated 11.1 10.9 1.15 1.15 – – – – 11.1 10.9
Inferred 18.3 17.8 0.87 0.87 – – – – 18.3 17.8
Subtotal 29.4 28.7 0.97 0.98 – – – – 29.4 28.7
Sulphides
Measured – – – – – – – – – –
Indicated 42.3 40.4 1.58 1.61 – – 6.11 6.24 42.3 40.4
Measured + Indicated 42.3 40.4 1.58 1.61 – – 6.11 6.24 42.3 40.4
Inferred 183.7 180.7 1.23 1.23 – – 3.92 3.96 183.7 180.7
Subtotal 225.9 221.1 1.30 1.30 – – 4.33 4.37 225.9 221.1
Cachorro total
Measured – – – – – – – – – –
Indicated 53.3 51.4 1.49 1.51 – – – – 53.3 51.4
Measured + Indicated 53.3 51.4 1.49 1.51 – – – – 53.3 51.4
Inferred 202.0 198.5 1.20 1.20 – – – – 202.0 198.5
Total 255.3 249.8 1.26 1.27 – – – – 255.3 249.8
Mineral resources estimates (including ore reserves) continued
Antofagasta plc Annual Report 2024 249
Ore reserves and mineral resources estimates continued
Mineral resources estimates (including ore reserves) continued
Group subsidiaries
Tonnage
(millions of tonnes)
Copper
(%)
Nickel
(%)
TPM
(g/tonne Au+Pt+Pd)
Attributable tonnage
(millions of tonnes)
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Twin Metals (see note (m))
Maturi
Measured 291.4 291.4 0.63 0.63 0.20 0.20 0.57 0.57 224.6 224.6
Indicated 818.3 818.3 0.57 0.57 0.18 0.18 0.57 0.57 771.6 771.6
Measured + Indicated 1,109.7 1,109.7 0.59 0.59 0.19 0.19 0.57 0.57 996.1 996.1
Inferred 534.1 534.1 0.50 0.50 0.16 0.16 0.57 0.57 483.2 483.2
Subtotal 1,643.8 1,643.8 0.56 0.56 0.18 0.18 0.57 0.57 1,479.3 1,479.3
Maturi South West
Measured – – – – – – – – – –
Indicated 93.1 93.1 0.48 0.48 0.17 0.17 0.31 0.31 65.2 65.2
Measured + Indicated 93.1 93.1 0.48 0.48 0.17 0.17 0.31 0.31 65.2 65.2
Inferred 29.3 29.3 0.43 0.43 0.15 0.15 0.26 0.26 20.5 20.5
Subtotal 122.4 122.4 0.47 0.47 0.17 0.17 0.30 0.30 85.7 85.7
Birch Lake
Measured – – – – – – – – – –
Indicated 90.4 90.4 0.52 0.52 0.16 0.16 0.87 0.87 63.3 63.3
Measured + Indicated 90.4 90.4 0.52 0.52 0.16 0.16 0.87 0.87 63.3 63.3
Inferred 217.0 217.0 0.46 0.46 0.15 0.15 0.64 0.64 151.9 151.9
Subtotal 307.4 307.4 0.48 0.48 0.15 0.15 0.70 0.70 215.2 215.2
Spruce Road
Measured – – – – – – – – – –
Indicated – – – – – – – – – –
Measured + Indicated – – – – – – – – – –
Inferred 435.5 435.5 0.43 0.43 0.16 0.16 – – 304.8 304.8
Subtotal 435.5 435.5 0.43 0.43 0.16 0.16 – – 304.8 304.8
Twin Metals total
Measured 291.4 291.4 0.63 0.63 0.20 0.20 0.57 0.57 224.6 224.6
Indicated 1,001.8 1,001.8 0.56 0.56 0.18 0.18 0.57 0.57 900.0 900.0
Measured + Indicated 1,293.2 1,293.2 0.57 0.57 0.18 0.18 0.57 0.57 1,124.6 1,124.6
Inferred 1,215.9 1,215.9 0.47 0.47 0.16 0.16 0.37 0.37 960.4 960.4
Total 2,509.1 2,509.1 0.52 0.52 0.17 0.17 0.47 0.47 2,085.0 2,085.0
Group subsidiaries
Tonnage
(millions of tonnes)
Copper
(%)
Attributable tonnage
(millions of tonnes)
2024 2023 2024 2023 2024 2023
Measured + Indicated 9,657.7 9,850.2 0.45 0.45 – – – – 6,997.6 7,072.2
Inferred 10,415.0 10,045.3 0.42 0.43 – – – – 6,880.7 5,720.9
Group Subsidiaries Total 20,072.7 19,895.4 0.44 0.44 – – – – 13,878.3 12,793.2
Antofagasta plc Annual Report 2024250
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Group subsidiaries
Tonnage
(millions of tonnes)
Copper
(%)
Attributable tonnage
(millions of tonnes)
2024 2023 2024 2023 2024 2023
Zaldívar (see note (n))
Oxides & secondary sulphides
Measured 334.5 343.9 0.39 0.40 – – – – 167.2 172.0
Indicated 307.9 336.3 0.33 0.33 – – – – 154.0 168.2
Measured + Indicated 642.4 680.3 0.36 0.38 – – – – 321.2 340.1
Inferred 8.5 12.8 0.24 0.26 – – – – 4.3 6.4
Total 650.9 693.1 0.36 0.38 – – – – 325.5 346.5
Primary sulphides
Measured 145.2 105.4 0.40 0.40 – – – – 72.6 52.7
Indicated 272.1 319.9 0.38 0.38 – – – – 136.0 159.9
Measured + Indicated 417.3 425.3 0.39 0.39 – – – – 208.6 212.6
Inferred 21.6 29.9 0.35 0.36 – – – – 10.8 14.9
Subtotal 438.8 455.2 0.39 0.39 – – – – 219.4 227.6
Zaldívar total
Measured 479.7 449.3 0.39 0.40 – – – – 239.9 224.7
Indicated 580.0 656.2 0.36 0.36 – – – – 290.0 328.1
Measured + Indicated 1,059.7 1,105.6 0.37 0.39 – – – – 529.8 552.8
Inferred 30.1 42.7 0.32 0.33 – – – – 15.0 21.3
Total Group joint ventures 1,089.8 1,148.2 0.37 0.38 – – – – 544.9 574.1
Group subsidiaries
Tonnage
(millions of tonnes)
Copper
(%)
Attributable tonnage
(millions of tonnes)
2024 2023 2024 2023 2024 2023
Measured + Indicated 10,717.4 10,955.7 0.45 0.45 – – – – 7,527.4 7,673.4
Inferred 10,445.1 10,087.9 0.42 0.43 – – – – 6,895.7 6,618.5
Total 21,162.4 21,043.7 0.43 0.44 – – – – 14,423.1 14,291.9
Mineral resources estimates (including ore reserves) continued
Antofagasta plc Annual Report 2024 251
Notes to ore reserves and mineral
resources estimates
The Ore Reserves mentioned in this report were determined
considering specific copper cut-off grades for each mine and using
long-term prices of $3.80/lb for copper ($3.50/lb in 2023), $14.00/lb
molybdenum ($13.00/lb in 2023) and $1,700/oz gold ($1,600/oz in
2023), unless otherwise noted. These same values have been used for
copper equivalent (CuEq) estimates, where appropriate.
In order to ensure that the stated resources represent mineralisation
that has “reasonable prospects for eventual economic extraction”
(JORC Code) the resources are enclosed within pit shells that were
optimised based on Measured, Indicated and Inferred Resources and
based on a copper price of $4.40/lb ($4.20/lb in 2023). Mineralisation
estimated outside these pit shells is not included in the resource
figures.
Group policy on auditing of resource and reserve estimates is that
prior to first publication an independent external audit is done. External
audits are also done on resources and reserves for any material
changes (incorporation of a significant amount of drillhole information,
for instance) or every three to five years, whichever comes first. All
the resource models that support the resource and reserve estimates
have been audited as per Group policy. All resource and reserve
estimates have been found to comply with the JORC Code.
a) Los Pelambres
Los Pelambres is 60% owned by the Group. The cut-off grade applied
to the determination of mineral resources is 0.30% copper, while the
cut-off grade applied for ore reserves is variable over 0.35% copper.
Ore Reserves decreased by 67 million tonnes due principally to
depletion in the period, which reflects the remaining capacity of the
existing tailing dams, limiting the amount of mineral resource that can
be converted into ore reserves. Mineral Resources have decreased
overall by a net 63 million tonnes, depletion being the main factor.
b) Centinela (Concentrates and Cathodes)
Centinela is 70% owned by the Group and consists of Centinela
Concentrates (Esperanza, Esperanza Sur and Encuentro Sulphides)
and Centinela Cathodes (Encuentro and Llano deposits, including the
oxide portion of the Mirador deposit). The cut-off grade applied to the
determination of ore reserves for Centinela Concentrates is 0.15%
equivalent copper, with 0.15% copper used as a cut-off grade for
mineral resources. The cut-off grades used at Centinela Cathodes are
0.20% copper for ore reserves and 0.15% copper for mineral
resources.
Since 2024, Centinela reserves include a new pit, Encuentro
Sulphides, which adds 738 million tonnes with 0.45% copper. This
new pit will feed ore to the Centinela Second Concentrator Plant,
which was approved in December 2023 by the Antofagasta Plc Board.
Encuentro Sulphides is included in the Centinela long-term plan,
feeding the new concentrator in combination with Esperanza Sur pit,
currently being mined.
The Centinela Concentrates Ore Reserves have increased by a net 695
million tonnes, due mainly to the incorporation of new reserves from
the Encuentro Sulphides pit. Centinela sulphides Mineral Resources
increased by a net 195 million tonnes, due mainly to higher product
prices and improvements in copper recovery. The Centinela oxides
Mineral Resources decreased by a net 61 million tonnes and Centinela
Cathodes Ore Reserves have decreased by a net 39 million tonnes,
mainly due to depletion during the period and the exclusion of
Run-of-Mine (ROM) materials that have completed their leaching cycle.
Centinela Cathodes Ore Reserves are made up of 127 million tonnes at
0.38% copper of heap leach ore and 26 million tonnes at 0.22%
copper of ROM ore.
c) Antucoya
Antucoya is 70% owned by the Group. The ore reserve cut-off grade
is 0.15% copper, coinciding with the cut-off grade used for mineral
resources. Ore Reserves have decreased by a net 35 million tonnes,
due mainly to depletion in the period. Mineral Resources have
decreased by a net 53 million tonnes, due mostly to depletion and
modifications in the grade estimation approach.
d) Polo Sur
Polo Sur is 100% owned by the Group. The cut-off grade applied to the
determination of mineral resources for both oxides and sulphides is
0.20% copper. For 2024 the resource model has not been updated.
Mineral Resources have increased by a net 53 million tonnes, due to
the increase in metal prices.
e) Penacho Blanco
Penacho Blanco is 51% owned by the Group. The cut-off grade applied
to the determination of mineral resources for both oxides and
sulphides is 0.20% copper. For 2024 the resource model has not
been updated. The Mineral Resources have increased by a net 89
million tonnes, due to the increase in metal prices.
f) Mirador
Mirador is 100% owned by the Group. A portion of Mirador Oxides is
subject to an agreement between the Group and Centinela, whereby
Centinela has purchased the rights to mine the oxide ore reserves
within an identified area. The mineral resources for Mirador Oxides
subject to the agreement with Centinela are included in the Centinela
Cathodes section. The resources not subject to the agreement are
reported in this section, together with oxide resources available to
Centinela under a sulphide mineral mine plan, 70% attributable to the
Group. The cut-off grade applied to the determination of the Mineral
Resources for oxides is 0.15% copper and for sulphides is 0.20%
copper. The mineral resources have increased by a net 12 million
tonnes, due to the increase in metal prices.
g) Los Volcanes
Los Volcanes is 51% owned by the Group. The cut-off grade applied to
the determination of mineral resources is 0.20% copper. For 2024 the
mineral resource model has not been updated. The Mineral Resources
have increased by a net 0.45 million tonnes, due to the increase in
metal prices.
h) Brujulina
Brujulina is 51% owned by the Group. The cut-off grade applied to the
determination of mineral resources is 0.30% copper. For 2024 the
mineral resource model has not been updated. The Mineral Resources
have increased by a net 0.2 million tonnes, due to the increase in metal
prices.
i) Sierra
Sierra is 100% owned by the Group. The cut-off grade applied to the
determination of mineral resources is 0.30% copper. For 2024 the
mineral resource model has not been updated. The Mineral Resources
have increased by a net 0.2 million tonnes, due to the increase in metal
prices.
j) Encierro
Encierro is 61.9% owned by the Group. The cut-off grade applied to
the determination of mineral resources sulphides is 0.50% copper.
For 2024 the mineral resource model has not been updated. The
Mineral Resources have not changed since the 2023 report.
k) Cachorro
Cachorro is 100% owned by the Group. The cut-off grade applied to
the determination of mineral resources for both oxides and sulphides
is 0.50% copper. The 2024 resource model has been updated
Ore reserves and mineral resources estimates continued
Antofagasta plc Annual Report 2024252
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
including new drilling data, adding 54 drill holes for a total of 32,800
metres. Mineral Resources have increased by a net 5 million tonnes,
due to the resource model update. Resources have been defined as
Indicated and Inferred material. Mineralisation estimated below a 0.5%
copper cut-off is not included in the mineral resource figures.
m) Twin Metals Minnesota Llc
Twin Metals Minnesota LLC (“Twin Metals”) is 100% owned by the
Group. Twin Metals has a 70% interest in the Birch Lake Joint Venture
(“BLJV”), which holds the Birch Lake, Spruce Road and Maturi
Southwest deposits, as well as a portion of the main Maturi deposit.
With these interests taken into consideration, Twin Metals owns 83.1%
of the Mineral Resource. For 2024 the Mineral Resource model has
not been updated. The cut-off grade applied to the determination of
Mineral Resources is 0.3% copper, which when combined with credits
from nickel, platinum, palladium and gold, is deemed appropriate for an
underground operation. In the Mineral Resource table ‘TPM’ (Total
Precious Metals) refers to the sum of platinum, palladium and gold
values in grammes per tonne. The TPM value of 0.57 g/tonne for the
Maturi Mineral Resource estimate is made up of 0.15 g/tonne platinum,
0.34 g/tonne palladium and 0.08 g/tonne gold. The TPM value of 0.30
g/tonne for the Maturi Southwest Mineral Resource estimate is made
up of 0.08 g/tonne platinum, 0.17 g/tonne palladium and 0.05 g/tonne
gold. The TPM value of 0.70 g/tonne for the Birch Lake mineral
resource estimate is made up of 0.19 g/tonne platinum, 0.41 g/tonne
palladium and 0.10 g/tonne gold. The Spruce Road Mineral Resource
estimate does not include TPM values as they were not assayed for
TPMs.
In August 2022, Twin Metals filed a claim in the US federal court
challenging administrative actions resulting in the rejection of its
preference right lease applications (“PRLAs”), the cancellation of its
federal leases 1352 and 1353, the rejection of its Mine Plan of
Operations (“MPO”) and the dismissal of the administrative appeal of
the MPO rejection. That action is currently pending. The PRLAs and
federal mineral leases form a significant proportion of the mineral
resources contained within Twin Metals’ current project plan. If TMM
is unsuccessful in having the decisions on the federal leases 1352 and
1353 and the PRLAs reversed, it will not have entitlement to the
mineral resources associated with those mineral licences.
n) Zaldívar
Zaldívar is 50% owned by the Group. Heap leaching (HL) and dump
leaching (DL) materials are defined based on total copper cut-off
grades. The cut-off grade applied to the determination of ore reserves
for heap leach ore is 0.30% copper, while the cut-off grade for dump
leach material is variable over 0.20% copper. Ore Reserves have
decreased by a net 2 million tonnes, due mainly to depletion in the
period, compensated by the incorporation of Phase 15 new reserves.
For mineral resources the cut-off grade is 0.18% copper for HL and
0.10% copper for DL, throughout the Life-of-Mine period. The cut-off
grade applied to the primary sulphide mineral resources is 0.3%
copper. The Mineral Resources decreased by 58 million tonnes
because of the combined effects of depletion and adjustments to the
geological model and grade estimation of primary mineralisation.
In the southern part of the deposit (Phase 13), the final pit impacts a
portion of the Minera Escondida mining property, for which there is an
agreement for development. In parallel, agreements with third parties
to relocate some infrastructure existing in the area are in progress.
Currently, Zaldívar is permitted to extract water and mine until May
2025, following approval of the Declaration of Environmental Impact
(DIA) in early 2024 to align the permits for mining and water
extraction. The mine life after May 2025 is based on an EIA application
which was filed in June 2023 to extend mining and water
environmental permits. This EIA includes a proposal to develop the
primary sulphide ore deposit and a conversion of the water source for
Zaldívar to either sea water or water from third parties, following a
transition period during which the current continental water extraction
permit is extended. The current ore reserves estimate assumes that
the requested permit will be extended to allow for the extraction of all
of Zaldívar’s ore reserves, through continuous operation of the mine
without interruption. The details of the future permits or alternative
water supply arrangements could lead to a review of and, eventually,
an update to Zaldívar’s mine plan.
o) Antomin 2 and Antomin Investors
The Group has a 51% interest in two indirect subsidiaries, Antomin 2
Limited (“Antomin 2”) and Antomin Investors Limited (“Antomin
Investors”), which own several copper exploration properties in Chile’s
Antofagasta Region and Coquimbo Region. These include, among
others, Penacho Blanco, Los Volcanes and Brujulina. The remaining
49% of Antomin 2 and Antomin Investors is owned by Mineralinvest
Establishment (“Mineralinvest”), a company controlled by the E. Abaroa
Foundation, in which members of the Luksic family are interested.
Further details are set out in Note 34(c) to the financial statements.
Antofagasta plc Annual Report 2024 253
Glossary and definitions
ADS Asset delivery system.
AMSA Antofagasta Minerals SA, a wholly-owned
subsidiary of the Group incorporated in Chile,
which acts as the corporate centre for the
Mining Division.
Annual Report The Annual Report and Financial Statements
of Antofagasta plc.
Antucoya Minera Antucoya, a 70%-owned subsidiary
incorporated in Chile.
Banco de Chile A commercial bank that is a subsidiary
of Quiñenco.
Barrick Gold Barrick Gold Corporation, incorporated
in Canada and our joint venture partner
in Zaldívar.
Brownfield
project
A development or exploration project in the
vicinity of an existing operation.
Buenaventura Compañía de Minas Buenaventura S.A.A., Peru’s
largest, publicly traded precious and base metals
company and a major holder of mining rights in
Peru.
By-products
(credits in
copper
concentrates)
Products obtained as a result of copper
processing. Los Pelambres and Centinela
Concentrates receive credit for the gold and
silver content in the copper concentrate sold.
Los Pelambres and Centinela also produce
molybdenum concentrate.
Capex Capital expenditure.
Cash costs A measure of the cost of operating production
expressed in terms of US dollars per pound of
payable copper produced. Cash costs are stated
net of by-product credits and include treatment
and refining charges for concentrates for Los
Pelambres and Centinela. Cash costs exclude
depreciation, financial income and expenses,
hedging gains and losses, exchange gains and
losses, and corporation tax.
CDP Carbon Disclosure Project.
Centinela Minera Centinela SA, a 70%-owned subsidiary
incorporated in Chile that holds the Centinela
Concentrates and Centinela Cathodes
operations.
Centinela Mining
District
Copper district located in the Antofagasta
Region of Chile, where Centinela is located.
Chilean peso Chilean currency.
CO
2
e Carbon dioxide equivalent.
Companies
Act 2006
Principal legislation for United Kingdom
Company law.
Company Antofagasta plc.
Concentrate The product of a physical concentration process,
such as flotation or gravity concentration, which
involves separating ore minerals from unwanted
waste rock. Concentrates require subsequent
processing (such as smelting or leaching) to
break down or dissolve the ore minerals and
obtain the desired elements, usually metals.
Contained copper The proportion or quantity of copper contained
in a given quantity of ore or concentrate.
Continental
water
Water that comes from the interior of land
masses, including rain, snow, streams, rivers,
lakes and groundwater.
Copper cathode Refined copper produced by electrolytic refining
of impure copper by electrowinning.
Corporate
Governance
Code
The UK Corporate Governance Code is a set of
principles of good corporate governance, most
of which have their own more detailed
provisions published by the Financial Reporting
Council, most recently updated in 2018.
Cut-off grade The lowest grade of mineralised material
considered economic to process and used in the
calculation of ore reserves and mineral
resources.
Directors The Directors of the Company.
EBITDA EBITDA is calculated by adding back
depreciation, amortisation, profit or loss on
disposals and impairment charges or reversals
to operating profit.
EIA Environmental Impact Assessment.
Encuentro Copper oxide and sulphide deposit in the
Centinela Mining District.
EPS Earnings per share.
Esperanza Sur Copper deposit in the Centinela Mining District.
FCAB Ferrocarril de Antofagasta a Bolivia, the
corporate name of our Transport Division.
Flotation A process of separation by which chemicals in
solution are added to finely crushed materials,
some of which are attracted to bubbles and
float, while others sink, which results in the
production of concentrate.
FTSE All-Share
Index
A market-capitalisation weighted index
representing the performance of all eligible
companies listed on the London Stock
Exchange’s main market.
FTSE100 and
FTSE350 Index
A share index of the 100 or 350 companies
listed on the London Stock Exchange with the
highest market capitalisation.
GAAP Generally Accepted Accounting Practice or
Generally Accepted Accounting Principles,
a collection of commonly-followed accounting
rules and standards for financial reporting.
GHG Greenhouse gas.
Government The Government of the Republic of Chile.
Grade A copper
cathode
Highest-quality copper cathode, 99.99% pure.
Greenfield
project
The development or exploration of a new project
at a previously undeveloped site.
Group Antofagasta plc and its subsidiary companies
and share of joint ventures.
Glossary and definitions
Antofagasta plc Annual Report 2024254
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Heap-leaching
or leaching
A process for the recovery of copper from ore,
generally oxides. The crushed material is laid on
a slightly sloping, impermeable pad and leached
by uniformly trickling a (gravity-fed) chemical
solution through the heaps to collection ponds.
The metal is then recovered from the solution
through the SX-EW process.
HPI High-potential incident. An event that, under
different circumstances, might easily have
resulted in a serious injury or fatality.
ICMM International Council on Mining and Metals.
IFRIC International Financial Reporting Standards
Interpretations Committee.
IFRS International Financial Reporting Standards.
JORC The Australasian Joint Ore Reserves Committee.
KPI Key performance indicator.
Life-of-Mine
(LOM)
The remaining life of a mine expressed in years,
calculated by reference to scheduled production
rates (ie comparing the rate at which ore is
expected to be extracted from the mine to
current ore reserves).
LME London Metal Exchange.
Los Pelambres Minera Los Pelambres, a 60%-owned subsidiary
incorporated in Chile.
LTIFR Lost time injury frequency rate. The number of
accidents resulting in lost working time during
the year per million hours worked.
LTIP Long Term Incentive Plan, in which the Group’s
CEO, Executive Committee members and other
senior managers participate.
Mineral
resources
Material of intrinsic economic interest occurring
in such form and quantity that there are
reasonable prospects for eventual economic
extraction. Mineral resources are stated
inclusive of Ore Reserves, as defined by JORC.
Net cash cost Gross cash costs less by-product credits.
Open pit Mine working or excavation that is open to
the surface.
Ore Rock from which metal(s) or mineral(s) can be
economically and legally extracted.
Ore grade The relative quantity, or percentage, of
metal content in an ore body or quantity
of processed ore.
Ore Reserves Part of Mineral Resources for which appropriate
assessments have been carried out to
demonstrate that at a given date extraction
could be reasonably justified. These include
consideration of and modification by realistically
assumed mining, metallurgical, economic,
marketing, legal, environmental, social and
governmental factors.
Oxide and
sulphide ores
Different kinds of ore containing copper. Oxide
ore occurs on the weathered surface of ore-rich
lodes and normally results in the production of
cathode copper through a heap-leaching
process. Sulphide ore is an unweathered parent
ore normally treated using a flotation process to
produce concentrate which then requires
smelting and refining to produce copper
cathodes.
Payable copper The proportion or quantity of contained copper
for which payment is received after
metallurgical deduction.
Platts A provider of energy and metals information and
a source of benchmark price assessments.
Porphyry A large body of rock which contains
disseminated chalcopyrite and other sulphide
minerals. Such a deposit is mined in bulk on a
large scale, generally in open pits, for copper
and its by-products.
Provisional
pricing
A sales term in several copper and molybdenum
concentrate sale agreements and cathodes sale
agreements that provides for provisional pricing
of sales at the time of shipment, with final
pricing being based on the monthly average
LME copper price or monthly average
molybdenum price for specific future periods,
normally ranging from 30 to 180 days after
delivery to the customer.
Quiñenco Quiñenco SA, a Chilean financial and industrial
group listed on the Santiago Stock Exchange
and controlled by a foundation in which
members of the Luksic family are interested.
RCA Resolución de Calificación Ambiental, translated
into English as Environmental Approval
Resolution.
Realised prices Effective sale price achieved comparing
revenues (grossed up to take account of
treatment and refining charges for concentrate)
with sales volumes.
Reko Diq A copper-gold deposit in Pakistan, previously
a subsidiary of Tethyan.
Run-of-Mine
(ROM)
A process for the recovery of copper from ore,
typically used for low-grade ores. The mined,
uncrushed ore is leached with a chemical
solution. The metal is then recovered from
the solution through the SX-EW process.
SDGs The United Nations’ Sustainable Development
Goals, which were adopted by all member states
in 2015.
Sernageomin Servicio Nacional de Geología y Minería,
a government agency that provides geological
and technical advice and regulates the mining
industry in Chile.
SONAMI Sociedad Nacional de Minería. Institution that
represents the mining industry in Chile, for
large, medium and small-scale, metallic and
non-metallic mining companies.
Antofagasta plc Annual Report 2024 255
Sterling Pounds sterling, UK currency.
Stockpile Material extracted and piled for future use.
SX-EW Solvent extraction and electrowinning.
A process for extracting metal from an ore and
producing pure metal. First the metal is leached
into solution, and the resulting solution is then
purified in the solvent-extraction process before
being treated in an electrochemical process
(electrowinning) to recover cathode copper.
Tailings dam or
tailings storage
facility (TSF)
Construction used to deposit the rock waste
which remains as a result of the concentrating
process after the recoverable minerals have
been extracted in concentrate form.
TCFD Task Force on Climate-related Financial
Disclosures.
TC/RCs Treatment and refining charges: terms used to
set the smelting and refining charge or margin
for processing copper concentrate; normally set
on either an annual or spot basis.
Tonne Metric tonne.
TSR Total shareholder return, being the movement in
the Company’s share price plus any dividends
paid by the Company.
Twin Metals
Minnesota
Project
A copper, nickel and platinum group metals
underground-mining project located in
Minnesota, US.
UK United Kingdom.
Underground
mine
Natural or man-made excavation under the
surface of the ground.
US United States.
US dollar United States currency.
Zaldívar Compañía Minera Zaldívar SpA is a 50-50 joint
venture with Barrick Gold and is operated by the
Company.
Glossary and definitions continued
Antofagasta plc Annual Report 2024256
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
Currency abbreviations
$ US dollar
$000 Thousand US dollars
$m Million US dollars
£ Pound sterling
£000 Thousand pounds sterling
£m Million pounds sterling
P Pence sterling
C$ Canadian dollar
C$m Million Canadian dollars
Ch$ Chilean peso
Ch$000 Thousand Chilean pesos
Ch$m Million Chilean pesos
Definitions and conversion of weights
and measures
Lb Pound
Oz A troy ounce
1 troy ounce 31.1 grammes
’000 m
3
Thousand cubic metres
1 kilogramme 2.2046 pounds
1 tonne 2,204.6 pounds or 1,000 kilogrammes
’000 tonnes Thousand metric tonnes
1 kilometre 0.6214 miles
GL Gigalitre
1 megalitre Thousand cubic metres
1 GL Thousand megalitres
Chemical symbols
Cu Copper
Mo Molybdenum
Au Gold
Ag Silver
Dividends
Details of dividends proposed in relation to the year are given in the
Directors’ Report on page 160-161, and in Note 13 to the Financial
Statements.
If approved at the Annual General Meeting, the final dividend of 23.5
cents per share will be paid on 12 May 2025 to ordinary shareholders
that are on the register at the close of business on 22 April 2025.
Shareholders can elect (on or before 23 April 2025) to receive this
final dividend in US dollars, Sterling or Euro, and the exchange rate,
which will be applied to final dividends to be paid in Sterling or Euro,
will be set as soon as reasonably practicable after that date, which is
currently anticipated to be on 25 April 2025.
Further details of the currency election timing and process (including
the default currency of payment) are available on the Antofagasta plc
website (antofagasta.co.uk) or from the Company’s registrar,
Computershare Investor Services PLC on +44 37 0702 0159.
Dividends are paid gross without deduction of United Kingdom income
tax. Antofagasta plc is resident in the United Kingdom for tax purposes.
Annual General Meeting
The Annual General Meeting will be held as an in-person meeting at
Church House Westminster, Dean’s Yard, London SW1P 3NZ at
10.00am on Thursday 8 May 2025. The formal notice of the Annual
General Meeting and resolutions to be proposed are set out in the
Notice of Annual General Meeting.
London Stock Exchange listing and share price
The Company’s shares are listed on the London Stock Exchange.
Share capital
Details of the Company’s ordinary share capital are given in Note 31
to the financial statements.
Shareholder information
Shareholder information
Antofagasta plc Annual Report 2024 257
Shareholder calendar 2025
16 January 2025 Q4 2024 Production Report
18 February 2025 Full-Year 2024 Results Announcement
16 April 2025 Q1 2025 Production Report
17 April 2025 2024 Final Dividend – Ex-Dividend date
22 April 2025 2024 Final Dividend – Record date
23 April 2025 2024 Final Dividend – Final date for receipt
of Currency Elections
25 April 2025 2024 Final Dividend – Pound sterling/
Euro Rate set
8 May 2025 Annual General Meeting
12 May 2025 2024 Final Dividend – Payment date
16 July 2025 Q2 2025 Production Report
14 August 2025 Half-Year 2025 Results Announcement
4 September 2025 2025 Interim Dividend – Ex-Dividend date
5 September 2025 2025 Interim Dividend – Record date
8 September 2025 2025 Interim Dividend – Final date for
receipt of Currency Elections
10 September 2025 2025 Interim Dividend – Pound sterling/
Euro Rate set
30 September 2025 2025 Interim Dividend – Payment date
23 October 2025 Q3 2025 Production Report
29 January 2026 Q4 2025 Production Report
Dates are provisional and subject to change.
Registrars
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZY
United Kingdom
Tel: +44 370 702 0159
www.computershare.com
Website
www.antofagasta.co.uk
Registered office
103 Mount Street
London
W1K 2TJ
United Kingdom
Tel: +44 20 7808 0988
Santiago office
Antofagasta Minerals SA
Av. Apoquindo 4001 – Piso 18
Las Condes
Santiago
Chile
Tel: +56 2 2798 7000
Registered number
1627889
Shareholder information continued
Copper Market footnotes:
1. Pricing in this section refers to LME (market) pricing, unless stated otherwise.
2. Source: Reuters, dated May ‘24 (link), accessed February ‘25.
3. Source: World Resources Institute, dated January ‘25 (link), accessed March ‘25.
4. Source: International Wrought Copper Council (IWCC) Copper Demand Forecasts Report,
dated October ‘24 (link), accessed February ‘25.
5. Source: Reuters, dated January ‘25 (link), accessed February ‘25.
6. Management estimate.
7. Source: China National Energy Administration, dated January ‘25 (link), accessed
February ‘25.
8. Source: Reuters, dated January ‘25 (link), accessed February ‘25.
9. Source: International Wrought Copper Council (IWCC) Copper Demand Forecasts Report,
dated October ‘24 (link), accessed February ‘25; and management estimate.
10. Source: Publications Office of the European Union (link), accessed February ‘25.
11. Source: International Energy Agency Report: Electricity 2025 (link), accessed
February ‘25.
12. Source: International Energy Agency, dated March ‘25 (link), accessed March ‘25.
13. Source: Mining.com, Copper industry needs to invest $2.1 trillion over the next 25 years
to meet demand, dated February ‘25 (link). Accessed March ’25.
14. Source: Mining.com ‘Copper: Humanity’s first and most important future metal’,
(link), dated 17 July ‘24, accessed November 2024. Capital intensity figures presented
are those published by companies in relevant studies in real terms as at the date of
the study.
15. Source: Mines and Money, dated August ‘22 (link), accessed February ‘25.
16. Management estimate.
17. Source: S&P Global Insights, dated September ‘24 (link). Accessed February ‘25.
18. Source: International Energy Agency Report: ‘Outlook for key energy transition minerals:
Copper’, dated May ‘24, (link), accessed February ‘25.
19. Source: Wood Mackenzie Report: Global Copper investment horizon outlook, dated
December 2024.
20. Source: International Copper Association Report: ‘Copper Substitution Survey 2022’,
(link) accessed February ‘25.
21. Source: Reuters, dated January 25 (link), accessed February ‘25.
Antofagasta plc Annual Report 2024258
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION
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Cautionary Statements
This Annual Report contains certain forward-looking statements. All statements
other than statements of historical fact are, or may be deemed to be, forward-
looking statements. Examples of forward-looking statements include those
regarding the Group’s strategy, plans, objectives or future operating or financial
performance, reserve and resource estimates, commodity demand and trends in
commodity prices, growth opportunities, and any assumptions underlying or
relating to any of the foregoing. Words such as ‘may’, ‘will’, ‘should’, ‘aim’, ‘expect’,
‘continue’, ‘progress’, ‘estimate’, ‘anticipate’, ‘intend’, ‘look’, ‘believe’, ‘vision’,
‘ambition’, ‘target’, ‘seek’, ‘goal’, ‘plan’, ‘potential’, ‘try’, ‘work towards’, ‘future’,
‘become’, ‘introduce’, ‘transform’, ‘outcome’, ‘project’, ‘projections’, ‘deliver’,
‘evolve’, ‘develop’, ‘forward’, ‘medium-term’, ‘long-term’, ‘objective’, ‘achievement
or the negative of these terms and other similar expressions of future actions or
results, and their negatives identify forward-looking statements. Forward-looking
statements also include, but are not limited to, statements and information
regarding the climate and sustainability ambitions, targets and strategy of the
Company or Group (including the emission reduction targets, ambitions and
strategy set out in Antofagasta’s Climate Action Plan, elements of which are
summarised in this Annual Report).
These forward-looking statements are based upon current expectations and
assumptions regarding anticipated developments and other factors affecting the
Group. They are not historical facts, nor are they guarantees of future
performance or outcomes. All forward-looking statements contained in this
document are expressly qualified in their entirety by the cautionary statements
contained or referred to in this section. Readers should not place undue reliance
on forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties,
assumptions and other factors that are beyond the Group’s control. Given these
risks, uncertainties and assumptions, actual results could differ materially from
any future results expressed or implied by these forward-looking statements.
Important factors that could cause actual results to differ from those in the
forward-looking statements include: global economic conditions, demand, supply
and prices for copper and other long-term commodity price assumptions (as they
materially affect the timing and feasibility of future projects and developments),
trends in the copper mining industry and conditions of the international copper
markets, the effect of currency exchange rates on commodity prices and
operating costs, the availability and costs associated with mining inputs and labour,
operating or technical difficulties in connection with mining or development
activities, employee relations, litigation, and actions and activities of governmental
authorities (including changes in laws, regulations or taxation), the availability and
cost of technologies and infrastructure required for the Group to achieve its
emissions reductions targets and ambitions and changes in the emissions of the
Group’s suppliers that affect the Scope 3 emissions reported by the Group.
These forward-looking statements speak only as of the date of this document.
Except as required by any applicable law or regulation, the Group expressly
disclaims any obligation or undertaking to release publicly any updates or revisions
to any forward-looking statements contained herein to reflect any change in the
Group’s expectations with regard thereto or any change in events, conditions, or
circumstances on which any such statement is based. No assurance can be given
that the forward-looking statements in this document will be realised. Past
performance cannot be relied on as a guide to future performance.
Any opinions or views of third parties contained in this document are those of the
third parties identified, and not Antofagasta, its affiliates, directors, officers,
employees, or agents. Neither Antofagasta nor any of its affiliates, directors,
officers, employees, or agents make any representation or warranty as to its
quality, accuracy, or completeness, and they accept no responsibility or liability for
the contents of this material, including any errors of fact, omission or opinion
expressed.
This document also contains data on Antofagasta’s Scope 1, 2 and 3 emissions.
Some of this data is based on estimates, assumptions and uncertainties. Scope 1
and 2 emissions data relates to emissions from Antofagasta’s own activities
(including supplied power) and is generally easier for Antofagasta to gather than
Scope 3 emissions data. Scope 3 emissions relate to other organisations’
emissions and is therefore subject to a range of additional uncertainties, including
that: data used to model carbon emissions is typically industry-standard data or
estimates rather than relating to individual suppliers; and may not cover all
products and markets. In addition, international standards and protocols relating to
Scope 1, 2, and 3 emissions calculations and categorisations also continue to
evolve, as do accepted norms regarding terminology such as carbon neutrality
and net zero which may affect the emissions data Antofagasta reports. As Scope
3 emissions data improves, shifting over time from generic modelled data to more
specific data, the data reported in this document is likely to evolve.
Information contained in this document regarding Antofagasta’s strategy, targets
and ambitions for reducing Scope 1, 2 and 3 emissions and its climate scenario
analysis has been developed based on current information, estimates and beliefs,
using models, methodologies and standards which are subject to certain
assumptions and limitations, including (but not limited to) the availability and
accuracy of data, lack of standardisation of data and lack of historical data, as well
as other future contingencies, dependencies, risks and uncertainties (due to,
among other things, global and regional legislative, judicial, fiscal, technological and
regulatory developments including regulatory measures addressing climate
change). These models, methodologies, data, and standards are not of the same
standard as those available in the context of other financial information, nor
subject to the same or equivalent disclosure standards, historical reference points,
benchmarks or globally accepted accounting principles and are subject to rapid
change and development for the reasons stated above. Any opinions and
estimates given in this document in relation thereto should therefore be regarded
as indicative, preliminary and/or illustrative. Actual outcomes may differ from
those set out herein.
This Annual Report contains a number of images, graphics, infographics, text
boxes and illustrative case studies and credentials which aim to give a high-level
overview of certain elements of our disclosures and to improve accessibility for
readers. These images, graphics, infographics, text boxes and illustrative case
studies and credentials are designed to be read within the context of the Annual
Report as a whole.
The contents of websites, including Antofagasta’s website, do not form part of this
document.
Some of the information and data in this document may have been obtained from
public or other third-party sources and has not been independently verified.
Antofagasta makes no representation or warranty regarding its completeness,
accuracy, fitness for a particular purpose or non-infringement of such information.
This document does not contain or comprise profit forecasts, investment,
accounting, legal, regulatory or tax advice nor is it an invitation for you to enter
into any transaction. You are advised to exercise your own independent judgement
(with the advice of your professional advisers as necessary) with respect to the
risks and consequences of any matter contained herein.
Antofagasta plc
103 Mount Street
London
W1K 2TJ
United Kingdom
antofagasta.co.uk