Chile: An Attractive Place to Invest in Mining Exploration

Chilean Mining CouncilFrancisco J. CostabalChairmanMarch 2008

*Key Factors for Mining Investment Mining PotentialStable Conditions and Sound Public PoliciesInfrastructure CHILE HAS ALL THESE COMPETITIVE ADVANTAGESSource: FraserInstituteMining CouncilTalent & Skills

* Mining Potential

*CHILE: COPPER PRODUCTION & RESERVESSource: USGS & CochilcoCopper ProductionCopper Reserves

Grfico4

39

7

5

6

5

7

31

Hoja1

Datos PIB

Minera

Otros sectores

Servicios

Comercio

Servicios Financieros

Industria

Mining23.5

Other Sectors28.3

Other1.6

Services9.9

Commerce8.5

Financial Servicies14.3

Industry13.9

Participacin en reservas

Chile39

USA7

Australia5

Per6

Poland5

China7

Others31

100

Hoja1

Hoja2

Hoja3

Grfico6

35

9

6

6

44

Hoja1

Datos PIB

Minera

Otros sectores

Servicios

Comercio

Servicios Financieros

Industria

Mining23.5

Other Sectors28.3

Other1.6

Services9.9

Commerce8.5

Financial Servicies14.3

Industry13.9

Participacin en reservas

Chile39

USA7

Australia5

Per6

Poland5

China7

Others31

100

Pricipales productores

Chile35

USA9

Australia6

Per6

Others44

Hoja1

0

0

0

0

0

0

0

Hoja2

0

0

0

0

0

0

0

Hoja3

0

0

0

0

0

* CHILE: A MINING COUNTRY GDP IMPACTSource: Central Bank of Chile

Grfico3

23.5

28.3

1.6

9.9

8.5

14.3

13.9

Hoja1

Datos PIB

Minera

Otros sectores

Servicios

Comercio

Servicios Financieros

Industria

Mining23.5

Other Sectors28.3

Other1.6

Services9.9

Commerce8.5

Financial Servicies14.3

Industry13.9

Hoja1

Hoja2

Hoja3

* CHILE: A MINING COUNTRY - EXPORTSSource: Central Bank of Chile, Monthly Report, N 957During 2006 Chilean exports reached Mill US$ 58,116 (2005, Mill US$ 41,297)In that period, copper exports were Mill US$ 32,332, representing 55,6% of total exports. (45,7% in 2005)Up to October 2007, Chilean total exports were Mill US$ 57,915 while copper exports represent 56,5% with a Fob value of Mill. US$ 32.752

*CHILE: A MINING COUNTRY - PRODUCTION1,4 millions5,3 millionsIncreased 4 timesSource: COCHILCOProduction of Copper Mine production in Chile reached 5,361 TMT.Production of concentrates was 3,669 TMT, and SxEw was1,691 TMT. Smelter production reached 1,565 TMT and Refinery production 1,120 TMT.Production from private companies was 66.7%.Copper exports reached 33,351 millions US dollars.6,15 millions

*CHILE: A MINING COUNTRY - INVESTMENTS Source: CochilcoNote: figures for investment after 2011 are only for projects initiated between 2007 and 2011.US$ 16,2 billions up to 2011

Grfico2

185942

3119100

4123420

2862650

19761075

47141000

Copper

Gold & Silver

Mill. US$

Hoja1

Inversiones

20072008200920102011After 2011

Copper185931194123286219764714

Gold & Silver4210042065010751000

Hoja1

00

00

00

00

00

00

Copper

Gold & Silver

Mill. US$

Hoja2

Hoja3

* CHILE: EXPLORATIONS ORE RESERVESUS$ 2.4 billions were invested in exploration in Chile between 1985 and 2005Results at 2006:Copper known reserves grew up97 million tons in 1985 => 18% world360 million tons in 2005 => 39% worldExploration expenses in 2006:US$ 211,2 Millions

Source: Metals Economics Group

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* Stable Conditions & Sound Public Policies

* Stable Conditions & ound Public Policies Stable Conditions & Sound Public PoliciesPolitical StabilityEconomical StabilitySocial StabilityA growing network of FTA & double taxation agreementStrong & independent institutions: Government, Parliament & Justice

* Infrastructure

* Stable Conditions & ound Public Policies INFRASTRUCTUREGood communication, road and airport networkWorld class port system Extensive wired countryDigital economy and e-business Good internet network, electronic banking, e-commerce & good electronic tax system.A mining Cluster is in place in the North Region of Chile

* Talent & Skills

* Talented & Skills

Chile has a talented and well-qualified workforce, with skills that have evolved in line with the demands of the countrys international exposure and integration.

Main demographic, work and educational indicators are:Population 16.4 millionWorkforce 7 millionEducational coverage:Pre-school 32.4%Primary 98.6%Secondary 90.0%Higher 31.4%Average labor force schooling10.5 yearsLife expectation77.5 yearsInfant mortality rate7.8 / 1.000

However, labor demand & supply in the mining sector is a current and future issue, as it is in the rest of the world.

*Labour Force & Safety in Mining

Source: National Statistics Institute (INE)Abut 90,000 people works in mining companies associated to the Mining Council. Considering this total, only 1,1% has suffer labour accidents, being the safest industrial sector Total mining around 3.9%. Members of the Mining Council 1,1%

*Thanks

*DisclaimerThe views expressed here contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Chilean Mining Council

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