CENTINELA SECOND CONCENTRATOR FINANCING

CENTINELA SECOND CONCENTRATOR FINANCING

Antofagasta plc ("Antofagasta" or the "Company") is pleased to announce that Minera Centinela ("Centinela") has signed definitive agreements with a group of international lenders for the $2.5 billion project financing of the Centinela Second Concentrator Project.

Antofagasta's CEO, Iván Arriagada said: "We have agreed competitive financing terms with strong international lenders, which is testament to the high-quality nature of this project. The Centinela Second Concentrator Project is a prime example of how Antofagasta can unlock value from its portfolio and our dedication to sustainable and responsible copper production. The Company remains focused on delivering growth and returns, while maintaining a strong balance sheet."

Financing

The financing for Centinela is a $2.5bn term loan facility with a 4-year drawdown period and a term of approximately 12 years. The financing has been provided by a group of international lenders, including the Japan Bank for International Cooperation, Export Development Canada, the Export-Import Bank of Korea and several commercial banks (Crédit Agricole Corporate and Investment Bank, KfW IPEX-Bank, Natixis Corporate & Investment Banking, Societe Generale and Sumitomo Mitsui Banking Corporation).

Water Transport Agreement

Separately, a detailed agreement has been entered into that provides Centinela with the option to receive water for its current and future operations from an experienced international consortium who would acquire Centinela's existing water supply system and build an expansion of this system to supply the Centinela Second Concentrator Project. In order to complete this agreement, the international consortium is required to close its financing, which is expected to be finalised during the course of the year.

Under the terms of this agreement, Centinela would transfer its existing water transportation assets and rights for an estimated amount of $600 million to be received in 2024. In addition, the construction and associated capital expenditure for the planned expansion of the water transportation system of approximately $380 million would be undertaken by the consortium.

The Company has assessed that the terms of this agreement are value accretive to Centinela.

Centinela Second Concentrator Project

The Centinela Second Concentrator Project will add 170,000 tonnes of copper-equivalent production, comprising 144,000 tonnes of annual copper production and associated gold and molybdenum by-products. Through this expansion, it is expected that Centinela will improve its cost competitiveness through an increased focus on concentrator capacity that incorporates modern technologies, increased by-products and greater economies of scale. First copper production from the project is expected in 2027.

Notes to Editors

Minera Centinela is owned by Antofagasta (70%) and Marubeni Corporation (30%) and was awarded the Copper Mark in July 2021 for compliance with this independently verified standard for responsible production. The operation only uses sea water sources and 100% renewable energy for electrical power.

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