25th May 2007 14:38
Antofagasta PLC25 May 2007 For immediate release Antofagasta plc Minera Los Pelambres - El Mauro tailings dam project London, 25 May 2007 - As previously announced, there a number of claimscurrently at first instance or on appeal in the Chilean courts against thirdparties (either governmental authorities or former owners of land in the ElMauro area) which relate to the Mauro tailings dam project. None of these casesare directly against Los Pelambres, but in some cases the company hasparticipated in proceedings in case an eventual judgement affects the tailingsdam project. In one of these cases, a first instance court in Santiago rejected asixth petition by the plaintiff in that case on 18 May 2007 that work on theMauro tailings dam should cease immediately, confirming Los Pelambres' right tocomplete its construction. The court nevertheless has held that operation of thedam by depositing tailings cannot for the moment commence, and Los Pelambresintends to appeal against this part of the decision. This resolution was issuedfollowing a first instance judgement issued on 19 April, in which the validityof a purchase and sale agreement in 1992 between two former owners of land inthe area of the Mauro tailings dam was successfully challenged by the plaintiffseller. Los Pelambres, who acquired the land in 2001, had participated in thistrial to protect its interest and has appealed against this decision to theCourt of Appeals. The appeal has the effect of suspending the effect of thefirst instance resolution. Current operations are unaffected as the Quillayesdam remains in use. The Group is confident that Los Pelambres' legal title to the land in questionwill be upheld on appeal and it believes that this as well as any otheroutstanding claims will not have any material impact on the Mauro tailings damproject. Construction of the tailings dam, which is now 86% complete, iscontinuing in accordance with the original schedule and the project is expectedto be completed as planned by the end of 2007. +----------------------------------------+---------------------------------+|Enquiries - London | Enquiries - Santiago|+--------------------------------------+-+---------------------------------+|Antofagasta plc | Antofagasta Minerals S.A.|| | ||Tel: +44 20 7808 0988 | Tel: +562 377 5000|| | ||www.antofagasta.co.uk | Francisco Veloso|| | || | Email: [email protected]|| | ||Desmond O'Conor | || | ||Email: [email protected] | || | || | Issued by|| | ||Hussein Barma | Bankside Consultants|| | ||Email: [email protected] | Tel: +44 20 7367 8873|| | || | || | || | Keith Irons|| | || | Email: [email protected]|| | || | || | || | Oliver Winters|| | || |Email : [email protected]|| | || | |+--------------------------------------+-+---------------------------------+ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Antofagasta