1 Copyrights © 2010 by CODELCO-CHILE. All Rights Reserved. Fernando Marchant B., Manager Supply Codelco: Strategic Sourcing Fernando Marchant B. Manager

1

Copyrights © 2010 by CODELCO-CHILE. All Rights Reserved.

Fernando Marchant B., Manager Supply

Codelco: Strategic Sourcing

Fernando Marchant B.Manager SupplySept., 2010

2



Codelco: Operations and Global Commercial Presence*

Codelco Norte DivisionCopper

Codelco Norte DivisionCopper

VentanasSmelter & Refinery

Division

VentanasSmelter & Refinery

Division

AndinaDivisionCopper

AndinaDivisionCopper

SantiagoHeadquarters

SantiagoHeadquarters

Salvador DivisionCopper

Salvador DivisionCopper

El TenienteDivisionCopper

El TenienteDivisionCopper

New York - USCodelco Group

Inc.

New York - USCodelco Group

Inc.

Düsseldorf - GermanyCodelco Kupferhandel

GMHB

Düsseldorf - GermanyCodelco Kupferhandel

GMHB

London - UKChile Copper

Ltd.

London - UKChile Copper

Ltd.

Shanghai - ChinaRepresentative

Office

Shanghai - ChinaRepresentative

Office

Gabriela Mistral Operation

Copper

Gabriela Mistral Operation

Copper

*: Commercial Subsidiaries.

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Codelco: World Leader in the Copper and Molybdenum Industry

FCX:10%

BHP Billiton:7%

Xstrata:6%

Rio Tinto:5%

Others:51%

Southern Copper:3%

Anglo American:4%

Antofagasta PLC:2%

Vale:1%

Codelco: 11%

Leadership in Copper Production

Source: Codelco, Companies Annual Reports, WBMS and USGS.

Others Chile:20%

Peru:12%

Mexico:7%United States:6%

Indonesia:6%

China:5%

Poland:5%

Russia:4%

Australia:4%

Other Countries:

20%

Codelco: 10%

Leadership in Copper Reserves

China JDC:8%

Thompson Creek:7%

FCX: 14%

Other China: 18%

Antofagasta Minerals:3%

China Molybdenum:

6%Anglo

American: 3%

Codelco: 10%

Others: 23%

Grupo Mexico: 7%

Second Largest Molybdenum Producer

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Our Commitment with the Owner: 1990 – 2009Profit before Taxes

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

US$ Million, nominal currency

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Investments: 1976 - 2010

0

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

2,500

1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010*

US$ Million, nominal currency

Note: 1976-2009: Figures include projects, mine development and investments in related companies. *: Forecast.

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Evolution of Codelco’s Geological Resources, Mineral Resources and Reserves

252 259275

298318

81

119 125 127

36 46 54 54 49 48

327326328

122125120121

53 53

0

50

100

150

200

250

300

350

400

2003 2004 2005 2006 2007 2008 2009 2010

Geological ResourcesMineral ResourcesReserves

Note: Corresponds to Business and Development Plan. Since 2006, geological and mineral resources include stockpile and broken ore.

Milion fine metric tonnes

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Cooper Production per Division (%)

Total 2010-2104: 8,600 thousand fmt (approx.)

Copper Production : 2010 - 2014

OPEN PIT UNDERGROUND

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Expenditures in Goods

- 500 1,000 1,500 2,000 2,500

Others

Lime

Tires

Chemical Products

Acid

Steel

Spare Parts

Fuel

Expenditures in Services

- 1,000 2,000 3,000 4,000

Cleaning and food services

Services of engineering

Rental

Administration Cost

Transportation

Mining Development

Mining Support Services

Maintenance

Electric Power

Business Opportunities: 2010 - 2014US$ Million

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20522010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Diablo Reg.Phase III

Diablo Reg.Phase IVPilar Norte Dacita

RT Fase I MMH Rajo MMHUnderground

(2027)

PDA Phase I

Fund. 100%Metal Blanco

Pacífico Superior

Opt. Mina Planta

Diablo Reg.Phase V

RT Phase II

Quetena

PDA Phase II

SBL

PDA Phase III

San AntonioRefinería a

500 ktmf/yearConversión

Metal BlancoNuevo Nivel

Mina

SS Subte.

Chuqui Underground

Business Opportunities: Investment Plan

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2017

Andina Phase IAndina DivisionInv: MUS$ 1,125

Prod: 60,000 tonnes / year

2nd Q2010

RT SulphidesCodelco Norte Division

Inv: MUS$ 370Prod: 160,000 tonnes / year

3rd Q

2010

2013

MMHMMH Division

Inv.: MUS$ 2,333 Prod: 170,000 tonnes / year

Andina Phase IIAndina Division

Inv: MUS$ 4,390 Prod: 318,000 tonnes / year

New Mine LevelEl Teniente Division

Inv: MUS$ 1,718Prod: 445,000 tonnes / year

2018

Chuqui UndergroundCodelco Norte Division

Inv: MU$ 2,006Prod: 315,000 tonnes/year

Under Commissioning

In Feasibility Study

Codelco: Major Projects

Pilar NorteEl Teniente Division

Inv: MUS$ 140

Prod: 60,000 tonnes / year

20122011

Note: Figures in 2010 US$. Annual production represents first 10-year average.

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EQUIPMENTS

Year of Requirement

2012 2013 2014 2017After 2017

Total

Crushers 15 3 1 42 61

Feeders 15 88 103

Conveyor Belts 1 1 12 108 122

Mills 10 2 2 14

Slurry Pumps 9 9

Substations 26 12 38

Electric Rooms & Switchgears

5 5

Power Transformers 5 3 8

Screens 16 2 18

SAG & Mill Ring Motor 1 2 3

Main Equipment Requirements

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Investment Summary 2010 – 2014: US$ 15,000 Millions

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Codelco: An Interesting Business Opportunity

• Significant business volume

• Important foreign and domestic offer

• Productivity of service providers

• Innovation (technology)

• Suppliers development (new stage)

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Codelco: Strategic Sourcing

Fernando Marchant B.Manager SupplySept., 2010

Documents

1 Copyrights © 2010 by CODELCO-CHILE. All Rights Reserved. Fernando Marchant B., Manager Supply Codelco: Strategic Sourcing Fernando Marchant B. Manager