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The Los Bronces Development project was approved in November 2007 and is forecast to come into production in Q4 2011. The brownfield expansion will increase throughput from 61 ktpd to 148 ktpd, increasing average copper production in the first 10 years by around 200 ktpa (production will average 278 ktpa over the first three years), plus molybdenum and silver by-products, consolidating the operation’s low cost curve position. The project scope includes a new grinding plant connected to the main site by a 4.4 km conveyor belt, together with a 52 km ore slurry pipeline to the existing Cu-Mo flotation plant at Las Tortolas. The life of mine at Los Bronces is greater than 30 years, making Los Bronces a truly world class operation.

The expected capital expenditure for the project has been revised to $2.8 billion, mainly due to the impact of the earthquake in 2010 and geotechnical difficulties encountered.

^{(1)Average over first three years.}

Michiquillay was acquired in 2007 in a government privatisation. Early stage work continues. The drilling relating to the geological exploration programme has recommenced after completion of discussions with the local communities. It is currently envisaged that the project will move to the pre-feasibility stage following the completion of drilling analysis and ore body modelling.

(a) Expansion potential to 300 ktpa.

The greenfield Quellaveco project is located in Southern Peru at 3,500 masl. The project is currently at the feasibility stage, with potential start up in 2016. Production is forecast at 225 ktpa of copper, with molybdenum and silver by-products. Once at full capacity, the operation is expected to be in the lower half of the cost curve.

Pebble is a 50:50 joint venture located in Alaska, USA. The project has the potential to be large scale, producing up to 350 ktpa copper, plus significant gold and molybdenum by-products. The operation is expected to be in the lower half of the cost curve once at full production. Activity continues with focus on completing the pre-feasibility study by late 2012 and targeting production early in the next decade. An environmental baseline document highlighting key scientific and socio-economic data was delivered to government agencies in late 2011. Environmental issues remain a key priority.

(a) Pebble will produce molybdenum and gold by-products and other projects will produce molybdenum and silver by-products.

The Collahuasi mine in Northern Chile is located at 4,400 metres above sea level (masl). The first phase of a number of potential expansion projects was commissioned in the fourth quarter of 2011. Phase 1 will increase sulphide processing capacity to 150 kt per day, yielding an additional 19 ktpa of copper over the estimated life of mine. The Phase 2 expansion project to increase sulphide processing capacity to 160 kt per day was approved in March 2011. The Phase 2 expansion will produce an annual average increment of 20,000 tonnes of copper over the estimated life of the mine and is expected to be commissioned in 2013. A pre-feasibility study is also in progress to evaluate options for the next phases of expansion at Collahuasi, with potential to increase production up to 1 Mt of copper a year.