Santiago, 22 November 2012.- Corporación Nacional del Cobre de Chile, Codelco, earned US$ 6.777 billion in pre-tax profits over January-September 2012, up 27.3% from US$ 5.323 billion for the same period in 2011. These results include US$ 3.517 billion in extraordinary gains from buying a stake in Anglo American Sur S.A. (AAS), which was completed at the end of August.

If these gains are excluded, January-September pre-tax profits fell to US$ 3.26 billion, down from US$ 5.323 billion for the same period in 2011. Last year's results were boosted by US$ 447 million from the sale of Codelco's stake in its subsidiaries E-CL and Inca de Oro.

This fall in pre-tax profits is the result of several factors, i.e., lower copper and molybdenum prices, lower ore grades, higher costs and lower output.

During this period, the average copper price was down 14% from 419.8 c/lb in 2011. Additionally, molybdenum prices, a key by-product traded by the Company, were also down 17.9% compared to 2011.

Comparable net profit (calculated by applying the same tax requirements as private companies) totalled US$ 5.166 million. Therefore, Codelco was once again the most profitable company operating in Chile.

LOWER PRODUCTIONS & SALES

Codelco's January-September output was 1,188,000 metric tons of fine copper (mtf), down 62,000 mtf from the record output in 2011 (4.9%). This drop is mainly caused by lower ore grades treated at Codelco's plants, which on average fell by 9%, although ore grades dropped by 19% at Chuquicamata.

However, lower ore grades were expected in the Company's plans, and the January-September production is very close to the 2012 budget.

If Codelco's stake in Minera el Abra (55,000 fmt) and Anglo American Sur S.A (10,000 mt, since 24 August) is included, the Company's total copper output increases to 1,253,000 tons of fine copper.

Therefore, in the first nine months of 2012, Codelco sold 1.252 million metric tons of fine copper (mtf), of which 1.145 million mtf were from own mines, and the rest from third-party mines.

During the period reviewed, molybdenum (2,000 mt), gold and silver output also fell. On the contrary, sulphuric acid out increased by 154,000 tons over the previous year.

LOWER GROSS PROFIT

By September, copper sales revenue totalled US$ 9.252 billion, compared to US$ 10.445 billion over the same period in 2011, due to lower production and, especially, lower copper prices. During this period, the cost of copper sold was US$ 5.851 billion, therefore copper sales profit was US$ 3.961 billion.

This also includes US$ 559 million revenue from by-product sales, US$292 million from associated companies and US$ 3.517 million after buying a stake in Anglo American Sur.

US$ $ 993 million have to be deducted for other corporate revenues and expenses, which include financial expenses, exchange rate differences, collective bargaining and administrative expenses.

Therefore, Codelco delivered US$ 6.777 billion to the State during the first 9 months of 2012, up US$ 1.454 million over the same period in 2011.

Pre-Tax Profit Distribution

By September 2012 the Company had delivered US$ 6.777 billion, distributed as follows:

* Equivalent to Codelco's profit applying the same tax requirements as private companies.

HIGHER COSTS

Codelco's January-September direct cash cost (C1) was 156.7 US cents per pound of copper, up 40.3 cents over the 2011 average. C1 is a type of cost used as a benchmark by the mining industry to compare efficiency. This rise is basically due to higher fuel, electricity and other input prices, and to lower by-product credits as a result of lower molybdenum prices.

Total costs and expenses were 247.5 c/lb of copper during January-February 2012, up from 205.6 c/lb average observed in 2011. This rise is basically due to higher fuel, electricity and other input prices and the negative effect of mining variables (ore grades).

Corporate net cathode costs (C3) during January-September 2012 were 223.2 c/lb compared to an average 171.6 c/lb in 2011.

KEY MARKETS

In relation to sales, China continues to be Codelco's main market with 36%, followed by the rest of Asia 22%, then Europe with 18%, South America with 12%, North America with 11% and Oceania with 1%. 2012 figures are very similar to the same period last year

LOWER ACCIDENT RATE

In 2012, Codelco has unprecedented work safety figures. The total accident frequency rate, - includes both employees and contractors - was 1.43 during January-September this year, which is slightly lower than the 1.44 rate during the same period in 2011. However, in April Codelco had to regret the fatal accident of Manuel Antonio Lara, a contract worker at El Teniente Division.

Communications Department