INSTITUTO DE INNOVACIÓN EN MINERÍA Y METALURGIA S.A.
December 31st, 2006

Legal status
Company name: Instituto de Innovación en Minería y Metalurgia S.A.
Legal status: Private limited company formed 24 September 1998, Repertorio Nº 3664/98 Notary Santiago de Antonieta Mendoza Escala.
RUT: 96.854500-0

Capital subscribed and paid in
Capital subscribed and paid in by Codelco Chile: as of 31 December 2006 was US$3,372,000.

Purpose
The purpose of this company is to develop new technological research and mining processes.

Board of Directors
Juan Enrique Morales Jaramillo (*)
Eugenio Thiers Lillo
Pedro Morales Cerda (*)
Mario Espinoza Durán (*)
Carlos Urzúa Ramírez (*)

Principle executive
Víctor Encina Montenegro - Manager (I)

Codelco's share of capital and changes during the fiscal year
Codelco currently holds 99.93%.

Commercial relations with Codelco
Currently, the main commercial relations between IM2 and Codelco are defined by the Convenio of Investigación e Innovación Tecnológica (an agreement on technological innovation and research) dated 28 September 1998, through which IM2 provides services for preparing, directing, managing and executing technological innovation and research programmes and projects. The main link in the future with Codelco Chile will reflect development of the portfolio of innovative projects and programmes as dictated by Codelco's strategic priorities. IM2 has been redefining its strategy to bring it into line with the structure of technological business to position itself better to add value to Codelco Chile.

During the period, IM2 continued its activities within the framework of the Programme or the Validation of Mining Technologies that was oriented to the transfer of mining knowledge and technology based on the validation of developments originating with the experience of IM2.

In function of the capacity and competence generated during its existence, the future link projected with Codelco Chile will be given for the development of portfolios of Innovation
and Technology Transfer projects and programmes in line with the strategic vision of the Corporation and by highly specialized consulting services and the development of advanced technology, that forms part of the IM2 business model.

Contracts with Codelco
Innovation and Technological Investigation Agreement: Client
Contract to validate underground mining technologies: Client
Service agreement for Technical documentation centre of Codelco: Provider
Service contract for information and telecommunications technologies: Provider

Investment as a percentage of total head office
2006 Investment in subsidiary US$3,779,000.
2005 estimated investment in subsidiary US$3,818,000.
Total investment as a percentage of head office assets 0.03%, 2006.