BUSINESS AND DEVELOPMENT PLAN The company’s main planning tool, which provides for the best projection of the business in the short, medium and long term, is the Business and Development Plan (PND). The PND contains the income flows, expenditures, investments and financing to be generated throughout the period, which according to the mining plan will be necessary to extract the resources and reserves that sustain the business. It examines market, mining resources, strategic, financial, technical, and contractual and other restrictions that the company faces, with commitments in terms of labour and sustainability, and the risk levels it is willing to assume. The Business and Development Plan represents the best estimate of future flows and therefore the company’s commitment to its shareholders. This requires a high degree of compliance with its obligations, particularly during the early years. It is therefore the best approximation for the company’s economic value. GEOLOGICAL AND MINING RESOURCES As per standard industrial practice, Codelco divides its mining inventory into two categories: resources and reserves. Resources include those deposits of economic interest that have been identified and estimated through exploration, identification and sampling techniques. Reserves, meanwhile, represent a fraction of the geological resource that is economically extractable according to a productive, environmental and technological scenario included in the mining plan. In 2005, Codelco added a new criterion for classifying ore deposits, based on three basic components: data quality, geological continuity and the reliability of the estimate. This classification system provides general measures that are consistent across all divisions and a quality control tool based on geological modelling and estimation processes. In fact, the new criteria for classifying Codelco’s resources must include drilling to define the resource inferred. Using this new criteria a single corporate classification system can be used across all divisions and is also consistent with Australian code definitions by the Joint Ore Reserves Committee, JORC, This covers resources, including both probable and proven reserves. The PND is based on a mining plan for the entire mine life. As a result, it naturally includes possible reserves in the mining plan, although these are scaled in gradually over time, depending on demonstrated reserves. This meets the criteria established by valuation codes such as Canada’s CIMVAL (Standard and Guidelines for Mineral Valuation of Mineral Properties). Possible reviews stem from the inclusion in long–term inferred or demonstrated resources for which the pre–feasibility and feasibility engineering studies have not yet been completed. The PND is based on a mining plan for the entire mine life. As a result, it naturally includes possible reserves in the mining plan, although these are scaled in gradually over time, depending on demonstrated reserves. This meets the criteria established by valuation codes such as Canada’s CIMVAL de Canadá (Standard and Guidelines for Mineral Valuation of Mineral Properties). Possible reviews stem from the inclusion in long–term inferred or demonstrated resources for which the pre–feasibility and feasibility engineering studies have not yet been completed. In 2006, mineral resources were up 8.0% over 2005, due to the incorporation of new resources in the Salvador Division (San Antonio project) and sulphide resources at the Gaby project. Elsewhere, reserves fell 5.0% due to modifications to the Codelco Norte mining plan. Initial production estimates are based mainly on demonstrated reserves, although broken ore or stock can be included in mining plans, once the company has analyzed the origin and characteristics of this material. In fact, the 2007–2011 period only contains proven and probable reserves in the division mining plans currently in operation.