Codelco is a world–class company. It has the world’s largest and best copper reserves, it is a leader in technology and know–how, and has an organization and business model that stimulates value creation. Its workers are motivated and are trained to participate in building the company’s future, and its executives are highly skilled.

The Corporación Nacional del Cobre de Chile, Codelco, is the world’s top copper producer and one of the most profitable companies in the industry. Codelco owns assets worth in excess of US$13.033 billion and has net equity that in 2006 reached US$4.528 billion. Its main commercial product is grade A copper cathodes.

The company operates through four mining divisions: Codelco Norte (Chuquicamata and Rodomiro Tomic deposits); Salvador, Andina and El Teniente. In May 2005, the Ventanas Smelter and Refinery became Codelco’s fifth Division.

The company also holds shares in major mining ventures such as El Abra – in which it owns 49%– and other mining joint ventures focusing on geological exploration in Chile and abroad.


Codelco has built its world leadership in the copper industry on six major pillars:

Leading presence: in 2006, Codelco produced 1,783,038 fine metric tons of copper, including its share of El Abra. This is 14.7% of the production in the western world.

Codelco, a leader in copper production, is one of the most competitive companies in this sector.

It is also one of the world’s foremost molybdenum producers with 27,204 fine metric tons in 2006.

Copper reserves: Codelco owns the world’s largest known copper reserves and resources. It is estimated that current reserves will ensure more than 70 years of operations at current production levels.

A stable and geographically diverse costumer portfolio: Codelco has developed longterm relationships with a stable and diverse group of costumers, that includes some of the world’s main manufacturing companies.

Research and technological innovation: the research and development of technologies, and their incorporation in the productive processes, constitute pillars that sustain the competitiveness of the company.

Under this perspective, the innovation projects that the company is carrying out aim to substantially improve the mining operation processes, generating high impacts in efficiency, productivity, environment care and protection, and also for the security of the workers and operations.

Financial strength: at the end of the 2006 fiscal year, EBITDA stood at US$10.261 billion.

Efficiency and competitiveness: Codelco permanently drives initiatives and programmes to contain and reduce its production costs to ensure the competitiveness of the company within the industry. During 2006, cash costs were 37.4 ¢/b.

The future vision of Codelco aims to consolidate its leadership position as the top copper producer, maintain itself as one of the most competitive and lowest cost companies of the world industry, and to increase even more its contribution to the Chilean State.

Creation and legal framework
Codelco is a Chilean State company of a mining, commercial and manufacturing nature.

Decree Law Nº 1.350 (1976) brought together in a single company the large ore bodies nationalized in 1971. Codelco is related to the government through the Ministry of Mining and Energy and governed by ordinary law, except for when this is incompatible with the specific provisions included in the above mentioned decree.

Legal name
Corporación Nacional del Cobre de Chile.

RUT
61.704.000 - K

Administration
The conduct and supervision of the company is the responsibility of the Codelco Board,composed by the following: Minister of Mining, who heads it; the Minister of Finance; three directors appointed by the President of the Republic; and two directors also appointed by the President of the Republic from a list of candidates presented by the workers and supervisors unions.

The President & CEO of the company is appointed by the Board and is responsible for all the productive, financial and administrative activities of the company.

Budget
The Annual Budget of Codelco is approved by a supreme decree jointly issued by the ministries of Mining and Finance.

Regulation
Codelco is regulated by the National Comptrollers of the Republic through the Chilean Copper Commission.

The corporation is registered with the Superintendencia de Valores y Seguros Nº 785, and is subject to the dispositions of the Securities Market Law and must deliver to the Superintendent, and the pubic in general, the same information that public companies are required to give.