BALANCE SHEETS

2001

2000

Jan. - June

Jan. - June

TH.US$

TH.US$

ASSETS

Current Assets:

1,015,520

1,047,099

Cash

4,660

9,040

Time deposits and marketable securities

64,295

62,948

Trade accounts receivable

142,486

213,860

Other accounts receivable

207,699

194,561

Inventories

584,730

547,898

Prepaid expenses

9,033

16,611

Other current assets

2,617

2,181

Property, Plant and Equipment:

4,146,340

4,119,445

Land, infrastructure and equipment, net

3,280,113

3,382,262

Construction-in-progress

583,450

493,561

Mine development,net

282,777

243,622

Other Assets:

704,233

616,253

Other assets

375,287

300,715

Investments in other companies

222,670

216,896

Long-term accounts receivable

106,276

98,642

Total assets

5,866,093

5,782,797

BALANCE SHEETS

2001

2000

Jan. - June

Jan. - June

TH.US$

TH.US$

LIABILITIES AND EQUITY

Current Liabilities:

905,687

696,066

Bank debt

474,438

291,271

Accounts payable

210,382

186,169

Accrued liabilities and withholdings

211,161

202,097

Income taxes

0

6,951

Other current liabilities

9,706

9,578

Long-Term Liabilities:

2,241,172

2,344,545

Bank debt

650,008

836,189

Bonds

300,000

300,000

Provisions

540,396

610,461

Deferred taxes

736,618

582,497

Other long-term liabilities

14,150

15,398

Equity:

2,719,234

2,742,186

Paid-in capital

1,524,423

1,524,423

Other reserves

1,226,797

1,215,885

Net income of the period

44,867

94,409

(Less) Profit advances to the Chilean

Treasury Department

-76,853

-92,531

Total liabilities and Equity

5,866,093

5,782,797

STATEMENT OF INCOME

2001

2000

Jan. - June

Jan. - June

TH.US$

TH.US$

Operating Income

Sales of copper

1,646,179

1,607,664

Sales of by-products

138,428

147,495

1,784,607

1,755,159

(Less): Cost of sales

-1,433,433

-1,296,196

Gross profit

351,174

458,963

Plus (Less):

Selling and administrative expenses

-36,429

-33,392

Other operating expenses

-29,773

-25,689

Exchange adjustments

7,013

5,983

Operating income

291,985

405,865

Non-Operating Income

Plus (Less):

Interest income

6,566

6,592

Other income

23,396

52,282

Interest expenses

-53,845

-53,432

Other expenses

-26,411

-64,312

Non-operating income

-50,294

-58,870

Income before taxes and contribution

241,691

346,995

Contribution Law N° 13196

-136,724

-132,353

Income taxes

-60,100

-120,233

Net income for the period

44,867

94,409

STATEMENT OF CASH FLOWS

2001

2000

Jan. - June

Jan. - June

TH.US$

TH.US$

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers

1,720,517

1,700,488

Other receipts

36,248

33,424

Payments to supplier, salaries and other costs

-1,169,939

-1,162,513

V.A.T. paid

-177,924

-176,349

V.A.T. recovered

151,509

156,627

Interest received

3,069

3,276

Interest paid

-52,844

-43,561

Income taxes paid

-2,565

-77,359

Hedging operations

-1,025

-7,254

Dividends received

4,317

0

Net cash flows from operating activities

511,363

426,779

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of fixed assets

0

552

Investments in related companies

-33,838

-1,912

Sale and liquidation of companies

9,465

0

Additions to property, plant, equipment and mine development

-280,275

-233,505

Collection of accounts receivable

45,009

17,655

Long-term loans

-25,282

-14,900

Net cash flows from investing activities

-284,921

-232,110

CASH FLOWS FROM FINANCING ACTIVITIES

Bank financing

215,000

187,386

Repayment of debt

-160,872

-185,000

Distribution advances from profits to the

Chilean Treasury Department

-102,409

-160,755

Contribution under Law N° 13196

-136,732

-145,410

Rate hedging

-24,098

0

Net cash flows from financing activities

-209,111

-303,779

CHANGE IN CASH AND CASH EQUIVALENTS

17,331

-109,110

BEGINNING BALANCE OF CASH AND CASH EQUIVALENTS

51,624

181,098

ENDING BALANCE OF CASH AND CASH EQUIVALENTS

68,955

71,988