Antofagasta : Tax Report 2022

Report 2022

Tax

Antofagasta plc

OUR APPROACH

OUR BUSINESS

high mountain area, choapa province, coquimbo region.

THE SOCIAL IMPACT OF OUR TAX CONTRIBUTION	APPENDICES	2

Contents

3 Our approach

1. About this Tax Report

1. A word from our CEO
2. A word from our CFO

11 Our business

1. The Social impact of our tax contribution
2. Generating a positive impact and development in the areas where we operate
3. Antofagasta plc tax strategy
4. Economic contribution during the mining lifecycle

22 Tax description

1. Payments detail of the companies of Antofagasta's mining division

1. Sworn statements and global fiscal transparency

1. Appendices
2. Independent review opinion
3. Reconciliation between tax charge and tax payments
4. Reconciliation: Annual Report and payments to governments
5. Reconciliation: Payments to governments and tax payments 2022

We strongly believe in a more sustainable world. Therefore, only 100 copies of this 2022 Tax Report have been printed.

OUR APPROACH

OUR BUSINESS

Our approach

THE SOCIAL IMPACT OF OUR TAX CONTRIBUTION

APPENDICES

3

OUR APPROACH

OUR BUSINESS

THE SOCIAL IMPACT OF OUR TAX CONTRIBUTION

APPENDICES

4

Our approach

Antofagasta plc is one of the ten largest copper producers in the world. We are an international mining company with an operational base in Chile. We have high trained professionals in the sector and we always strive for excellence in everything we do. We are interested in helping to set the path for the mining of the future.

Antofagasta plc is listed on the London Metal Exchange and is part of the FTSE 100 index. It participates in sustainability indices, DJSI, FTSE4Good and STOXX Global ESG Leaders.

The Luksic Group controls about 65% of Antofagasta plc's common shares and the remaining 35% is held by institutional or individual shareholders. Mining represents more than 97% of revenues and

EBITDA.

Antofagasta plc owns the Ferrocarril de Antofagasta a Bolivia (FCAB), which provides rail and road transportation services in northern Chile, primarily for mining clients, including the transfer of cathodes from our operations, which represents 3% of our revenue.

The Group operates four open-cut copper mines located in Chile, two of which also produce by-products, molybdenum and gold.

Minera Centinela, Minera Antucoya and Minera Zaldívar are located in the Antofagasta region, in northern Chile. Minera Los Pelambres is located in the Coquimbo region, in the central zone of the country.

Our vision is to be an international mining company, focused on copper and its by-products, known for its operating efficiency, creation of sustainable value, high profitability and as a preferred partner in the global mining industry.

We are committed to sustainable mining and contributing to the development of Chile and the wellbeing of people who live in our areas of influence.

Our commitment is to comply with the tax laws and practices in all the territories in which we operate. Compliance for the Anto- fagasta Group means paying the right amount of tax, in the right place, at the right time, and involves disclosing all relevant facts and circumstances to the tax authorities and claiming relief and incentives where available and in the manner in which they were intended to be claimed.

plant workers, minera centinela, antofagasta region.

OUR APPROACH

OUR BUSINESS

Key performance highlights in 2022

Record year for safety, and strong growth in mineral resources. Production in transition while Los Pelambres advances its expansion projects.

NON-FINANCIAL HIGHLIGHTS

THE SOCIAL IMPACT OF OUR TAX CONTRIBUTION

APPENDICES

FINANCIAL HIGHLIGHTS

5

SAFETY

0.84

COPPER PRODUCTION2

646,200

MINERAL RESOURCES3

20.1bn

NET CASH COSTS4

EBITDA4	PROFIT BEFORE TAX EXCLUDING
	EXCEPTIONAL ITEMS

0

Fatalities LTIFR1

Record safety performance, with no fatal accidents, and all our safety indicators improved during the year.

tonnes

Copper production decreased by 10% mainly due to the temporary reduction in throughput at Los Pelambres as a result of the drought and the reduced concentrate pipeline availability in June, and expected lower grades at Centinela Concentrates.

tonnes

Total mineral resources increased by 1 billion tonnes during the year.

GROWTH PROJECTS

$1.61/lb

Increased by 34% since 2021 mainly due to the impact of the drought and higher input prices, partly offset by the weaker Chilean peso and savings coming from our Cost and Competitiveness Programme.

$2,930m

Decreased by 39% with an EBITDA margin of 50%, reflecting a decrease in copper sales, a lower copper price, higher inflation and higher input prices.

$1,614.2m

Profit before tax decreased by 56%.

Zaldívar Chloride Leach project

UNDERLYING EARNINGS	EBITDA MINING	TOTAL DIVIDEND PER
PER SHARE EXCLUDING	DIVISION4	SHARE

WATER

WITHDRAWAL

73 GL

of which 45.4% was sea water.

GENDER

DIVERSITY

20.4%

of our employees are woman.

SCOPE 1 AND 2

EMISSIONS

1.3 million tCO2e

Decreased by 37% since 2021.

TOTAL ECONOMIC

CONTRIBUTION

$7.4bn

We generate economic value for all our stakeholders, 4% higher than last year.

100%

completed in 2022.

Esperanza Sur Pit project

100%

pre-stripping completed by December 2023.

Los Pelambres Expansion project

93%

complete as at the end of 2022 with the desalination plant and the concentrator plant expansion due to be in production during the second quarter of 2023.

Centinela Second Concentrator project

Engineering and pre-investment studies underway.

EXCEPTIONAL ITEMS4
$59.7¢	$2,850m	$59.7¢
Underlying earnings per share de-		Equivalent to a payout ratio of 100%.
creased by 82.8 cents or 58% com-
pared with 2021 on lower EBITDA.
	EBITDA TRANSPORT
	DIVISION4
	$80m

1 The Lost Time Injury Frequency Rate is the number of accidents with lost time per million hours worked.

2 100% of production at Los Pelambres, Centinela and Antucoya, and 50% of Zaldívar's production.

3 Mineral resources (including ore reserves) relating to the Group's subsidiaries on a 100% basis and Zaldívar on a 50% basis.

4 Non-IFRS measure, refer to the alternative performance measures section in Antofagasta plc's Annual Report 2022 on page 238.