MIRA INFORM REPORT

 

 

Report Date :

13.10.2012

 

IDENTIFICATION DETAILS

 

Name :

COMPAŅIA MINERA DOŅA INES DE COLLAHUASI S.C.M. 

 

 

Registered Office :

Av. Andrés Bello 2687 Piso 11 - Las Condes, Santiago, XIII Region Metropolitana

 

 

Country :

Chile

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

11.04.1983

 

 

Legal Form :

Contractual Mining Company

 

 

Line of Business :

Copper Mining Company

 

 

No. of Employees :

2.605 employees

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints 

Litigation :

Clear


 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Chile

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

Chile - ECONOMIC OVERVIEW

 

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports account for more than one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides one-third of government revenue. During the early 1990s, Chile's reputation as a role model for economic reform was strengthened when the democratic government of Patricio AYLWIN - which took over from the military in 1990 - deepened the economic reform initiated by the military government. Since 1999, growth has averaged 4% per year. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile claims to have more bilateral or regional trade agreements than any other country. It has 59 such agreements (not all of them full free trade agreements), including with the European Union, Mercosur, China, India, South Korea, and Mexico. Over the past seven years, foreign direct investment inflows have quadrupled to some $15 billion in 2010, but foreign direct investment had dropped to about $7 billion in 2009 in the face of diminished investment throughout the world. The Chilean government conducts a rule-based countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and allowing deficit spending only during periods of low copper prices and growth. As of November 2011, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $18 billion. Chile used this fund to finance fiscal stimulus packages during the 2009 economic downturn. In December 2009, the OECD invited Chile to become a full member, after a two year period of compliance with organization mandates, and in May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD. The economy started to show signs of a rebound in the fourth quarter of 2009, and GDP grew 5.1% in 2010 and 6.5% in 2011. Chile achieved this growth despite the 8.8 magnitude earthquake that struck in February 2010, which was one of the top 10 strongest earthquakes on record. The earthquake and subsequent tsunamis it generated caused considerable damage near the epicenter, located about 70 miles from Concepcion - and about 200 miles southwest of Santiago.

 

Source : CIA

 

 


 

IDENTIFICATION                             

 

COMPAŅIA MINERA DOŅA INES DE COLLAHUASI S.C.M.

 

TAX : 89.468.900-5

 

Av. Andrés Bello 2687 Piso 11 - Las Condes

Santiago

XIII Region Metropolitana

CHILE

Telephone         : 56-2-3626500

Fax                    : 56-2-3626569

E_Mail       : meyanez@collahuasi.cl  

Web Site     : www.collahuasi.cl 

Postal Code  : 6760276

 

 

company SUMMARY

 

Started                      : 1983

Total Employees      : 2.605

Payments                 : Prompt

Financial Sit.             : Good

Economic Sit.            : Excellent

Sales                        : 000's$  2.000.918.153.-

Net worth                    : 000's$  2.081.959.816.-

Current profit               : 000's$    877.308.997.-

Capital                      : 000's$    112.017.465.-

 

Sic(s) : 1021

 

Line of Business: Copper mining company.-

 

 

EVALUATION

 

If additional information is received or present information is rectified, this

recommendation may be modified.

 

Payment Scoring = [ 100 ]

 

Financial indicators

According to last financial statement, subject shows a good financial situation,

as indicated in:

 

** Normal Working Capital

** Excellent Current Liquidity Ratio

** Good Acid Test Ratio

 

Economic situation is excellent, as reflected in:

 

** Low Current Indebtedness Ratio

** Low Total Indebtedness Ratio

** Excellent Solvency Ratio

 

** Excellent Profitability Over Sales Ratio

** Excellent Profitability Over Assets Ratio

** Excellent Profitability Over Net Worth Ratio

 

 

COMMERCIAL INFORMATION

 

Commercial Bulletin      : As at 08/10/2012 subject does not register protested

                           checks, bank drafts nor promissory notes in the

                           commercial information bulletin

 

Labor Bulletin           : As at 08/10/2012 does not register labor infringements

 

Previsional Bulletin     : As at 08/10/2012 does not register pension fund's

                           infringements

 

Consolidated delinquency : As at 08/10/2012, subject does not register any

                           delinquent bill

 

 

TRADE REFERENCES

 

Suppliers' trade references are supplied as follows:

 

Detail of References

 

Old            : Since 2003

Last purchase  : 07-2012

Terms          : 30 days

Payment        : Prompt

Notes          : invoice

Credit         : -

Owes           : -

Due            : Does not Register

Paying Comments: Good

 

Old            : Since 2000

Last purchase  : 07-2012

Terms          : 30 days

Payment        : Prompt

Notes          : invoice

Credit         : (000'sUS$) 100.000

Owes           : -

Due            : Does not Register

Paying Comments: Good

Purchase Aver. : (Monthly 000's$) 28.000

 

Old            : Since 2007

Last purchase  : 07-2012

Terms          : 30 days

Payment        : Prompt

Notes          : invoice

Credit         : (000'sUS$) 50.000

Owes           : -

Due            : Does not Register

Paying Comments: Good

Purchase Aver. : (Monthly 000's$) 20.000

 

Old            : Since 2002

Last purchase  : 07-2012

Terms          : 30 days

Payment        : Prompt

Notes          : bank transfer

Credit         : -

Owes           : -

Due            : Does not Register

Paying Comments: Good

Purchase Aver. : (Monthly 000's$) 35.000

 

Detail of Former Trade References

--------------------------------------------------------------------------------

           Last                                           Credit            Owes

Old        Purch. Payment.    Notes                     (000'sUS$)        (000'sUS$)

--------------------------------------------------------------------------------

Since 2002 07-12  Prompt      bank transfer                    -               -

Since 2007 10-11  Prompt      order form                  50.000               -

Since 2000 10-11  Prompt      invoice                    100.000               -

Since 2007 07-12  Prompt      order form                  50.000               -

Since 2007 11-10  Prompt      order form                  50.000               -

Since 2001 11-10  Prompt      invoice                       Open            None

Since 2002 11-10  Prompt      bank transfer                    -               -

Since 2002 08-10  Prompt      order form                       -               -

Since 2005        Cash        invoice                          -            None

Since 2001 12-08  Prompt      invoice                       Open            None

Since 1999        Prompt      order form                    Open            None

Since 2001 07-08  Prompt      invoice                          -            None

Since 1997        Prompt      order form                       -               -

11 years   08-07  Prompt      order form                 700.000               -

10 years          Prompt      current account               Open            None

Since 1997        Prompt      bank transfer                 Open               -

9 years    08-07  Prompt      invoice                       Open               -

9 years    02-07  Prompt      invoice                       Open               -

10 years   12-04  Prompt      current account               Open            None

10 years          Prompt      order form                  20.000               -

10 years          Prompt      bank transfer                 Open               -

8 years    03-06  Prompt      invoice                     20.000               -

9 years    12-04  Prompt      current account               Open            None

10 years   03-06  Prompt      order form                  20.000               -

10 years   03-06  Prompt      checks                        Open               -

8 years    03-06  Prompt      not specified                 Open               -

5 years    09-05  Prompt      not specified                 Open               -

6 years    09-05  Prompt      current account               Open               -

8 years    09-05  Prompt      checks                        Open               -

5 years    09-05  Prompt      not specified                    -               -

10 years   09-05  Prompt      order form                  20.000               -

7 years    09-05  Prompt      not specified               20.000               -

8 years    09-05  Prompt      order form               1.000.000               -

8 years    12-04  Prompt      order form               1.000.000               -

6 years    12-04  Prompt      not specified               20.000               -

10 years   12-04  Prompt      order form                  20.000               -

3 years    12-04  Prompt      not specified                    -               -

7 years    12-04  Prompt      checks                        Open               -

5 years    12-04  Prompt      current account               Open               -

3 years    12-04  Prompt      not specified                 Open               -

10 years   06-04  Prompt      order form                  20.000               -

5 years    06-04  Prompt      order form                  20.000               -

8 years    06-04  Prompt      order form               1.000.000               -

7 years    06-04  Prompt      checks                        Open               -

 

During the last 6 months, the account holder credit history shows 254 credit

review inquiries requested by financial institutions, credit assessment

agencies, insurance companies, universities, industries and businesses in

general.-

 

The account holder credit report reflects no delinquent payment history, no

 

protests, and no social security and/or work infringements as of the date of

 

this report.

 

AVERAGE PAYMENTS IN CHILE

 

International Risk and Payment Review reported in June 2011

 

The local delays in payment average 0-1 month.

 


FINANCIAL INFORMATION

 

                     C O M P A R A T I V E  -  S U M M A R Y

                  ( Figures in Thousand Pesos, local currency )

 

                            From  01/01/2011        01/01/2010        01/01/2009

                              To  31/12/2011        31/12/2010        31/12/2009

 

CURRENT ASSETS                   496.369.951       706.975.430       663.368.138

CURRENT LIABILITIES              269.613.069       322.499.429       204.239.564

WORKING CAPITAL                  226.756.882       384.476.001       459.128.574

FIXED ASSETS                   2.117.460.291     1.563.879.170     1.237.121.254

OTHER ASSETS                      30.269.710        41.120.779        15.740.112

LONG TERM LIABILITIES            292.527.067       299.641.206       295.208.072

NET WORTH                      2.081.959.816     1.689.834.744     1.416.781.868

OPERATING INCOMES              2.000.918.153     1.910.457.826     1.501.524.907

CURRENT PROFIT(LOSS)             877.308.997       995.818.207       732.210.069

 

                            B A L A N C E  S H E E T

                         INDIVIDUAL FISCAL YEAR COMPLETE

 

ASSETS                                              31/12/2011        31/12/2010

Cash                                                17.510.627        67.798.593

Sales Debtors                                      254.127.273       415.289.962

Inventory                                          146.903.625       160.978.137

Taxes Recoverable                                   10.986.119                 0

Other Current Assets                                66.842.307        62.908.738

CURRENT ASSETS                                     496.369.951       706.975.430

 

Net Fixed Asset                                  2.117.460.291     1.563.879.170

FIXED ASSETS                                     2.117.460.291     1.563.879.170

 

Intangibles                                          4.852.707         4.610.740

Other                                               25.417.003        36.510.039

OTHER ASSETS                                        30.269.710        41.120.779

 

TOTAL ASSETS                                     2.644.099.952     2.311.975.379

 

LIABILITIES                                         31/12/2011        31/12/2010

Oblig.With Banks & Financ.Inst.Short Term           25.442.033        68.280.478

Oblig.With Banks & Financ.Inst.long Term               718.572           690.006

Accounts Payable                                   213.592.623       154.491.396

Provisions                                          19.842.074        14.825.168

Withholdings                                        10.017.767        84.212.381

CURRENT LIABILITIES                                269.613.069       322.499.429

 

Oblig.with Banks & Financial Intitutions            25.391.452        47.354.663

Obligations With Public (Bonds)                              0         2.978.843

Provisions                                         264.540.309       233.140.449

Other Long Term Liabilities                          2.595.306        16.167.251

LONG TERM LIABILITIES                              292.527.067       299.641.206

 

Paid Capital                                       326.808.368       304.749.392

Other Reserves                                     -97.145.912       -90.588.252

Accumulated Profits                                974.988.363       479.855.397

Current Profit (Losses)                            877.308.997       995.818.207

NET WORTH                                        2.081.959.816     1.689.834.744

 

TOTAL LIABILITIES                                2.644.099.952     2.311.975.379

 

STATEMENTS OF RESULTS                               31/12/2011        31/12/2010

Operating  Income                                2.000.918.153     1.910.457.826

Operating Cost                                    -801.464.205      -568.574.943

OPERATING MARGIN                                 1.199.453.948     1.341.882.883

 

Administration & Sales Expenses                    -28.805.972       -35.772.866

OPERATING RESULT                                 1.170.647.976     1.306.110.017

 

Financial Incomes                                    2.580.707           580.112

Other non Operating Incomes                             10.429        21.856.521

Financial Expenses                                  -3.636.662       -16.996.816

Other non Operating Expenses                       -13.386.400       -17.196.184

NON OPERATING RESULT                               -14.431.926       -11.756.367

 

Result Before Income Tax                         1.156.216.050     1.294.353.650

Income Tax                                        -278.907.053      -298.535.445

NET PROFIT(LOSS)                                   877.308.997       995.818.205

 

CURRENT PROFIT(LOSS)                               877.308.997       995.818.205

 

                           ECONOMIC - FINANCIAL RATIOS

 

                                        31/12/2011     31/12/2010        Average

Working Capital            (000's$)    226.756.882    384.476.001    305.616.442

Current Liquidity           (Times)           1,84           2,19           2,02

Acid Test                   (Times)           1,30           1,69           1,50

Collection Period Days      ( Days)          45,72          78,26          61,99

Accounts Receivable Turnover(Times)           7,87           4,60           6,24

Inventory Turnover          (Times)           5,46           3,53           4,50

Current Indebtedness        (Times)           0,13           0,19           0,16

Total Indebtedness          (Times)           0,27           0,37           0,32

Solvency                    (Times)           4,70           3,72           4,21

Assets Tying Up             (  %  )          80,08          67,64          73,86

Profitability Over Sales    (  %  )          43,85          52,12          47,99

Profitability Over Assets   (  %  )          33,18          43,07          38,13

Profitability Over Net Worth(  %  )          72,83         143,49         108,16

 


BANKS

 

Subject operates with the following banks:

 

-  Banco de Chile

-  Banco de Credito e Inversiones

 

 

OPERATIONS

 

Line of Business : Copper mining company. Development, construction and start-up

                   of Collahuasi mining project. Working of three fields UJINA,

                   ROSARIO (copper minerals)  and HUINQUITIPA (copper oxides).

 

                   Certification ISO 14001, 9001 OHSAS

 

Classification according to commercial activity:

 

Sic: 1021-0000 Copper ores

 

Subject is considered as a large company in this line of business, normal

competition

 

Sales

 

Sales are steady throughout the year

 

National and international sales territory

 

Products are sold

 

National: 40%.

 

Sales conditions: Cash and term payments to 30 & 60 days.

 

International: 60%.

 

Sales conditions: Letter of credit.

 

Exports to Germany, China, South Korea, Philippines, Netherlands, India, Italy,

Japan, Peru, Taiwan, Thailand and United States

 

of Exports obtained from Customs'National Service

 

Country                            %last year   %Accum.

-------------------------------------------------------

Japan                                   38,96     48,38

China                                   30,90     31,81

India                                   20,60     15,89

Germany                                  3,06      0,00

Philippines                              2,77      0,00

South Korea                              1,79      2,52

Taiwan                                   1,02      0,57

United States                            0,27      0,78

Netherlands                              0,27      0,00

Italy                                    0,21      0,00

Thailand                                 0,14      0,00

Peru                                     0,02      0,01

 

Historical registries

 

Total       2011 = 000's$ 820.767.646         Accumulated 2012 = 000's$ 349.199.595

Total       2010 = 000's$ 1.075.795.759

Total       2009 = 000's$ 845.171.152

Total       2007 = 000's$ 1.180.288.356

Total       2006 = 000's$ 1.163.228.239

Total       2005 = 000's$ 528.110.851

Total       2004 = 000's$ 589.885.972

Total       2003 = 000's$ 291.843.680

 

Purchases

 

Places orders with multiple suppliers

 

National: 80%

 

Purchase conditions: Cash and term payments to 30 & 60 days.

 

International: 20%

 

Purchase conditions: Direct collection.

 

Imports from Germany, Austria, Brazil, Chile, Philippines, Honduras, India,

Peru, United States and Ukraine.

 

of Imports obtained from Customs'National Service

 

Country                            %last year   %Accum.

-------------------------------------------------------

Peru                                    48,42      0,00

Philippines                             31,75      0,00

Honduras                                15,11      0,00

Austria                                  2,18      0,00

Ukraine                                  1,95      0,00

United States                            0,27      0,00

Brazil                                   0,18     70,38

Chile                                    0,07      1,85

Germany                                  0,06     27,76

India                                    0,01      0,00

 


Historical registries

 

Total       2011 = 000's$ 4.657.806      Accumulated 2012 = 000's$ 61.315

Total       2010 = 000's$ 2.800.337

Total       2009 = 000's$ 665.106

Total       2007 = 000's$ 1.684.563

Total       2006 = 000's$ 0

Total       2004 = 000's$ 2.833.911

Total       2003 = 000's$ 1.344.097

 

Main suppliers

- A.S. Chile Energy Group S.A.

- ABB S.A.

- Aceros Chile S.A.

- Bucyrus International (Chile) Ltda.

- Cooperativa de Dueņos de Camiones de Iquique Caliche Ltda.

- Edyce S.A.

- Elementos Industriales y Tecnologicos Limitada

- Esinel Ingenieros Limitada

- Finning Chile S.A.

- GasAtacama Generacion S.A.

- Industria de Plasticos Andes Drip Ltda.

- Industria Metalurgica Inamar Limitada

- Ingenieria y Construccion Sigdo Koppers S.A.

- Komatsu Chile S.A.

- Reliper Comercial Ltda.

- Sociedad G.N.L. Mejillones S.A.

- Thyssen Krupp Ingenieria Chile Ltda.

 

Employees: 2.605 employees

 

Location

 

-  Administrative offices at Av. Andrés Bello 2687 Piso 11 Las Condes Santiago,

   Chile, commercial area, main avenue of normal traffic, construction in good

   conditions

 

Branches

 

-  Commercial office at Av. Baquedano 902 Iquique Chile

 

-  Commercial office in Pica and Port in Punta Patache, Iquique.-

 

 

RELATED COMPANIES

 

Subject does not have any related company.

 


FIXED ASSETS

 

Real estates

 

Subject registers real estates

 

-  Sites, LT A 2 pampa Coposa P I2 6595 Pica-Chile, Fiscal value of 000's$

   6.115.606.-, rol Nš 800-9

-  Premises, Avda. Andrés Bello 2687, Oficina 1102 Las Condes Santiago-Chile,

   Fiscal value of 000's$ 284.190.-, rol Nš 269-20

-  Industry, Punta Patache LT A I2 6102 CR Iquique-Chile, Fiscal value of 000's$

   4.726.782.-, rol Nš 2460-10

-  Home, LT A 1 pampa Coposa P I2 6595 Pica-Chile, Fiscal value of 000's$

   3.890.649.-, rol Nš 800-10

-  Sites, LT A 1 Rosario Huinquintipa Pica-Chile, Fiscal value of 000's$

   653.486.-, rol Nš 800-17

-  Premises, Avda. Andrés Bello 2687, Oficina 1101 Las Condes Santiago-Chile,

   Fiscal value of 000's$ 239.151.-, rol Nš 269-19

-  Parking lot, Av. Andrés Bello 2687 Box 1057 Las Condes Santiago-Chile, Fiscal

   value of 000's$ 2.874.450.-, rol Nš 269-137

-  Sites, Sector Norte Patache P I2 6593 Iquique-Chile, Fiscal value of 000's$

   620.251.-, rol Nš 2460-1

-  Sites, LT A 1 Ujina P del Inca P 6594 Pica-Chile, Fiscal value of 000's$

   933.029.-, rol Nš 800-19

-  Sites, Sector norte I2 6222 Iquique-Chile, Fiscal value of 000's$ 990.671.-,

   rol Nš 2460-6

-  Industry, LT A 1 Sector Ujiba P I2 6596 Pica-Chile, Fiscal value of 000's$

   2.255.512.-, rol Nš 800-12

-  Parking lot, Av. Andrés Bello 2687 Box 1056 Las Condes Santiago-Chile, Fiscal

   value of 000's$ 2.874.-, rol Nš 269-136

-  Shops and warehouses, Av. Andrés Bello 2687 Bodega 307 Las Condes

   Santiago-Chile, Fiscal value of 000's$ 6.492.-, rol Nš 269-70

-  Shops and warehouses, Av. Andrés Bello 2687 Of. 1103 Las Condes

   Santiago-Chile, Fiscal value of 000's$ 284.190.-, rol Nš 269-21

-  Parking lot, Av. Andrés Bello 2687 Box 1058 S 106 Las Condes Santiago-Chile,

   Fiscal value of 000's$ 17.223.-, rol Nš 269-138

-  Av. Andrés Bello 2687 Piso 11 Las Condes Santiago-Chile, Fiscal value of

   000's$ 239.151.-, rol Nš 269-22

 

Total fiscal appraisal:  $ 24.558.899.977.-

 

Vehicles

 

Owns vehicles for the company's use

 

Vans ,  cars  and 42 trucks Komatsu, load capacity 240 tons.(model 380).

 

Machinery & Instalations

 

Own equipment

 

-  Front loaders , 5 bulldozers D-375  Komatsu , 4 drillers M M , 2 mills ,

  crushing machines , plants  and concentrators other necessary elements

 

INSURANCES

Insurance covering interests are undersigned

 

 

ADMINISTRATION

 

Executive President      : Roberto Darouiche

Executive President      : Miguel Angel Durán

Finance Vice President   : Michael Farrelly

and Sales

Administration           : John Coldham

Vicepresident & Services

Legal and Public         : Juan Carlos Palma Irarrázabal

Affains Vice President

Operation Vice           : Fernando Saavedra

President & Mine

Human Resources          : Fernando Hernández

Vicepresident

Vice President of Plant  : Ana Salazar

Corporate Affairs Vice   : Bernardits Fernández

President

Operation Vice           : Alejandro Fernández

President & Mine

 

CURRICULUM

Juan Carlos Palma Irarrázabal

 

Titled as           : Attorney.

Position            : Legal and Public Affains Vice President

 

 

LEGAL INFORMATION

 

Legal Structure      : Contractual Mining Company

Constitution date    : 11/04/1983. Registered under business name "CIA. MINERA

                        DOŅA INES DE COLLAHUASI LTDA."

Notary               : Andrés Rubio Flores, Santiago

Term of duration     : Indefinite

Legal Address        : Santiago - Chile

Published in         : Official Gazette dated 27/04/1983 page Nš 18

 

Current Social Capital: 000's$ 112.017.465.-Divided to 45.134.160.- registered

                        shares unique series

 

Partner : 3

 

-  44,00% Cias. Subsidiarias de Xstrata PLC

-  44,00% Cias. Subsidiarias de Anglo American PLC (Luxembourg)

-  12,00% Consorcio Japones Liderado por Mitsui & Co. Ltd.

 

Power of attorney held by Executive President.

 

Legal changes

 

Public Deed dated 08/07/1983, notary Víctor Bianchi Pacheco, suplente de Andrés

Rubio Flores, Santiago, published in the Official Gazette dated 25/07/1983 page

N° 9, corporate name was modified: CIA. MINERA DOŅA INES DE COLLAHUASI LTDA. was

modified into a private stock company, under business name COMPAŅIA MINERA DOŅA

INES DE COLLAHUASI S.A.

 

Public Deed dated 27/09/1994, notary Martín Vásquez Cordero, Santiago, published

in the Official Gazette dated 05/10/1994 page N° 12, statutes were modified: it

was agreed to divide subject into 2 companies: one is the continuer, keeping

same business name (subject) and a new one called FALCONBRIDGE COLLAHUASI S.A. 

Consequently, subject reduced its capital from US$6.493.285,56 to

US$3.994.218,58.  The difference of US$2.499.066,98 is for the recently

established company. At the same time, a new text of social statutes was stated,

increasing capital to US$11.028.885,03 divided into 72.000.000 no par value

shares.

 

Public Deed dated 08/06/1995, notary Andrés Rubio Flores, Santiago, published in

the Official Gazette dated 24/06/1995 page N° 8, capital was increased: It was

not considered the capital increase made from US$6.493.285,47 divided into

32.580.000 no par value shares, to US$11.028.885,03 divided into 72.000.000 no

par value shares.

 

At the same time, capital was increased from US$6.493.285,47 divided into

32.580.000 no par value shares, to US$200.262.677,56 divided into 43.440.000

registered no par value shares.

 

Public Deed dated 30/04/1996, notary Andrés Rubio Flores, Santiago, published in

the Official Gazette dated 13/05/1996 page N° 8, corporate structure was

modified: from private stock company to a MINING CONTRACT PARTNERSHIP (S.C.M.) 

Also, capital was increased from US$200.262.677 divided into 43.440.000 shares

to US$232.502.677,56 divided into 45.134.160 shares, by issuing 1.694.160

shares.

(Rectified in Official Gazette Jun 12, 1996, page 13)

 

Capital US$232.502.677,56  x $481,79 (exchange rate as at Aug. 16, 2012) =

$112.017.465.021.-

 

PUBLICATIONS

Information regarding subject is supplied as follows

 

NOTA ESPECIAL.- of 25/11/2010 SPECIAL NOTE:

 

The commercial activity of COLLAHUASI mine started in 1980  with the

exploitation of high fineness of copper-silver veins.

 

In 1991, a combination of surveys based on satellite images, air

photogrammetric mappings and drilling activities of exploration resulted in the

discovery of UJINA field.

 

Feasibility and environmental impact surveys of COLLAHUASI Project were

approved in 1995.

 

At the end of 1996, after subscription of agreements of financing and

commercialization, the development & construction stage started.

 

**Japanese Association headed by Mitsui & Co. Ltd. that joins the companies

Nippon Mining & Metals Co. Ltd. and Mitsui & Smelting Co. Ltd.

 

Falconbridge is a leading international producer of low-cost nickel, copper,

cobalt and platinum group metals. It is also one of the world's largest

recyclers and processors of metal-bearing materials.

 

Anglo American is an international mining and natural resources group

operating businesses in gold, platinum, diamonds, base and ferrous metals, coal,

industrial minerals. In Chile the Anglo American Group is the controlling

shareholder of Empresa Minera de Mantos Blancos S.A. and Compaņía Minera

Disputada de las Condes S.A. -

 

Economía y Negocios El Mercurio Cuerpo B Pag 3 of 27/10/2011 Collahuasi to

invest US$500 million to extract seawater

 

The project aims to meet the increase in water needs of the deposit after

its expansion.

 

1.500 liters of water per second from the sea to the mountains, almost at

5.000 meters over sea level, is the goal of mining company Doņa Ines de

Collahuasi for the expansion of its industrial processes related to copper

extraction in northern district Pica.

 

The project requires an investment of US$500 million and will be operating in

2017.

 

The executive president of the copper company, Giancarlo Bruno, said that the

prospects of the industry and the viability of the business allow to take such a

significant investmen decision. Currently the mine needs 1.070 liters of water

to operate, which is obtained from water wells.

 

The project is in the prefeasibility stage. Then it will continue to the

permit obtention and detail engineering stages. "This project shows the

company's commitment with the responsible use of water" Bruno added. He also

explained that the seawater would not replace the water being currently used,

and the new ressources would complement the current ones, because the needs of

the mine increased as a result of the expansion.

 

Collahuasi is the world's fourth biggest copper mine, with shareholders such

as Anglo American, XStrata Copper and Mitsui. It is located 185 km. southeast

from Iquique and 4.400 mt. over sealevel. Last year it produced 465.000 tons of

copper concentrate, 38.000 copper cathodes and 4.476 tons of molybdenum. This

production could be doubled with the expansion of the so called phase III, which

will be operating in 2017. -

 

INFORMATION SOURCES

On 14/08/2012 Miss. Marta Yáņez, General Manager Assistant,  submitted the data

shown in this report,  outside sources provided financial figures.

 

-Other outside information sources.

 

Exchange rate

 

-As at 17/08/2012 $483,67 Per US$

-As at 31/12/2011 $521,46 Per US$

-As at 31/12/2010 $468,01 Per US$

-As at 31/12/2009 $468,01 Per US$


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.70

UK Pound

1

Rs.84.51

Euro

1

Rs.68.16

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.