Esperanza is a copper-gold sulphide deposit located in Chile’s Antofagasta Region approximately five kilometres south of the Group’s El Tesoro mine. It produces copper concentrate containing gold and silver by-product credits through a conventional milling and flotation process, with plant capacity of approximately 97,000 tonnes per day of ore throughput. The Esperanza deposit includes an oxide resource that is part of the overburden removed through pre-stripping and which, as explained in the El Tesoro section below, is processed by El Tesoro through both their main heap-leach operation and also a specific Run-of-Mine (“ROM”) leaching operation.

Over its first 10 years of operations Esperanza is expected to produce on average approximately 190,000 tonnes of payable copper in concentrate and 230,000 ounces of payable gold annually. The operation utilises innovative technology to minimise its environmental impact and to optimise efficiency.

Construction was substantially completed by the final quarter of 2010. Commissioning of the plant commenced in late November 2010, and the first shipment of copper concentrate took place on 27 January 2011.

The initial forecast for 2011 production is for approximately 159,000 tonnes of payable copper, reflecting an average ore grade of 0.59%, and 286,000 ounces of gold, based on an average grade of 0.37 grammes per tonne. The forecast is based on the assumption that full design capacity is reached at the start of the second quarter and final production levels for the full year will depend on the precise timing of the completion of the ramp-up. The current expectation is that processing at the full design capacity of 97,000 tonnes per day should be achieved during the second quarter of 2011.

Including some final costs expected in the early part of 2011, the total capital cost of the development is expected to be US$2.6 billion (including financing costs).