The publication of this strategy statement is regarded as satisfying the statutory obligation under Para 16(2), Schedule 19, Finance Act 2016.
This strategy applies to all Antofagasta Plc’s entities (collectively the “Antofagasta Group") for the year ending 31 December 2023.
The Antofagasta Group is a Chilean copper mining group with significant by-product production and interests in transport. The Antofagasta Group creates value for its stakeholders through the discovery, development and operation of copper mining assets. The Antofagasta Group is committed to generating value in a safe and sustainable way throughout the commodity cycle.
Antofagasta Plc (“we” or the “Company”) is committed to comply with the tax laws and practices in all the territories in which we operate, including the UK. Compliance for the Antofagasta 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.
Our governance arrangements
We oversee our tax affairs at all management levels, including the Board of Directors. Tax matters are managed and reported, when applicable, at every Board Meeting. Additionally, these matters are discussed and managed on a daily basis by the Head of Tax, and brought to the attention of the Audit Committee and Board of Directors where appropriate.
Our attitude toward tax planning
In structuring the Antofagasta Group’s commercial activities, we will consider – among other factors – the tax laws of the countries within which we operate with a view to maximizing value on a sustainable basis for our shareholders. Any tax planning undertaken will have commercial and economic substance and will have regard to the potential impact on our reputation and broader goals. Antofagasta Group will not undertake planning that is contrived or artificial.
We conduct transactions between Antofagasta Group companies on an arm’s length basis.
Our level of tax risk accepted
Given the scale of our business globally and the large number of tax obligations that apply to us, risks will inevitably arise from time to time in relation to the interpretation of tax laws and the nature of our compliance arrangements. Antofagasta Group proactively seeks to identify, evaluate, manage and monitor these risks to ensure they remain in line with the Company’s low risk appetite. Where there is significant uncertainty or complexity in relation to a risk, external advice may be sought.
Our approach to dealing with tax authorities
We engage with tax authorities, including HMRC, with honesty, integrity, respect and fairness and in a spirit of cooperative compliance. Antofagasta Group is prepared to litigate where we disagree with a ruling or decision of a tax authority but will first seek to resolve any disputed matters through pro‐active and transparent discussion and negotiation.
Antofagasta Group’s aim is to have professional and constructive relationships and maintain transparent disclosure in our relationships with tax authorities, recognizing that early resolution of risks is in the best interests of the Company and such tax authorities.
Antofagasta Group makes its tax returns as clear as possible and we try to raise important issues proactively so that tax authorities can focus their resources effectively. From time to time, if it is unclear how a tax law should be applied, we may engage with tax authorities in advance of undertaking transactions to confirm the correct application of such tax law.
Approved by the Board of Directors.