CODELCO: CORPORACION NACIONAL DEL COBRE DE CHILE 2019-11-20 T-16:28

Corporación Nacional del Cobre de Chile

Casa Matriz
Huérfanos 1270

Santiago
CODELCO Región Metropolitana, Santiago

www.codelco.com

PE – 199/2019
Santiago, 20 de noviembre de 2019

Señor

Joaquín Cortez Huerta

Presidente

Comisión para el Mercado Fijnanciero

Santiago

Ref.: HECHO ESENCIAL. Codelco Chile,
Inscripción Registro de Valores N* 785.

De nuestra consideración:

De conformidad a lo establecido en la Ley N*18.045 y en la Norma de Carácter General N*30 y
Circular N* 1072 de esa Comisión, adjunto acompaño “Formulario Hecho Esencial. Colocación
de Bonos en el Extranjero”, el cual complementa nuestras notas PE 171/2019 y PE 172/2019 de

fechas 23 y 24 de septiembre de 2019, respectivamente.

Saluda atentamente a Ud.,

FORMULARIO HECHO ESENCIAL

COLOCACIÓN DE BONOS EN EL EXTRANJERO

1.0 IDENTIFICACIÓN DEL EMISOR

1.1 Razón Sociai Corporación Nacional del Cobre de Chile

1.2 Nombre fantasía CODELCO-CHILE

1.3 RUT. 61.704.000-K

1.4 N* Inscripción Reg. Valores 785

15 Dirección Huérfanos 1270, Comuna de Santiago, Santiago
16 Teléfono 2 690 3221

1.7 Actividades y negocios Ver Anexo 1.

2.0 ESTA COMUNICACIÓN SE HACE EN VIRTUD DE LO ESTABLECIDO EN EL ARTÍCULO 9* E
INCISO SEGUNDO DEL ARTICULO 10? DE LA LEY N* 18.045, Y SE TRATA DE UN HECHO
ESENCIAL RESPECTO DE LA SOCIEDAD, SUS NEGOCIOS, SUS VALORES DE OFERTA
PUBLICA Y/O DE LA OFERTA DE ELLOS, SEGUN CORRESPONDA.

3.0 CARACTERÍSTICAS EMISIÓN

3.1 Moneda de denominación | Dólares de Hong Kong (HKD). ]
–

3.2 Moneda tota! emisión [HKD 500.000.000 ]

3.3 Portador / a la orden Bonos registrados en Clearstream Banking, societé

anonyme y Euroclear Bank S.A./N.V.

3.4 Series Bonos 2034

3.4.1 Monto de la serie HKD 500.000.000

3.4.2 N* de bonos Ver 3,4.3

3.4.3 Valor nominal bono HKD 1.000.000 mínimo. En caso de sumas superiores,

serán por múltiplos de HKD 1.000,000.

3,4.4 Tipo reajuste N/A
3.4.5 Tasa de interés 2,840%
3.4.6 Fecha de emisión 07 de Noviembre de 2019

3.4.7 Para cada serie llenar la siguiente tabla de desarrollo:

COMISIÓN PARA EL. MERCADO FINANCIERO

=>
COMISIÓN PARA EL
MERCADO FINANCIERO

CHILE

Bonos 2034:

El capital de los bonos será pagadero en su integridad a su vencimiento, el día 07 de
noviembre de 2034.

Los bonos devengarán un interés de 2,840% anual, base de un año de 365 días (Act/365),
el cual será pagadero en 15 cuotas anuales los días 07 de noviembre de cada año, a partir
del 07 de noviembre de 2020.

N* Cuota | N* Cuota Fecha Intereses Amortización Total Cuota | Saldo Capital
Interés | Amortiz.
1 . Nov 07-2020 –
2 – Nov 07-2021 –
3 – Nov 07-2022 –
4 – Nov 07-2023 –
5 – Nov 07-2024 –
6 – Nov 07-2025 a
7 – Nov 07-2026 –
8 – Nov 07-2027 –
9 – Nov 07-2028
10 – Nov 07-2029 “e
41 – Nov 07-2030 –
12 – Nov 07-2031 –
13 – Nov 07-2032 –
14 – Nov 07-2033 –
15 “ Nov 07-2034 HKD 500.000.000
35 Garantias
3.5.1 Tipo y montos de las garantías
No aplica.
3.6 Amortización Extraordinaria: [—]
3.6.1 Procedimientos y fechas:
No aplica.
49 OFERTA:
5.0 PAÍS DE COLOCACIÓN
5.1 Nombre Bonos vendidos a los Compradores Iniciales (“fnitial
Purchasers”) domiciliados en los Estados Unidos de América.
5.2 Normas para obtener autorización de transar
Regulation S de ta US Securities
Act de 1933 de los Estados Unidos
de América.
6.0 INFORMACIÓN QUE PROPORCIONARÁ

COMISIÓN PARA EL MERCADO FINANCIERO
2
COMISIÓN PARA EL
MERCADO FINANCIERO

CHILE
6.1 A futuros tenedores de bonos
Prospecto informativo (“Base Prospectus”) de fecha 04 de noviembre de 2019.
Ver Anexo 2.
6.2 A futuros representantes de tenedores de bonos
Mismo documento mencionado en el punto 6.1 precedente.
7.0 CONTRATO DE EMISION

71 Caracteristicas generales

Contrato de Suscripción (“Subscription
Agreement) celebrado el dia 04 de
noviembre de 2019 entre (A) CODELCO
CHILE, como emisor de los bonos, y (B)
HSBC Securities (USA) Inc. como
Comprador Inicial (“!nitial Purchaser”). Ver
Anexo 3.

El objeto del Subscription Agreement fue la
adquisición, por el Comprador Inicial (“Initial
Purchaser”), de la totalidad de los bonos
emitidos por CODELCO-CHILE, bajo los
términos y condiciones que se expresan en
dicho contrato.

72 Derechos y obligaciones de los tenedores de bonos

Los banos emitidos por CODELCO-CHILE constituyen obligaciones directas,
no garantizadas y na subordinadas de ta compañía emisora. Los tenedores
de bonos pueden declarar exigible anticipadamente la totalidad del capital
más intereses en ciertos casos de incumplimiento por parte de CODELCO-
CHILE.

COMISIÓN PARA EL MERCADO FINANCIERO
3
COMISIÓN PARA EL

MERCADO FINANCIERO
CHILE
8.0 OTROS ANTECEDENTES IMPORTANTES

9.0

Los bonos no han sido registrados en los Estados Unidos de América bajo la U.S.
Securities Act de 1933 y no se ha solicitado el registro de la emisión a ninguna bolsa a
nivel mundial. La emisión constituye una colocación privada con un inversionista en los
términos descritos.

DECLARACIÓN DE RESPONSABILIDAD

El suscrito, en su calidad de Consejero Jurídico Corporativo de la Corporación Nacional
del Cobre de Chile (la “Sociedad”), ambos domiciliados en calle Huérfanos N*1270,
Santiago, a fin de dar debido cumplimiento a lo dispuesto en la Circular N*1072 de la
Superintendencia de Valores y Seguros (hoy CMF), declara y da fe, bajo juramento, en
este acto y bajo su correspondiente responsabilidad legal, respecto de la plena y absoluta
veracidad y autenticidad de toda la información presentada y adjuntada por la Sociedad
a la CMF en el presente “Formulario de Hecho Esencial Colocación de Bonos en el
Extranjero”, con fecha 07 de noviembre de 2019.

NOMBRE CARGO C.N.l. FIRMA

Nicolai Consej S
Darovon. daras. 085. ES E 4

Corporativo

COMISIÓN PARA EL MERCADO FINANCIERO
4

COMISIÓN PARA EL
MERCADO FINANCIERO
CHILE

ANEXO 1

MEMORIA ANUAL

https: //www.codelco.com/memoria2018/

COMISIÓN PARA EL MERCADO FINANCIERO
5
COMISIÓN PARA EL
MERCADO FINANCIERO
CHILE

ANEXO 2

BASE PROSPECTUS

COMISIÓN PARA EL MERCADO FINANCIERO
6
Base Prospectus
November 4, 2019

CODELCO

Corporación Nacional del Cobre de Chile

Corporación Nacional del Cobre de Chile (“CODELCO”) may from time to time issue senior unsecured notes (the “notes”)
pursuant to the Regulation S note program described herein (the “Program”) denominated in currencies or currency units as
may be set forth in the final terms relating to such notes (the “Final Terms”) to this base prospectus (the “prospectus”).

The notes will constitute direct, general, unconditional, unsecured and unsubordinated obligations of CODELCO. The notes
rank and will rank without any preference among themselves and equally with all other unsubordinated and unsecured
obligations of CODELCO, other than certain obligations granted preferential treatment pursuant to Chilean law. It is
understood that this provision will not be construed so as to require CODELCO to make payments under the notes ratably
with payments being made under any other obligations. See “Description of Notes—Ranking.”

Unless otherwise specified in the applicable Final Terms, we may redeem certain notes at our option, in whole or in part, at
any time and from time to time prior to the date stated in the applicable Final Terms, at a redemption price equal to the
greater of 100% of the outstanding principal amount of the notes to be redeemed and a redemption price based on a “make
whole” premium, plus accrued and unpaid interest to the date of redemption. Upon the occurrence of specified events relating
to Chilean tax law, we may redeem the notes in whole, but not in part, at 100% of their principal amount, plus accrued and
unpaid interest to the date of redemption. See “Description of Notes—Redemption—Tax Redemption” and “—Optional
Redemption.”

The notes may have a maturity of at least one year and no more than 30 years from the date of issue.
We may list certain notes issued under the Program on a securities exchange.

Notice of the aggregate nominal amount of notes, interest (if any) payable in respect of notes, the issue price of notes and any
other terms and conditions contemplated herein which are applicable to a particular issuance of notes will be set out in the
relevant Final Terms relating to such notes.

See “Risk Factors” beginning on page 16 for a discussion of certain risks that you should consider in connection with
an investment in the notes.

Neither the U.S. Securities and Exchange Commission (the “SEC”) nor any other regulatory body has approved or
disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the
contrary is a criminal offense.

The notes have not been registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or any
state securities laws, and are being offered and sold only to persons outside the United States under Regulation S under the
Securities Act. For a description of certain restrictions on the transfer of the notes, see “Transfer Restrictions” and “Plan of
Distribution.”

The notes are being offered pursuant to an exemption from the requirement to publish a prospectus under Regulation (EU)
2017/1129 (as amended and supplemented from time to time, the “Prospectus Regulation”), of the European Union, and this
prospectus has not been approved by a competent authority within the meaning of the Prospectus Regulation. The notes are
not intended to be offered, sold, or otherwise made available to and should not be offered, sold, or otherwise made available
to any retail investor in the European Economic Area.

Each initial and subsequent purchaser of the notes offered hereby in making its purchase will be deemed to have made certain
acknowledgements, representations and agreements intended to restrict the resale or other transfer of such notes and may in
certain circumstances be required to provide confirmation of compliance with such resale or other transfer restrictions below
and as set forth in “Transfer Restrictions.”

The date of this prospectus is November 4, 2019.
We have not, and the deal manager has not, authorized anyone to provide any information other
than that contained in this prospectus. We and the deal manager take no responsibility for, and can provide
no assurance as to the reliability of, any other information that others may give you. We are not, and the deal
manager is not, making an offer of these securities in any jurisdiction where the offer is not permitted.
Prospective investors should not assume that the information contained in this prospectus is accurate as of
any date other than the date on the front of this prospectus.

After having made all reasonable inquiries, we confirm that (1) the information contained in this prospectus
is true and accurate in all material respects, (ii) the opinions and intentions expressed herein are honestly held and
(iii) there are no other facts the omission of which would make this prospectus as a whole, or any of such
information or the expression of any such opinions or intentions, misleading. CODELCO accepts responsibility
accordingly.

Unless otherwise indicated or the context otherwise requires, all references in this prospectus to the

»<, »< »”< »< “Company,” “we,” “our,” “ours,” “us” or similar terms refer to CODELCO and its subsidiaries. TABLE OF CONTENTS
Page
Note Regarding Forward-Looking Statements … iv

Enforceability of Civil Liabilities….
Presentation of Financial and Statistical Information
Available Information..
Summary
Summary Consolidated Financial Data .
Risk Factors …….
Use of Proceeds.
Exchange Rates .ocociinicinicnnnnnnnnncnoncnos
Selected Consolidated Financial Data
Selected Operating Data…
Management’s Discussion and Analysis of Financial Condition and Results of Operations ..
Business and Properties…………….
Overview of The Copper Market.
Regulatory Framework
Management
Related Party TransactiOdS ..ooocicnninnnnninnnnnnnininincnannno
Foreign Investment and Exchange Controls in Chile
Description of Notes
Taxation… 0.

Plan of Distribution .
Transfer RestrictiOnsS…………….o…
Glossary of Certain Mining Term:
General Information
Index to Financial Statements …ooccocioninninnnnnnnonncnncnonnonnnconnoarcnn cnn nnn cnn cnrnncnn carrer nan nonen con rne narrar nornorar carnero cnn ran narrar narernarnens F-1

The notes may not be offered or sold, directly or indirectly, in the Republic of Chile (“Chile”) or to any
resident of Chile, except as permitted by applicable Chilean law.

This prospectus has been prepared by CODELCO solely for use in connection with the proposed offering
of the securities described herein. This prospectus is personal to each offeree and does not constitute an offer to any
other person or to the public generally to subscribe for, or otherwise acquire, securities. We and the deal manager
reserve the right to reject for any reason any offer to purchase any of the notes.
This prospectus should be read and understood in conjunction with any supplement hereto. Full
information on the Company and any notes issued under the Program is only available on the basis of the
combination of this prospectus (including any supplement) and the relevant Final Terms.

The deal manager makes no representation or warranty, express or implied, as to the accuracy or
completeness of the information contained in this prospectus. Nothing contained in this prospectus is, or shall be
relied upon as, a promise or representation by the deal manager as to the past or future. CODELCO has furnished
the information contained in this prospectus.

In making an investment decision, prospective investors must rely on their own examination of CODELCO
and the terms of the offering, including the merits and risks involved. Prospective investors should not construe
anything in this prospectus as legal, business or tax advice. Each prospective investor should consult its own
advisors as needed to make its investment decision and to determine whether it is legally permitted to purchase the
securities under applicable legal investment or similar laws or regulations. Investors should be aware that they may
be required to bear the financial risks of this investment for an indefinite period of time.

This prospectus contains summaries believed to be accurate with respect to certain documents, but
reference is made to the actual documents for complete information. All such summaries are qualified in their
entirety by such reference. Copies of documents referred to herein will be made available to prospective investors
(1) upon request to CODELCO or the deal manager and (ii) at the office of the paying agent.

IN CONNECTION WITH OFFERINGS IN THE PROGRAM, THE DEALER MANAGER OR
ANY PERSON ACTING ON ITS BEHALF, MAY OVER-ALLOT OR EFFECT TRANSACTIONS WITH A
VIEW TO SUPPORTING THE MARKET PRICE OF THE NOTES AT A LEVEL HIGHER THAN THAT
WHICH MIGHT OTHERWISE PREVAIL FOR A LIMITED PERIOD AFTER THE ISSUE DATE.
HOWEVER, THERE IS NO OBLIGATION FOR THE DEALER MANAGER OR ANY PERSON ACTING
ON ITS BEHALF, TO DO THIS. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED
AT ANY TIME, AND MUST BE BROUGHT TO AN END AFTER A LIMITED PERIOD.

You must: (i) comply with all applicable laws and regulations in force in any jurisdiction in connection
with the possession or distribution of this prospectus and the purchase, offer or sale of the notes; and (ii) obtain any
consent, approval or permission required to be obtained by you for the purchase, offer or sale by you of the notes
under the laws and regulations applicable to you in force in any jurisdiction to which you are subject or in which you
make such purchases, offers or sales; neither we nor the deal manager shall have any responsibility therefor.

The notes are subject to restrictions on resale and transfer as described under “Transfer Restrictions.” By
purchasing the notes, you will be deemed to have made certain acknowledgments, representations and agreements as
described under “Transfer Restrictions.” You may be required to bear the financial risks of investing in the notes for
an indefinite period of time.

The price and amount of the notes to be issued under the prospectus will be determined by CODELCO and
the deal manager at the time of issue in accordance with prevailing market conditions.

You acknowledge that:
e you have been afforded an opportunity to request from us, and to review, all additional information
considered by you to be necessary to verify the accuracy of, or to supplement, the information

contained in this prospectus;

*e you have not relied on the deal manager or any person affiliated with the deal manager in connection
with your investigation of the accuracy of such information or your investment decision;

e you have made your own assessment concerning the relevant tax, legal, currency and other
considerations relevant to investment in the notes;

ii
e you have sufficient knowledge and experience to be capable of evaluating the merits and risks of a
prospective investment in the notes; and

*e noperson has been authorized to give any information or to make any representation concerning us or
the notes, other than as contained in this prospectus and, if given or made, any such other information
or representation should not be relied upon as having been authorized by us or the deal manager.

This prospectus is only being distributed to and is only directed at: (i) persons who are outside the United
Kingdom (the “UK”; (ii) investment professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (iii) high net worth entities, and other persons
to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons
together being referred to as “relevant persons”). Any notes will only be available to, and any invitation, offer or
agreement to subscribe, purchase or otherwise acquire such notes will be engaged in only with, relevant persons.
Any person who is not a relevant person should not act or rely on this prospectus or any of its contents.

The notes are not intended to be offered, sold or otherwise made available to and should not be offered,
sold or otherwise made available to any retail investor in the European Economic Area (“EEA”). For these purposes,
a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of
MiFID Il; (ii) a customer within the meaning of Directive (EU) 2016/97 (as amended, the “Insurance Mediation
Directive”), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of
MiFID Il; or (iii) not a qualified investor as defined in the Prospectus Regulation. No key information document
required by Regulation (EU) No 1286/2014 (as amended, the “PRIIPs Regulation”) for offering or selling packaged
retail and insurance based investment products or otherwise making them available to retail investors in the EEA has
been prepared and therefore offering or selling the notes or otherwise making them available to any retail investor in
the EEA may be unlawful under the PRIIPs Regulation.

See “Risk Factors” beginning on page 16 for a description of certain risks you should consider before
investing in the notes.

di
NOTE REGARDING FORWARD-LOOKING STATEMENTS

This prospectus contains forward-looking statements. We may from time to time make forward-looking
statements in (i) our annual report; (ii) prospectuses, press releases and other written materials; or (iii) oral
statements made by our officers, directors or employees to analysts, institutional investors, representatives of the
media and others. Examples of these forward-looking statements include:

*. projections of revenues, profit (loss), capital expenditures, dividends, capital structure or other
financial items or ratios;

e statements of our plans, objectives or goals, including those relating to anticipated trends, competition,
regulation and rates;

e statements about our future economic performance or that of Chile or other countries in which we
have investments; and

+. statements of assumptions underlying these statements.

” ” « ” o ” < » cs Words such as “believe,” “could,” “may,” “will” “anticipate,” “plan,” “expect,” “intend,” “target,”
“estimate,” “project,” “potential,” “guideline,” “should” and similar expressions are intended to identify
forward-looking statements, but are not the exclusive means of identifying these statements.

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of
important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates
and intentions expressed in these forward-looking statements. These factors, some of which are discussed under
“Risk Factors,” include economic and political conditions and government policies in Chile or elsewhere, inflation
rates, exchange rates, regulatory developments and changes in Chilean law, customer demand, competition,
unanticipated mining and production problems, commodity prices, relations with employees and contractors,
variances in ore grade, adverse weather conditions and natural disasters. We caution you that the foregoing list of
factors is not exclusive and that other risks and uncertainties may cause actual results to differ materially from those
in forward-looking statements.

You are cautioned not to place undue reliance on these forward-looking statements which reflect our views
only as of the date they are made, and we do not undertake any obligation to update them or publicly to release the
result of any revisions to these forward-looking statements in light of new information or future developments after
the date of this prospectus.

iv
ENFORCEABILITY OF CIVIL LIABILITIES

CODELCO is a state-owned enterprise organized under the laws of Chile. All of its directors and
executive officers and certain experts named in this prospectus reside outside the United States (principally in
Chile), and all or a substantial portion of the assets of CODELCO and of such persons are located outside the United
States. As a result, it may not be possible for investors to effect service of process within the United States on, or
bring actions or enforce foreign judgments against, CODELCO or such persons in U.S. courts. In addition,
CODELCO has been advised by its Chilean counsel, Carey y Cía. Ltda., that no treaty exists between the United
States and Chile for the reciprocal enforcement of foreign judgments. There is also doubt as to the enforceability in
Chilean courts of judgments of U.S. courts obtained in actions predicated upon the civil liability provisions of U.S.
federal securities laws. Chilean courts, however, have enforced judgments rendered in the United States by virtue of
the legal principles of reciprocity and comity, subject to the review in Chile of the U.S. judgment in order to
ascertain whether certain basic principles of due process and public policy have been respected, without reviewing
the merits of the subject matter of the case. Lastly, CODELCO has been advised by Carey y Cía. Ltda. that there is
doubt as to the enforceability in original actions in Chilean courts of liabilities predicated solely upon U.S. federal
securities laws.

The notes, the indenture and the subscription agreement will provide that CODELCO will appoint an agent
with offices in New York City as its agent upon whom process may be served in any action arising out of or based
upon, respectively, the notes, the indenture, the subscription agreement or the transactions contemplated thereby,
which may be instituted in any federal or state court having “subject matter” jurisdiction. See “Description of
Notes.”

Pursuant to the Chilean Mining Code, mining concessions as well as certain raw materials and other
property or assets permanently dedicated to the exploration or extraction of minerals cannot be subject to an order of
attachment, except with respect to mortgages, in the case that the debtor consents to the attachment in the same
enforcement proceeding or when the debtor is a stock corporation. In addition, pursuant to the Chilean constitution
(the “Constitution”), mining concessions corresponding to mining deposits exploited by CODELCO upon its
creation in 1976 cannot be subject to attachment nor to any act of disposition by CODELCO. As a result, the rights
of holders to attach property of CODELCO in the event of a default under the notes would be limited by such
provisions. See “Regulatory Framework—Mining Regulations.”
PRESENTATION OF FINANCIAL AND STATISTICAL INFORMATION

In this prospectus, references to “U.S.$,” “$,” “U.S. dollars” and “dollars” are to United States dollars and
references to “cents” are to United States cents (U.S.$0.01). References to “pesos” or “Ch$” are to Chilean pesos
and references to “UF” are to “Unidades de Fomento.” References to “AUD” are to Australian dollars. The UF is
an inflation-indexed Chilean monetary unit that is linked to, and adjusted daily to reflect changes in, the Chilean
consumer price index during the preceding 30 days. References to “euro” or “€” are to the legal currency of the
European Economic and Monetary Union.

Pursuant to Circular No. 368 (Oficio Circular No. 368) of October 2006, as amended, of the Comisión para
el Mercado Financiero (the Chilean securities authority or “CMF”), since 2010, all companies with publicly traded
securities in Chile have been required to prepare and report consolidated financial statements in accordance with
International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board
(IASB”).

The audited consolidated financial statements as of and for the years ended December 31, 2016 and 2017
and the audited consolidated financial statements as of and for the years ended December 31, 2017 and 2018
included herein are referred to as the “2016-2017 Consolidated Financial Statements” and the “2017-2018
Consolidated Financial Statements,” respectively. The 2016-2017 Consolidated Financial Statements and the
2017-2018 Consolidated Financial Statements (together, the “Audited Annual Consolidated Financial Statements”)
are presented in accordance with IFRS issued by the IASB.

The unaudited interim consolidated financial statements as of June 30, 2019 and for the six-month periods
ended June 30, 2018 and 2019 included herein (the “Unaudited Interim Consolidated Financial Statements”) are
presented in accordance with IAS 34 “Interim Financial Reporting.” The Unaudited Interim Consolidated Financial
Statements and the Audited Annual Consolidated Financial Statements are referred to together as the “Consolidated
Financial Statements.”

The accounting policies adopted in the preparation of the Unaudited Interim Consolidated Financial
Statements are consistent with those applied in the preparation of the 2017-2018 Consolidated Financial Statements,
except for the adoption of the new leases standard IFRS 16 as of January 1, 2019. See “Management’s Discussion
and Analysis of Financial Condition and Results of Operations—New Accounting Standards.”

Unless otherwise indicated, the Consolidated Financial Statements and other financial information
concerning CODELCO included herein are presented in U.S. dollars in conformity with Decree Law 1,350 of 1976,
as amended by Law 20,392 published in the Diario Oficial de la República de Chile (the “Official Gazette”) on
November 14, 2009, and for periods after January, 1, 2009, in accordance with IFRS. Decree Law 1,350 is the
Chilean law pursuant to which CODELCO was created and which provides for its governance.

Because the notes offered hereby have not been and will not be registered with the SEC, this prospectus
does not and is not required to comply with the applicable requirements of the Securities Act, and the related rules
and regulations adopted by the SEC, which would apply if the notes offered hereby were being registered with the
SEC.

The U.S. dollar is the currency used in the primary economic environment in which CODELCO operates.
Nevertheless, as an international company operating primarily in Chile, as well as in several other Latin American
countries, several European countries and China, a portion of CODELCO”s business is transacted in Chilean pesos
and other non-dollar currencies.

The body of generally accepted accounting principles is commonly referred to as “GAAP.” A non-GAAP
financial measure is generally defined by the SEC as one that purports to measure historical or future financial
performance, financial position or cash flows but: (i) excludes amounts, or is subject to adjustments that have the
effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in
accordance with GAAP in the issuer”s statement of income, balance sheet or statement of cash flows (or equivalent
statements); or (ii) includes amounts, or is subject to adjustments that have the effect of including amounts, that are
excluded from the most directly comparable measure so calculated and presented.

vi
In this prospectus, CODELCO discloses several non-GAAP financial measures, including “Adjusted
EBIT,” “Adjusted EBITDA),” “cash cost,” “total costs and expenses” and “financial debt.” Adjusted EBIT is
calculated by adding finance cost, impairment charges and income tax expense to profit (loss) for the period.
Adjusted EBITDA is calculated by adding finance cost, income tax expense, depreciation and amortization of assets
plus export taxes and impairment charges to profit (loss) for the period. Impairment charges includes charges and
reversals of charges of investment projects, research projects and investment in associates and joint ventures. Cash
cost is calculated in accordance with the methodology specified by Brook Hunt 4 Associates for the determination
of Cl cost (cash cost) and includes all direct cash costs of mining, including costs associated with extraction,
leaching, smelting and further processing of copper ores into refined metal, as well as labor, electricity, diesel,
finance costs, third-party services, other costs, transportation and physical plant costs associated with those
processes, net of income from sales of byproducts. Cash cost is presented as a nominal dollar amount, usually
expressed as cents per pound, and excludes provisions, amortization, depreciation and central office costs. Total
costs and expenses is calculated by adding the costs of sales of CODELCO”s own copper plus the finance costs, less
finance income, plus other expenses, excluding expenses corresponding to a special export tax required under Law
No. 13,196 (the “Copper Reserve Law”), less other income by function. Financial debt is calculated as loans from
financial institutions plus bonds issued. Total debt to capitalization includes total financial debt divided by total
financial debt plus total equity.

Adjusted EBIT and Adjusted EBITDA data are included in this prospectus because such data are used by
investors to assess: (i) the operating trends and financial performance of the Company and (ii) the ability of the
Company to (a) service its existing debt, (b) incur new debt and (c) fund its capital expenditures.

CODELCO believes that Adjusted EBIT and Adjusted EBITDA, while providing useful information,
should not be considered in isolation or as a substitute for profit for the period as an indicator of operating
performance or as an alternative to cash flow as a measure of liquidity. Adjusted EBIT and Adjusted EBITDA are
not measures of financial performance in accordance with IFRS. Additionally, CODELCO*s calculation of Adjusted
EBIT and Adjusted EBITDA may differ from the calculation used by other companies and, therefore, comparability
may be affected.

Cash cost is disclosed in this prospectus because it is a widely used measure of costs in the mining industry.
CODELCO believes that cash cost, while providing useful information, should not be considered in isolation or as a
substitute for cost of sales, cost of selling and administrative expenses or as an indicator of costs. Cash cost is not a
measure of financial performance in accordance with IFRS.

CODELCO also presents certain ratios and margins that are derived using Adjusted EBITDA, including the
ratio of debt to Adjusted EBITDA, the Adjusted EBITDA coverage ratio and earnings to fixed charges (adjusted).
CODELCO believes that these ratios are widely used by investors to measure our performance. In the section titled
“Summary Consolidated Financial Data,” CODELCO provides a reconciliation of Adjusted EBIT and Adjusted
EBITDA to profit, along with the ratio of debt to Adjusted EBITDA, Adjusted EBITDA coverage ratios and ratio of
earnings to fixed charges (adjusted), for the relevant periods.

Under the accounting policies adopted by CODELCO, gross profit is calculated before the provision for a
10% special export tax. Under the Copper Reserve Law, CODELCO is required to pay a special export tax on the
sales revenues that CODELCO derives from the export of copper sourced and related byproducts produced by
CODELCO. In addition, CODELCO is subject to a mining tax at progressive rates of between 5% and 14% in
accordance with Law No. 20,026. These taxes are included in “other expenses” by function. See “Summary—
Recent Developments—Repeal of the Copper Reserve Law” and “Risk Factors—Risks Relating to CODELCO”s
Relationship with the Government of Chile—CODELCO is subject to special taxes” for additional information on
these special taxes, including the mining tax rate effective for 2017 and 2018.

Certain figures included in this prospectus and in the Consolidated Financial Statements have been rounded
for ease of presentation. Percentage figures included in this prospectus have in some cases been calculated on the
basis of such figures prior to rounding. For this reason, certain percentage amounts in this prospectus may vary
from those obtained by performing the same calculations using the figures in the Consolidated Financial Statements.
Certain other amounts that appear in this prospectus may not sum due to rounding.

vii
The Observed Exchange Rate (as defined herein under “Exchange Rates”) reported by the Central Bank of
Chile (i) as of January 2, 2018 was Ch$614.75 = U.S.$1.00; (ii) as of July 3, 2018 was Ch$651.21 = U.S.$1.00; (iii)
as Of January 2, 2019 was Ch$694.77 = U.S.$1.00; and (iv) as of July 1, 2019 was Ch$679.15 = U.S.$1.00. The
Federal Reserve Bank of New York does not report a noon buying rate for Chilean pesos. See “Exchange Rates.”

In this prospectus, all tonnage information is expressed in metric tons and all references to ounces are to
troy ounces, in each case, unless otherwise specified. Except where otherwise noted, tonnage information in this
prospectus does not include: (i) CODELCO”s 49% direct share of the El Abra deposit, which is mined by Sociedad
Contractual Minera El Abra and 51% owned by Cyprus El Abra Corporation, a subsidiary of Freeport-McMoRan
Inc., or (ii) CODELCO’s 20% indirect share of Anglo American Sur S.A. (“Anglo American Sur”), unless
otherwise specified. See “Business and Properties—Copper Production—Associations, Joint Ventures and
Partnerships—SCM El Abra” and “—Anglo American Sur” for a description of these interests. Certain terms
relating to the copper mining business are defined in “Glossary of Certain Mining Terms.”

Market information regarding CODELCO*s share of copper production, reserves and relative cost position
has been derived by CODELCO from third-party sources, including reports from Brook Hunt $ Associates, and
from CODELCO””s own industry research. Brook Hunt $: Associates publishes periodic reports containing global
copper production data and cost analysis by mine site. While CODELCO believes that its estimates are reliable,
such estimates have not been confirmed by independent sources. The Consolidated Financial Statements do not
reflect the value of CODELCO”s mining concessions or its resources and reserves.

As used in this prospectus, “Chuquicamata,” “Radomiro Tomic,” “Gabriela Mistral,” “El Teniente,”
“Andina,” “Salvador,” “Mina Ministro Hales” and “Ventanas” refer to divisions of CODELCO, not the mines

having those names, unless otherwise required by context.

As used in this prospectus, the term “billion” means one thousand million (1,000,000,000).

viii
AVAILABLE INFORMATION

CODELCO may provide additional information, which may be more recent that the information in this
prospectus, through its website www.codelco.com or through public filings with the CMF in Chile. Neither the
documents filed with the CMF nor the contents of the websites referenced herein are a part of this prospectus and
are not incorporated by reference herein.

SUMMARY

This summary must be read as an introduction to this prospectus and any decision to invest in the notes should
be based on a consideration of the prospectus as a whole.

The following summary is qualified in its entirety by the more detailed information and financial statements
appearing elsewhere in this prospectus. Except as otherwise disclosed herein or indicated, financial information with
respect to CODELCO provided in this prospectus has been presented in U.S. dollars and prepared in accordance with
IFRS.

CODELCO is the world’s largest copper producer and one of the largest companies in Chile in terms of
revenues (U.S.$14.3 billion in 2018). As of December 31, 2018, CODELCOSs total assets were U.S.$ 37.1 billion and
equity amounted to U.S.$11.3 billion. As of June 30, 2019, total assets were U.S.$37.9 billion and equity amounted to
U.S.$11.6 billion.

CODELCO engages primarily in the exploration, development and extraction of ores bearing copper and
byproducts, the processing of ore into refined copper and the international sale of refined copper and byproducts.
CODELCO is 100% owned by the Government of Chile and controls approximately 6% of the world’s proved and
probable copper reserves, as such terms are defined by the U.S. Geological Survey.

In 2018, CODELCO had an estimated 9% share of total world copper production, with production amounting
to approximately 1.81 million metric tons, including: (i) CODELCO”s share of the El Abra deposit, which is mined by
Sociedad Contractual Minera El Abra and owned 49% by CODELCO and 51% by Cyprus El Abra Corporation (a
subsidiary of Freeport-McMoRan Inc.); and (ii) CODELCO’s share of Anglo American Sur (of which CODELCO
owns a 20% indirect share), and an estimated 9% share of the world”s molybdenum production, with production
amounting to approximately 24,031 metric tons excluding CODELCO*”s share of Anglo American Sur.

CODELCO*s main commercial product is Grade A cathode copper. In 2018, CODELCO derived 92% of its
total sales from copper and 8%of its total sales from byproducts of its copper production. In the first six months of
2019, CODELCO derived 91% of its total sales from copper and 9% of its total sales from byproducts of its copper
production.

CODELCOS*s sales of copper in 2018 were geographically diversified, with approximately 59% of sales made
to Asia, including approximately 46% to China, as well as approximately 30% to North and South America and 11% to
Europe. CODELCOS”s top ten customers purchased approximately 41.0% ofits total copper sales volume in 2018.

CODELCOSs copper operations are divided into the following eight divisions:

+ TheEl Teniente Division operates the El Teniente mine, which is the world”s largest underground copper mine and
has been in operation for more than 100 years. The El Teniente Division includes the Caletones smelter. In 2018,
this division produced 465,040 metric tons of copper, or 25.7% of CODELCO”s total copper output (including
CODELCOSs share of the El Abra deposit and Anglo American Sur), with a cash cost of 106.5 cents per pound,
compared to 113.5 cents per pound in 2017, and a total cash cost of U.S.$1.1 billion in 2018, compared to
U.S.$1.2 billion in 2017. During the first six months of 2019, this division produced 202,936 metric tons of copper
with a cash cost of 105.8 cents per pound and a total cash cost of U.S.$465 million.

+ The Radomiro Tomic Division operates the Radomiro Tomic mine, which began its first full year of production in
1998 and ranked among the world’s top three largest producers of copper using SX-EW technology in 2018. In
2018, this division produced 332,667 metric tons of copper cathodes, or 18.4% of CODELCOSs total copper output
(including CODELCOSs share of the El Abra deposit and Anglo American Sur), with a cash cost of 134.1 cents per
pound, compared to 131.4 cents per pound in 2017, and a total cash cost of U.S.$973 million in 2018 compared to
U.S.$915 million in 2017. During the first six months of 2019, this division produced 127,422 metric tons of
copper with a cash cost of 141.3 cents per pound and a total cash cost of U.S.$395 million.

e The Chuquicamata Division operates the Chuquicamata mine, one of the largest copper-producing mines in the

world, which began its operations in 1915 and currently includes smelting and refining capacities. In 2018, this
division produced 320,744 metric tons of copper cathodes, or 17.8% of CODELCO'”s total copper output
(including CODELCOSs share of the El Abra deposit and Anglo American Sur), with a cash cost of 131.5 cents per
pound, compared to 130.9 cents per pound in 2017, and a total cash cost of U.S.$908 million in 2018, compared to
U.S.$933 million in 2017. During the first six months of 2019, this division produced 166,131 metric tons of
copper with a cash cost of 125.6 cents per pound and a total cash cost of U.S.$447 million.

+ The Mina Ministro Hales Division was created in September 2010 for the operation of the Mina Ministro Hales ore
body, which first began producing copper at the end of 2013. In 2018, this division produced 195,485 metric tons
of copper, or 10.8% of CODELCOS*s total copper output (including CODELCOS*s share of the El Abra deposit and
Anglo American Sur), with a cash cost of 124.0 cents per pound, compared to 121.8 cents per pound in 2017, and a
total cash cost of U.S.$517 million in 2018, compared to U.S.$560 million in 2017. During the first six months of
2019, this division produced 72,252 metric tons of copper with a cash cost of 140.4 cents per pound and a total
cash cost of U.S.$216 million.

e The Andina Division operates the Andina and Sur-Sur mines with production split among open-pit and
underground mines. It does not have independent smelting capacity. Andina has been in operation since 1970. In
2018, this division produced 195,531 metric tons of copper, or 10.8% of CODELCO’s total copper output
(including CODELCOSs share of the El Abra deposit and Anglo American Sur), with a cash cost of 163.7 cents per
pound, compared to 139.6 cents per pound in 2017, and a total cash cost of U.S.$682 million in 2018, compared to
U.S.$654 million in 2017. During the first six months of 2019, this division produced 83,793 metric tons of copper
with a cash cost of 183.8 cents per pound and a total cash cost of U.S.$328 million.

+ The Gabriela Mistral Division was created in January 2013 and operates the Gabriela Mistral mine, which uses
SX-EW technology. The Gabriela Mistral mine produced its first copper cathodes in May 2008 after a 26-month
construction period. In 2018, this division produced 107,247 metric tons of copper, or 5.9% of CODELCOSs total
copper output (including CODELCO*s share of the El Abra deposit and Anglo American Sur), with a cash cost of
191.9 cents per pound, compared to 151.9 cents per pound in 2017, and a total cash cost of U.S.$454 million in
2018, compared to U.S.$411 million in 2017. During the first six months of 2019, this division produced 42,284
metric tons of copper with a cash cost of 265.4 cents per pound and a total cash cost of U.S.$247 million.

+ The Salvador Division operates the Salvador mine and concentrator and the smelter/refinery complex at Potrerillos,
which has the capacity to treat 671,000 metric tons of concentrate. In 2018, this division produced 60,840 metric
tons of copper cathodes, or 3.4% of CODELCOS”s total copper output (including CODELCO*s share of the El Abra
deposit and Anglo American Sur), with a cash cost of 223.5 cents per pound, compared to 198.7 cents per pound in
2017, and a total cash cost of U.S.$296 million in 2018, compared to U.S.$269 million in 2017. During the first
six months of 2019, this division produced 15,138 metric tons of copper with a cash cost of 225.8 cents per pound
and a total cash cost of U.S.$74 million. Unless the Inca Pit project (as described below) enters the execution
stage, CODELCO”s Board of Directors has decided to phase out mining operations at the Salvador mine by 2021,
or sooner, if warranted by market and operational conditions, specifically marketability of its copper, cash costs
and annual reviews of performance. The Potrerillos smelter and refinery would continue to operate upon any
cessation of the mining operations at Salvador.

+ The Ventanas Division was created in connection with the acquisition of the Ventanas smelter/refinery complex
from Chile”s state-owned mining company Empresa Nacional de Minería (“ENAMIT”) in May 2005. In 2018, this
division refined 409,049 metric tons of copper, compared to 410,024 metric tons of copper in 2017. Pursuant to
the terms of the acquisition, CODELCO is required to provide on market terms the necessary smelting and refining
capacity for the treatment of copper concentrate delivered by the small- and medium-sized mining industry that
ENAMI serves.

The Chuquicamata Division, the Radomiro Tomic Division, the Mina Ministro Hales Division and the
Salvador Division form part of CODELCO’s Northern Operations (Operaciones Norte). The Andina Division, the El
Teniente Division and the Ventanas Division form part of CODELCO”s Central Southern Operations (Operaciones
Centro Sur). For a description of CODELCO”s associations with other companies, see “Business and Properties—
Copper Production—Associations, Joint Ventures and Partnerships.”

Competitive Strengths

CODELCO believes that it has certain distinguishing competitive strengths:

e Copper Reserves. CODELCO controls approximately 6% of the world”s proved and probable copper reserves. In
2018, CODELCO”s proved and probable reserves represented at least 26 years of future production at current
levels.

e Market Presence. CODELCO is the largest copper producer in the world, with an estimated 9% share of the total
world copper production and 1.81 million metric tons (including CODELCO”s share of the El Abra deposit and
Anglo American Sur) of production in 2018. CODELCO is also one of the largest producers of molybdenum in
the world, with an estimated 9% share of total world molybdenum production, producing 24,031 metric tons in
2018 (excluding CODELCO’”s share of Anglo American Sur). CODELCO believes that its significant market
presence gives the Company certain advantages in the marketing of its products.

e Lower Cost Producer. For many years, CODELCO has been within the first or second quartiles in the industry
with respect to costs. Currently, CODELCO is in the third quartile of the industry”s cost curve. This position is
primarily attributable to the quality of its ore bodies, its economies of scale and the experience of its workforce and
management. The Company intends to make every effort, through investment and management, to be within the
first or second quartiles of the industry?”s cost curve in the long-term. In 2018, CODELCO’s total costs and
expenses increased by 18.0 cents per pound (7.9%) to 245.1 cents per pound, compared to 227.1 cents per pound in
2017 and 214.6 cents per pound in 2016, mainly due to the appreciation of the Chilean peso against the U.S. dollar,
as well as higher input prices, non-cash charges related to the write-off of an innovation project for underground
mining and impairment losses on fixed assets associated with the Ventanas Division. For the first six months of
2019, CODELCOSs total costs and expenses increased by 21.1 cents per pound (8.9%) to 258.3 cents per pound,
compared to 237.2 cents per pound for the same period in 2018, mainly due to lower production levels as a result
of weather disruptions in the northern area of Chile, a 14-day strike at the Chuquicamata mine, upgrades at the
Chuquicamata and Salvador smelters that suspended operations temporarily, the appreciation of the Chilean peso
against the U.S. dollar, higher bonuses and other employment benefits associated with its collective bargaining
agreements and higher financing costs. In 2018, CODELCO*s total costs and expenses increased by 4.4% to
U.S.$9.1 billion, compared to U.S.$8.7 billion in 2017, due to the same reasons that contributed to the increase of
total costs and expenses per pound in 2018. In 2017, CODELCOSs total costs and expenses increased by 7.5% to
U.S.$8.7 billion, compared to U.S.$8.1 billion in 2016, mainly due to the appreciation of the Chilean peso against
the U.S. dollar, higher interest and fuel and energy expenses. For the first six months of 2019, CODELCOS”s total
costs and expenses decreased to U.S.$4.0 billion, compared to U.S.$4.3 billion for the same period in 2018, due to
the same reasons that contributed to the increase of total costs and expenses per pound during the first six months
of 2019. In 2018, CODELCO”s cash cost of production was 139.1 cents per pound, compared to 135.9 cents per
pound in 2017 and 126.1 cents per pound in 2016. For the first six months of 2019, CODELCO’s cash cost of
production was 142.3 cents per pound, compared to 137.6 cents per pound for the same period in 2018. In 2018,
CODELCOSS total cash cost was U.S.$5.1 billion, compared to U.S.$5.1 billion in 2017 and U.S.$4.7 billion in
2016. For the first six months of 2019, CODELCO’s total cash cost was U.S.$2,2 billion, as compared to
U.S.$2.4 billion for the same period in 2018 (such cash cost total includes certain cash cost incurred at the
corporate level). See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—
Overview.”

e Research and Technological Innovation. CODELCO remains competitive by developing and incorporating new
technologies into its production processes, which aim to improve overall operations, including mining processes,
efficiency, productivity, environmental protection and worker safety.

e Stable, Long-term and Geographically Diverse Customer Base. CODELCO has developed long-term relationships
with the majority of its customers, including some of the leading manufacturers in the world.

e Financial Strength. In 2018, CODELCO’s Adjusted EBITDA amounted to U.S.$4.7 billion, total debt to
capitalization as of December 31, 2018 was 57.4% and the ratio of total debt to Adjusted EBITDA was 3.2. As of
June 30, 2019, Adjusted EBITDA amounted to U.S.$1.6 billion and total debt to capitalization was 56.7%.

e Management Efficiency and Flexibility. CODELCO believes that it has a highly experienced workforce and
executive team with a proven track record of managing long-life copper reserves that is able to respond to market
changes by adjusting the allocation of its resources and operations among several different methods of production
and ore deposits.

e One ofthe Leading Companies in Chile. CODELCO is one of the largest companies in Chile in terms of revenues
as of December 31, 2018 (U.S.$14.3 billion) and is a key contributor to the budget of the Government of Chile. In
2018, CODELCO contributed U.S.$ 1.8 billion to the Chilean Treasury and accounted for approximately 17.2% of
Chile”s total exports. See “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources—Distributions to the Chilean Treasury” and “Regulatory
Framework.”

Business Strategy

CODELCO”s mission is to maximize the value of its mineral resources for the benefit of its shareholder, the
Chilean state, by fully developing its vast mining resources on a timely basis, leveraging the Company”s experienced
workforce, utilizing its advanced technological assets in key areas and by executing the following key strategic
initiatives:

e Capital Expenditure Program. We seek to maintain and improve our competitive position in the industry through
our three-year capital expenditure program. Following the completion of a number of significant projects in recent
years, such as the development of CODELCO”s new Mina Ministro Hales, the development of sulfide ores at the
Radomiro Tomic mine, the expansion at the Andina mine and the development of the Pilar Norte area at the El
Teniente mine, CODELCO intends to continue its development program. Accordingly, the Company expects to
make capital expenditures of approximately U.S.$13.4 billion between 2019 and 2021 on major projects,
transforming its main mining operations with a view towards the long-term development of its resources. We
expect these expenditures to be funded with a combination of internal and external resources. For a complete list
of planned capital expenditures, see “Business and Properties—Copper Production—Operations.” CODELCO”s
expansion and development of major projects between 2019 and 2021 are expected to include:

o The gradual transformation of the Chuquicamata mine from an open pit mine to an underground operation,
which we expect will enable Chuquicamata to maintain its annual copper production at its current level
starting in 2019 (an approximate investment of U.S.$2.0 billion between 2019 and 2021). Environmental
approvals were obtained in September 2010, and the project is approximately 90% complete as of June 30,
2019.

o The reallocation of the Andina plant, which involves maintaining the treatment capacity of the concentrator
plant in the long-term (an approximate investment of U.S.$371 million between 2019 and 2021). Operations
are expected to begin in 2021, and the project is approximately 77% complete as of June 30, 2019.

o The development of a new production level in the existing El Teniente underground mine (an approximate
investment of U.S.$1.6 billion between 2019 and 2021) to maintain El Teniente”s annual copper production
at its current level. Environmental approvals were obtained in March 2011. However, based on
geomechanical challenges that need to be addressed, an alternative development plan was approved in
January 2018 that will still permit us to maintain our original production goal and the new mining level is
now expected to be completed in 2023. As of June 30, 2019, the project is approximately 52% complete.

o The upgrade of CODELCO”s smelters to new emission standards was required to maintain our operating
licenses in Chuquicamata, El Teniente, Salvador and Ventanas, and such upgrade required an investment of
U.S.$1.1 billion in Chuquicamata, U.S.$703 million in El Teniente, U.S.$441 million in Salvador and
U.S.$113 million in Ventanas for a total approximate investment of U.S.$2.3 billion. As of the date of this
prospectus, 100%, 97%, 95% and 96% of the upgrades at the Ventanas, Salvador, El Teniente and
Chuquicamata smelters, respectively, have been completed, and all four smelters are operating.

o The development of the Inca Pit project is designed to extend the life of the current underground mine

operation in the Salvador Division and enable it to maintain its annual production at its current level starting
in 2021 and the analysis for a future expansion, which requires an approximate investment of U.S.$900
million between 2019 and 2021. As of June 30, 2019, the feasibility study has been completed, and the
initial work relating to the project has commenced.

o The expansion of the existing Andina open pit is an initiative that is expected to expand the treatment
capacity of the concentrator plant up to 150 thousand tons per day (an approximate investment of U.S.$95
million between 2019 and 2021) starting in 2027. As of June 30, 2019, the feasibility study has been
authorized and is approximately 31% complete.

e Improvement in Operations. A number of improvement initiatives are underway to adopt best industry practices,
most notably in the areas of labor productivity, asset utilization rates and process efficiency. Together with its
capital expenditure program, these initiatives are expected to enhance CODELCO”s competitive position. The
Company operates in a cyclical business and CODELCOSs strategy is to ensure that it is able to take full advantage
of high copper prices. The Company is developing a number of plans to achieve production targets in the coming
years. These plans mainly focus on reducing the risk of disruptions to production and providing increased
flexibility to its operations.

e Exploration Efforts. CODELCO controls the largest copper reserves worldwide, the Company”s single most
important long-term competitive advantage. The discovery of new mining resources and improving its ability to
locate existing ore bodies and prospects are critical to maintain this preeminent position in the industry.
Accordingly, the Company”s exploration program will continue to be a key part of its business strategy.

e Investment in Human Capital. The successful execution of CODELCOS*s business strategy relies on attracting and
retaining a world-class management team and professionals of the highest caliber, as well as promoting a culture of
diversity and inclusion. The mining industry faces increased competition for workforce talent. As a result, the
Company intends to continue improving career development opportunities for its staff and the overall
attractiveness of CODELCO as a preferred employer.

e Mining Association with Third Parties. CODELCO seeks to continue to develop and operate assets in association
with third parties where these associations will add value to CODELCO”s business. A few examples of the
Company”s willingness and ability to do so are: (i) the association with Freeport-McMoRan Inc. in the El Abra
copper mine (CODELCO owns 49%) and (ii) the association with Anglo American plc (“Anglo American”),
Mitsui 8 Co., Ltd. (“Mitsui”) and Mitsubishi Corporation (“Mitsubishi Corporation”) in Anglo American Sur
(CODELCO owns an indirect 20% interest). CODELCO believes its large mining reserve is a strong platform
from which to establish such associations.

Recent Developments
Appointment of New Executives

On July 12, 2019, CODELCO announced the appointment of Octavio Araneda Osés as Chief Executive
Officer of CODELCO as of September 1, 2019, replacing Nelson Pizarro Contador, who will retire. Mr. Araneda Osés
is the current Vice President of Central Southern Operations and has worked at CODELCO for 33 years in various
positions.

On July 26, 2019, CODELCO announced the appointment of Mauricio Barraza Gallardo as Vice President of
Central Southern Operations, replacing Mr. Araneda Osés. The same day CODELCO announced the appointment of
Nicolás Rivera Rodriguez, the former General Manager of the El Teniente Division, as General Manager of the
Chuquicamata Division, and the appointment of Andrés Music Garrido, the former General Manager of Mina Ministro
Hales, as the General Manager of the El Teniente Division. On August 29, 2019, CODELCO announced the
appointment of Rodrigo Barrera, former Chuquicata Underground Project Manager, as the General Manager of the
Mina Ministro Hales Division. All new positions were effective as of September 1, 2019. See “Management.”

Repeal of the Copper Reserve Law

On July 24, 2019, the Congress of Chile passed new legislation, which, among other matters, repeals the
Copper Reserve Law. If this new law becomes effective during 2019, CODELCO will remain subject to the 10%
special export tax until 2028. Beginning in 2029, the tax will be reduced annually by 25% until 2032 when CODELCO
will no longer be subject to such tax. This new law will become effective once recorded by the Comptroller General of
the Republic of Chile and published in the Official Gazette.

Bilateral Credit Facility

On July 25, 2019, CODELCO entered into a ten-year bilateral credit facility with Export Development Canada
in an aggregate principal amount of U.S.$300 million. The credit facility matures in 2029. See “Management’s
Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Bank
Debt.”

New Bond Issuances

On July 15, 2019, CODELCO issued notes in an aggregate principal amount of AUD 70 million. The notes
will mature on July 22, 2039 and accrue interest at a rate of 3.580% per annum payable on an annual basis.

On August 8, 2019, CODELCO issued notes in an aggregate principal amount of U.S.$130 million. These
notes will mature on August 23, 2029 and accrue interest at a rate of 2.869% per annum payable on a semi-annual
basis.

On September 23, 2019, CODELCO issued notes in an aggregate total principal amount of U.S.$2,000
million. From these notes, U.S.$1,100 million will mature on September 30, 2029 and accrue interest at a rate of
3.000% per annum, while U.S.$900 million will mature on January 30, 2050 and accrue interest at a rate of 3.700% per
annum. Both tranches will pay interest on a semi-annual basis.

Tender Offer

On September 23, 2019, CODELCO launched a tender offer to purchase any and all (the “Any and All Offer”)
of its outstanding 3.750% Notes due 2020 (the “2020 Notes”) and 3.875% Notes due 2021 (the “2021 Notes” and,
together with the 2020 Notes, the “Any and All Notes”) and up to $639,146,000 aggregate principal, less the aggregate
principal amount of the Any and All Notes validly tendered and accepted for purchase in the Any and All Tender Offer
(the “Maximum Tender Offer” and, together with the Any and All Offer, the “Tender Offers”) of its outstanding
3.000% Notes due 2022 (the “2022 Notes”), 4.500% Notes due 2023 (the “2023 Notes”) and 4.500% Notes due 2025
(the “2025 Notes” and, together with the 2022 Notes and 2023 Notes, the “Maximum Tender Notes”), in each case
validly tendered and accepted by CODELCO on or before the expiration date of the applicable Tender Offers. As of the
date of this prospectus, CODELCO purchased all the Any and All Notes validly tendered and not validly withdrawn at
or prior to the expiration date and all the Maximum Tender Notes validly tendered and not validly withdrawn at or prior
to the early tender date. As of the date of this prospectus, the total Any and All Notes and Maximum Tender Notes
purchased amounted to U.S.$147.4 million.

Lithium Development Project

On August 1, 2019, CODELCO announced that it signed a non-binding memorandum of understanding
(“MOU”) with Minera Salar Blanco S.A. to develop a joint lithium project in the Maricunga salt flat, which we believe
would allow the project to become the third largest lithium producer in Chile. Terms and details of the definitive
agreement will be finalized in the coming months, subject to mutual due diligence and other conditions. Once a
definitive agreement is reached, it is expected that the construction of the joint project will begin in 2020 or early 2021,
after all permits are obtained and the financial structure is finalized.

Sale of Participation in GNL Mejillones

On August 6, 2019, CODELCO consummated the sale of its 37% stake in GNL Mejillones S.A. to Ameris

Capital AGF for an amount of US$193.5 million.

Corporate Information

CODELCOSs principal executive offices are located at Huérfanos 1270, Santiago, Chile, and its telephone
number is (562) 2690-3000. CODELCO was established by Decree Law 1,350, published in the Official Gazette on
February 28, 1976, as amended by Decree Law 20,392, published in the Official Gazette on November 14, 2009.

Issuer …….

The Offering

Issue Price

Specified CuUITENCIES ..ooooniciconononanncnnncnonanonocnnnona nono cncnona nono ca cncncnnn

Interest and Interest Peri0d …ooocicinninnnncnnnnnnnnonanocncncncnanonocicncnannn

Maturity DatO..oococicinncncccnininonononanonncnononano coca onono nn roca on cnann roca cncnannno

Corporación Nacional del Cobre de Chile.

Notes may be distributed outside the United States to
persons other than U.S. persons (as such terms are
defined in Regulation S under the Securities Act) by
way of private or public placement, on a syndicated
or non-syndicated basis, subject to the selling
restrictions described under “Transfer and Selling
Restrictions.”

Notes may be issued at an issue price which is equal
to, less than or more than their principal amount (as
indicated in the applicable Final Terms).

Subject to any applicable legal or regulatory
restrictions, such currencies as may be agreed
between CODELCO and the relevant purchaser or
dealer manager (as indicated in the applicable Final
Terms).

Such interest rate per year may be agreed between
CODELCO and the relevant purchaser or dealer
manager (as indicated in the applicable Final Terms).

The interest on the notes will be payable on the dates
and for the interest periods specified in the applicable
Final Terms. Interest on the notes will be calculated
as indicated in the applicable Final Terms. See
“Description of Notes.”

Such maturities as may be agreed between
CODELCO and the relevant purchaser or dealer
manager (as indicated in the applicable Final Terms
as the stated maturity), subject to such minimum or
maximum term as may be allowed or required from
time to time by the relevant central bank (or
equivalent body) or any laws or regulations
applicable to CODELCO. — Notwithstanding the
foregoing, the notes will have a maturity of at least
one year and no more than 30 years from the date of
issue.

Withholding Tax… Interest will be paid after withholding for or on
account of certain taxes imposed by Chile. Under
current Chilean law and regulations, payments of
interest to holders of the notes that are not residents
of Chile for purposes of Chilean taxation will
generally be subject to Chilean withholding tax at a
rate of 4%. Subject to specified exceptions and
limitations, CODELCO will pay Additional Amounts
(as defined in “Description of Notes—Payment of
Additional Amounts”) in respect of such withholding
tax on interest payments. See “Description of
Notes—Payment of Additional Amounts” and
“Taxation—Chilean Taxation.”

Tax Redempti0N ..occicicncncnnononinnnnnnononnnncnonano nono nnonono roca on onananncncncno The notes are redeemable at the option of CODELCO
in whole, but not in part, at any time at the principal
amount thereof, plus accrued and unpaid interest and
any Additional Amounts due thereon if, as a result of
changes in the laws or regulations affecting Chilean
taxation, CODELCO becomes obligated to pay
Additional Amounts on interest payments on the
notes in respect of withholding or deduction of
Chilean tax at a rate in excess of 4%. See
“Description of Notes —Redemption—Tax
Redemption,” “Taxation—Chilean Taxation” and
“Risk Factors—Risks Relating to the Offering.”

Optional RedeMpti0N….ocicicnnnicnonononnncnnanocncnononano noni cncnano roca cncncnnn Unless otherwise stated in the applicable Final
Terms, we may redeem the notes at our option, in
whole or in part, at any time and from time to time
prior to the date stated in the applicable Final Terms,
at a redemption price equal to the greater of 100% of
the outstanding principal amount of the notes to be
redeemed and a redemption price based on a “make-
whole” premium, plus accrued and unpaid interest to
the date of redemption. See “Description of Notes—
Redemption—Optional Redemption” and “Risk
Factors—Risks Relating to the Offering.”

Form and DenoMinatiON ..occccnccnoncnoninnnnanonnnnononananonacncna nono cncncncnnn The notes will be issued in book-entry form only in
denominations as may be agreed between
CODELCO and the dealer manager. The notes will
be represented by one or more global notes (the
“Global Notes”). The Global Note will be deposited
with a common depositary for the account of
Euroclear and Clearstream. See “Description of
Notes—Registration, Form and Delivery” and “Form
of Notes, Clearing and Settlement.”

SettleMe cocoocicccncnccocccccanocinononanano noni cnono nooo on onono ocn oaonona naa cn cnica Delivery of the notes will be made in book-entry
form through the facilities of HEuroclear and
Clearstream. There will be a paying agent. See “Form
of Notes, Clearing and Settlement.”

Ranking

Certain CovenaNtS..ooocccccnciconononononnnnononanonncnonona nn roca onanann rn cnonanannn

Transfer

ION

¡SI

Listing…

The notes will constitute direct, general,
unconditional and unsubordinated obligations of
CODELCO. The notes rank and will rank without
any preference among themselves and equally with
all other unsubordinated obligations of CODELCO,
other than certain obligations granted preferential
treatment pursuant to Chilean law. It is understood
that this provision will not be construed so as to
require CODELCO to make payments under the
notes ratably with payments being made under any
other obligations.

The indenture governing the notes will not contain
any restrictions on the amount of additional
indebtedness which may be incurred by CODELCO
or its subsidiaries; however, as set forth under
“Description of Notes—Covenants—Limitation on
Liens,” the notes will contain certain restrictions on
the ability of CODELCO and its subsidiaries to incur
secured indebtedness. See “Description of Notes.”

The indenture governing the notes will contain
certain covenants, including, but not limited to,
covenants with respect to (i) limitations on liens,
(11) limitations on sale-and-lease-back transactions
and (iii) limitations regarding consolidation, merger,
conveyance, sale or lease transactions. See
“Description of Notes—Covenants—Limitation on
Liens,” “—Limitation on Sale-and-Lease-Back
Transactions” and “—Consolidation, Merger,
Conveyance, Sale or Lease.”

The notes have not been and will not be registered
under the Securities Act and are subject to transfer
and selling restrictions. Accordingly, the notes may
not be offered or sold within the United States to, or
for the account or benefit of, U.S. persons except in
accordance with an exemption or outside the United
States to non-U.S. persons in accordance with
Regulation S under the Securities Act or pursuant to
another exemption from the registration requirements
of the Securities Act and any state securities laws.
See “Transfer Restrictions.”

In accordance with the terms of the indenture,
CODELCO may issue additional notes of the same
series as the notes offered hereby at a future date.
See “Description of Notes—Further Issues of Notes.”

We may list certain notes issued under the Program
on a securities exchange.

Governing Law; Submission to Jurisdicti0N…….oonnninninin…

Expected RatidgS …coonnicinicinnnnnononncnononananonocncnona nono cnononann roca cncnannn

Use of Proceeds

Trustee, Transfer Agent and RegistIAL…ooonicnnnnnnnnnicnnncannnncncncnos

¡II

The notes and the indenture will be governed by the
laws of the State of New York. CODELCO will
submit to the jurisdiction of the United States federal
and state courts located in the Borough of Manhattan
in the City of New York in respect of any action
arising out of or based on the notes or the indenture.
See “Description of Notes—Governing Law;
Submission to Jurisdiction; Sovereign Immunity.”

The notes issued under the Program may be rated or
unrated. Where the notes are rated, such rating will
be set out in the applicable Final Terms. A securities
rating is not a recommendation to buy, sell or hold
securities, is subject to revision or withdrawal at any
time by the assigning rating organization and should
be evaluated independently of any other rating.

We intend to use the net proceeds from the sale of the
notes for general corporate purposes.

The Bank of New York Mellon.

The Bank of New York Mellon, London Branch or as
set out in the applicable Final Terms.

Before investing, you should carefully consider all
information in this prospectus, any supplements
related thereto and the applicable Final Terms and, in
particular, the risks set forth under “Risk Factors”
beginning on page 16 of this prospectus.

SUMMARY CONSOLIDATED FINANCIAL DATA

The following tables present CODELCO”s summary consolidated financial data and other data as of and for
each of the periods indicated. This data (other than the average London Metal Exchange (“LME”) copper prices) is
derived from, and should be read together with, CODELCO”s Consolidated Financial Statements, including the notes
thereto, included elsewhere in this prospectus. This data should also be read together with “Management’s Discussion
and Analysis of Financial Condition and Results of Operations.” The Consolidated Financial Statements and other
financial information included in this prospectus are presented in accordance with IFRS. The unaudited interim
information as of June 30, 2019 and for the six-month periods ended June 30, 2018 and 2019 includes all adjustments,
consisting of only normal recurring adjustments, with the exception of adjustments made to the statement of financial
position as of June 30, 2019 for the adoption of IFRS 16, that in the opinion of management are necessary for the fair
presentation of such information. The unaudited results of operations for the six months ended June 30, 2018 and 2019
are not necessarily indicative of the results to be expected for the full year or any other period.

For the six months ended

For the year ended December 31, June 30,
2016 2017 2018 2018 2019
(in thousands of U.S.$)

CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Revenue… $ 11,536,751 $ 14,641,555 $ 14,308,758 $ 7,426,464 $ 5,916,749
Cost of sales”… (9,449,668) (10,380,403) (11,194,341) (5,577,274) (4,661,912)
Gross profit …. 2,087,083 4,261,152 3,114,417 1,849,190 1,254,837
Other income, by function 138,474 154,332 124,826 65,511 90,713
Impairment loss determined in accordance
with IFRS 9 .. N/A N/A 158 1,315 588
Distribution costs .. (11,891) (10,403) (18,262) (9,746) (7,784)
Administrative expenses (415,395) (428,140) (465,328) (232,345) (203,446)
Other expenses? … (1,324,149) (1,557,473) (2,115,314) (964,409) (985,326)
Other gains 29,400 32,605 21,395 8,248 13,114
Finance incom: 23,402 29,836 51,329 24,709 17,668
Finance costs (547,347) (644,610) (463,448) (237,609) (260,139)
Share of profit (loss) of associates and joint
ventures accounted for using equity method… (177,358) 185,428 119,114 73,723 5,233
Foreign exchange differences………… (232,895) (206,058) 178,143 95,645 (60,182)
Profit (loss) for the period before tax (430,676) 1,816,669 547,030 674,232 (134,724)
Income tax expense’”… 97,096 (1,193,067) (357,283) (430,318) 34,490
Profit (loss) for the period………. (333,580) 623,602 189,747 243,914 (100,234)
Profit (loss) attributable to owners of the

parent. ce. (275,418) 569,175 155,719 223,307 (104,573)
Profit (loss) attributable to non-controlling

(58,162) 54,427 34,028 20,607 4,339

Profit (loss) for the period…………….. $ (3633580) $ 623,602 $ 189,747 $ 243,914 $ (100,234)

As of December 31
2016 2017 2018 As of June 30, 2019
(in thousands of U.S.$)

CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION

Total current ass ce. $ 4,690,418 $ 6,211,053 $ 5,828,206 $ 5,114,271
Total property, plant and equipmen 23,977,261 25,275,512 26,754,998 28,242,219
Investments accounted for using

equity method* 3,753,974 3,665,601 3,568,293 3,484,027
Non-current receivabl 95,316 91,442 84,731 96,063
All other assetsÚ” …. 904,161 1,112,533 854,577 973,938
Total assets … $ 33,421,130 $ 36,356,141 $ 37,090,805 $ 37,910,518
Total current 2,462,453 3,315,456 3,539,412 4,242,041
Total non-current liabilities……………….. 21,068,268 22,115,347 22,207,524 22,103,563

Total liabilities. $ 23,530,721 $ 25,430,803 $ 25,746,936 $ 26,345,604
Non-controlling interests……iooom…. 978,666 1,007,495 969,204 917,815
Equity attributable to owners of the
parent… enn 8,911,743 9,917,843 10,374,665 10,647,099
Total equity ….. . $ 9,890,409 $ 10,925,338 $ 11,343,869 $ 11,564,914
Total liabilities and equity. $ 33,421,130 $ 36,356,141 $ 37,090,805 $ 37,910,518

As of and for the six months ended

As of and for the year ended December 31, June 30,
2016 2017 2018 2018 2019

OTHER ITEMS (in thousands of U.S.$, except ratios and copper prices)
Depreciation and amortization of
ASSOÍS ……… $ 1,936,152 $ 2,101,101 $ 2,181,140 $ 1,043,427 $ 1,005,720
Interest expense, Mét……….. $ (523,945 $ (614,774. $ (412,119 $ (212,900) $ (242,471
Ratio of earnings to fixed charges
(adjusted) O… 0.5 3.8 3.0 4.4 0.5
Average LME copper price (U.S.

per pound)”….. . 220.6 279.7 295.9 313.7 279.6
Adjusted EBITDA* $ 3,075,187 $ 5,668,314 $ 4,695,792 $ 2,691,781 $ 1,587,832
Ratio of debt to Adjusted EBITDAC…… 4.8 2.6 3.2 N/A N/A
Adjusted EBITDA coverage ratio(“”…… 5.9 9.2 11.4 12.6 6.5

(4)
6)

(6)

(0)
(8)

“Cost of sales” for any period includes direct and indirect costs, depreciation and amortization associated with the production of copper and
byproducts, as well as purchase costs of third-party copper, sold by CODELCO in that period.

“Other expenses” is comprised principally of costs related to retirement plan and severance indemnities, costs of environmental exit, restoration
and similar liabilities and the 10% special export tax paid by the Company that is required by the Copper Reserve Law. See note 24.b of the
Audited Annual Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of
Operations.”

CODELCO is subject to a mining tax on operating income at progressive rates of between 5% and 14%. The tax is imposed on operating
income generated during the operating year. The statutory rate of the mining tax for CODELCO was 5.0% for each year between 2016 and
2018. See note 5 of the Audited Annual Consolidated Financial Statements and Unaudited Interim Consolidated Financial Statements and
“Management’s Discussion and Analysis of Financial Condition and Results of Operations —Liquidity and Capital Resources —Distributions to
the Chilean Treasury” and “Regulatory Framework.” See also “Risk Factors—Risks Relating to CODELCO’”s Relationship with the
Government of Chile —CODELCO is subject to special taxes” for information regarding the mining tax rate effective in 2016. In addition,
CODELCO is subject to the corporate income tax rate of 24% in 2016 and 25% since 2017 (pursuant to the recent tax reform) and a 40% tax on
net earnings applicable to state-owned enterprises as specified by Decree Law 2,398, Art. 2. See “Taxation—Chilean Taxation” and
“Management’s Discussion and Analysis of Financial Condition and Results of Operations —Liquidity and Capital Resources —Distributions to
the Chilean Treasury” for additional information.

See note 9 of the Audited Annual Consolidated Financial Statements and the Unaudited Interim Consolidated Financial Statements and
“Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

All other assets includes other non-current financial assets, other non-current non-financial assets, accounts receivable from related parties, non-
current, non-current inventories, intangible assets other than goodwill, investment property, non-current tax assets and deferred tax assets.

For the purpose of calculating CODELCOS*s ratio of earnings to fixed charges (adjusted), (i) “earnings” consist of Adjusted EBIT and (ii) “fixed
charges” consist of finance cost. The ratio of earnings to fixed charges (adjusted) is calculated by dividing Adjusted EBIT by finance cost.
Adjusted EBIT is calculated by adding finance cost, impairment charges net of reversals (as defined in note (1) of the following table) and
income tax expense to profit (loss) for the period. Adjusted EBIT, while not a financial performance measure under IFRS, is presented as an
indicator of funds available to service debt. Adjusted EBIT and Adjusted EBITDA data are included in this prospectus because such data are
used by investors to assess: (i) the operating trends and financial performance of the Company and (ii) the ability of the Company to (a) service
its existing debt, (b) incur new debt and (c) fund its capital expenditures. The Company believes that Adjusted EBIT, while providing useful
information, should not be considered in isolation as a substitute for profit for the period, as an indicator of operating performance, or as an
alternative to cash flow as a measure of liquidity. Additionally, the Company’s calculation of Adjusted EBIT may be different than the
calculation used by other companies and therefore, comparability may be affected. See notes 9, 23 and 24 of the Audited Annual Consolidated
Financial Statements and Unaudited Interim Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” for further information about impairment charges and reversals and other non-cash charges.

Average price on the LME for Grade A cathode copper during period.

Adjusted EBITDA is calculated by adding finance cost, income tax expense, depreciation and amortization of assets plus export taxes and
impairment charges net of reversals (as defined in note (1) of the following table) to profit (loss) for the period. Adjusted EBITDA is presented
because it is a widely accepted indicator of funds available to service debt, although it is not an IFRS-based measure of liquidity or
performance. Adjusted EBIT and Adjusted EBITDA data are included in this prospectus because such data are used by investors to ass i)
the operating trends and financial performance of the Company and (ii) the ability of the Company to (a) service its existing debt, (b) incur new
debt and (c) fund its capital expenditures. The Company believes that Adjusted EBITDA, while providing useful information, should not be
considered in isolation or as a substitute for profit as an indicator of operating performance, or as an alternative to cash flow as a measure of

10)

(10)

liquidity. Additionally, the Company”s calculation of Adjusted EBITDA may be different than the calculation used by other companies and
therefore, comparability may be affected. See notes 9, 23 and 24 of the Audited Annual Consolidated Financial Statements and Unaudited
Interim Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for
further information about impairment charges and reversals and other non-cash charges.

The ratio of debt to Adjusted EBITDA is calculated by dividing debt by Adjusted EBITDA. Debt is defined as loans from financial institutions
plus bonds issued.

Adjusted EBITDA coverage ratio is the ratio of Adjusted EBITDA to finance cost net of finance income. See note 9 above for further
information about Adjusted EBITDA and notes 23 and 24 of the Audited Annual Consolidated Financial Statements and Unaudited Interim
Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further
information about impairment charges and reversals and other non-cash charges.

The following table shows CODELCO’”s earnings, Adjusted EBIT, ratio of earnings to fixed charges

(adjusted), Adjusted EBITDA and reconciliation of Adjusted EBIT and Adjusted EBITDA for the periods indicated.

Profit (loss) for the period ………………….

For the six months ended
For the year ended December 31, June 30,

2016 2017 2018 2018 2019
(in thousands of U.S.$)

$ (333,580) $ 623,602 $ 189,747 $ 243,914 $ (100,234)

Income tax expense (97,096) 1,193,067 357,283 430,318 (34,490)
Finance costs … 547,347 644,610 463,448 237,609 260,139
Impairments”….. 156,709 7,378 395,965 138,183 –
Adjusted EBIT?… ce. 273,380 2,468,657 1,406,443 1,050,024 125,415
Ratio of earnings to fixed charges

(adjusted)?….. 0. 0.5 3.8 3.0 4.4 0.5
Depreciation and amortization of assets” 1,936,152 2,101,101 2,181,140 1,043,427 1,005,720
Copper Reserve Law” ….. 865,655 1,098,556 1,108,209 598,330 456,697

Adjusted EBITDA …….

(1)

(4)
(5)

$ 3,075,187 $ 5,668,314 $ 4,695,792 $ 2,691,781 $ 1,587,832

Impairments include charges and reversals related to charges of investment projects, research projects and investment in associates and joint
ventures. See notes 9, 23 and 24 of the Audited Annual Consolidated Financial Statements and Unaudited Interim Consolidated Financial
Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further information about
impairment charges and reversals and other non-cash charges.

Adjusted EBIT is calculated by adding finance cost, impairment charges net of reversals (as defined in note (1) above) and income tax expense
to profit (loss) for the period. Adjusted EBIT, while not a financial performance measure under IFRS, is presented as an indicator of funds
available to service debt. Adjusted EBIT and Adjusted EBITDA data are included in this prospectus because such data are used by investors to
assess: (i) the operating trends and financial performance of the Company and (ii) the ability of the Company to (a) service its existing debt, (b)
incur new debt and (c) fund its capital expenditures. The Company believes that Adjusted EBIT, while providing useful information, should not
be considered in isolation as a substitute for profit for the period, as an indicator of operating performance, or as an alternative to cash flow as a
measure of liquidity. Additionally, the Company”s calculation of Adjusted EBIT may be different than the calculation used by other companies
and therefore, comparability may be affected. See notes 9, 23 and 24 of the Audited Annual Consolidated Financial Statements and Unaudited
Interim Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for
further information about impairment charges and reversals and other non-cash charges.

For the purpose of calculating CODELCOSs ratio of earnings to fixed charges (adjusted), (i) “earnings” consist of Adjusted EBIT and (ii) “fixed
charges” consist of finance cost. The ratio of earnings to fixed charges (adjusted) is calculated by dividing Adjusted EBIT by finance cost.

See note 22 of the Audited Annual Consolidated Financial Statements and the Unaudited Interim Consolidated Financial Statements.

The Copper Reserve Law currently requires the payment of a 10% special export tax on receivables of the sales proceeds that CODELCO
receives and transfers to Chile from the export of copper and related by products produced by CODELCO. For further information, see
“Summary—Recent Developments—Repeal of Copper Reserve Law” and “Risk Factors— Risks Relating to CODELCO”s Relationship with
the Government of Chile— CODELCO is subject to special taxes.”

The following table shows CODELCO”s debt and ratio of debt to Adjusted EBITDA and Adjusted EBITDA

coverage ratio for the periods indicated.

As of and for the six months ended
As of and for the year ended December 31, June 30,

2016 2017 2018 2018 2019

(in thousands of U.S.$, except ratios)

Debt ………o……. nn 14,913,561 $ 14,709,790 $ 15,257,685 $ 15,101,192 $ 15,118,691
Ratio of debt to Adjusted EBITDA 4.8 2.6 3.2 N/A N/A
Finance income……. anar 23,402 29,836 51,329 24,709 17,668
Adjusted EBITDA coverage ratio'”” 5.9 9.2 11.4 12.6 6.5

() Adjusted EBITDA coverage ratio is the ratio of Adjusted EBITDA to finance cost net of finance income.

RISK FACTORS

Prospective purchasers of the notes offered hereby should carefully consider all of the other information
contained herein, including the risk factors set forth below. As a general matter, investing in the securities of an issuer,
substantially all of whose operations are in a developing country such as Chile, involves a higher degree of risk than
investing in securities of issuers with substantially all of their operations in the United States and other jurisdictions.

Risks Relating to CODELCO”s Operations

CODELCO has in the past recognized significant impairment charges for certain assets and, if market and industry
conditions deteriorate, further impairment charges may be recognized.

A substantial amount of CODELCO*s total assets are property, plant and equipment. As of December 31,
2018, 72.1% of our total assets were property, plant and equipment. In accordance with IFRS as issued by the IASB,
we review the carrying amount of our assets to determine whether there is any indication that those assets have suffered
an impairment loss. CODELCO uses the value-in-use methodology to ensure that the recoverable amount of our
property, plant and equipment is not impaired. In assessing the value-in-use, the estimated future cash flows are
discounted using a pre-tax discount rate that reflects current market assessments at the time value of money and the
risks specific to the asset.

In 2016, CODELCO recognized a U.S.$79 million impairment loss on its Anglo American Sur assets,
primarily due to the rejection of the mining plan for El Soldado, which is owned and operated by Anglo American Sur,
by the National Geological and Mining Service (Servicio Nacional de Geología y Minería, or “SERNAGEOMIN”). In
2017, the impairments charges relating to the Anglo American Sur assets were reversed in the amount of U.S.$67
million, due to the approval of the mining plan for El Soldado by the Government of Chile. In 2018, CODELCO
recognized a U.S.$199 million impairment loss in its Ventanas Division mainly due to a decrease in treatment and
refining charges, as well as the negative outlook of long-term sulfuric acid prices. Because the impairment calculation
is directly associated with the outlook of copper prices, a downturn in the copper price outlook could require further
impairment losses on our plant, property and equipment. Such impairment charges could be material to our financial
statements.

CODELCO* business is highly dependent upon the price of copper.

CODELCOSs financial performance is significantly affected by the market prices of copper. These prices have
been historically subject to wide fluctuations and are affected by numerous factors beyond the control of CODELCO,
including international economic and political conditions, levels of supply and demand, the availability and costs of
substitutes, inventory levels maintained by producers and others and actions of participants in the commodities markets.
To a lesser extent, copper prices are also subject to the effects of inventory carrying costs and currency exchange rates.
In addition, the market prices of copper have occasionally been subject to rapid short-term changes. See “Overview of
the Copper Market.”

In 2018, copper prices averaged 295.9 cents per pound, up from 279.7 cents per pound in the same period in
2017. In the first six months of 2019, copper prices averaged 279.6 cents per pound, down from 313.7 cents per pound
in the same period in 2018, which may be attributable primarily to ongoing trade disputes between the United States
and China. China has been the main driver of copper consumption in recent years, and in 2016, 2017 and 2018, 46.1%,
39.6% and 49.8%, respectively, of CODELCO””s sales were made to China. If economic conditions deteriorate in
China or other emerging markets, the market price of copper could fall. A decline in copper prices would have an
adverse impact on CODELCO’”s revenues and financial results. In 2018, each one-cent change in CODELCO”s
average annual copper price per pound sold caused a variation in operating profit of approximately U.S.$40 million. If
CODELCO”s average annual copper price per pound declines significantly, we may be required to recognize asset
impairments similar to those recorded during 2015.

In 2015, CODELCO recognized an asset impairment charge of U.S.$2.4 billion of Anglo American Sur assets,
primarily due to the impact of a decline in, and deterioration in the outlook for, copper prices for 2015. In 2015,
CODELCO also recognized impairment charges of U.S.$311 million and U.S.$54 million in the Salvador and Ventanas
Divisions, respectively, and other non-cash charges of U.S.$277 million related to investment projects that were not

16
economically viable considering the copper price outlook at the time. See notes 23 and 24 of the Audited Annual
Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” for further information about impairment charges.

In the event of a sustained decline in prices, CODELCO has in the past and could again determine to curtail
operations or suspend certain of its mining and processing operations. See “Management’s Discussion and Analysis of
Financial Condition and Results of Operations.”

CODELCO faces competition in the copper market from other copper producers.

CODELCO faces competition from other copper mining companies and producers of copper around the world.
Although CODELCO continues to focus on reducing costs, there can be no assurance that competition from lower cost
producers will not have a material adverse effect on the business, financial condition, results of operations or prospects
of CODELCO.

The mining industry has experienced significant consolidation in recent years, including consolidation among
some of CODELCO”s main competitors, as a result of which an increased percentage of copper production is from
companies that also produce other products and are, consequently, more diversified. There can be no assurance that the
result of current or further consolidation in the industry will not have a material adverse effect on the business, financial
condition, results of operations or prospects of CODELCO.

Most of CODELCO*s copper output is dependent upon production from three of its main mining complexes.

Three of CODELCO”s mining complexes produced over 61.9% of its copper output in 2018 (including
CODELCOS”s share in the El Abra deposit and Anglo American Sur). The El Teniente Division, including the
Caletones smelter, produced an aggregate of 465,040 metric tons of copper in 2018. The Radomiro Tomic mine
produced an aggregate of 332,667 metric tons of copper and the Chuquicamata mine produced an aggregate of 320,744
metric tons of copper, each during the same period. If operations in any of these three mining complexes were
significantly reduced, interrupted or curtailed, CODELCO”s financial condition and its ability to make the required
payments on the notes could be materially and adversely affected. CODELCO cannot assure you that production
interruptions will not occur or that any such incident would not materially adversely affect its production. See
“Business and Properties—Operations—Chuquicamata Division,” “—Radomiro Tomic Division” and “—El Teniente
Division.”

”< The business of mining is subject to risks, some of which are not completely insurable. The business of mining, smelting and refining copper is generally subject to a number of risks and hazards,
including industrial accidents, labor disputes, úunexpected geological conditions, mine collapses, changes in the
regulatory environment, environmental hazards, weather and other natural phenomena, such as earthquakes, fires and
floods. Such occurrences could result in damage to, or destruction of, mineral properties or production facilities,
human exposure to pollution, personal injury or death, environmental and natural resource damage, delays in mining,
monetary losses and possible legal liability. CODELCO maintains insurance consistent with copper mining industry
standards and in amounts that it believes to be adequate, but which may not provide complete coverage in certain
circumstances. Insurance against certain risks (including certain liabilities for environmental pollution and other
hazards as a result of exploration and production) is not generally available to CODELCO or to other companies within
the industry.

Under each of CODELCO’”s copper sales agreements, CODELCO or its customer may suspend or cancel
delivery of copper during a period of force majeure. Events of force majeure under the agreements include acts of
nature, strikes, fires, floods, wars, transportation delays, governmental actions or other events that are beyond the
control of the parties. Any suspension or cancellation of deliveries under copper sales agreements that are not replaced
by delivery under new contracts or sales on the spot market could have a material adverse effect on the business,
financial condition, results of operations or prospects of CODELCO.

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CODELCO*s water supply could be affected by geological changes or environmental regulations.

CODELCO'”s business is dependent on the availability of water for the production of copper and subject to
environmental regulations regarding water usage. In the past, Chile has experienced droughts severe enough to
adversely affect the energy sector of the economy in the central and southern regions of Chile. CODELCO”s access to
water may also be impacted by changes in geology or other natural factors that CODELCO cannot control. If Chile
were to experience a drought or CODELCO was otherwise unable to obtain adequate water supplies, CODELCO”s
ability to conduct its operations could be impaired.

In addition, Chile is currently drafting a new water quality standard for the Aconcagua and Cachapoal rivers
and is evaluating the adoption of a new water quality standard for the Loa river. If new water quality standards are
adopted for those water supply sources on which CODELCO depends, these new standards could result in significant
additional environmental compliance costs. Furthermore, the Government of Chile has proposed certain changes to
applicable water regulations which, if adopted, could result in increased costs and expenditures and, in extreme cases,
delays in our mining operations.

CODELCO*s compliance with environmental, health and safety laws may require increased costs, including capital
commitments, and non-compliance may subject it to significant penalties.

Chile has adopted environmental, health and safety regulations requiring industrial companies operating in
Chile, including CODELCO, to undertake programs to reduce, control or eliminate various types of pollutants and to
protect natural resources, including water and air, among other requirements. If the Ministerio del Medio Ambiente (the
Ministry of the Environment) declares an area to be polluted or potentially polluted, a prevention or decontamination
plan is required. Either type of plan may contain measures that may increase the costs of developing new facilities or
expanding existing ones in the designated area. Some of the areas where CODELCO operates have been declared
polluted. The measures currently included in the prevention or decontamination plans that govern these areas are
subject to change and may become more stringent if compliance with the quality standards is not achieved. CODELCO
must comply with certain air quality environmental regulations regarding particulate matter (PM;0) and sulfur dioxide
(SO) in the areas surrounding the Potrerillos, Caletones, Ventanas and Chuquicamata smelting plants. The Potrerillos,
Caletones and Ventanas smelting plants have decontamination plans for such pollutants. In the area surrounding the
Chuquicamata smelter, there are decontamination plans for PM¡o under development and under review, and a pollution
prevention plan for SO» is under development. CODELCO is currently unable to fully assess what may be required of
it or the cost of compliance with the revised PM;o pollution reduction plans, the SO, prevention plan or any future
changes to the other plans covering the areas where CODELCO operates. As of the date of this prospectus, the impact
of operating in latent and saturated zones has not been material to CODELCO; however, it could have a material effect
in the future.

An air emissions standard for smelters was enacted by the Ministry of the Environment in 2013. This standard
involves arsenic (As), SO, PMyo and mercury (Hg) emissions. Since 2013, CODELCO”s cost of complying with this
standard was U.S.$2.3 billion, but the full cost will be determined when all the necessary engineering projects to ensure
compliance are finished and implemented. Such additional costs could also be material. As of the date of this
prospectus, the Ventanas and El Teniente smelters meet the requirements of this standard and the engineering projects
in the other smelters are currently under development. See “Regulatory Framework—+Environmental Regulations.”

Additionally, in 2015, Supreme Decree 10 declared the boroughs of Concón, Quintero and Puchuncaví, where
the Ventanas smelting plant is located, as a saturated zone with regards to PM»; and as a latent zone with regards to
PM:o, and new decontamination and prevention plans were enacted in March 2019. CODELCO estimates that the cost
of such plans will be U.S.$27 million, which will be incurred over a period of approximately four years.

Environmental, health and safety laws and regulations are complex, change frequently and have tended to
become increasingly stringent over time. For example, changes to current environmental laws and regulations, and
additional environmental laws and regulations, have recently been adopted, including mine closure legislation that
would require financial guarantees, and have recently been proposed, including green taxes, environmental crimes and
glacier protection laws that could (i) prevent expansion of our operations into certain areas, (ii) require us to obtain
additional permits and (iii) result in increased cost and potential delays. Moreover, certain changes to environmental,
health and safety laws and regulations are pending and other new laws or regulations may be adopted in Chile in the

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future. In addition, community and environmental activist groups have protested the development of certain mines of
our competitors in Chile and may increase demands for socially responsible and environmentally sustainable practices,
and their efforts may lead to operational delays and the creation or revision of government regulations and policies with
respect to the mining industry in Chile, litigation and increased costs.

Finally, as a result of the Paris Agreement reached during the 21st Conference of the Parties to the United
Nations Framework Convention on Climate Change in 2015, a number of governments have pledged “Nationally
Determined Contributions” to control and reduce greenhouse gas emissions. Assuming that the Chilean economy
grows at the same rate it has grown over the previous ten years, excluding the years of the global financial crisis, and
such growth rate is sufficient, Chile has committed to reducing its CO, emissions per GDP unit by 30% below 2007
levels by 2030 and, subject to an international monetary grant, reducing its CO, emission per GDP unit by 2030 until it
reaches a 35% to 45% reduction with respect to the 2007 levels. In addition, the Paris Agreement resulted in increased
international pressure for the establishment of a global carbon price, and on companies to adopt carbon pricing
strategies. The pricing of greenhouse gas emissions may impact our operational costs, mainly through higher price for
electricity and fossil fuels as mining is an energy intensive industry.

Any of these new laws or regulations could result in significant additional environmental compliance costs or
delays in expansion projects. As of June 30, 2019, CODELCO had total provisions of U.S.$1.5 million for future
decommissioning and site restoration costs, primarily related to tailing dams, closures of mine operations and other
mining assets. CODELCO”s operations outside Chile are also subject to extensive international, national and local
environmental, health and safety laws and regulations.

CODELCO is developing and implementing environmental management systems at each of its divisions to
monitor and achieve compliance with applicable environmental laws and regulations. While CODELCO has budgeted
for future capital and operating expenditures to maintain compliance with these laws and regulations, there is no
guarantee that current levels of expenditures and capital commitments will be sufficient to achieve future compliance.
There also can be no assurance that CODELCO has been or will be at all times in complete compliance with
environmental laws and regulations, or that proceedings or civil actions will not be brought, or that fines and other
sanctions will not be imposed for such non-compliance in the future. In addition, there can be no assurance that more
stringent enforcement of, or changes in, existing laws and regulations, the adoption of additional laws and regulations,
or the discovery of new facts resulting in increased liabilities would not have a material adverse effect on CODELCO”s
business, financial condition, results of operations or prospects.

For further information on environmental matters, and current and proposed environmental laws and
regulations, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity
and Capital Resources—Environmental” and “Regulatory Framework—Environmental Regulations.”

CODELCO is subject to legal proceedings and legal compliance risks that may adversely impact its financial
condition, results of operations and liquidity.

CODELCO spends substantial resources ensuring that it complies with local regulations, contractual
obligations and other legal standards. Notwithstanding this, CODELCO is subject to a variety of legal proceedings and
compliance risks in respect of various matters, including tax- and labor-related matters that arise in the course of its
business and in its industry as well as disputes with governmental agencies. For example, CODELCO is subject to
various labor proceedings in which workers and families of deceased workers allege that working conditions caused the
workers to contract silicosis. Although CODELCO has undertaken precautionary measures, there have been fatalities
involving CODELCO personnel in the past and there may be additional fatalities in the future. Serious accidents,
including fatalities, may subject CODELCO to substantial penalties, civil litigation or criminal prosecution. Claims for
damages to persons, including claims for bodily injury or loss of life, could result in substantial costs and liabilities,
which could materially and adversely affect CODELCO”s financial condition, results of operations or cash flows. If
CODELCO”s safety record were to substantially deteriorate over time or CODELCO were to suffer substantial
penalties or criminal prosecution for violation of health and safety regulations, CODELCO”s contracts may be
cancelled or it may not be awarded future business. In addition, CODELCO has filed administrative appeals against
three statements on the Company issued by the Comptroller General of the Republic of Chile (the “Comptroller”) in
2017. The Company estimates that these statements have had, as of the date of this prospectus, a negative effect of
approximately U.S.$100 million due to a reduction in production related to the delay in awarding specific contracts and

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the delay of investments. A final decision regarding this matter is pending. A negative outcome in an unusual or
significant legal proceeding or compliance investigation could also adversely affect our financial condition and results
of operations. For information regarding CODELCO”s current significant legal proceedings, see “Business and
Properties—Comptroller General of the Republic” and “Business and Properties—Legal Proceedings.”

Earthquake damage to CODELCO*s properties and operations could negatively affect CODELCOS*s results.

Chile is located in a seismic area that exposes CODELCO”s operations to the risk of earthquakes. Chile has
been adversely affected by powerful earthquakes in the past, including, most recently, (1) in 2015 when an earthquake
struck the coast of Chile, (ii) in 2014 when an earthquake struck the north of Chile and (iii) in 2010 when a severe
earthquake struck the southern central region of Chile. The 2015 earthquake measured 8.3 on the Richter scale and
affected the coast of Chile just north of Santiago, with no significant consequences for the rest of the country. The
2014 earthquake measured 8.2 on the Richter scale and affected mainly the Arica and Tarapacá Regions, with no
significant consequences for the rest of the country. The 2010 earthquake and its aftershocks, as well as tsunamis from
adjacent coastal waters, caused severe damage to Chile”s infrastructure, including roads, bridges, ports and Santiago”s
international airport, affecting areas across the country.

Although the 2015, 2014 and 2010 earthquakes did not have any substantial effect on CODELCO or its results
of operations, and although CODELCO’”s mining operations are subject to, and designed to withstand, damage from
significant seismic events, an earthquake occurring closer to CODELCO”s operations in northern Chile could cause
damage to its mining operations that would not be covered by insurance, except to the extent that its production ceased
for more than 30 days. Any such damages caused by an earthquake that were not covered by insurance could have an
adverse effect on CODELCO*s results of financial condition, results of operations or cash flow.

Future compliance with a changing and complex regulation scheme may require changes in CODELCO*s business.

CODELCO’s exploration, mining, milling, smelting and refining activities are also subject to
non-environmental Chilean laws and regulations (including certain industry technical standards), which change from
time to time. Matters subject to regulation include, but are not limited to, concession fees, transportation, production,
reclamation, export, taxation and labor standards.

While CODELCO does not believe that compliance with such laws and regulations will have a material
adverse effect on its business, financial condition, results of operations or prospects, there can be no assurance that
more stringent enforcement of, or change in, existing laws and regulations, the adoption of additional laws and
regulations, or the discovery of new facts resulting in increased liabilities or costs would not have a material adverse
effect on CODELCO”s business, financial condition, results of operations or prospects.

CODELCO*s business plans are based on estimates of the volume and grade of CODELCO*s ore deposits, which
could be incorrect.

CODELCOSs ore deposits (its resources and reserves) described in this prospectus constitute estimates based
on standard evaluation methods generally used in the international mining industry and on assumptions as to production
costs and market prices. The actual ore deposits may not conform to geological, metallurgical or other expectations,
and the volume and grade of ore recovered may be below the estimated levels. Lower market prices, as well as
increased production costs, reduced recovery rates and other factors, may render CODELCO*s ore deposits uneconomic
to exploit and may result in revision of its reserve and resource estimates from time to time. Reserve and resource data
are not indicative of future results of operations. See “Business and Properties—Ore Reserves.”

CODELCO business requires substantial capital expenditures.

CODELCOSs business is capital-intensive. Specifically, the exploration and exploitation of copper reserves,
mining, smelting and refining costs, the maintenance of machinery and equipment and compliance with applicable laws
and regulations require substantial capital expenditures. CODELCO must continue to invest capital to maintain or to
increase the amount of copper reserves that it exploits and the amount of copper that it produces. CODELCO expects
to make capital expenditures of approximately U.S.$13.4 billion between 2019 and 2021 on major projects, which it
intends to finance through operations, including capitalization and retention of profit, in addition to new borrowings

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from banks and capital markets. See “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources—Capital Expenditure Program.” There can be no assurance that
CODELCO will be able to maintain its production levels or generate sufficient cash flow, capitalize a sufficient amount
of its profit or have access to sufficient investments, loans or other financing alternatives to finance its capital
expenditure program at a level necessary to continue its exploration, exploitation and refining activities at or above its
present levels.

CODELCO*s future performance depends on the results of current and future innovation and exploration.

CODELCO has a two-pronged exploration program that is focused on increasing reserves of its existing
divisions and exploring for new deposits outside of its current operations. As the ore quality of CODELCO*s reserves
continues to decline over time, innovation and exploration are increasingly important to CODELCO”s success.
CODELCO expects to maintain its production levels through its expansion and development projects for the next three
years. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and
Capital Resources—Capital Expenditure Program” for more detail. While initial results have been favorable, there can
be no guarantee that CODELCO”s exploration program will continue to be successful. In addition, there may be some
degree of execution risk associated with the expansion of operations into deeper mines or mines at higher altitudes.
CODELCO”s expansion program could also experience delays or be negatively impacted by higher costs. If
CODELCO”s expansion program is not successful, it would materially and adversely affect its copper production
levels. For a description of CODELCO””s current development programs, see “Business and Properties—Resource
Development.”

CODELCO has experienced high energy costs and may experience higher energy costs in the future.

Energy represents a material portion of the production costs for CODELCO. The main energy sources for
CODELCOSs operations are electricity, liquid fuels (such as diesel, fuel oil and gasoline) and natural gas. Since 2004,
there has been a restricted supply of natural gas from Argentina. CODELCO*s production costs have increased due to
these shortages as it must rely on electricity generated from more expensive sources, such as diesel, oil or coal, and
these increased costs have adversely affected CODELCO”s results. CODELCO has taken certain actions to secure the
sources from which it can procure energy, including entering into long-term electrical contracts at competitive prices,
participating in the construction of liquefied natural gas (“LNG”) re-gasification terminals and entering into a five-year
supply contract for liquid fuels which are expected to meet its energy requirements. See “Business and Properties—
Production Costs of Copper.” In 2014, Chile passed a carbon tax targeting the power sector, which became effective in
2017. CODELCO began paying the taxes due under this law in 2018. If CODELCO*s energy suppliers do not perform
as expected or if there is an increase in energy costs in the future, CODELCO”s profits and cash flow could be
adversely affected.

Any interruption or destruction or loss of data in CODELCO*s information technology systems due to technical or
operational malfunctions or cyber-attacks could have a material adverse effect on its reputation, business, financial
condition and results of operations.

CODELCO is subject to a variety of information technology and system risks as a part of its normal course of
operations, including potential breakdown, invasion, virus, cyber-attack, cyber-fraud, security breach, and destruction
or interruption of CODELCO””s information technology systems by third parties or CODELCO””s own personnel.
Although CODELCO has security measures and controls in place that are designed to mitigate these risks, a breach of
its security measures or a loss of information could occur and result in a loss of material and confidential information,
breach of privacy laws and a disruption to its business activities. In addition, information systems could be damaged or
interrupted by natural disasters, force majeure events, telecommunications failures, power loss, acts of war or terrorism,
computer viruses, malicious code, physical or electronic security breaches, intentional or inadvertent user misuse or
error, or similar events or disruptions. Any of these or other events could cause interruptions, delays, loss of critical or
sensitive data or similar effects, which could have a material adverse impact on the protection of intellectual property,
confidential and proprietary information, and on CODELCOS*s business, financial condition and results of operations.

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Labor disruptions involving CODELCO”s employees or the employees of its independent contractors could affect
CODELCO* production levels and costs.

As of December 31, 2018, CODELCO employed 18,036 employees, approximately 92.3% of whom were
covered by collective bargaining agreements with labor unions. Most of these collective bargaining agreements have
terms of two to three years. CODELCO has experienced material work slowdowns, work stoppages and strikes in the
past. Most recently, CODELCO experienced a 39-day strike involving 83 union workers from the Andina Division, a
one-day strike that blocked access to the Chuquicamata mine to four of the six labor unions and a 14-day strike
involving 3,200 union workers in the Chuquicamata Division (or approximately 67% of the total work force). These
strikes diminished production by 17,600 metric tons.

CODELCO negotiated nine collective bargaining agreements in the six-month period ended June 30, 2019. In
2018, CODELCO negotiated 18 collective bargaining agreements. Twelve collective bargaining agreements, covering a
total of 7,081 employees at the Andina Division, Salvador Division, Mina Ministro Hales Division, El Teniente
Division and Gabriela Mistral Division, were negotiated ahead of schedule without any conflicts or work stoppages.
Five collective bargaining agreements, covering a total of 2,601 employees at the Radomiro Tomic Division, Mina
Ministro Hales Division, Chuquicamata Division and our headquarters, were negotiated on schedule without any
conflicts or work stoppages. The remaining collective bargaining agreement was reached at the conclusion of the
39-day strike with the workers from the Andina Division.

CODELCO has experienced work disruptions in the past, and there can be no assurance that a work slowdown
or work stoppage will not occur prior to or upon the expiration of the current collective bargaining agreements.
Management is unable to estimate the effect of any such work slowdown, stoppage or strike on CODELCO”s
production levels. Work slowdowns, stoppages or other labor-related developments affecting CODELCO could have a
material adverse effect on the business, financial condition, results of operations or prospects of CODELCO. In
particular, work slowdowns, stoppages and other labor-related events could increase CODELCO”s independent
contracting costs. In addition, pursuant to the Código del Trabajo (the “Labor Code of Chile”), CODELCO could be
held liable for the payment of labor and social security obligations owed to the employees of independent contractors
(or their subcontractors) if the independent contractors (or their subcontractors) do not fulfill those payment obligations.
For further information on employee and independent contractor matters, including recent work disruptions, see
“Business and Properties—Employees.”

CODELCO is subject to an extensive labor reform law promulgated by the Government of Chile that could affect its
business and operating results in the future.

In 2016, the Government of Chile promulgated an extensive labor reform law (the “Labor Reform Law”),
which became effective in 2017. The Labor Reform Law prevents Chilean companies from hiring temporary
replacements for striking employees and also prevents the replacement of striking employees with other existing
employees of the company. This may have an adverse effect on our overall employment and operating costs, and may
increase the likelihood of business disruptions in Chile. However, it has not been a practice of CODELCO to replace
employees on strike, and there has not been an increase in labor disruptions in Chile since the law became effective.

In addition, under the Labor Reform Law, CODELCO and its labor unions negotiate from time to time the
minimum services and emergency equipment that the labor unions must provide in case of a strike during a collective
bargaining process. Currently, the following minimum services must be strictly enforced: (i) services that are strictly
necessary to protect the physical assets and premises of the Company and to prevent accidents; (ii) services strictly
necessary to guarantee the rendering of all services of public utility, and the attention of the population and basic needs,
including those related to life, safety and health; and (iii) services strictly necessary to guarantee the prevention of
sanitary or environmental damage. If there is any disagreement between CODELCO and its labor unions regarding such
minimum services and emergency equipment, the parties may resolve such disagreement through administrative
proceedings before the Dirección Regional del Trabajo (Regional Labor Board), which are subject to challenge by the
parties before the Director Nacional del Trabajo (National Labor Board).

As of December 31, 2018, CODELCO employed 18,036 employees, approximately 92.3% of whom were
covered by collective bargaining agreements with labor unions. CODELCO currently has positive labor relations with

these unions. CODELCO is currently unable to estimate the impact that the Labor Reform Law or similar reforms will

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have on its labor relations with respect to labor unions, or on its business, financial condition, operating results and
prospects.

CODELCO engages in hedging activity from time to time, particularly with respect to its copper production, which
may not be successful and may result in losses to CODELCO.

CODELCO from time to time hedges certain future copper delivery commitments and production in order to
manage the risks associated with copper price volatility. CODELCO currently does not have any production hedging
commitments. See notes 27 and 28 to the 2017-2018 Consolidated Financial Statements and notes 27 and 28 to the
Unaudited Interim Consolidated Financial Statements.

CODELCOSs production hedging activities could cause it to lose the benefit of an increase in copper prices if
copper prices increase over the level of CODELCO”s hedge position, as occurred in 2012. The cash flows from and the
mark-to-market values of CODELCO”s production hedges can be affected by factors such as the market price of
copper, copper price volatility and interest rates, which are not under CODELCO*s control.

CODELCOSs production hedging agreements contain events of default and termination events that could lead
to early close-outs of CODELCO””s hedges. These include failure to pay, breach of the agreement, misrepresentation,
default under CODELCO*s loans or other hedging agreements and bankruptcy. In the event of an early termination of
CODELCO”s hedging agreements, the cash flows from the affected hedge instruments would cease and CODELCO
and the relevant hedge counterparty would settle all of CODELCO*s obligations at that time. In that event, there could
be a lump sum payment to be made either to or by CODELCO. The magnitude and direction of such a payment would
depend upon, among other things, the characteristics of the particular hedge instruments that were terminated and the
market price of copper and copper price volatility and interest rates at the time of termination.

In addition to its production hedging activities, CODELCO has hedged a portion of its exchange rate and
interest rate exposure by entering into forward exchange contracts to hedge against fluctuations in the UF to U.S. dollar
exchange rate for its outstanding UF-denominated bonds. CODELCO also periodically enters into futures contracts at
the request of customers with respect to certain sales of its own copper in order to provide its customers with protection
against fluctuation in the sale price paid in connection with such sales. No assurance can be given that CODELCO will
be adequately protected by its hedging activities.

See “Business and Properties—Marketing—Pricing and Hedging,” notes 29 and 30 to the 2017-2018
Consolidated Financial Statements and notes 29 and 30 to the Unaudited Interim Consolidated Financial Statements for
further information on CODELCO*s hedging activity.

Global economic, political and regulatory developments may adversely affect CODELCO.

Revenue from international sales constitutes a material portion of our total revenue, and we anticipate it will
continue to for the foreseeable future. The current U.S. administration has called for substantial changes to United
States foreign trade policy, including the possibility of imposing greater restrictions on international trade and
significant increases in tariffs on goods imported into the United States. For example, the United States has recently
enacted a series of tariffs on the import of Chinese products. The continued threats of tariffs, trade restrictions and trade
barriers could have a generally disruptive impact on the global economy and, therefore, negatively impact our revenues.
Given the relatively fluid regulatory environment in China and the United States and uncertainty on how the United
States or foreign governments will act with respect to tariffs, international trade agreements and policies, there could be
additional tax or other regulatory changes in the future. Any such changes could adversely impact CODELCO”s
business, financial condition and results of operations. If our revenues generated from international sales decline
significantly as a result, it could have a material adverse effect on CODELCO”s business and results of operations.

The planned departure of the UK from the European Union could have an adverse effect on CODELCO*s business,
financial condition and potential growth in Europe.

The decision of the UK to withdraw from the European Union (“EU”), commonly referred to as “Brexit,” has
caused significant volatility in the global financial markets. Brexit has also given rise to calls for the governments of
other EU member states to consider withdrawal from the EU. These developments, or the perception that they could

23
occur, have had and may continue to have a material adverse effect on global economic conditions and the stability of
global financial markets, including by significantly reducing global market liquidity or restricting the ability of key
market participants to operate in certain financial markets. Brexit is likely to continue to adversely affect European and
worldwide economic conditions and could contribute to greater instability in the global financial markets before and
after the terms of the UK”s future relationship with the EU are settled.

These effects could have an adverse effect on our business, financial condition and potential growth into
Europe. However, the eventual effects of the UK”s planned departure from the EU on CODELCO”s business and
financial condition are uncertain at this time.

Risks Relating to CODELCO*s Relationship with the Government of Chile

Important corporate governance matters, the annual budget and financing programs are determined by or subject to
the approval of the President of Chile and the Ministries of Finance and Mining.

CODELCO is a mining, industrial and commercial state-owned enterprise of indefinite duration with its own
legal personality and capital. CODELCO”s relationship with the Government of Chile is through the Ministry of
Mining, and is governed by Decree Law 1,350, as amended by Law 20,392, its bylaws and other applicable legislation.
The President of Chile is vested with the authority analogous to that of the shareholders of a corporation (sociedad
anónima) under Chilean law, which may be delegated in whole or in part to the Ministers of Finance and Mining,
jointly. Pursuant to such authority, the President of Chile (i) participates in the designation of the Board of Directors by
designating three directors without external input and by electing six directors on the basis of third-party short lists; (11)
appoints the Chairman of the Board of Directors; and (iii) may approve and amend the bylaws of the Company, by
means of an executive decree issued jointly by the Ministries of Finance and Mining. In 2017, Miguel Juan Sebastián
Piñera Echenique was re-elected as President of Chile, after having previously served as President from 2010-2014.
Mr. Piñera*s administration began on March 11, 2018. Senior management and administration of the Company are
vested in its Board of Directors and further delegated to its Chief Executive Officer. Pursuant to Decree Law 1,350,
CODELCO”s Board of Directors must submit its proposed annual budget to the Ministries of Finance and Mining for
approval and possible revision. In addition, Decree Law 1,350 requires CODELCO to include as part of its proposed
annual budget a debt amortization budget that includes interest and principal payments on CODELCO”s debts,
including the notes. CODELCO must also submit a three-year Plan de Negocios y Desarrollo (a Business
Development Plan, or “BDP”, report, approved by the Company”s Board of Directors, to the Ministries of Finance and
Mining by March of each year. There is no guarantee that actions taken with respect to the appointment of
CODELCOSs directors, amendments to its bylaws, and revision and approval of its budget, including CODELCO”s
capitalization of profit, will be adopted by the administration of the new President and/or will be the same as they
would be in a privately owned company. See “Management” and “Regulatory Framework.”

CODELCO funding through retention of profits is restricted and is subject to the approval of the Ministries of
Finance and Mining.

As a state-owned enterprise and according to its governing law, CODELCO’s profit is required to be
transferred to the Chilean Treasury. Before June 30 of each year, the Ministries of Finance and Mining are required to
determine, by means of a joint decree, the amount, if any, that the Company shall allocate to the creation of
capitalization and reserve funds as retention of profits. Between 2014 and 2019, the Government of Chile has
authorized the capitalization by capital injection and retention of profit within CODELCO in an aggregate amount of
U.S.$3.3 billion. Although CODELCO currently expects the Ministries of Finance and Mining to make available a
substantial amount of its pre-tax profit over the next three years, a joint decree of the Ministries of Finance and Mining
is required each year and the amounts approved in any given year, if any, could vary significantly.

IfCODELCO”s funding through capitalization and retention of profits, depreciation, amortization and deferred
taxes are insufficient to fund capital expenditures and if it is unable to otherwise finance planned expenditures,
CODELCO'”s business would be adversely affected. See “Management’s Discussion and Analysis of Financial
Condition and Results of Operations—Liquidity and Capital Resources.” In addition, if the Government of Chile does
not authorize additional capitalization or the retention of profits, our credit rating may be adversely affected, which
could have a material adverse effect on our business and financial condition.

24
CODELCO is subject to special taxes.

The Copper Reserve Law currently requires the payment of a 10% special export tax on receivables of the
sales proceeds that CODELCO receives and transfers to Chile from the export of copper and related by-products
produced by CODELCO. As a result, the Banco Central de Chile (the “Central Bank of Chile”) retains 10% of the
amounts from such sales that CODELCO transfers to its Chilean account. All such amounts are then transferred via the
Central Bank of Chile. The Copper Reserve Law has an adverse effect on our ability to retain earnings for purposes of
capital expenditures. In July 2019, the Congress of Chile issued a new resolution to repeal the Copper Reserve Law.
Under this resolution, CODELCO will remain subject to the 10% special export tax until 2028. Beginning in 2029, the
tax will be reduced annually by 25% until 2032 when CODELCO will no longer be subject to such tax. See
“Summary—Recent Developments—Repeal of the Copper Reserve Law.”

Since the 2012 fiscal year, CODELCO has been subject to a mining tax on operating income generated during
the operating year at progressive rates between 5% and 14%. During 2018, CODELCO distributed a total of U.S.$1.8
billion (including income tax, and export tax payments and distributions) to the Chilean Treasury. See “Management’s
Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—
Distributions to the Chilean Treasury” and “Regulatory Framework.” The statutory rate of the mining tax was 5% for
each of 2016, 2017 and 2018.

In 2014, an extensive tax reform was enacted in Chile through which certain cornerstones of the Chilean tax
system were changed. Among these changes, the tax reform modified the corporate tax regime by allowing for the
coexistence of two alternative tax regimes from 2017 onwards. Consequently, as of January 1, 2017, Chilean
companies are able to opt between the following two tax regimes: (i) the partially integrated regime (parcialmente
integrado) or (ii) the attributable taxation regime (renta atribuida). Under both regimes, the corporate tax rate
gradually increased from 21% in 2014, to 22.5% in 2015 and to 24% in 2016. In 2017, depending on the tax regime
chosen by a company, the corporate tax rate was increased to 25% (in the case of the attributable taxation regime) and
25.5% (in the case of the partially integrated regime). On January 1, 2018, the tax rate applicable to the partially
integrated regime increased to 27%. In addition, this tax reform also contemplates additional changes, such as thin
capitalization rules, the taxation of controlled foreign corporations with passive income (effective January 2016) and an
increase to 0.8% in the maximum stamp tax rate from 2016 onwards.

Nonetheless, CODELCO as a 100% state-owned corporation, will not be subject to either of the
aforementioned tax regimes but instead will be subject to a corporate tax rate on its net taxable income determined
under full accounting records. Its corporate tax rate has gradually increased from 21% in 2014 to up to 25% since 2017.
This regime has been confirmed by Circular No. 49 (Oficio Circular No. 49) issued by the Servicio de Impuestos
Internos (the “Internal Tax Services, or “SII”) in 2016. Currently, CODELCO is also subject to a 40% tax on net
earnings applicable to state-owned enterprises as specified by Decree Law 2,398, Art. 2. For further information, see
“Taxation—Chilean Taxation.”

Constitutional amendments could be proposed that would allow private ownership of CODELCO.

CODELCO is 100% owned by the Government of Chile and a constitutional amendment approved by the
Chilean Congress would be required to allow private participation in CODELCO”s ownership. Although there has been
no formal governmental action to permit private investment in CODELCO, no assurance can be given that such a
constitutional amendment will not be proposed to the Chilean Congress in the future. See “Regulatory Framework—
Overview of the Regulatory Regime.”

Risks Relating to Chile

CODELCO growth and profitability depend on political stability and economic activity in Chile and other
emerging markets.

Almost all of CODELCO’s revenues are derived from its operations in Chile. Accordingly, CODELCO”s
results of operations and general financial condition depend in part on Chilean markets for labor and certain materials
and equipment, and on factors relating to Chilean political stability generally. While Chile has experienced relative
political stability in recent years, there can be no assurance that future developments in or affecting the Chilean political

25
situation, including economic or political instability in other emerging markets, will not result in material and adverse
effects on CODELCO”s business, financial condition or results of operations. CODELCO also could be adversely
affected by legal or regulatory changes over which it has no control.

CODELCO* business performance is subject to the effects of inflation and changes in the value of the peso.

Although Chilean inflation has decreased in recent years, Chile has experienced high levels of inflation in the
past. High levels of inflation in Chile could adversely affect the Chilean economy and have an adverse effect on
CODELCOSs results of operations if the high inflation is not accompanied by a matching devaluation of the local
currency. There can be no assurance that Chilean inflation will not revert to prior levels in the future. In addition, the
measures taken by the Central Bank of Chile to control inflation have often included maintaining a tight monetary
policy with high interest rates, thereby restricting the availability of credit and economic growth.

The following table shows the annual rate of inflation (as measured by changes in the Chilean consumer price
index and as reported by the Instituto Nacional de Estadísticas, or the “Chilean National Institute of Statistics”) through
June 30, 2019:

Year Inflation (CPI)
(in percentages)

2016 27

2017. 2.3

2018. 2.6

2019 (though June 30, 2019) .. 1.6

Source: Chilean National Institute of Statistics

A significant portion of CODELCO’”s operating costs are denominated in pesos and could therefore be
significantly affected by the rate of inflation in Chile. If inflation in Chile were to increase without a corresponding
depreciation of the peso, or if the value of the peso were to appreciate relative to the U.S. dollar without the peso
experiencing corresponding deflation in Chile, the financial position and results of operations of CODELCO as well as
the value of the notes could be materially and adversely affected. See “Management’s Discussion and Analysis of
Financial Condition and Results of Operations —Liquidity and Capital Resources.”

The variation of the U.S. dollar against the peso constitutes CODELCO”s main foreign exchange rate
exposure. The mismatch between assets and liabilities denominated in pesos amounts to a net liability for the Company
of U.S.$1.9 billion (7.1% of the total amount of liabilities on a consolidated basis) as of June 30, 2019. In order to
cover this risk, CODELCO has, and currently is, engaged in hedging transactions to partially mitigate the effects of the
volatility of foreign exchange rates. See “Risk Factors—Risks Relating to CODELCO”s Operations—CODELCO
engages in hedging activity from time to time, particularly with respect to its copper production, which may not be
successful and may result in losses to CODELCO.”

Risks Relating to the Offering

In case of a default under the notes, the ability of holders to attach property of CODELCO may be limited by
Chilean law.

CODELCOSs activities in Chile are dependent on concessions granted by the Chilean Ordinary Courts with
respect to CODELCO”s mining rights. These concessions are granted for indefinite terms in the case of exploitation
concessions and for two-year periods in the case of exploration concessions (renewable with certain limitations). As a
general matter, the Ordinary Courts, through legal proceedings brought by third parties (or by the Chilean Treasury in
case of noncompliance with the obligation to pay annual fees), have the legal right to terminate or annul the
concessions. Pursuant to the Chilean Mining Code, all mining concessions, as well as certain raw materials and other
property or assets permanently dedicated to the exploration or extraction of minerals, cannot be subject to an order of
attachment, except with respect to mortgages, where the debtor consents to the attachment in the relevant legal
proceeding or when the debtor is a stock corporation. In addition, pursuant to the Constitution, mining concessions
corresponding to mining deposits exploited by CODELCO upon its creation in 1976 can be subject neither to

26
attachment nor to any act of disposition by CODELCO. As a result, the rights of holders to attach property of
CODELCO in the event of a default under the notes would be limited by such provisions. See “Regulatory
Framework—Mining Regulations.”

CODELCO is permitted to incur additional indebtedness ranking equally to the notes or certain secured
indebtedness.

The indenture governing the notes will not contain any restrictions on the amount of additional indebtedness
which may be incurred by CODELCO or its subsidiaries; however, the notes contain restrictions on the ability of
CODELCO and its subsidiaries to incur certain secured indebtedness as set forth in “Description of Notes—Limitations
on Liens” below. As a result, CODELCO is permitted to issue additional unsecured debt that ranks on an equal basis
with the notes. If CODELCO incurs any additional unsecured debt that ranks on an equal basis with the notes, the
holders of that debt will be entitled to share with the holders of the notes in any proceeds distributed in connection with
an insolvency, liquidation, reorganization, dissolution or other winding-up of CODELCO subject to satisfaction of
certain debt limitations. This may have the effect of reducing the amount of proceeds paid to the holder of the notes
under such an event. The indenture does not require CODELCO to make payments under the notes ratably with
payments being made under any other obligations.

If certain changes to tax law were to occur, CODELCO would have the option to redeem the notes.

Under current Chilean law and regulations, payments of interest to holders of the notes that are not residents of
Chile for purposes of Chilean taxation generally will be subject to Chilean withholding tax at a rate of 4%. Subject to
certain exceptions, CODELCO will pay Additional Amounts (as defined in “Description of Notes—Payments of
Additional Amounts”) so that the amount received by the holder after Chilean withholding tax will equal the amount
that would have been received if no such taxes had been applicable. The notes are redeemable at the option of
CODELCO in whole, but not in part, at any time, at the principal amount thereof plus accrued and unpaid interest and
any Additional Amounts due thereon if, as a result of changes in the laws or regulations after the date of this prospectus
affecting Chilean taxation, CODELCO becomes obligated to pay Additional Amounts with respect to interest on such
notes in respect of withholding or deduction of Chilean tax at a rate in excess of 4%. CODELCO is unable to
determine whether such an increase in the withholding tax rate will ultimately be presented to or enacted by the Chilean
Congress; however, if such an increase were enacted, the notes would be redeemable at the option of CODELCO. See
“Description of Notes— Redemption—Tax Redemption” and “Taxation—Chilean Taxation.”

Our obligations under the notes will be subordinated to certain statutory liabilities.

Under Chilean bankruptcy law, the obligations under the notes are subordinated to certain statutory
preferences. In the event of a liquidation, such statutory preferences, including claims for salaries, wages, secured
obligations, social security, taxes and court fees and expenses, will have preference over any other claims, including
claims by any investor in respect of the notes.

The market value of the notes may depend on economic conditions in other countries over which CODELCO has no
control.

The market value of securities of Chilean companies, including CODELCO, is affected to varying degrees by
economic and market conditions in other emerging market countries. Although economic conditions in such countries
may differ significantly from economic conditions in Chile, investors” reactions to developments in any of these other
countries may have an adverse effect on the market value of securities of Chilean issuers. International financial
markets have in recent years experienced volatility due to a combination of international political and economic events.
There can be no assurance that the deterioration of emerging market economies or other events in or outside of the
region will not adversely affect the market value of the notes.

The transferability of the notes may be limited by the absence of an active trading market and restrictions on
transfer under applicable securities law.

The notes have not been registered under the Securities Act or any state securities laws. CODELCO does not
intend to list the notes on any national securities exchange or to seek admission of the notes for trading on any

27
securities exchange in the United States; however, we intend to apply to list the notes on the Luxembourg Stock
Exchange. Furthermore, CODELCO does not intend to exchange the notes for notes that are registered under the
Securities Act. The dealer manager is not obligated to make a market in the notes. No assurance can be given about
the liquidity of any markets that may develop for the notes, the ability of holders to sell the notes or the prices at which
the notes could be sold. Future trading prices of the notes will depend on many factors, including prevailing interest
rates, CODELCO”s operating results and the market for similar securities. There can be no assurance that any active
trading market will develop for the notes or that holders of the notes will be able to transfer or resell the notes without
registration under applicable securities laws.

We cannot assure you that our credit rating, or the credit ratings for the notes, will not be lowered, suspended or
withdrawn by the rating agencies.

Our credit rating is subject to change in the future, and the credit ratings of the notes may change after
issuance. Such ratings do not address all material risks relating to an investment in CODELCO, or its notes, but rather
reflect only the views of the rating agencies at the time the ratings are issued. An explanation of the significance of
such ratings may be obtained from the rating agencies. CODELCO cannot assure you that such credit rating will
remain in effect for any given period of time or that such ratings will not be lowered, suspended or withdrawn entirely
by the rating agencies, if, in the judgment of such rating agencies, circumstances so warrant. Our credit rating is an
important part of maintaining our liquidity. Any lowering, suspension or withdrawal of such ratings may potentially
increase our borrowing costs, and may have an adverse effect on our financial results and business operations and the
market price and marketability of the notes.

Payments claimed in Chile on the notes, pursuant to a judgment or otherwise, may be in pesos.

In the event that proceedings are brought against CODELCO in Chile, either to enforce a judgment or as a
result of an original action brought in Chile, CODELCO would not be required to discharge those obligations in a
currency other than Chilean currency. Such obligation may be satisfied in Chilean currency at the exchange rate in
effect on the date on which payments are made. As a result, holders of the notes may suffer a U.S. dollar shortfall
Judgment in Chile is obtained.

28
USE OF PROCEEDS

The net proceeds from the sale of the notes issued under the Program will be used by us for general corporate
purposes.

29
EXCHANGE RATES

As a general matter, prior to 1989, Chilean law permitted the purchase and sale of foreign exchange only in
those cases explicitly authorized by the Central Bank of Chile. Law 18,840, the Central Bank of Chile Act,
liberalized the rules that govern the purchase and sale of foreign currency. The act empowers the Central Bank to
determine that certain purchases and sales of foreign currency specified by law must be carried out in the Mercado
Cambiario Formal (the “Formal Exchange Market”). The Formal Exchange Market is formed by the banks and
other entities so authorized by the Central Bank. The exchange rate of the transactions conducted in the Formal
Exchange Market is freely agreed upon by the parties thereto. For more information, see “Foreign Investment and
Exchange Controls in Chile.” The observed exchange rate for any given day equals the average exchange rate of the
transactions conducted in the Formal Exchange Market on the immediately preceding banking day, as certified by
the Central Bank (the “Observed Exchange Rate”). Even though the Central Bank is authorized to carry out its
transactions at the rates it sets, it generally uses the spot rate for its transactions. Authorized transactions by other
banks are generally carried out at the spot rate.

Purchases and sales of foreign exchange, which may be effected outside the Formal Exchange Market, can
be carried out in the Mercado Cambiario Informal (the “Informal Exchange Market”). There are no limits imposed
on the extent to which the exchange rate in the Informal Exchange Market may fluctuate above or below the
Observed Exchange Rate.

The following table sets forth, for the periods indicated, the high, low, average and period-end Observed
Exchange Rate for U.S. dollars for each year beginning in 2015 as reported by the Central Bank of Chile. The

Federal Reserve Bank of New York does not report a noon buying rate for Chilean pesos.

Observed Exchange Rates

(Ch$ per U.S.$)

Period High” Low” Average? Period-End*
2015.. 715.66 597.10 654.25 707.34
2016.. 730.31 645.22 676.83 667.29
2017.. 679.05 615.22 649.33 615.22
2018 698.56 588.28 640.29 695.69

2019:

683.73 651.79 667.68 681.09
678.53 660.48 667.40 677.67
708.20 678.68 692.00 707.86
709.80 678.32 692.41 679.86
699.98 677.62 686.06 699.98
. 724.20 700.82 713.70 720.65
September (through September 23) ………….. 725.69 707.07 716.07 715.24

(1) Rates shown are the actual low and high (as applicable) on a daily basis for periods indicated.

(2) The average annual rates represent the average of average monthly rates for the periods indicated. The average monthly rates represent the
average of the rates on each day for the periods indicated.

(3) Period ends on January 1 of the following year.
Source: Central Bank of Chile.

The Observed Exchange Rate reported by the Central Bank of Chile for September 23, 2019 was
Ch$715.24 = U.S.$1.00.

30
SELECTED CONSOLIDATED FINANCIAL DATA

The following tables present CODELCO”s summary consolidated financial data and other data as of and
for each of the periods indicated. This data (other than the average LME copper prices) is derived from, and should
be read together with, CODELCO”s Consolidated Financial Statements, including the notes thereto, included
elsewhere in this prospectus. This data should also be read together with “Management’s Discussion and Analysis
of Financial Condition and Results of Operations.” The Consolidated Financial Statements and other financial
information included in this prospectus are presented in accordance with IFRS. The unaudited interim information
as of June 30, 2019 and for the six-month periods ended June 30, 2018 and 2019 includes all adjustments, consisting
of only normal recurring adjustments, with the exception of adjustments to the statement of financial position as of
June 30, 2019 for the adoption of IFRS 16, that in the opinion of management are necessary for the fair presentation
of such information. The unaudited results of operations for the six months ended June 30, 2018 and 2019 are not
necessarily indicative of the results to be expected for the full year or any other period.

For the six months ended
For the year ended December 31, June 30,

2016 2017 2018 2018 2019

(in thousands of U.S.$)

CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME

Revenue…

$ 11,536,751 $ 14,641,555 $ 14,308,758 $ 7,426,464 $ 5,916,749

Cost of sales’”….. (9,449,668) (10,380,403) (11,194,341) (5,577,274) (4,661,912)
Gross profit ….. 2,087,083 4,261,152 3,114,417 1,849,190 1,254,837
Other income, by function 138,474 154,332 124,826 65,511 90,713
Impairment loss determined in accordance
with IFRS 9 … N/A N/A 158 1,315 588
Distribution costs … (11,891) (10,403) (18,262) (9,746) (7,784)
Administrative expenses (415,395) (428,140) (465,328) (232,345) (203,446)
Other expenses”… (1,324,149) (1,557,473) (2,115,314) (964,409) (985,326)
Other gains …… 29,400 32,605 21,395 8,248 13,114
Finance income 23,402 29,836 51,329 24,709 17,668
Finance costs (547,347) (644,610) (463,448) (237,609) (260,139)
Share of profit (loss) of ciates and joint

ventures accounted for using equity

method (177,358) 185,428 119,114 73,723 5,233
Foreign exchange difference (232,895) (206,058) 178,143 95,645 (60,182)
Profit (loss) for the period before tax ……. (430,676) 1,816,669 547,030 674,232 (134,724)
Income tax expense’…. 97,096 (1,193,067) (357,283) (430,318) 34,490
Profit (loss) for the period. (333,580) 623,602 189,747 243,914 (100,234)
Profit (loss) attributable to owners of the

parent. (275,418) 569,175 155,719 223,307 (104,573)
Profit (loss) attributable to non-controlling

interes anno ce. (58,162) 54,427 34,028 20,607 4,339
Profit (loss) for the period a. $ (333,580) $ 623,602 $ 189,747 $ 243,914 $ (100,234)

As of December 31
2016 2017 2018 As of June 30, 2019

CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION (in thousands of U.S.$)
Total current assets…… bonne $ 4,690,418 $ 6,211,053 $ 5,828,206 $ 5,114,271
Total property, plant and equipment….. 23,977,261 25,275,512 26,754,998 28,242,219
Investments accounted for using equity

method”… 3,753,974 3,665,601 3,568,293 3,484,027
Non-current receivabl 95,316 91,442 84,731 96,063
All other assets* …. 904,161 1,112,533 854,577 973,938
Total assets … $ 33,421,130 $ 36,356,141 $ 37,090,805 $ 37,910,518
Total current 2,462,453 3,315,456 3,539,412 4,242,041
Total non-current liabilities…………….. 21,068,268 22,115,347 22,207,524 22,103,563

31
Total liabilities.

$ 23,530,721 $ 25,430,803 $ 25,746,936 $ 26,345,604

Non-controlling interests……………….. 978,666 1,007,495 969,204 917,815
Equity attributable to owners of the parent 8,911,743 9,917,843 10,374,665 10,647,099

Total equity ….. 9,890,409 $ 10,925,338 $ 11,343,869 $ 11,564,914
Total liabilities and equity $ 33,421,130 $ 36,356,141 $ 37,090,805 $ 37,910,518

As of and for the six months ended

As of and for the year ended December 31, June 30,
2016 2017 2018 2018 2019
(in thousands of U.S.$, except ratios and copper prices)

OTHER ITEMS
Depreciation and amortization of assets $ 1,936,152 $ 2,101,101 $ 2,181,140 $ 1,043,427 $ 1,005,720
Interest expense, Met ..o.coccocannonooo. $ (523,945) $ (614,774) $ (412,119) $ (212,900) $ (42,471)
Ratio of earnings to fixed charges
(adjusted) O… 0.5 3.8 3.0 4.4 0.5
Average LME copper price (U.S. £ per

pound)?…. 220.6 279.7 295.9 313.7 279.6
Adjusted EBITDAS Liccccninin. $ 3,075,187 $ 5,668,314 $ 4,695,792 $ 2,691,781 $ 1,587,832
Ratio of debt to Adjusted EBITDA(”. 4.8 2.6 3.2 N/A N/A
Adjusted EBITDA coverage ratio(“”….. 5.9 9.2 11.4 12.6 6.5

(4)

(6)

(0)
(8)

“Other expenses” is comprised principally of costs related to retirement plan and severance indemnities, costs of environmental exit,
restoration and similar liabilities and the 10% special export tax paid by the Company that is required by the Copper Reserve Law. See note
24.b of the Audited Annual Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and
Results of Operations.”

CODELCO is subject to a mining tax on operating income at progressive rates of between 5% and 14%. The tax is imposed on operating
income generated during the operating year. The statutory rate of the mining tax for CODELCO was 5.0% for each year between 2016 and
2018. See note 5 of the Audited Annual Consolidated Financial Statements and Unaudited Interim Consolidated Financial Statements and
“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—
Distributions to the Chilean Treasury” and “Regulatory Framework.” See also “Risk Factors—Risks Relating to CODELCO”s Relationship
with the Government of Chile—CODELCO is subject to special taxes” for information regarding the mining tax rate effective in 2016. In
addition, CODELCO is subject to the corporate income tax rate of 24% in 2016 and 25% since 2017 (pursuant to the recent tax reform) and
a 40% tax on net earnings applicable to state-owned enterprises as specified by Decree Law 2,398, Art. 2. See “Taxation—Chilean
Taxation” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital
Resources—Distributions to the Chilean Treasury” for additional information.

All other assets includes other non-current financial assets, other non-current non-financial assets, accounts receivable from related parties,
non-current, non-current inventories, intangible assets other than goodwill, investment property, non-current tax assets and deferred tax
assets.

For the purpose of calculating CODELCOS*s ratio of earnings to fixed charges (adjusted), (i) “earnings” consist of Adjusted EBIT and (ii)
“fixed charges” consist of finance cost. The ratio of earnings to fixed charges (adjusted) is calculated by dividing Adjusted EBIT by finance
cost. Adjusted EBIT is calculated by adding finance cost, impairment charges net of reversals (as defined in note (1) of the following table)
and income tax expense to profit (loss) for the period. Adjusted EBIT, while not a financial performance measure under IFRS, is presented
as an indicator of funds available to service debt. Adjusted EBIT and Adjusted EBITDA data are included in this prospectus because such
data are used by investors to assess: (i) the operating trends and financial performance of the Company and (ii) the ability of the Company
to (a) service its existing debt, (b) incur new debt and (c) fund its capital expenditures. The Company believes that Adjusted EBIT, while
providing useful information, should not be considered in isolation as a substitute for profit for the period, as an indicator of operating
performance, or as an alternative to cash flow as a measure of liquidity. Additionally, the Company”s calculation of Adjusted EBIT may be
different than the calculation used by other companies and therefore, comparability may be affected. See notes 9, 23 and 24 of the Audited
Annual Consolidated Financial Statements and Unaudited Interim Consolidated Financial Statements and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” for further information about impairment charges and reversals and other
non-cash charges.

Average price on the LME for Grade A cathode copper during period.

Adjusted EBITDA is calculated by adding finance cost, income tax expense, depreciation and amortization of assets plus export taxes and
impairment charges net of reversals (as defined in note (1) of the following table) to profit (loss) for the period. Adjusted EBITDA is
presented because it is a widely accepted indicator of funds available to service debt, although it is not an IFRS-based measure of liquidity
or performance. Adjusted EBIT and Adjusted EBITDA data are included in this prospectus because such data are used by investors to
assess: (i) the operating trends and financial performance of the Company and (ii) the ability of the Company to (a) service its existing debt,

32
10)

(10)

(b) incur new debt and (c) fund its capital expenditures. The Company believes that Adjusted EBITDA, while providing useful information,
should not be considered in isolation or as a substitute for profit as an indicator of operating performance, or as an alternative to cash flow
as a measure of liquidity. Additionally, the Company”s calculation of Adjusted EBITDA may be different than the calculation used by
other companies and therefore, comparability may be affected. See notes 9, 23 and 24 of the Audited Annual Consolidated Financial
Statements and Unaudited Interim Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” for further information about impairment charges and reversals and other non-cash charges.

The ratio of debt to Adjusted EBITDA is calculated by dividing debt by Adjusted EBITDA. Debt is defined as loans from financial
institutions plus bonds issued.

Adjusted EBITDA coverage ratio is the ratio of Adjusted EBITDA to finance cost net of finance income. See note 9 above for further
information about Adjusted EBITDA and notes 23 and 24 of the Audited Annual Consolidated Financial Statements and Unaudited Interim
Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for
further information about impairment charges and reversals and other non-cash charges.

The following table shows CODELCO”s earnings, Adjusted EBIT, ratio of earnings to fixed charges

(adjusted), Adjusted EBITDA and reconciliation of Adjusted EBIT and Adjusted EBITDA for the periods indicated.

Profit (loss) for the period…………………

For the six months ended
For the year ended December 31, June 30,

2016 2017 2018 2018 2019
(in thousands of U.S.$)

$ (333,580) $ 623,602 $ 189,747 $ 243,914 $ (100,234)

Income tax expense ……. (97,096) 1,193,067 357,283 430,318 (34,490)
Finance costs 547,347 644,610 463,448 237,609 260,139
Impairments” 156,709 7,378 395,965 138,183 _
Adjusted EBIT?… arman 273,380 2,468,657 1,406,443 1,050,024 125,415
Ratio of earnings to fixed charges

(adjusted)?….. 0. cenas 0.5 3.8 3.0 4.4 0.5
Depreciation and amortization of assets” 1,936,152 2,101,101 2,181,140 1,043,427 1,005,720
Copper Reserve Law” ….. 865,655 1,098,556 1,108,209 598,330 456,697

Adjusted EBITDA …….

(1)

(4)
(5)

$ 3,075,187 $ 5,668,314 $ 4,695,792 $ 2,691,781 $ 1,587,832

Adjusted EBIT is calculated by adding finance cost, impairment charges net of reversals (as defined in note (1) above) and income tax
expense to profit (loss) for the period. Adjusted EBIT, while not a financial performance measure under IFRS, is presented as an indicator
of funds available to service debt. Adjusted EBIT and Adjusted EBITDA data are included in this prospectus because such data are used by
investors to assess: (i) the operating trends and financial performance of the Company and (ii) the ability of the Company to (a) service its
existing debt, (b) incur new debt and (c) fund its capital expenditures. The Company believes that Adjusted EBIT, while providing useful
information, should not be considered in isolation as a substitute for profit for the period, as an indicator of operating performance, or as an
alternative to cash flow as a measure of liquidity. Additionally, the Company”s calculation of Adjusted EBIT may be different than the
calculation used by other companies and therefore, comparability may be affected. See notes 9, 23 and 24 of the Audited Annual
Consolidated Financial Statements and Unaudited Interim Consolidated Financial Statements and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” for further information about impairment charges and reversals and other non-cash
charges.

For the purpose of calculating CODELCO*s ratio of earnings to fixed charges (adjusted), (1) “earnings” consist of Adjusted EBIT and (ii)
“fixed charges” consist of finance cost. The ratio of earnings to fixed charges (adjusted) is calculated by dividing Adjusted EBIT by finance
cost.

See note 22 of the Audited Annual Consolidated Financial Statements and the Unaudited Interim Consolidated Financial Statements.

The Copper Reserve Law currently requires the payment of a 10% special export tax on receivables of the sales proceeds that CODELCO
receives and transfers to Chile from the export of copper and related by products produced by CODELCO. For further information, see
“Summary—Recent Developments—Repeal of Copper Reserve Law” and “Risk Factors— Risks Relating to CODELCO”s Relationship
with the Government of Chile— CODELCO is subject to special taxes.”

The following table shows CODELCO’s debt and ratio of debt to Adjusted EBITDA and Adjusted

EBITDA coverage ratio for the periods indicated.

As of and for the six months ended
As of and for the year ended December 31, June 30,

2016 2017 2018 2018 2019

33
(in thousands of U.S.$, except ratios)

DeDt cnocccccicninoo. m0. am. $ 14,913,561 $ 14,709,790 $ 15,257,685 $ 15,101,192 $ 15,118,691
Ratio of debt to Adjusted EBITDA 4.8 2.6 3.2 N/A N/A
Finance income. 23,402 29,836 51,329 24,709 17,668
Adjusted EBITDA coverage ratio” 5.9 9.2 11.4 12.6 6.5

0) Adjusted EBITDA coverage ratio is the ratio of Adjusted EBITDA to finance cost net of finance income.

34
SELECTED OPERATING DATA

The following table sets forth a summary of the production and sales data of CODELCO for each of the
years ended December 31, 2016, 2017 and 2018 and for the six months ended June 30, 2018 and 2019. For more
information regarding such data, see “Business Properties.”

COPPER MINING OPERATIONS
Ore Mined (in thousands of dry metric tons):
Mina Ministro Hales
Chuquicamata Division .
Radomiro Tomic Di

Gabriela Mistral Division.

El Teniente Division.
Andina Division ..
Salvador Division

Total ….

Average Copper Ore Grade:

Mina Ministro Hales
Chuquicamata Division .
Radomiro Tomic Di
Gabriela Mistral Division.
El Teniente Division.
Andina Division ..
Salvador Division …….
Weighted Average
PLANT COPPER PRODUCTION
(by division in metric tons):
Mina Ministro Hales
Chuquicamata Division
Radomiro Tomic Division .
Gabriela Mistral Division ..
El Teniente Division
Andina Division …
Salvador Division …..
Total …….
PLANT COPPER PRODUCTION
(contained copper in metric tons):
ER Cathodes……
SX-EW Cathode:

Calcined .

Anodes — Blister.

Concentrates
Total .

MOLYBDENUM PRODUCTION
(contained molybdenum in metric tons)……
COPPER SALES

For the six months ended

(in metric tons; includes sales of third-party copper):

Cathodes.

Fire Refined ..
Anodes — Blister.
Concentrates..
Total ….
COPPER EXPORTS

(in metric ton:
Cathodes.
Blister ……….

Year ended December 31, June 30,

2016 2017 2018 2018 2019
26,494 23,653 19,827 9,687 9,136
45,642 50,104 56,909 25,247 30,263
79,971 78,582 77,692 39,414 32,614
39,596 40,503 39,430 19,014 17,773
50,826 50,812 52,454 24,962 25,493
28,218 31,863 29,264 15,200 13,978
16,392 14,513 12,892 6,568 4,948
287,139 290,029 288,467 140,091 134,204
1.19% 1.08% 1.09% 1.12% 0.95%
0.79 0.77 0.62 0.62 0.64
0.47 0.51 0.53 0.53 0.51
0.43 0.43 0.37 0.36 0.36
1.01 0.98 0.96 0.98 0.94
0.78 0.78 0.75 0.75 0.69
0.54 0.56 0.59 0.57 0.62
0.71% 0.71% 0.67% 0.67% 0.65%
237,020 215,086 195,485 97,060 72,252
302,010 330,910 320,744 136,508 166,131
318,255 318,878 332,667 178,354 127,422
121,712 122,737 107,247 49,875 42,284
475,340 464,328 465,040 224,585 202,936
193,341 220,030 195,531 101,048 83,793
59,796 61,942 60,840 26,016 15,138
1,707,474 1,733,911 1,677,554 813,446 709,954
93,724 65,579 44,308 18,863 –
440,587 442,136 410,649 201,383 179,273
166,159 159,113 152,653 77,026 46,743
393,820 381,526 386,393 185,666 104,080
613,184 685,557 683,551 330,508 379,858
1,707,474 1,733,911 1,677,554 813,446 709,954
30,641 28,674 24,031 12,942 10,161
1,358,519 1,233,012 1,231,172 631,025 457,561
100,337 118,986 135,509 59,166 9,790
595,567 610,852 529,292 236,690 388,236
2,054,423 1,962,850 1,895,974 926,881 855,586
1,267,012 1,164,459 1,173,010 599,520 434,873
100,325 118,986 133,499 57,163 9,790

Concentrates.. 543,726 515,214 379,398 181,480 290,967

Total …. me Ce 1,911,063 1,798,659 1,685,906 838,163 735,629
INVENTORIES OF COPPER AT PERIOD-END

(in metric tons)…… e. 00. 58,675 54,448 80,233 46,804 33,160

36
MANAGEMENT”S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with CODELCO’s Consolidated Financial
Statements, including the notes thereto, included elsewhere in this prospectus, as well as the data set forth in
“Selected Consolidated Financial Data.” Except as otherwise disclosed herein or indicated, the Consolidated
Financial Statements and other financial information included in this prospectus are presented in accordance with
IFRS.

Overview

CODELCO is the world”s largest copper producer and one of the largest companies in Chile in terms of
revenues. CODELCO engages primarily in the exploration, development and extraction of ore-bearing copper and
byproducts, the processing of ore into refined copper and the international sale of refined copper and byproducts. In
2018, CODELCO derived 92% of its total sales from copper and 8% of its total sales from byproducts of its copper
production, primarily molybdenum, anodic slimes and sulfuric acid.

Since its inception in 1976, CODELCO has contributed approximately U.S.$108.2 billion (in
2018 currency) to the Chilean Treasury. Approximately 62.4% of this amount was generated in the last 15 years,
representing 8.8% of the revenues of the Government of Chile. In 2018, CODELCO accounted for 17.2% of all
Chilean exports.

CODELCOSs financial performance is significantly affected by the market prices of copper. As with prices
for other commodities, copper prices have historically been subject to wide fluctuations. LME copper prices
averaged 295.9 cents per pound in 2018, compared to 279.7 cents per pound in 2017 and 220.6 cents per pound in
2016. Copper prices averaged 279.6 cents per pound in the first half of 2019, compared to 313.7 cents per pound in
the first half of 2018. As of late 2016, copper prices have rebounded and our results have experienced a positive
effect. Nonetheless, since the first half of 2018 copper prices have been affected by the ongoing trade disputes
between the United States and China. For more information, see “Overview of the Copper Market.”

CODELCO continues to focus on controlling and limiting production cost increases. For many years,
CODELCO has been within the first or second quartiles in the industry with respect to costs. Currently, CODELCO
is in the third quartile of the industry?s cost curve. This position is primarily attributable to the quality of its ore
bodies, its economies of scale and the experience of its workforce and management. The Company intends to make
every effort, through investment and management, to be within the first or second quartiles of the industry?s cost
curve in the long-term. In 2018, CODELCO’s total costs and expenses were 245.1 cents per pound, compared to
227.1 cents per pound in 2017 and 214.6 cents per pound in 2016, mainly due to the appreciation of the Chilean
peso against the U.S. dollar, as well as higher input prices, non-cash charges related to the write-off of an innovation
project for underground mining and impairment losses on fixed assets associated with the Ventanas Division. The
increase in 2017 compared to 2016 is primarily attributable to the appreciation of the Chilean peso against the U.S.
dollar followed by higher interest expenses and higher fuel and energy expenses. For the six months ended June 30,
2019, CODELCOS*s total costs and expenses were 258.3 cents per pound, compared to 237.2 cents per pound for the
same period in 2018, mainly due to lower production in connection with weather disruptions in the northern area of
Chile, a 14-day strike at the Chuquicamata mine, upgrades at the Chuquicamata and Salvador smelters that
suspended operations temporarily, the negative impact of foreign exchange rate translation effects, higher bonuses
and other employment benefits associated with its collective bargaining agreements and higher financing costs.

In 2018, CODELCOS’S total cash cost was U.S.$5.1 billion, compared to U.S.$5.1 billion in 2017 and
U.S.$4.7 billion in 2016. For the six months ended June 30, 2019, CODELCOS*s total cash cost was U.S.$2.2 billion,
as compared to U.S.$2.4 billion for the six months ended June 30, 2018. Because a significant portion of
CODELCO*s costs are denominated in Chilean pesos, the depreciation of the Chilean peso against the U.S. dollar
reduces CODELCO*s cash costs in U.S. dollar terms and, on the other hand, the appreciation increases these costs.
See “Exchange Rates.” In 2018, CODELCO’s cash cost of production was 139.1 cents per pound, compared to
135.9 cents per pound in 2017 and 126.1 cents per pound in 2016, primarily attributable to the appreciation of the
Chilean peso against the U.S. dollar, lower production levels and higher main input prices. The higher cash cost in
2017 over 2016 is primarily attributable to higher operational costs, the appreciation of the Chilean peso against the

37
U.S. dollar and higher interest expenses. For the six months ended June 30, 2019, 142.3 cents per pound, compared
to 137.6 cents per pound in the same period in 2018, primarily attributable to lower production levels as a result of
weather disruptions in the northern area of Chile, a 14-day strike at the Chuquicamata mine and lower by-product
credits due to lower volumes sold of molybdenum, sulfuric acid, gold and silver.

CODELCO conducts hedging operations from time to time to reduce the risks associated with copper price
volatility. CODELCO also periodically enters into futures contracts at the request of customers with respect to
certain sales of its own copper in order to provide its customers with protection against fluctuations in the sale price
paid in connection with such sales. Since 2005, CODELCO has occasionally hedged certain future copper delivery
commitments and production in order to manage the risks associated with copper price volatility. As of June 30,
2019, CODELCO did not have any production hedging commitments and, accordingly, there was no related impact
on pre-tax income for the six months ended June 30, 2019. See notes 29 and 30 to the Unaudited Interim
Consolidated Financial Statements.

CODELCO has hedged a portion of its exchange rate and interest rate exposure by entering into forward
exchange contracts to hedge against fluctuations in the UF to U.S. dollar exchange rate for its outstanding
UF-denominated bonds. See “Business and Properties—Marketing—Pricing and Hedging” and “Risk Factors—
Risks Relating to CODELCO”s Operations—CODELCO engages in hedging activity from time to time, particularly
with respect to its copper production, which may not be successful and may result in losses to CODELCO.” See
also notes 29 and 30 to the 2017-2018 Consolidated Financial Statements and notes 29 and 30 to the Unaudited
Interim Consolidated Financial Statements for further information on CODELCO*s hedging activity.

Sale prices for CODELCO”s products are established principally by reference to prices quoted on the LME
and the New York Commodity Exchange (“COMEX”) in the case of copper, or prices published in “Metals
Weekly” in the case of molybdenum. The substantial majority of copper produced by CODELCO is sold under
annual contracts to customers who have long-term relationships with CODELCO. Pricing under such contracts is
based on prevailing average copper prices for a quotation period, generally for the month following the scheduled
month of shipment. Revenue under such contracts is recorded at provisional prices determined at the time of
shipment. Usually, an adjustment is then made after delivery of the copper, based on the pricing terms contained in
the applicable contract.

CODELCOSs financial performance is also significantly affected by the relationship of copper prices to
production costs. In 2018, CODELCO’s annual production, including its investment in El Abra and Anglo
American Sur, slightly decreased to 1.81 million metric tons from 1.84 million metric tons in 2017 and 1.83 million
metric tons in 2016. The lower production in 2018 was mainly due to lower production at the Andina, Mina
Ministro Hales, Gabriela Mistral and Chuquicamata Divisions, partially offset by increased production at the
Radomiro Tomic Division and CODELCOS”s stake in Anglo American Sur and El Abra. The higher production in
2017 was mainly due to an increase in production from the Andina and the Chuquicamata Divisions, partially offset
by a decrease in the Mina Ministro Hales and the El Teniente Divisions, as well as lower production coming from
CODELCOSs stake in El Abra.

In 2018, each one-cent change in CODELCO”s average annual copper price per pound caused a variation in
operating profit of approximately U.S.$40 million. CODELCO expects production to remain relatively stable in the
near future. By overcoming certain non-permanent disruptions, such as inclement weather and other natural events
and strikes, and producing more copper through the new Mina Ministro Hales ore body, CODELCO believes that it
will be able to compensate for diminished production resulting from lower average ore grades, which themselves are
expected to stabilize over time. Nonetheless, CODELCO continues to develop its project pipeline with the goal of
increasing its production marginally in the long-term.

CODELCO continues to develop and refine its mine management practices and programs to limit and
reduce its costs. These include the following: (i) improved deposit identification and mining techniques; (ii) the
implementation of early retirement plans and workforce reduction programs; (iii) an investment in human capital
and continuing to attract and retain a world-class management team and professionals of the highest caliber;
(iv) improved utilization of equipment and inputs used in the processes of copper production to increase productivity
and efficiency; and (v) the development of key projects, specifically the new mine level at El Teniente, the Andina
plant reallocation and the Chuquicamata underground mine projects. Production cash costs are influenced by

38
mining and production practices, as well as the type of ore from which copper is produced, production levels and
market prices of byproducts, and foreign exchange rates.

In 2018, CODELCO invested U.S.$3.6 million, mainly in expansion and development projects, including
the Chuquicamata underground mine, the Andina plant reallocation, the new mine level at El Teniente and the
upgrade of Chuquicamata, Salvador and El Teniente smelters. See “Business and Properties.”

In addition to selling its current production of copper, CODELCO may sell copper in its inventory from
past production cycles to meet the demand of its customers. CODELCO also purchases copper from third parties in
the spot market for resale. The Company makes these purchases and sales of third-party copper to meet the
requirements under sales contracts and to participate in the spot market for copper based on its evaluation of market
conditions. Other than pursuant to the joint venture with China Minmetals Non-Ferrous Metals Co. Ltd.
(“Minmetals”), a Chinese state-owned metals company, which ended in April 2016, CODELCO has no long-term
commitments regarding third-party copper purchases or sales. For more information on Minmetals, see “Business
and Properties—Associations, Joint Ventures and Partnerships.” CODELCO also engages in copper transactions
with its affiliates at market terms. In addition, CODELCO purchases copper from its affiliates for further processing
and resale.

The following tables set forth, for the periods indicated, the components of CODELCO”s consolidated
financial statements of operations expressed as a percentage of revenue under IFRS. These tables are qualified in
their entirety by reference to, and should be read together with, CODELCO”s Consolidated Financial Statements,
including the notes thereto, included elsewhere in this prospectus:

Six months ended

Year ended December 31, June 30,

2016 2017 2018 2018 2019
100.0% 100.0% 100.0% 100.0% 100.0%
(81.9) (70.9) (78.2) (15.1) (78.8)
18.1 29.1 21.8 24.9 21.2
Other income, by function. 1.2 1.1 0.9 0.9 1.5
Administrative expenses (3.6) (2.9) (3.3) (3.1) (3.4)
Other expenses …. (11.5) (10.6) (14.8) (13.0) (16.7)
Finance costs ……….. anar (4.7) (4.4) (3.2) (3.2) (4.4)
Profit (loss) for the period before ta: (3.7) 12.4 3.8 9.1 (2.3)
Income tax expense …. 0.8 (8.1) (Q.5) (5.8) 0.6
Profit (loss) for the period . (2.9)% 4.3% 1.3% 3.3% (1,.7)%

39
The following tables set forth, for the periods indicated, certain price, volume and cost data:

Six months ended

Year ended December 31, June 30,
2016 2017 2018 2018 2019
CODELCO Average Metal Price (per
pound)”
Copper … $ 2.14 $ 2.86 $ 2.76 $ 293 $ 2.65
Molybdenum … $ 6.38 $ 7.88 $ 11.64 $ 11.60 $ 12.02
CODELCO Sales Volume (in metric to; y
Own copper(2)… 1,860,465 1,846,452 1,838,150 895,083 836,423
Third-party copper. 401,966 304,026 296,109 147,510 81,823
Total copper… 2,262,431 2,150,478 2,134,259 1,042,592 918,246
Molybdenum (in oxide and concentrate) 29,823 28,918 25,385 13,584 11,982
CODELCO*s Cash Cost of Production (per
pound) ….. oran rnnon enanas 126.16 135.9g 139.1é 137.66 142.36

(1) The average metal price is the weighted average of prices actually paid to CODELCO for its product mix.
(2) Includes wire rod sales and cathodes from CODELCOSs subsidiaries.

Results of Operations for the Six months Ended June 30, 2018 and 2019

The following table sets forth CODELCO”s summarized results of operations for the six months ended
June 30, 2018 and 2019:

Six months ended June 30, 7 Change
2018 2019 2018/2019
(in millions of U.S.$)
Revenue $ 7,426 $ 5,917 (20.3)%
Cost of sales… (5,577) (4,662) (16.4)
Gross profit…… 1,849 1,255 (32.1)
Other income, by function. 66 91 38.5
Administrative expenses .o.ccccinoninnonsoo (232) (203) (12.4)
Other expenses (964) (985) 2.2
Finance costs (238) (260) 9.5
Share of profit (loss) of ass
using equity method.. 74 5 (92.9)
Foreign exchange differences . 96 (60) (162.9)
Profit (loss) for the period before tax. 674 (135) (120.0)
Income tax expense … e (430) 34 (108.0)
Profit (loss) for the period. 244 (100) (141.1)
Profit (loss) attributable to owners of parent 223 (105) (146.8)
Profit (loss) attributable to non-controlling interests…………….. 21 4 (78.9)

Revenue. The following table sets forth CODELCO”s revenue for the six months ended June 30, 2018 and

2019:

Six months ended June 30, % Change
2018 2019 2018/2019
(in millions of U.S.$)

Revenue . $ 7,426 $ 5,917 (20.3)%
Sales of CODELCO”s own copper 5,794 4,883 (15.7)
Sales of third-party copper …….. 1,021 487 (52.3)
Sales of byproducts and other…….. 611 547 (10.5)

Revenue decreased by 20.3% to U.S.$5.9 billion in the first six months of 2019, compared to
U.S.$7.4 billion for the same period in 2018. This decrease was primarily attributable to a decrease in CODELCO”s

40
average copper price from U.S.$2.93 per pound in the first six months of 2018 to U.S.$2.65 per pound in the first six
months of 2019 and a decrease in the volume of copper sold by 11.9% as a result of lower production levels. Our
own copper sales decreased by 15.7% mainly due to the decrease in CODELCO”s average copper price and 6.6%
lower volume sold. The decline in copper prices in July, August and September 2019 may result in a downward
adjustment in CODELCO”s revenues and trade receivables recognized in June 2019, primarily attributable to
adjustments to account for the provisional billing of copper at the time of shipment and the final amount billed after
shipment. Because the downward adjustment to provisional invoices is expected to be greater than the decreases in
copper prices between the date of sale and the final pricing as a result of changes in the forward curves used to effect
the provisional pricing, the impact to CODELCO”s revenues would be expected to be substantially greater than the
decrease in copper prices during the third quarter of 2019, and the impact to CODELCO”s net profit would be
expected to be substantially greater than the decrease in revenues during the third quarter of 2019. Such adjustments
will be recorded in the consolidated financial statements for the nine months ended September 30, 2019. See
“Critical Accounting Estimates—Provisional Pricing Arrangements” for more information.

Third-party copper sales totaled U.S.$487 million in the first six months of 2019, compared to
U.S.$1.0 billion for the same period in 2018, attributable to lower average copper prices and a 44.5% decline in
volume sold. In general, changes in the volume of third-party copper sold are dependent upon CODELCO*s need to
meet requirements under sales contracts and, to a lesser extent, purchase copper under spot market terms if
CODELCO*s own production is insufficient to cover the quantities that it has agreed to supply its customers.

Sales of byproducts and other decreased by 10.5% to U.S.$547 million in the first six months of 2019,
compared to U.S.$611 million for the same period in 2018. This decrease was primarily due to the 11.8% decrease
in molybdenum volume sold, partially offset by a 3.6% increase in molybdenum average price.

Cost of sales. CODELCOS”s cost of sales in any period includes both the mining and production costs of its
own copper and byproducts and the purchase costs of copper, as well as gold, silver and other byproducts, at market
prices from third parties and processed and sold by CODELCO in that period. The following table sets forth
CODELCOSs total cost of sales for the six months ended June 30, 2018 and 2019:

Six months ended

June 30, % Change
2018 2019 2018/2019
(in millions of U.S.$)

¡A 5,577 $ 4,661 (16.43%
Cost of CODELCO””s own copper. 4,250 3,865 (9.1)
Cost of third-party sales ……. 1,004 482 (52.0)
Cost of byproducts and other 323 315 (2.4)

CODELCOS*s total cost of sales decreased by 16.4% to U.S.$4.7 billion (78.8% of sales) in the first six
months of 2019, compared to U.S.$5.6 billion (75.1% of sales) for the same period in 2018, primarily due to a lower
volume sold, in addition to operational cost reduction efforts and the depreciation of the Chilean peso against the
U.S. dollar, which positively impacted wages and third-party services expenses. Some of the minerals that
CODELCO sells are purchased at market prices, and CODELCO also purchases mineral ore from third parties at
market prices that it processes and sells as copper.

CODELCOS’s cost of sales of its own copper decreased to U.S.$3.9 billion during the first six months of
2019, compared to U.S.$4.3 billion for the same period in 2018. This decrease is primarily attributable to lower
volume sold in addition to lower operational costs as the result of cost reduction efforts and the depreciation of the
Chilean peso against the U.S. dollar, which decreased wage and third-party services expenses.

The cost of copper purchased from third parties decreased by 52.0% in the first six months of 2019 to

U.S.$482 million, compared to U.S.$1 billion for the same period in 2018. The decrease was caused by a 44.5%
lower volume of third-party copper sold and by a decrease in the average price of copper.

41
The cost of byproducts and other decreased by 2.4% to U.S.$315 million in the first six months of 2019,
compared to U.S.$323 million for the same period in 2018, primarily due to lower volume sold of molybdenum,
sulfuric acid, gold and silver.

Depreciation and amortization expenses decreased by 3.6% to U.S.$1.01 billion during the six months of
2019, compared to U.S.$ 1.04 million for the same period in 2018. This decrease was primarily due to lower
production since the amounts recognized in property, plant and equipment are depreciated under a
units-of-production method.

Gross profit. Gross profit amounted to U.S.$1.3 billion for the first six months of 2019, compared to U.S.$
1.8 billion for the same period in 2018. The 32.1% decrease was primarily attributable to the decrease in revenues
mainly due to lower average price received for CODELCO”s product mix and lower volumes sold of copper,
molybdenum, sulfuric acid, silver and gold, partially offset by the decrease in the cost of sales mainly due to lower
volumes sold and cost reduction efforts.

Other income, by function. The largest components of other income, by function, are sales of services to
third parties, insurance claims received and sales of assets. Other income, by function increased 38.5% to U.S.$91
million in the first six months of 2019, compared to U.S.$66 million for the same period in 2018, primarily
attributable to miscellaneous sales, guarantees charged to contractors, as well as an insurance claim compensation.

Administrative expenses. Administrative expenses decreased to U.S.$203 million (3.4% of total revenues)
during the first six months of 2019, compared to U.S.$232 million (3.1% of total revenues) for the same period in
2018. This decrease was primarily attributable to the positive effect of the depreciation of the Chilean peso against
the U.S. dollar and the decrease in the depreciation and amortization.

Other expenses. Other expenses amounted to U.S.$985 million (16.7% of total revenues) during the first
six months of 2019, compared to U.S.$964 million (13.0% of total revenues) for the same period in 2018. This
increase was primarily attributable to an increase in indirect fixed costs and the impact of the collective bargaining
process, especially at the Chuquicamata Division, partially offset by the decrease in the amount of special export tax
payments due to a lower average copper price and the absence of non-cash charges related to a U.S.$138.1 million
write-off in connection with an underground mining innovation project during the first half of 2018.

The following table sets forth the principal components of CODELCO”s other expenses for the periods
indicated:

Six months ended June 30,

2018 2019
(in millions of U.S.$)
Copper Reserve Law ……… m0. enana nono rna ran nnrnon no ranrnnnnnns $ 598 $ 457
Bonus for the end of collective bargaining and other employee benefits 88 143
Other expenses . 278 385
Total other expenses by function . $ 964 $ 985

CODELCO recorded other expenses of U.S.$598 million and U.S.$457 million in the first six months of
2018 and 2019, respectively, pursuant to the Copper Reserve Law, which levies a 10% tax on CODELCO”s exports
of its own copper and related byproducts. Under the accounting policies adopted by Codelco, this export tax is
accounted for in “other expenses.” The decrease of this tax recorded in the first six months of 2019 compared to the
same period in 2018 is primarily attributable to lower revenues from CODELCO”s own copper sales.

Bonuses for the end of collective bargaining and other employee benefits increased to U.S.$143 million

from U.S.$88 million, mainly due to higher number of employees involved in such negotiations, in addition to an
increase in the bonus amounts.

42
Other expenses increased from U.S.$278 million to U.S.$385 million due to an increase in indirect fixed
costs, partially offset by the absence of a non-cash charges related to a U.S.$138.1 million write-off in connection
with an underground mining innovation project during the first half of 2018.

Finance costs. Finance costs increased to U.S.$260 million in the first six months of 2019, compared to
U.S.$238 million for the same period in 2018. This increase was primarily attributable to costs incurred in
connection with the consummation of the tender offer in February 2019. The average interest rate was 4.3% as of
June 30, 2019, compared to 4.3% as of June 30, 2018. As of June 30, 2019, 85% of our debt had a fixed rate and
15% had a floating rate.

Share of profit(loss) of associates and joint ventures accounted for using equity method. CODELCO”s net
equity participation in related companies decreased to a net profit of U.S.$5 million in the six months of 2019,
compared to a net profit of U.S.$74 million for the same period in 2018. This decrease was primarily attributable to
the decrease in the average copper price which negatively impacted the El Abra deposit and Anglo American Sur”s
profitability, as well as production losses due to weather disruptions in the northern area of Chile.

Foreign exchange differences. According to Decree Law 1,350, CODELCO maintains its accounting
records in U.S. dollars, recording transactions in currencies other than U.S. dollars at the exchange rate current at the
date of each transaction and, subsequently, for monetary assets and liabilities denominated in currencies other than
the U.S. dollar, at the closing exchange rate determined by the Central Bank of Chile. CODELCO experienced a loss
from foreign exchange differences of U.S.$60 million in the first six months of 2019, compared to a gain from
foreign exchange differences of U.S.$ 96 million in the same period of 2018. The loss recorded in the first six
months of 2019 is primarily attributable to the appreciation of the Chilean peso against the U.S. dollar as of June 30,
2019 as compared to December 31, 2018.

Loss before tax. Loss before tax was U.S.$135 million during the first six months of 2019, compared to a
profit of U.S.$674 million for the same period in 2018, primarily attributable to lower sales and lower share of profit
of associates and joint ventures, partially offset by lower cost of sale and administrative costs and the foreign
exchange difference due to the appreciation of the Chilean peso against the U.S. dollar.

Income tax expense. During the first six months of 2019, CODELCO had a statutory tax rate of 65.0% in
accordance with applicable regulations, comprised of (i) a corporate income tax rate of 25.0% (a 17% historic
corporate tax rate applied to income earned in and prior to 2011 but changed by means of the 2014 tax reform) and
(ii) a 40% tax on net earnings applicable to state-owned enterprises as specified by Decree Law 2,398, Art. 2.
During 2018, CODELCO was subject to the same statutory tax rate of 65%. CODELCO is also subject to an
additional mining tax that is based on its operating income, and, effective for its 2012 fiscal year, is imposed at
progressive rates of between 5% and 14%. CODELCO’s effective rate of the mining tax for 2018 and 2017 was
5%. CODELCOS*s taxes on income amounted to a benefit of U.S.$34 million during the first six months of 2019 and
an expense of U.S.$430 million during the same period of 2018. The decrease in expense from taxes on income was
primarily due to the losses before tax generated in during the first six months of 2019.

Loss for the period. As a result of the factors described above, CODELCOS”s loss after tax was U.S.$100
million during the first six months of 2019, compared to a profit of U.S.$244 million for the same period of 2018.

43
Results of Operations for the Three Years Ended December 31, 2018

The following table sets forth CODELCO”s summarized results of operations for the years ended
December 31, 2016, 2017 and 2018:

Year ended December 31, % Change
2016 2017 2018 2016/2017 2017/2018
(in millions of U.S.$)

Revenue 11,537 14,642 14,309 26.9% (2.3)%
Cost of (9,450) (10,380) (11,194) 9.8 7.8
Gross profit. 2,087 4,261 3,114 104.2 (26.9)
Other income, by function. 138 154 125 11.6 (18.8)
Administrative expense: (415) (428) (465) 3.1 8.6
Other expens: (1,324) (1,557) (2,115) 17.6 35.8
Finance costs (547) (645) (463) 17.9 (28.2)
Share of profit (loss

joint ventures accounted for under the

equity method………….. (177) 185 119 (204.5) (35.7)
Foreign exchange difference: (233) (206) 178 (11.6) (186.4)
Profit (loss) for the period before tax (431) 1,817 547 (521.6) (69.9)
Income tax expense ….. 97 (1,193) (357) (1,329.9) (70.1)
Profit (loss) for the period (334) 624 190 (286.8) (69.6)
Profit (loss) attributable to owners of
parent… nono (275) 569 156 (306.9) (72.6)
Profit (loss) attributable to
non-controlling interests… (58) 54 34 (193.1) (37.0)

Revenue. The following table sets forth CODELCO””s revenues for the years ended December 31, 2016,
2017 and 2018:

Year ended December 31, % Change
2016 2017 2018 2016/2017 2017/2018
(in millions of U.S.$)

¡AA EE $ 14,642 $ 14,309 26.9% (2.3)%
Sales of CODELCO”s own copper.. 8,779 11,635 11,219 32.5 (3.6)
Sales of third-party copper…. 1,753 2,006 1,901 14.4 (5.2)
Sales of byproducts and other… 1,004 1,001 1,189 (0.3) 18.8

Revenue decreased in 2018 by 2.3% to U.S.$14.3 billion, compared to U.S.$14.6 billion in 2017, mainly
due to a 3.5% decrease in CODELCO””s copper price to 276 cents per pound in 2018 from 286 cents per pound in
2017. CODELCO*”s own copper sales decreased 3.6% to U.S.$11.2 billion in 2018, compared to U.S.$11.6 billion in
2017, primarily attributable to the 3.4% decrease in CODELCO*s copper price and a 0.4% reduction in the tonnage
volume sold. Revenue increased in 2017 by 26.9% to U.S.$14.6 billion, compared to U.S.$11.5 billion in 2016,
mainly due to CODELCO”s average copper price growth from an average of 214 cents per pound in 2016 to 286
cents per pound in 2017. CODELCO*s own copper sales increased 32.5% to U.S.$11.6 billion in 2017, compared to
U.S.$8.8 billion in 2016, primarily attributable to the 33.6% increase in CODELCO”s copper price, partially offset
by a 0.8% reduction in the tonnage volume sold.

Third-party copper sales totaled U.S.$1.9 billion in 2018, compared to U.S.$2.0 billion in 2017 and
U.S.$1.8 billion in 2016. The decrease in 2018 as compared to 2017 was primarily attributable to a 3.4% decrease
in CODELCO”s copper price and a 2.6% decrease in tonnage sold. The increase in 2017 as compared to 2016 was
primarily attributable to a 33.6% increase in CODELCO*s copper price, partially offset by a 24.4% reduction in the
tonnage volume sold. In general, changes in the volume of third-party copper sold are dependent upon CODELCO”s
need to meet requirements under sales contracts and, to a lesser extent, to purchase copper under spot market terms
if CODELCO”s own production is insufficient to cover the quantities that it has agreed to supply its customers.

Sales of byproducts and other totaled U.S.$1,189 million in 2018, compared to U.S.$1,001 million in 2017

and U.S.$1,004 million in 2016. The increase of 18.8% in 2018 as compared to 2017 was primarily attributable to a
47.7% increase in CODELCO”s average molybdenum price, partially offset by a 12.2% decrease in molybdenum

44
tonnage sold. The decrease of 0.3% in 2017 as compared to 2016 was primarily attributable to lower anodic slimes
coming from Chuquicamata because of scheduled refinery maintenance.

Cost of sales. The following table sets forth CODELCO’s total cost of sales for the years ended
December 31, 2016, 2017 and 2018:

Year ended December 31, % Change
2016 2017 2018 2016/2017 2017/2018
(in millions of U.S.$)

Cost Of SaleS cococincinninonnnnonocncioniononirocianinnoss $ 9,450 $10,380 $ 11,194 9.8% 7.8%
Cost of CODELCO’s own copper 7,140 7,793 8,646 9.1 10.9
Cost of third-party sales……. 1,767 2,000 1,881 13.2 (6.0)
Cost of byproducts and other.. 543 588 667 8.3 13.4

CODELCOSs total cost of sales in 2018 increased 7.8% to U.S.$11.2 billion (78.2% of sales) compared to
U.S.$10.4 billion (70.9% of sales) in 2017, mainly due to higher operational costs arising from the appreciation of
the Chilean peso against the U.S. dollar. In 2017, CODELCOS’s total cost of sales increased 9.8% to U.S.$10.4
billion (70.9% of sales), compared to U.S.$9.5 billion (81.9% of sales) in 2016, mainly due to higher operational
costs arising from the appreciation of the Chilean peso against the U.S. dollar.

CODELCOSs cost of sales of its own copper increased by 10.9% to U.S.$8.6 billion in 2018 compared to
U.S.$7.8 billion in 2017 and increased 9.1% to U.S.$7.8 billion in 2017 compared to U.S.$7.1 billion in 2016. The
increases in 2018 and 2017 compared to 2017 and 2016, respectively, were primarily attributable to the higher
production cost due to the appreciation of the Chilean peso against the U.S. dollar and higher fuel and energy costs.

In 2018, the cost of copper purchased from third parties decreased by 6.0% to U.S.$1.9 billion compared to
U.S.$2.0 billion in 2017 primarily attributable to lower volumes of copper purchased and lower average copper
price. In 2017, the cost of copper purchased from third parties increased 13.2% to U.S.$2 billion from U.S.$1.8
billion in 2016 primarily attributable to higher copper prices, partially offset by 24.4% lower volume of third-party
copper sold.

The cost of byproducts and other increased by 13.4% to U.S.$667 million in 2018 compared to U.S.$588
million in 2017 and increased by 8.3% to U.S.$588 million in 2017 compared to U.S.$543 million in 2016. The
increases in 2018 and 2017 compared to 2017 and 2016, respectively, were principally attributable to higher
operational costs arising from the appreciation of the Chilean peso against the U.S. dollar and higher fuel and energy
costs.

Depreciation and amortization expenses increased by 3.8% to U.S.$2.2 billion in 2018 compared to
U.S.$2.1 billion in 2017 and increased by 8.5% to U.S.$2.1 billion in 2017 compared to U.S.$1.9 billion in 2016.
The increases in 2018 and 2017 compared to 2017 and 2016, respectively, are mainly due to the higher capital
expenditure.

Gross profit. Gross profit amounted to U.S.$3.1 billion in 2018, compared to U.S.$4.3 billion in 2017 and
U.S.$2.1 billion in 2016. The decrease in 2018 as compared to 2017 was primarily attributable to the higher
operational costs, a 3.4% decrease in CODELCO”s copper price and a 0.8% decrease in copper tonnage sold,
partially offset by an increase in 18.8% of by-products revenues mainly due an increase in the average price of
CODELCOS*s product mix. The increase in 2017 as compared to 2016 was primarily attributable to copper price
growth.

Other income. Other income decreased by 19.1% to U.S.$125 million in 2018 compared to U.S.$154
million in 2017 and increased by 11.5% to U.S.$154 million in 2017 compared to U.S.$138 million in 2016. The
decrease in 2018 as compared to 2017 was primarily attributable to the absence of insurance indemnity in 2018 as
well as a decrease in in miscellaneous sales, partially offset by the profit on the sale of CODELCO”s 40% stake in
Deutsche Giessdraht GmbH to Aurubis. The increase in 2017 as compared to 2016 was primarily attributable to the
increase in miscellaneous sales in 2017, partially offset by the absence in 2017 of the realized gain from the El Abra

45
deposit recorded in 2016. See note 24a to the 2017-2018 Consolidated Financial Statements and note 23a to the
2016-2017 Consolidated Financial Statements.

Administrative expenses. Administrative expenses increased to U.S.$465 million (3.3% of total revenues)
in 2018 compared U.S.$428 million (2.9% of total revenues) in 2017 and U.S.$415 million (3.6% of revenues) in
2016. The increases in 2018 compared to 2017 and the one in 2017 compared to 2016 are mainly due to the
appreciation of the Chilean peso against the U.S. dollar.

Other expenses. Other expenses amounted to U.S.$2.1 billion (14.8% of revenues) in 2018, compared to
U.S.$1.6 billion (10.6% of revenues) in 2017 and U.S.$1.3 billion (11.5% of revenues) in 2016. The increase in
2018 as compared to 2017 was primarily attributable to a non-cash charge related to a write-off of an underground
mining innovation project amounting to U.S.$138.1 million, an impairment recognition in the Ventanas Division
amounting to U.S.$199 million and the increase in collective bargaining bonuses. The increase in 2017 as compared
to 2016 was primarily attributable to the increase in export tax payments because of the increase in the spot market
price of copper.

The following table sets forth the principal components of CODELCO”s other expenses for the periods
indicated:

Year ended December 31,

2016 2017 2018
(in millions of U.S.$)
Copper Reserve LaW .oocccoiionncionncnnns ÓN $ (866) $ (1,099) $ (1,108)
Bonus for the end of collective bargaining and Employee Benefits (129) (53) (269)
Asset impairments …. (0) (0) (199)
Other non-cash charges (43) (89) Q17)
Other expenses (287) 617) (322)
Total… $ (1324 — $ (55) $ (15)

CODELCO recorded other expenses of U.S.$1.1 billion, U.S.$1.1 billion and U.S.$866 million in 2018,
2017 and 2016, respectively, pursuant to the Copper Reserve Law, which levies a 10% tax on receivables of the
sales proceeds that CODELCO receives and transfers to Chile from the export of copper and related byproducts
produced by CODELCO. The export tax remained stable in 2018 due to there not being any significant changes in
the export sales of CODELCO”s own copper. On the other hand, the export tax increased in 2017 as compared to
2016 mainly attributable to the increase in the spot market price of copper.

In 2018, CODELCO recorded a U.S.$199 million impairment loss of certain items of property, plant and
equipment related to the Ventanas Division due a decline in, and deterioration in the outlook for, treatment and
refining charges.

In 2018, CODELCO has impaired certain investment and research projects and recorded a loss to adjust
inventories to net realizable value due to decreased copper prices.

Finance costs. Finance costs in 2018 amounted to U.S.$463 million, compared to U.S.$645 million in
2017 and U.S.$547 million in 2016. The decrease in 2018 as compared to 2017 was primarily attributable to a
higher capitalization of interest related to certain investment projects and a decrease in financial expenses that had
previously increased due to costs incurred in connection with the consummation of the tender offer in August 2017.
On the other hand, the increase in 2017 as compared to 2016 was primarily attributable to costs incurred in
connection with the consummation of the tender offer in August 2017 as well as the change in the interest rate of
such debt. CODELCO’s debt level was U.S.$15.3 billion as of December 31, 2018, U.S.$14.7 billion as of
December 31, 2017, and U.S.$14.9 billion as of December 31, 2016. CODELCO*s average interest rate was 4.34%
as of December 31, 2018. As of December 31, 2017, 88% of CODELCO*s debt had a fixed rate and 12% had a
floating rate. See “Selected Consolidated Financial Data” for information regarding debt during the years ended
December 31, 2016, 2017 and 2018.

46
Share of profit (loss) of associates and joint ventures accounted for using the equity method. CODELCO”s
net equity participation in associates and joint ventures accounted for using the equity method was a profit of
U.S.$119 million in 2018, compared to a profit of U.S.$185 million in 2017 and a loss of U.S.$177 million in 2016.
The decrease in 2018 as compared to 2017 was primarily attributable to lower income from CODELCO*s stake in
Anglo American Sur. The increase in 2017 as compared to 2016 was primarily attributable to an increase in copper
prices and the reversal of the impairment related to the El Abra deposit and the Anglo American Sur assets for
U.S.$67 million. See note 9 to the Audited Annual Consolidated Financial Statements.

Profit (loss) before tax. Profit before tax was U.S.$547 million in 2018, compared to a profit of U.S.$1.8
billion in 2017 and a loss of U.S.$431 million in 2016. The decrease in 2018 as compared to 2017 was primarily
attributable to slightly lower sales combined with higher selling and administrative expenses, a non-cash charge
related to a write-off of an underground mining innovation project in 2018, an impairment recognition in the
Ventanas Division and the impact of end of bargaining bonuses. The increase in 2017 as compared to 2016 was
mainly due to an increase of the average copper price.

Income tax expense. In 2018, CODELCO had a statutory income tax rate of 65% in accordance with
applicable regulations, comprised of a corporate income tax of 25% (a 17% historic corporate tax rate applied to
income earned in and prior to 2011) and a 40% tax on net earnings applicable to state-owned enterprises as specified
in Decree Law 2,398, Art. 2. CODELCO is also subject to an additional mining tax based on its operating income,
and, effective as of fiscal year 2012, is imposed at progressive rates between 5% and 14%. CODELCOSs statutory
rate of the mining tax for 2018, 2017 and 2016 was 5%. In 2018, CODELCO”s taxes on income amounted to an
expense of U.S.$357 million, compared to an expense of U.S.$1.2 billion in 2017 and a benefit of U.S.$97 million in
2016, primarily as a result of a decrease in CODELCO”s pre-tax profit in 2018 as compared to 2017 and
CODELCO’s
pre-tax profit in 2017 as compared to pre-tax loss in 2016. As of December 31, 2018, CODELCO”s tax expense
amounted to U.S.$357 million, primarily attributable to the deferred tax adjustments recorded in relation to Chile”s
recent tax reform. As of December 31, 2017, CODELCO”s tax expense amounted to U.S.$1,193 million. For more
information regarding this payment, see note 5 to the Annual Audited Consolidated Financial Statements and “Risk
Factors—Risks Relating to CODELCO””s Relationship with the Government of Chile—CODELCO is subject to
special taxes.”

Profit for the period. As a result of the factors described above, CODELCO recorded a profit after tax of
U.S.$190 million in 2018 compared to U.S.$624 million in 2017 and a loss of U.S.$334 million in 2016.

Liquidity and Capital Resources

CODELCO”s primary sources of liquidity are funds from (i) operations, (ii) domestic and international
borrowings from banks and (iii) debt offerings in the domestic and international capital markets. CODELCO is
generally required to transfer its profit to the Chilean Treasury. The calculation of profit and other comprehensive
income includes certain non-cash generating charges or benefits. Significant non-cash generating charges or
benefits are deferred tax expense/benefit recorded against other comprehensive income and profit and loss,
amortization or depreciation. For the six-month period ended June 30, 2019, non-cash charges were U.S.$425
million in amortization and U.S.$581 million in depreciation. Non-cash deferred tax benefits of U.S.$40.2 million
were recorded for the six-month period ended June 30, 2019. Specifically with respect to deferred taxes, non-cash
charges or benefits are generated by recording the fluctuation of the deferred tax assets and liabilities, which may be
recorded against other comprehensive income in equity or through profit and loss. Amortization and depreciation
are recorded directly in profit and loss.

In June 2014, the Ministries of Finance and Mining approved the capitalization of U.S.$200 million
through a retention of CODELCOSs profits from 2013. In October 2014, the multi-year capitalization law approved
by the Chilean Congress was promulgated and became effective following its publication in the Official Gazette.
This law allocates a maximum of U.S.$3 billion to CODELCO in the form of a capital injection by the Chilean
Treasury over the period from 2014 to 2018. Pursuant to this law, CODELCO must present a yearly progress report
on the BDP for the 2014-2018 period to the Ministries of Finance and Mining and to the Finance Committee of both
the Upper House and the Lower House of Congress by March 30 of each year. The BDP report details the progress
of CODELCO”s investments, including information about their financing and execution, covering each of the

47
structural projects and their corresponding investments. The BDP report also discusses CODELCO*s progress with
respect to production, costs and results. On the same date that the multi-year capitalization law was promulgated, the
President of Chile announced a commitment to authorize the retention by CODELCO of up to an additional U.S.$1
billion of profit (which includes the U.S.$200 million that had been authorized in June 2014) over the 2014-2018
period.

In accordance with this commitment, in June 2015, the Ministries of Finance and Mining approved the
capitalization of U.S.$225 million of 2014 profit, but charged to 2015 profits. However, due to CODELCO”s
operating losses in 2015, this capitalization has not been implemented. Nonetheless, pursuant to the multi-year
capitalization law, the Government of Chile authorized a capital injection of U.S.$600 million (out of the maximum
U.S.$3 billion for the 2014-2018 period), which was received in U.S. dollars in December 2015. In December 2016,
the Ministries of Finance authorized the capitalization of U.S.$975 million, U.S.$500 million of which related to a
capital injection to finance CODELCO’”s investment plan and was received in December 2016. The remaining
U.S.$475 million was authorized pursuant to a new law (Law 20,989), effective as of January 2017, which provided
for additional capitalization of a maximum of U.S.$950 million for both 2016 and 2017 (up to U.S.$475 million for
each year) in the event CODELCO does not have the required pre-tax profits to cover the 10% special export tax
under the Copper Reserve Law. In April 2017, CODELCO received the U.S.$475 million capital injection in U.S.
dollars for 2016. Law 20,989 also extended the U.S.$3 billion capitalization commitment for the 2014-2018 period
to 2019. While CODELCO did not expect additional capital injections in connection with Law 20,989 during 2017,
in November 2017, the Government of Chile authorized a capital injection of U.S.$520 million (out of the maximum
U.S.$3 billion for the newly extended 2014-2019 period), which was received in U.S. dollars in December 2017. In
June 2018, the Government of Chile announced a final capital injection of U.S.$1 billion to complete the multi-year
capitalization law approved in October 2014. Moreover, in October 2018, the Government of Chile authorized the
disbursement of such amount in two installments completed on December 31, 2018 for U.S.$600 million and on
February 28, 2019 for the remaining U.S.$400 million.

Since 2014, the Government of Chile has authorized the capitalization by capital injection and retention of
profit within CODELCO in an aggregate amount of U.S.$3.5 billion, U.S.$225 million of which could not be
implemented. See “Risk Factors—Risks Relating to CODELCO”s Relationship with the Government of Chile—
CODELCOS*s funding through retention of profits is restricted and is subject to the approval of the Ministries of
Finance and Mining.”

Cash flows. For the year ended December 31, 2018, net cash flows from operating activities decreased to
U.S.$3.9 billion, compared to U.S.$4.7 billion in 2017 and U.S.$1.9 billion in 2016. The decrease in net cash flows
from operating activities during 2018 was primarily attributable to an increase in payments to suppliers and
employees, partially offset by higher cash received from sales of goods. The increase in net cash flows from
operating activities during 2017 was primarily attributable to more cash received from the sale of goods and services
as the result of higher average copper and molybdenum prices. During the first six months of 2019, net cash flows
from operating activities decreased by 37.7% to U.S.$1.8 billion from U.S.$2.9 billion for the same period in 2018.
This decrease in net cash flows from operating activities resulted primarily due to the decrease in cash received from
the sales of goods because of a deterioration in CODELCO*s average product portfolio prices and volumes sold and
lower payments to suppliers and employees. See note 28 to the Unaudited Interim Consolidated Financial
Statements and note 28 to the 2017-2018 Consolidated Financial Statements.

Bank debt. CODELCO’s total financial debt (defined as loans from financial institutions plus bonds
issued) as a percentage of its total capitalization was 60.1% at December 31, 2016, 57.4% at December 31, 2017,
57.4% at December 31, 2018, and 56.7% at June 30, 2019. CODELCO’s total outstanding financial debt at
December 31, 2016, 2017 and 2018 was U.S.$14.9 billion, U.S.$14.7 billion and U.S.$15.3 billion, respectively, and
U.S.$15.1 billion as of June 30, 2019. As adjusted to give effect to the U.S.$300 million bilateral credit facility with
Export Development Canada and to the offering of AUD 70 million notes due in 2039, U.S.$130 million notes due
in 2029, U.S.$1,100 million notes due in 2029, U.S.$900 million note due in 2050 and U.S.$147.4 million notes
purchased CODELCO*Ss total financial debt as a percentage of its total capital would have been 60.1% and its total
outstanding financial debt would have been U.S.$17.5 billion as of June 30, 2019.

We intend to use the net proceeds from the sale of the notes for general corporate purposes. See “Use of
Proceeds.”

48
Between February and November 2011, CODELCO entered into five five-year U.S. dollar unsecured
bilateral bank loans, each with a commitment fee of 10.0 basis points, with the banks and terms described below:

Credit Amount Interest Rate Date Loan Drawn
Sumitomo MitSUl …ooonicnnonnnnnnnnnncnananicncncnos U.S.$100.0 million LIBOR plus 83.0 basis points February 2011
The Bank of Tokyo—Mitsubishi UFJ, Ltd… U.S.$250.0 million LIBOR plus 50.0 basis points April 2012
Mizuho Bank, Ltd … U.S.$100.0 million LIBOR plus 60.0 basis points April 2012
HSBC Bank USA, National Association…. U.S.$250.0 million LIBOR plus 60.0 basis points July 2012
Export Development Canada. U.S.$250.0 million LIBOR plus 50.0 basis points October 2012

As of June 30, 2019, CODELCO has paid back the abovementioned loans with Sumitomo Mitsui, Mizuho
Bank, Ltd. and HSBC Bank USA, National Association, each of which matured, or was scheduled to mature, during
2016. However, between October and November 2016, CODELCO rolled over the loan with The Bank of Tokyo-
Mitsubishi UFJ, Ltd. for U.S.$250.0 million and the loan with Export Development Canada for U.S.$300 million,
increasing the original principal by an additional U.S.$50 million. The loans mature in five years and the terms are
described below:

Credit Amount Interest Rate
The Bank of Tokyo—Mitsubishi UFJ, Ltd. U.S.$250.0 million LIBOR plus 75.0 basis points
Export Development Canada U.S.$300.0 million LIBOR plus 62.0 basis points

As of June 30, 2019, U.S.$254 million was outstanding under the loan described above with Bank of
Tokyo-Mitsubishi UFJ, Ltd. As of June 30, 2019, U.S.$301 million was outstanding under the loan described above
with Export Development Canada.

In May 2012, CODELCO entered into a two-tranche U.S. dollar unsecured bilateral loan, each tranche with
a commitment fee of 15.0 basis points per annum with a maturity date of (i) ten years for the Japan Bank for
International Cooperation loan and (ii) seven years for The Bank of Tokyo-Mitsubishi UFJ, Ltd., to be disbursed by
the lenders on a pro rata basis, for the development, construction and operation of a metals processing plant to be
constructed in Mejillones and the export of certain metals to Japanese customers pursuant to long-term offtake
agreements. The terms of the loans are described below:

Availability
Credit Amount Interest Rate Period
Japan Bank for International Cooperation. U.S.$224.0 million LIBOR plus 45.0 basis points 36 months
The Bank of Tokyo—Mitsubishi UFJ, Ltd.. U.S.$96.0 million LIBOR plus 55.0 basis points 36 months

As of June 30, 2019, U.S.$96 million was outstanding under the loan described above with Japan Bank for
International Cooperation and we repaid in full the loan described above with The Bank of Tokyo Mitsubishi UEJ,
Ltd. As of June 30, 2019, CODELCO had amortized U.S.$128 million of the loan with the Japan Bank for
International Cooperation and U.S.$96 million of the loan with The Bank of Tokyo Mitsubishi UFJ, Ltd.

Between July and September 2013, CODELCO entered into four five-year U.S. dollar unsecured bilateral
bank loans, each with a commitment fee of 10.0 basis points, with the banks and terms described below:

Date Loan
Credit Amount Interest Rate Drawn
Mizuho Bank, Ltd…. .. U.S.$300.0 million LIBOR plus 62.0 basis points September 2013
Bank of America N.A.. .. U.S.$300.0 million LIBOR plus 65.0 basis points October 2013
The Bank of Tokyo—Mitsubishi UEJ,
Ll. cooccoconcnnnncnnoncnnoncnncncnnonos
Export Development Canada.

.. U.S.$300.0 million LIBOR plus 62.5 basis points January 2014
. U.S.$300.0 million LIBOR plus 62.5 basis points January 2014

In April 2017, CODELCO entered into a short-term U.S. dollar unsecured bilateral bank loan with
Scotiabank $: Trust (Cayman) Ltd. and used the proceeds to prepay the Bank of America N.A. loan for U.S.$300

49
million in full, as mentioned above. In May 2017, CODELCO exchanged the short-term loan with Scotiabank $z
Trust (Cayman) Ltd. for a five-year U.S. dollar unsecured bilateral bank loan. In July 2017, CODELCO rolled over
its loan with Export Development Canada for U.S.$300 million. The new loans mature in five years and the terms
and interest rates are described below:

Credit Amount Interest Rate
Scotiabank $ Trust (Cayman), Ltd….oooccc…… U.S.$300.0 million LIBOR plus 65.0 basis points
Export Development Cadada..oooocicinnininnnnnincnnn. U.S.$300.0 million LIBOR plus 62.0 basis points

Between November and December 2017, CODELCO prepaid in full the above-mentioned loans contracted
in 2013 with Mizuho Bank, Ltd. and The Bank of Tokyo—Mitsubishi UFJ, Ltd., each of which was scheduled to
mature during 2018.

As of June 30, 2019, U.S.$301 million was outstanding under the loan described above with Scotiabank 82
Trust (Cayman), Ltd. and U.S.$301 million was outstanding under the loan described above with Export
Development Canada.

In June 2014, CODELCO entered into two five-year U.S. dollar unsecured bilateral loans with the banks
and terms described below:

Credit Amount Interest Rate Date Loan Drawn
…. U.S.$95.0 million LIBOR plus 62.0 basis points June 2014
…. U.S.$300.0 million LIBOR plus 62.0 basis points October 2014

Mizuho Bank, Ltd.
Export Development Canada.

In May 2018, CODELCO prepaid in full the loan described above with Mizuho Bank, Ltd. and in October
2018, CODELCO rolled over the above-mentioned loan with Export Development Canada for the same amount.
The loan matures in 2028 and the terms are described below:

Credit Amount Interest Rate Date Loan Drawn
Export Development Canada…….. U.S.$300.0 million LIBOR plus 121.5 basis points October 2018

As of June 30, 2019, U.S.$300 million was outstanding under the loan described above with Export
Development Canada.

In December 2018, CODELCO entered into a one-year revolving credit facility for U.S.$300 million and
drew down the full amount. The revolving credit facility may be renewed on a yearly basis and matures in 2023. The
terms are described below:

Credit Amount Interest Rate Date Loan Drawn
Scotiabank Chil€ …ooonioninnnnnicnn.. U.S.$300.0 million LIBOR plus 72.5 basis points December 2018

As of June 30, 2019, U.S.$300 million was outstanding under the loan described above with Scotiabank
Chile.

Between March and June 2019, CODELCO entered into six up to one-year advances on export exchange
contracts (ACC). The loans mature between March and May 2020 and the terms are described below:

Credit Amount Interest Rate Date Loan Drawn
Scotiabank Chile. …oonninnnnnnnn….. U.S.$100.0 million LIBOR plus 35.0 basis points March 2019
Scotiabank Chile… .. U.S.$65.0 million LIBOR plus 35.0 basis points March 2019
Santander Chile. U.S.$100.0 million LIBOR plus 30.0 basis points April 2019

Itaú Chile .. U.S.$30.0 million LIBOR plus 63.0 basis points June 2019

S0
Banco de Crédito e Inversiones … U.S.$50.0 million LIBOR plus 39.5 basis points June 2019
Banco Chile … …. U.S.$120.0 million LIBOR plus 66.0 basis points June 2019

As of June 30, 2019, U.S.$166 million was outstanding under the loans described above with Scotiabank
Chile, U.S.$101 million was outstanding under the loan described above with Santander Chile, U.S.$30 million was
outstanding under the loan described above with Itaú Chile, U.S.$50 million was outstanding under the loan
described above with Banco de Crédito e Inversiones, U.S.$120 million was outstanding under the loan described
above with Banco Chile.

Codelco-Kupferhandel GmbH has a short-term line of credit for €80 million, with a guarantee letter
provided by CODELCO. As of June 30, 2019, there was no outstanding debt under this short-term line of credit.

Other Debt. In July 2017, CODELCO launched a cash tender offer of any and all of its 7.500% notes due
2019, 3.750% notes due 2020 and 3.875% notes due 2021 and a waterfall cash tender offer for its 3.00% notes due
2022, 4.500% notes due 2023 and 4.500% notes due 2025, which was financed with the proceeds from a concurrent
offering of U.S.$1.5 billion aggregate principal amount of its 3.625% notes due 2027 and U.S.$1.25 billion
aggregate principal amount of 4.500% notes due 2047. Moreover, in January 2019, CODELCO launched a second
cash tender offer for its 3.750% notes due 2020, 3.875% notes due 2021 and 3.00% notes due 2022 and a waterfall
cash tender offer for its 4.500% notes due 2023 and 4.500% notes due 2025, which was financed with the proceeds
from a concurrent offering of U.S.$1.3 billion aggregate principal amount of its 4.375% notes due 2049. The
following table shows amounts due by CODELCO under notes issued in both international and local markets:

Outstanding
Principal Amount and
Type of Principal Accrued Interest
Issuance Maturity Amount as of June 30, 2019 Interest Rate
International November 4, 2020 U.S.$1.00 billion U.S.$404 million 3.15%
International November 4, 2021 U.S.$1.15 billion U.S.$238 million 3.88%
International July 17, 2022 U.S.$1.25 billion U.S.$528 million 3.00%
International August 13, 2023 U.S.$750 million U.S.$361 million 4.50%
International July 9, 2024 €600 million U.S.$690 million 2.25%
International September 16, 2025 U.S.$2.00 billion U.S.$1.1 billion 4.50%
Local April 1, 2025 6.9 million UF U.S.$297 million 4.00%
Local August 24, 2026 10 million UF U.S.$434 million 2.50%
International August 1, 2027 U.S.$1.50 billion U.S.$1.5 billion 3.63%
International September 21, 2035 U.S.$500 million U.S.$500 million 5.63%
International October 24, 2036 U.S.$500 million U.S.$503 million 6.15%
International July 17, 2042 U.S.$750 million U.S.$748 million 4.25%
International October 18, 2043 U.S.$950 million U.S.$944 million 5.63%
International November 4, 2044 U.S.$980 million U.S.$969 million 4.88%
International August 1, 2047 U.S.$1.25 billion U.S.$1.2 billion 4.50%
International May 18, 2048 U.S.$600 million U.S.$598 million 4.85%
International February 5, 2049 U.S.$1.3 billion U.S.$1.2 billion 4.38%

The following table sets forth the scheduled maturities of CODELCO”s bank and secured note obligations
as of June 30, 2019:

51
Bank and Secured Note Obligations Outstanding
(in millions of U.S.$)

Average
Less than 1 More than Annual
Total year 1-2 years 2-3 years 3-5 years 5 years Interest Rate
Loans from financial institutions U.S.$ 2932 US$ 859 US$ – US$ 911. US$ 299 U.S.S$ 862 LIBOR+0.69%
Bonds issued 12,187 170 401 236 876 10,504 4.45%

Total ooonocciccnonococococinicinananananicinanoa. US$ 15,119 U.S.$ 1,029 U.S.$ 401 U.S.$ 1,147 US.$ 1,175 U.S.$ 11,366

In addition to the obligations set forth in the table above, CODELCO was a party to certain commitments
primarily to secure the payment of (i) deferred customs duties and (ii) staff severance indemnities payable upon the
retirement of individual employees, amounting to U.S.$22 million and U.S.$830 million, respectively, as of
December 31, 2018 and to U.S.$24 million and U.S.$838 million, respectively, as of June 30, 2019. See notes 18
and 19 to the 2017-2018 Consolidated Financial Statements and to the Unaudited Interim Consolidated Financial
Statements. In addition, as of June 30, 2019, CODELCO believes that their net deferred taxes will reverse as
follows: deferred tax benefit in the amount of U.S.$65 million in 2019 and deferred tax expense in the amount of
U.S.$(129) million in 2020, U.S.$429 million in 2021, U.S.$361 million in 2022 and U.S.$3,745 million after 2023.
CODELCO currently has no hedges related to its production of copper through 2018. See “Business and
Properties—Marketing—Pricing and Hedging” and “Risk Factors—Risks Relating to CODELCO”s Operations—
CODELCO engages in hedging activity from time to time, particularly with respect to its copper production, which
may not be successful and may result in losses to CODELCO.”

CODELCO entered into an agreement with Mitsui on October 12, 2011, pursuant to which Mitsui made
available to Inversiones Mineras Acrux SpA (“Acrux”) a short-term bridge financing facility of up to
U.S.$6.75 billion, guaranteed by CODELCO and subsidiaries of Acrux, as a possible means to fund the exercise of
the Sur Option (as defined in “Business and Properties—Copper Production—Associations, Joint Ventures and
Partnerships”). CODELCO also entered into a separate agreement with Mitsui that provided CODELCO with the
option to repay a portion of the bridge loan from Mitsui through a put option for an indirect 50% stake in the Anglo
American Sur interest acquired, assuming a pre-determined value of U.S.$9.76 billion for the 49% interest in Anglo
American Sur. The balance of the bridge loan would convert into a non-recourse five-year term loan between Acrux
and Mitsui, which would not be guaranteed by CODELCO, and would be repayable only from cash distributions on
the Anglo American Sur shares held by Acrux. In addition, CODELCO and Mitsui entered into a 10-year sale and
purchase agreement for the equivalent of 30,000 tons of fine copper per year subject to market-based pricing terms.

On August 23, 2012, the parties amended and restated the loan agreement described above (the “A8R
Mitsui Bridge Loan Facility”) pursuant to which an affiliate of Mitsui agreed to make available to a wholly-owned
subsidiary of CODELCO a bridge loan denominated in U.S. dollars. On August 24, 2012, the subsidiary of
CODELCO drew down an amount equal to U.S.$1,867 million to finance the acquisition by Inversiones Mineras
Becrux SpA (“Becrux”) of equity interests of Anglo American Sur as described below under “Business and
Properties— Copper Production—Associations, Joint Ventures and Partnerships —Anglo American Sur” and to pay
certain taxes, costs and expenses relating to the financing. On October 31, 2012, CODELCO and Mitsui entered
into an agreement to refinance the U.S.$1,867 million bridge loan with a U.S.$875 million non-recourse term loan
with a 3.25% fixed interest rate and a 20-year amortization (the “Mitsui Term Loan”) that is secured by a pledge of
the equity interests in Acrux held by such subsidiary of CODELCO. As part of this refinancing, CODELCO sold to
Mitsui the equivalent of a 4.5% stake of Anglo American Sur for U.S.$998 million and used the proceeds of this sale
to prepay a portion of the bridge loan. On November 26, 2016, CODELCO signed a credit agreement with Mitsui
renegotiating the payment of principal at the end of the contract. The terms established an annual interest rate of
Libor +2.5% with a five-year maturity to be payable in one installment at maturity with semi-annual interest
payments. On May 26, 2017, CODELCO signed a new credit agreement with Mitsui renegotiating the following
semi-annual payment, which was on the same terms as the first renegotiation done in November 2016. As of June
30, 2019, the aggregate outstanding balance of the credit agreements is U.S.$612 million.

Capital Expenditure Program. We seek to maintain and improve our competitive position in the industry

through our three-year capital expenditure program. Following the completion of a number of significant projects in
recent years, such as the development of CODELCO”s new Mina Ministro Hales, the development of sulfide ores at

52
the Radomiro Tomic mine, the expansion at the Andina mine and the development of the Pilar Norte area at the El
Teniente mine, CODELCO intends to continue its development program. Accordingly, the Company expects to
make capital expenditures of approximately U.S.$13.4 billion between 2019 and 2021 on major projects,
transforming its main mining operations with a view towards the long-term development of its resources. We expect
these expenditures to be funded with a combination of internal and external resources. For a complete list of
planned capital expenditures, see “Business and Properties—Copper Production—Operations.” CODELCO””s
expansion and development of major projects between 2019 and 2021 are expected to include:

e The gradual transformation of the Chuquicamata mine from an open pit mine to an underground
operation, which we expect will enable Chuquicamata to maintain its annual copper production at its
current level starting in 2019 (an approximate investment of U.S.$2.0 billion between 2019 and 2021).
Environmental approvals were obtained in September 2010, and the project is approximately 90%
complete as of June 30, 2019.

e The reallocation of the Andina plant, which involves maintaining the treatment capacity of the
concentrator plant in the long-term (an approximate investment of U.S.$371 million between 2019 and
2021). Operations are expected to begin in 2021, and the project is approximately 77% complete as of
June 30, 2019.

+ The development of a new production level in the existing El Teniente underground mine (an
approximate investment of U.S.$1.6 billion between 2019 and 2021) to maintain El Teniente”s annual
copper production at its current level. Environmental approvals were obtained in March 2011. However,
based on geomechanical challenges that need to be addressed, an alternative development plan was
approved in January 2018 that will still permit us to maintain our original production goal and the new
mining level is now expected to be completed in 2023. As of June 30, 2019, the project is approximately
52% complete.

+ The upgrade of CODELCO”s smelters to new emission standards was required to maintain our operating
licenses in Chuquicamata, El Teniente, Salvador and Ventanas, and such upgrade required an investment
of U.S.$1.1 billion in Chuquicamata, U.S.$703 million in El Teniente, U.S.$441 million in Salvador and
U.S.$113 million in Ventanas for a total approximate investment of U.S.$2.3 billion. As of the date of
this prospectus, 100%, 97%, 95% and 96% of the upgrades at the Ventanas, Salvador, El Teniente and
Chuquicamata smelters, respectively, have been completed, and all four smelters are operating.

+ The development of the Inca Pit project is designed to extend the life of the current underground mine
operation in the Salvador Division and enable it to maintain its annual production at its current level
starting in 2021 and the analysis for a future expansion, which requires an approximate investment of
U.S.$900 million between 2019 and 2021. As of June 30, 2019, the feasibility study has been completed,
and the initial work relating to the project has commenced.

+ The expansion of the existing Andina open pit is an initiative that is expected to expand the treatment
capacity of the concentrator plant up to 150 thousand tons per day (an approximate investment
of U.S.$95 million between 2019 and 2021) starting in 2027. As of June 30, 2019, the feasibility study
has been authorized and is approximately 31% complete.

CODELCO has already begun investing in the aforementioned projects. In 2018, CODELCO invested
U.S.$3.6 million principally in expansion and development projects, including the new El Teniente mine level, the
Chuquicamata underground mine expansion and, the reallocation of the Andina mine-plant pursuant to the Andina
expansion project, as well as in the upgrade of CODELCO”s smelters to comply with the new emission standards.
CODELCO invested U.S.$3.5 million in 2017 and U.S.$2.7 million in 2016. For an additional description of
CODELCO’s principal planned capital expenditures, see “Business and Properties—Copper Production—
Operations.”

53
CODELCO expects that it will have sufficient resources from operations, including cash flows,
capitalization and retention of profits, in addition to new borrowings from banks and the capital markets to fund its
anticipated capital expenditures and investments.

As described under “Regulatory Framework—Overview of the Regulatory Regime” below, the Ministries
of Finance and Mining are required to determine, by means of a joint decree, the amount, if any, that the Company
shall allocate to the creation of capitalization and reserve funds. In June 2014, the Ministries of Finance and Mining
approved the capitalization of U.S.$200 million through a retention of profits from 2013 profits. In October 2014,
the multi-year capitalization law approved by the Chilean Congress was promulgated and became effective
following its publication in the Official Gazette on October 30, 2014. This law allocates a maximum of U.S.$3
billion to CODELCO in the form of a capital injection by the Chilean Treasury over the period from 2014 to 2018.
Pursuant to this law, CODELCO must present a yearly progress report on the BDP for the 2014-2018 period to the
Ministries of Finance and Mining and to the Finance Committee of both the Upper House and the Lower House of
Congress by March 30 of each year. The BDP report details the progress of CODELCO”s investments, including
information regarding their financing and execution, covering each of the structural projects and their corresponding
investments. The BDP report also discusses CODELCO*s progress with respect to production, costs and results. On
the same date that the multi-year capitalization law was promulgated, the President of Chile announced a
commitment to authorize the retention by CODELCO of up to an additional U.S.$1 billion of profit (which includes
the U.S.$200 million that had been authorized in June 2014) over the 2014-2018 period.

In accordance with this commitment, in June 2015, the Ministries of Finance and Mining approved the
capitalization of U.S.$225 million of 2014 profit, but charged to 2015 profits. However, due to CODELCO’s
operating losses in 2015, this capitalization has not been implemented. Nonetheless, pursuant to the multi-year
capitalization law, the Government of Chile authorized a capital injection of U.S.$600 million (out of the maximum
U.S.$3 billion for the 2014-2018 period), which was received in U.S. dollars in December 2015. In December 2016,
the Ministries of Finance authorized the capitalization of U.S.$975 million, U.S.$500 million of which related to a
capital injection to finance CODELCO””s investment plan and was received in December 2016. The remaining
U.S.$475 million was authorized pursuant to a new law (Law 20.989), effective as of January 2017, which provided
for additional capitalization of a maximum of U.S.$950 million for both 2016 and 2017 (up to U.S.$475 million for
each year) in the event CODELCO does not have the required pre-tax profits to cover the 10% special export tax
under the Copper Reserve Law. In April 2017, CODELCO received the U.S.$475 million capital injection in U.S.
dollars for 2016. Law 20.989 also extended the U.S.$3 billion capitalization commitment for the 2014-2018 period
to 2019. While CODELCO did not expect additional capital injections in connection with Law 20.989 during 2017,
in November 2017, the Government of Chile authorized a capital injection of U.S.$520 million (out of the maximum
U.S.$3 billion for the newly extended 2014-2019 period), which was received in U.S. dollars in December 2017. In
June 2018, the Government of Chile announced a final capital injection of U.S.$1 billion to complete the multi-year
capitalization law approved in October 2014. Moreover, in October 2018, the Government of Chile authorized the
disbursement of such amount in two installments completed on December 31, 2018 for U.S.$600 million and on
February 28, 2019 for the remaining U.S.$400 million.

See “Management’s Discussion and Analysis of Financial Condition and Result of Operations—Liquidity
and Capital Resources” and “Risk Factors—Risks Relating to CODELCO”s Relationship with the Government of
Chile—CODELCOS”s funding through retention of profits is restricted and is subject to the approval of the Ministries
of Finance and Mining.”

Since 2014, the Government of Chile has authorized the capitalization and retention of U.S.$2.5 billion
within CODELCO, U.S.$225 million of which has not been implemented.

Cash flows from operating activities may be affected by a variety of factors, including copper price levels.
In the event that CODELCO is unable to sell assets or obtain external financing with respect to such capital
investments, it may be required to further curtail such expenditures.

Environmental. An important part of CODELCO*s investment policy is its pollution abatement plan, which

includes several environmental projects undertaken to comply with Chilean law and to achieve its own
environmental performance goals. See “Regulatory Framework—Environmental Regulations.”

54
CODELCO invested U.S.$ 2.8 billion in these projects from 2012 to 2018 and plans to continue
implementing its pollution abatement plan through additional capital investments of approximately U.S.$1 billion
from 2019 through 2020. In 2018, CODELCO invested U.S.$861 million in environmental projects, including new
phases of the planned enlargements of the Talabre, Ovejería and Carén tailings dams in the Chuquicamata, Andina
and El Teniente Divisions and various projects in the Chuquicamata, Ventanas, Salvador and El Teniente Divisions
in order to comply with the new regulation on atmospheric emissions from the smelters. This figure includes the
investment made in the Gabriela Mistral Division. CODELCO’”s planned investment of approximately U.S.$750
million in 2019 includes the continuation of the enlargement of the Carén, Ovejería and Talabre tailings dams in the
El Teniente, Andina and Chuquicamata Divisions and various projects in the Chuquicamata, Salvador and El
Teniente smelters for the abatement of atmospheric emissions, among others. In 2020, planned investments include
the continuation of the projects for the abatement of atmospheric emissions in the Chuquicamata smelter and the
continued enlargement of the tailing dams, among others. Further, a new air emission standard for smelters was
enacted by the Ministry of the Environment in December 2013. CODELCO*”s cost of complying with this standard
was U.S.$2.3 billion, which was incurred over a period of approximately five years and which started in 2013, but
the full cost will be determined when all the necessary engineering projects are finished and implemented in order to
ensure compliance.

The following table sets forth CODELCO”s principal environmental investments in the years 2016-2018:

Environmental Investments
(in millions of U.S.$)

2016 2017 2018 Total
Decontamination plans 185.0 433.2 581.6 1,199.8
Tailing dams……….. 125.1 183.5 245.9 554.5
Solid WasteS..oooonoonncnnnnoroncornnornonos 8.2 15.2 9.0 32.4
Liquid wastes and water management 31.5 24.9 15.6 72.0
Others 32.3 6.7 8.9 47.9
Total… 382.1 663.3 861.0 1,906.5

Distributions to the Chilean Treasury. As a state-owned enterprise and according to its governing law,
CODELCOSs profit is due to be transferred to the Chilean Treasury. Before June 30 of each year, the Ministries of
Finance and Mining determine, by means of a joint decree, the amount, if any, that the Company must allocate to the
creation of capitalization and reserve funds. Amounts not allocated to the creation of capitalization and reserve
funds are distributed to the Chilean Treasury.

In 2018 and 2017, CODELCO distributed U.S.$602 million and U.S.$273 million, respectively, to the
Chilean Treasury, while in 2016 CODELCO did not distribute dividends due to the absence of profits that year.
While CODELCO makes advance payments to the Chilean Treasury throughout the year, funded by cash flows from
operating activities, it generally has distributions payable to the Chilean Treasury at the end of each year. These
distributions are paid in the first six-month period of the following year but are reflected in the prior year”s financial
statements.

The following table sets forth amounts paid in taxes (which due to the timing of payments may be different

from tax amounts accrued) and payments and profit distributions made by CODELCO to the Chilean Treasury for
each of the three years ended December 31, 2018 and for the six months ended June 30, 2019.

55
Contributions to the Chilean Treasury

(in millions of U.S.$)
Six months ended
Year Ended December 31, June 30,
2016 2017 2018 2019

Income tax payment $ 25 $ 31 $ 70 $ 40
Copper Reserve Law.. 917 1,062 1,137

Subtotal $ 942 $ 1,093 $ 1,207 $ 40
Dividends … – 273 602

TOA coccion 942 Ss 1,366 $ 1,809 $ 40

Production Hedging. CODELCO has hedged certain future copper delivery commitments and production
in order to manage the risks associated with copper price volatility in the past. CODELCO currently does not have
any hedged production commitments and therefore there is no relevant impact from hedging. See notes 29 and 30 to
the 2017-2018 Year end Consolidated Financial Statements and notes 29 and 30 to the Unaudited Interim
Consolidated Financial Statements. In 2017, CODELCO*s production hedging activities had no negative impact on
pre-tax income.

CODELCOSs future production hedging activities could cause it to lose some of the benefit of an increase
in copper prices if copper prices increase over the level of CODELCO””s hedge position, as occurred in 2012. The
cash flows from the mark-to-market values of CODELCO*s production hedges can be affected by factors such as the
market price of copper, copper price volatility and interest rates, which are not under CODELCOSs control.

CODELCOSs production hedging agreements contain events of default and termination events that could
lead to early close-outs of CODELCO”s hedges. These include failure to pay, breach of the agreement,
misrepresentation, default under CODELCO”s loans or other hedging agreements and bankruptcy. In the event of
an early termination of CODELCO”s hedging agreements, the cash flows from the affected hedge instruments would
cease and CODELCO and the relevant hedge counterparty would settle all of CODELCO”s obligations at that time.
In that event, there could be a lump sum payment to be made either to or by CODELCO. The magnitude and
direction of such a payment would depend upon, among other things, the characteristics of the particular hedge
instruments that were terminated and the market price of copper and copper price volatility and interest rates at the
time of termination.

See “Business and Properties—Marketing—Pricing and Hedging,” “Risk Factors—Risks Relating to
CODELCOS*s Operations—CODELCO engages in hedging activity from time to time, particularly with respect to its
copper production, which may not be successful and may result in losses to CODELCO,” note 30 to the 2017-2018
Consolidated Financial Statements and note 30 the Unaudited Interim Consolidated Financial Statements for further
information on CODELCO*s hedging activity.

Exchange Rates and Interest Rates. CODELCO”s main currency exposure is between the Chilean peso and
the U.S. dollar due to the fact that a significant portion of CODELCOS*s operating costs are denominated in Chilean
pesos and paid pursuant to contracts providing for indexation to Chilean inflation, and approximately 100% of
revenue is denominated in U.S. dollars or other foreign currencies. To minimize the risks associated with currency
exposures and fluctuations in interest rates, CODELCO enters into interest rate futures contracts and foreign
exchange forward contracts which reduce exposure to fluctuations in the Chilean peso to U.S. dollar exchange rate.

As of June 30, 2019, CODELCO had swap contracts in place to hedge the risk of future UF/U.S.$ and
Euro/U.S.$ exchange rate fluctuations with respect to a notional amount of U.S.$615 million and U.S.$819 million,
respectively, which were equivalent to, and sufficient to cover, 100% of CODELCO’s foreign
currency-denominated bonds outstanding as of June 30, 2019.

S6
As of June 30, 2019, 11% of CODELCO”s financial debt was at a variable interest rate and 89% had a
fixed rate.

Controls and Procedures

CODELCO”s management conducted an assessment utilizing The Committee of Sponsoring Organizations
(COSO) criteria of the effectiveness of its internal controls as of the year ended December 31, 2018. Based on the
assessment performed, CODELCO”s management has not identified any material weakness in its control
environment.

New Accounting Standards

The accounting policies adopted in the preparation of the interim consolidated financial statements are
consistent with those applied in the preparation of CODELCO”s annual consolidated financial statements for the
year ended December 31, 2018, except for the adoption of IFRS 16 as of January 1, 2019.

In the current period, CODELCO has applied IFRS 16 for the first time. CODELCO has applied IFRS 16
with the cumulative effect of the initial application of the standard, recognized as of January 1, 2019. Consequently,
it has not restated the comparative financial information.

IFRS 16 introduces new or modified requirements with respect to the accounting for leases. It introduces
significant changes to lease accounting for lessees by removing the distinction between operating and financial
leases; requires the recognition, at the outset, of an asset for right to use and a lease liability for all leases, except for
short-term leases and leases of low-value assets. In contrast to the accounting for the lessee, the requirements for the
accounting of the lessor remain largely unchanged. The impact of the adoption of IFRS 16 in the consolidated
financial statements of CODELCO is described below.

The change in the definition of a lease is mainly related to the concept of control. IFRS 16 determines
whether a contract contains a lease on the basis of whether the client has the right to control the use of an identified
asset for a period of time in exchange for a consideration.

IFRS 16 changes with respect to how CODELCO accounts for leases previously classified as operating
leases under IAS 17, which, with this change, are recognized in the assets and liabilities of the statement of financial
position. CODELCO has re-evaluated all of its contracts at the date of initial application. As a result of the
foregoing, leases have been re-assessed in accordance with the new requirements of IFRS 16.

As of January 1, 2019, CODELCO recognizes its leases with the accumulated effect on the date of initial
application, opting to recognize a right to use asset equal to the lease liability. Practical expedients applied in the
transition to operating leases: (a) single discount rate applied to a lease portfolio; (b) short-term lease exemption for
those contracts whose term ends within twelve months from January 1, 2019; (c) exclusion of initial direct costs on
the measurement of the right-of-use asset; and (d) review of contracts under the onerous contract provisions of IAS
37 as an alternative to impairment testing under IAS 36.

The following table sets the impact of the adoption of IFRS 16 on assets, liabilities and equity as of January

1,2019.
Balances prior to Adjustment Balances adjusted
IFRS 16 IFRS 16 by IFRS 16
(in millions of U.S.$)

Property, plant and equipment Y $ 26,754,998 $ 368,890 $ 27,123,888

Total Assets …. 37,090,805 368,890 37,459,695
Other current financial liabilities 872,277 94,281 966,558
Other non-current financial liabilities 14,674,510 274,609 14,949,119

Total Liabilitie: 25,746,936 368,890 26,115,826
Net Effect ? … 11,343,869 – 11,343,869

57
(1) CODELCO has re-evaluated all of its contracts at the date of initial application, including those that under IAS 17 and IFRIC 4, had not
been identified as leases. As a result of the foregoing, leases have been included in accordance with the new requirements of IFRS 16.
(2) IERS 16 does not affect the cumulative result.

The following table sets the reconciliation of operating leases under IAS 17 disclosed as of December 31,
2018 and lease liabilities recognized as of January 1, 2019.

January 1, 2019
Reconciliation of operating leases U.S.$
Operating lease commitments as of December 31, 2018, as disclosed in the consolidated financial statements in

accordance with IAS17 …. $ 266,351
Less initial recognition exception:
Short-term leases bene bennnnnnnas (55,360)
Leases with variable payments that do not depend on an index or a rate (69,070)
Low-value leases . bene (220)
Total lease liabilities recognized as of January 1, 2019 e 141,701
Plus:
Leases identified in existing contracts as of January 1, 2019 under IFRS 160… 414,326
Discounted using the incremental borrowing rate at the date of the initial application (January 1, 2019) 4.67%
Discounted financing lease liabilities recognized as of January 1, 2019. 368,890
Lease liabilities related to leases previously classified as financial leas 107,839
Total lease liabilities recognized on January 1, 2019. us 476,729
Consisting of:
Lease liabilities current portion 115,791
Lease liabilities non-current portio, 360,938
Total lease liabilities recognized on January 1, 2019. anna 476,729

(1) CODELCO has re-evaluated all of its contracts at the date of initial application, including those that under IAS 17 and IFRIC 4, had not
been identified as leases. As a result of the foregoing, leases have been included in accordance with the new requirements of IFRS 16.

See Section Il, part 4 of the Unaudited Interim Consolidated Financial Statements for information regarding
new accounting standards that have been issued but are not yet effective.

Critical Accounting Estimates

The preparation of the consolidated financial statements in accordance with the IFRS requires the use of
certain critical accounting estimates and assumptions that affect the amounts of assets and liabilities recognized as of
the date of financial statements and the amounts of income and expenses during the reporting period. It also
requires CODELCO”s management to exercise its judgment in the process of applying CODELCO”s accounting
principles. The areas involving a higher degree of judgment or complexity, or areas where assumptions and
estimates are significant to the consolidated financial statements, are below. For a full description of CODELCO”s
accounting policies, see Section II to the Audited Annual Consolidated Financial Statements and Section II to the
Unaudited Interim Consolidated Financial Statements.

Useful Economic Lives and Residual Values of Property, Plant and Equipment. The useful lives and
residual values of property, plant and equipment assets that are used for calculating depreciation are determined
based on technical studies prepared by specialists (internal or external). When there are indicators that could lead to
changes in the estimated useful lives of such assets, these changes are determined by using technical estimates
considering specific factors related to the use of the assets. The amounts recognized in property, plant and
equipment are depreciated, as a general rule, under a units-of-production method, allowing for the depreciation of an
asset when it can be clearly identified as being a part of a production process relating to copper extraction. For all
other assets, however, a straight-line depreciation method is still being used.

58
Depreciation Method. Estimated useful lives, residual values and our depreciation method are reviewed at
the end of each year, and we record the effect of any change in estimates prospectively.

Additionally, the depreciation method and the estimated useful lives of the various assets, especially plants,
facilities and infrastructure, are likely to be revised at the beginning of each year and pursuant to changes in the
structure of our reserves and productive long-term plans that are updated as of that date.

This review can happen at any time if the conditions of ore reserves change significantly as a result of new
information, confirmed and officially recognized by us.

Ore Reserves. The measurements of ore reserves are based on estimates of the ore resources that are
economically exploitable, and reflect the technical considerations of the Company regarding the amount of resources
that could be exploited and sold at prices exceeding the total cost associated with extraction and processing.

CODELCO applies its judgment in determining its ore reserves and, as such, possible changes in these
estimates could significantly impact the estimates of net revenues over time. For such reason, these changes would
lead to modifications in the usage estimates of certain assets and of the amount of certain decommissioning and
restoration costs.

CODELCO estimates its reserves and mineral resources based on the information prepared by the
Competent Persons of the Company, as defined and regulated by Chilean Law No. 20,235. The estimates are based
on the Joint Ore Reserves Committee (JORC) methodology, taking into consideration the historical information of
the cost of goods sold and copper prices in the international market.

CODELCO also periodically reviews such estimates supported by world-class external experts, who certify
the determined reserves.

Impairment of Assets. CODELCO reviews the carrying amount of its assets to determine whether there is
any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the assets is estimated in order to determine the extent of the impairment loss with regard to the carrying
amount. In the evaluation of impairment, the assets are grouped into cash generating units (“CGUs”) to which the
assets belong. The recoverable amount of these assets or CGUs is calculated as the present value of the cash flows
expected to be derived from such assets, considering a pre-tax discount rate that reflects current market assessments
of the time value of money and risks specific to the asset. If the recoverable amount of the assets is less than their
carrying amount, an impairment loss exists.

CODELCO defines the CGUs and also estimates the timing and cash flows that such CGUs should
generate. Subsequent changes in the grouping of the CGU, or changes in the assumptions supporting the estimates
of cash flows or the discount rate, could impact the carrying amounts of the corresponding assets.

Estimates of factors influencing the calculation of cash flows, such as the price of copper or treatment
charges and refining charges, among others, are determined based on studies conducted by the Company, which are
in turn supported by certain standards over time. Any changes to these criteria may impact the recoverable amount
of the assets on which is performing the impairment tests. CODELCO”s evaluations and definition of the CGUs are
made at the level of each of its current operating divisions.

CODELCO has assessed and defined the CGUs that are constituted at the level of each of its current
operating divisions.

The review for impairment includes its subsidiaries, associates and joint arrangements.
Provisions for Decommissioning and Site Restoration Costs. [CODELCO is obligated to incur
decommissioning and site restoration costs when an environmental disturbance is caused by the development or

ongoing production of a mining property. Costs are estimated on the basis of a formal closure plan and are
reassessed annually or as of the date such obligations become known.

59
Significant estimates and assumptions are made in determining the provision for decommissioning and site
restoration costs, as there are numerous factors that will affect the ultimate liability payable. In order to establish
such estimates, CODELCO: (i) creates a defined list of mine sites, installations and other equipment assigned to this
process, considered at the engineering level profile; (ii) evaluates the assets that will be subject to removal and
restoration, weighted by a structure of market prices of goods and services, and reflecting the best knowledge at the
time to carry out such activities; and (iii) examines the techniques and more efficient construction procedures to
date. In addition, CODELCO must make certain assumptions about the exchange rate for tradable goods and
services and the discount rate applied to update the relevant cash flows over time, which reflects the time value of
money and includes the risks associated with liabilities, which is based on the currency in which disbursements will
be made.

The provision as of a reporting date represents management’s best estimate of the present value of the
future decommissioning and site restoration costs required. Changes to estimated future costs are recognized in the
statement of financial position by adjusting the provision for decommissioning and site restoration costs as well as
the associated asset measured in accordance with IAS 16, “Property, Plant and Equipment.” Any reduction in the
decommissioning and site restoration liability, and therefore any deduction from the decommissioning and site
restoration asset, may not exceed the carrying amount of that asset. If it does, any excess over the carrying value is
immediately accounted for as profit or loss.

If the change in estimate results in an increase in the decommissioning and site restoration liability, and
therefore an addition to the carrying value of the asset, the entity is required to consider whether this is an indication
of impairment of the asset as a whole and test for impairment in accordance with IAS 36 “Impairment of Assets.” If
the revised asset net of decommissioning and site restoration provisions exceeds the recoverable value, that portion
of the increase is charged directly to profit or loss statement. Any decommissioning and site restoration costs that
arose as a result of the production phase of a mine should be expensed as incurred.

The costs arising from the installation of a plant or other site preparation projects are discounted at net
present value, provided for and capitalized at the beginning of each project, as soon as the obligation to incur such
costs arises. These decommissioning costs are charged to profit over the life of the mine through depreciation of the
asset. The depreciation is included in operating costs, while the unwinding of the discount in the provision is
included in finance costs.

Accrual for Employee Benefits. Employee benefits costs for severance payments and health benefits for
services rendered by the employees are determined based on actuarial calculations using the projected credit unit
method and are charged to profit or loss on an accrual basis.

We use assumptions to determine the best estimate for these benefits. Such estimates, as well as
assumptions, are determined together with an external actuary. These assumptions include demographic
assumptions, mortality and morbidity, discount rate and expected salary increases and rotation levels, among other
factors. Although we believe that the assumptions used are appropriate, a change in these assumptions could affect
profit.

Provisional Pricing Arrangements. The substantial majority of copper produced by CODELCO is sold
under annual contracts. Pricing on such contracts is based on prevailing monthly average prices quoted on the LME
for a quotation period, generally the month following the scheduled month of shipment. CODELCO uses
information on future copper prices, through which it recognizes adjustments to its revenues and trade receivables
due to its provisional invoicing. These adjustments are updated on a monthly basis. At the end of each month,
CODELCO estimates and accounts for any reduction in the provisional sales price using information available at the
time financial statements are generated. However, the amount estimated may differ from the amount received at
settlement. Revenue is recorded at the time control of the asset is transferred to the customer according to the
shipment or dispatch of the products, in conformity with the agreed-upon conditions and are subject to variations
related to the content and/or sales price at their liquidation date. Notwithstanding the foregoing, there are certain
contracts under which control of the product is transferred to the client based on receipt of the product at the buyer”s
destination point, and for these contracts revenue is recorded at the moment of such transfer.

60
Sales contracts include a provisional price at the shipment date, which final price is generally based on the
price recorded in the LME. In the majority of cases, the recognition of sales revenue for copper and other
commodities is based on the estimates of the future spread of metal price on the LME and/or the spot price at the
date of shipment, with a subsequent adjustment made upon final determination and presented as part of “Revenue.”
The terms of sales contracts with third parties contain provisional pricing arrangements whereby the selling price for
metal in concentrate is based on prevailing spot prices on a specified future date after shipment to the customer (the
“quotation period”). As such the final price will be fixed on the dates indicated in the contracts. Adjustments to the
sales price occurs based on movements in the LME up to the date of final settlement. The period between
provisional invoicing and final settlement can be between one and four months. Changes in fair value over the
quotation period and up until final settlement are estimated by reference to forward market prices for the applicable
metals.

Sales in the national market are recorded in conformity with the regulations that govern domestic sales as
indicated in Articles 7, 8 and 9 of Law No. 16,624, modified by Article 15 of Decree Law No. 1,349 of 1976, on the
determination of the sales price for the internal market.

Additionally, we recognize revenue for providing services, mainly related to the processing of minerals
bought from third parties. Revenue is recognized when the amounts can be measured reliably and when the services
have been provided.

See “Business and Properties—Marketing—Pricing and Hedging” for information regarding hedge
accounting.

Fair Value of Derivatives and Other Instruments. Management may use its judgment to choose an
adequate and proper valuation method for the instruments that are not quoted in an active market. In the case of
derivative financial instruments, assumptions are based on the observable market inputs, adjusted in conformity with
the specific features of the instruments.

Lawsuits and Contingencies. We assess the probability of lawsuits and contingency losses on an ongoing
basis according to estimates performed by our legal advisors. No provision is recognized for cases in which
management and our legal advisors believe that (1) a favorable outcome will be obtained, (1i) the probability of a loss
is remote or possible, but not probable, or, if probable, (iii) the amount of the obligation cannot be measured
reliably.

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BUSINESS AND PROPERTIES

CODELCO is the world”s largest copper producer and one of the largest companies in Chile in terms of
revenues (U.S.$14.3 billion in 2018). As of December 31, 2018, CODELCOS*s total assets were U.S.$ 37.1 billion
and equity amounted to U.S.$11.3 billion. As of June 30, 2019, total assets were U.S.$37.9 billion and equity
amounted to U.S.$11.6 billion. CODELCO engages primarily in the exploration, development and extraction of
ores bearing copper and byproducts, the processing of ore into refined copper and the international sale of refined
copper and byproducts. CODELCO is 100% owned by the Government of Chile and controls approximately 6% of
the world”s proven and probable copper reserves, as such term is defined by the U.S. Geological Survey. In 2018,
CODELCO had an estimated 9% share of the total world copper production, with production amounting to
approximately 1.81 million metric tons (including CODELCO”s share of the El Abra deposit, which is mined by
Sociedad Contractual Minera El Abra, 49% of which is owned by CODELCO and 51% by Cyprus El Abra
Corporation (a subsidiary of Freeport-McMoRan Inc.), as well as CODELCO’s indirect 20% share of Anglo
American Sur) and an estimated 9% share of the world”s molybdenum production with production amounting to
approximately 30,641 metric tons.

CODELCO*s main commercial product is Grade A cathode copper. In 2018, CODELCO derived 92% of
its total sales from copper and 8% of its total sales from byproducts of its copper production or, for the six-month
period ended June 30, 2019, 91% and 9%, respectively.

The following table sets forth certain production, cost and price information relating to CODELCO for the
three-year period ended December 31, 2018 and the six-month periods ended June 30, 2018 and 2019:

Copper Production, Cash Cost of Production and Price Information
(excluding El Abra and Anglo American Sur)
(production in thousands of metric tons and cash costs

and prices in cents per pound)
Six months ended

Year ended December 31, June 30,
2016 2017 2018 2018 2019
CODELCO*s Copper Production. 1,707 1,734 1,678 813 710
CODELCO*s Cash Cost of Productio! 126.1 135.9 139.1 137.6 142.3
Average LME Price Unicos. 220.6 279.7 295.9 313.7 279.6

(1) Price for Grade A cathode copper.

CODELCO”s mission is to maximize the value of its mineral resources for the benefit of its shareholder,
the Chilean state, by fully developing its vast mining resources on a timely basis, leveraging the Company”s
experienced workforce, utilizing its advanced technological holds in key areas and by executing the following key
strategic initiatives:

Capital Expenditure Program. We seek to maintain and improve our competitive position in the industry
through our three-year capital expenditure program. Following the completion of a number of significant projects in
recent years, such as the development of CODELCO”s new Mina Ministro Hales, the development of sulfide ores at
the Radomiro Tomic mine, the expansion at the Andina mine and the development of the Pilar Norte area at the El
Teniente mine, CODELCO intends to continue its development program. Accordingly, the Company expects to
make capital expenditures of approximately U.S.$13.4 billion between 2019 and 2021 on major projects,
transforming its main mining operations with a view towards the long-term development of its resources. We expect
these expenditures to be funded with a combination of internal and external resources. For a complete list of
planned capital expenditures, see “Business and Properties—Copper Production—Operations.” CODELCO’”s
expansion and development of major projects between 2019 and 2021 are expected to include:

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complete as of June 30, 2019.

Improvement in operations. A number of improvement initiatives are underway to adopt best industry
practices, most notably in the areas of labor productivity, asset utilization rates and process efficiency. Together
with its capital expenditure investment program, CODELCO expects these initiatives to enhance its competitive
position. CODELCO operates in a cyclical business and its strategy is to ensure that it is able to take full advantage
of high copper prices. CODELCO is developing a number of plans to achieve production targets in the coming
years. These plans mainly focus on reducing the risk of disruptions to production and providing increased flexibility
to its operations.

Exploration Efforts. CODELCO controls the largest copper reserves worldwide, the Company”s single
most important long-term competitive advantage. The discovery of new mining resources and improving its ability
to locate existing ore bodies and prospects are critical to CODELCO maintaining its preeminent position in the
industry. Accordingly, the Company”s exploration program will continue to be a key part of its business strategy.

Investment in Human Capital. The successful execution of CODELCO’”s business strategy relies on
continuing to attract and retain a world-class management team and professionals of the highest caliber. The mining
industry faces increased competition for workforce talent. As a result, the Company intends to continue improving
career development opportunities for its staff and the overall attractiveness of CODELCO as a preferred employer.

Mining Association with Third Parties. CODELCO seeks to continue to develop and operate assets in
association with third parties where these associations will add value to CODELCO”s business. A few examples of
the Company”s willingness and ability to do so are (i) the association with Freeport-McMoRan Inc. in the El Abra
copper mine (CODELCO owns 49%) and (ii) the association with Anglo American, Mitsui and Mitsubishi

63
Corporation in Anglo American Sur (CODELCO owns an indirect 20% interest). CODELCO believes its large
mining reserve is a strong platform from which to establish such associations.

Copper Production
General

The copper deposits in CODELCO”s mines exist in two principal forms—sulfide ore and oxide ore. The
majority of CODELCO’”s mines, including Chuquicamata and El Teniente, yield primarily sulfide ore. The ore
extracted from the Radomiro Tomic deposit is copper oxide and sulfides. CODELCO produces refined copper from
oxide and sulfide ore using different processes. CODELCO believes that having these two different forms of copper
deposits gives it a high level of flexibility to respond to market changes by adjusting its production and utilizing the
refining processes described below.

Sulfide Ores. Sulfide ores are found in CODELCO”s open-pit and underground mines. In open-pit mines,
the process of producing copper from sulfide ores begins at the mine pit. Waste rock and ores containing copper are
first drilled and blasted and then loaded onto diesel-electric trucks by electric shovels. Waste is hauled to dump
areas. In underground mines, copper ore is deposited on rail cars and transported to a crushing circuit where
gyratory crushers break the ore into sizes no larger than three-fourths of an inch. In both types of mines, the ore is
then transported to rod and ball mills which grind it to the consistency of powder. In the conventional
concentrator/smelter/refinery process for sulfide ore, this finely ground ore is agitated in a water and chemical
solution and pumped as a watery mixture to the flotation separator. The solution is then aerated, producing a froth
which carries the copper minerals, but not the waste rock, to the surface. The froth is skimmed off and filtered to
produce copper concentrates. The waste rock, called tailings, is sent to a tailings storage facility. The copper
concentrates (which contain a copper grade of approximately 30%) are then sent to the smelter.

At the smelter, the concentrates are blended with fluxes and fed into reverberatory furnaces or a Teniente
converter (a technologically advanced type of converter designed by CODELCO) where they are melted, producing
“matte” and “slag.” Matte from reverberatory furnaces contains approximately 45% copper, and matte from a
Teniente converter contains approximately 75% copper. Slag is a residue of the smelting process containing iron
and other impurities, which the Company disposes of with its other industrial solid waste. The matte is transferred
by ladles to the converters and is oxidized in two steps. First, the iron sulfides in the matte are oxidized with silica,
producing slag that is returned to the reverberatory furnaces. Second, the impurities in the matte sulfide are oxidized
to produce blister copper. The blister copper contains approximately 98.5% copper. Some of the blister copper is
sold to customers. The remainder is transferred to the electrolytic refinery.

After additional treatment in the anode furnace, the copper is cast into anodes and then moved to the
refinery”s electrolytic tank house. This anode copper is approximately 99.0% copper. In the electrolytic tank house,
anodes are suspended in tanks containing an acid solution and copper sulfate. An electrical current is passed
through the anodes and chemical solution to deposit clean copper on pure copper plates. The resulting refined
copper cathodes are 99.99% copper. Silver and small amounts of other metals contained in the anodes settle on the
bottom of the tanks and are recovered in a separate process.

Oxide Ores. Oxide ore is scarcer than sulfide ore, and is typically found closer to the surface of the earth.
A different process (called the SX-EW process) is used to produce refined copper from oxide ores, which
CODELCO employs at its SX-EW facilities in Chuquicamata, El Teniente, Salvador, Gabriela Mistral and
Radomiro Tomic. In the first step of the SX-EW process, copper oxide ore is mined, crushed and deposited into
large piles. The piles are leached for a period of several days with a solution of sulfuric acid, resulting in the
effusion from the piles of a solution with a high-concentration of copper. The copper solution is collected into large
pools, from which copper is then recovered by solvent extraction, followed by a second recovery method called
electrowinning, to produce high-grade copper cathodes. The SX-EW process involves lower overall refining costs,
and can be used with a lower grade of ore, than the traditional concentrator/smelter/refinery process. The SX-EW
process also enables CODELCO to recover copper by re-leaching waste material left over from prior copper
extractions.

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Operations

CODELCOSs copper operations are divided into the following eight divisions:

+ The El Teniente Division operates the El Teniente mine, which is the world”s largest underground copper mine
and has been in operation for more than 100 years. The El Teniente Division includes the Caletones smelter. In
2018, this division produced 465,040 metric tons of copper, or 25.7% of CODELCO’s total copper output
(including CODELCO”s share of the El Abra deposit and Anglo American Sur), with a cash cost of 106.5 cents
per pound, compared to 113.5 cents per pound in 2017, and a total cash cost of U.S.$1.1 billion in 2018,
compared to U.S.$1.2 billion in 2017. During the first six months of 2019, this division produced 202,936
metric tons of copper with a cash cost of 105.8 cents per pound and a total cash cost of U.S.$465 million.

e The Radomiro Tomic Division operates the Radomiro Tomic mine, which began its first full year of production
in 1998 and ranked among the world”s top three largest producers of copper using SX-EW technology in 2018.
In 2018, this division produced 332,667 metric tons of copper cathodes, or 18.4% of CODELCO*s total copper
output (including CODELCO”s share of the El Abra deposit and Anglo American Sur), with a cash cost of
134.1 cents per pound, compared to 131.4 cents per pound in 2017, and a total cash cost of U.S.$973 million in
2018 compared to U.S.$915 million in 2017. During the first six months of 2019, this division produced
127,422 metric tons of copper with a cash cost of 141.3 cents per pound and a total cash cost of U.S.$395
million.

e The Chuquicamata Division operates the Chuquicamata mine, one of the largest copper-producing mines in the
world, which began its operations in 1915 and currently includes smelting and refining capacities. In 2018, this
division produced 320,744 metric tons of copper cathodes, or 17.8% of CODELCO”s total copper output
(including CODELCO”s share of the El Abra deposit and Anglo American Sur), with a cash cost of 131.5 cents
per pound, compared to 130.9 cents per pound in 2017, and a total cash cost of U.S.$908 million in 2018,
compared to U.S.$933 million in 2017. During the first six months of 2019, this division produced 166,131
metric tons of copper with a cash cost of 125.6 cents per pound and a total cash cost of U.S.$447 million.

+ The Mina Ministro Hales Division was created in September 2010 for the operation of the Mina Ministro Hales
ore body, which first began producing copper at the end of 2013. In 2018, this division produced 195,485
metric tons of copper, or 10.8% of CODELCO”s total copper output (including CODELCO”s share of the El
Abra deposit and Anglo American Sur), with a cash cost of 124.0 cents per pound, compared to 121.8 cents per
pound in 2017, and a total cash cost of U.S.$517 million in 2018, compared to U.S.$560 million in 2017.
During the first six months of 2019, this division produced 72,252 metric tons of copper with a cash cost of
140.4 cents per pound and a total cash cost of U.S.$216 million.

e The Andina Division operates the Andina and Sur-Sur mines with production split among open-pit and
underground mines. It does not have independent smelting capacity. Andina has been in operation since 1970.
In 2018, this division produced 195,531 metric tons of copper, or 10.8% of CODELCO”s total copper output
(including CODELCOS*s share of the El Abra deposit and Anglo American Sur), with a cash cost of 163.7 cents
per pound, compared to 139.6 cents per pound in 2017, and a total cash cost of U.S.$682 million in 2018,
compared to U.S.$654 million in 2017. During the first six months of 2019, this division produced 83,793
metric tons of copper with a cash cost of 183.8 cents per pound and a total cash cost of U.S.$328 million.

e The Gabriela Mistral Division was created in January 2013 and operates the Gabriela Mistral mine, which uses
SX-EW technology. The Gabriela Mistral mine produced its first copper cathodes in May 2008 after a
26-month construction period. In 2018, this division produced 107,247 metric tons of copper, or 5.9% of
CODELCOSs total copper output (including CODELCO”s share of the El Abra deposit and Anglo American
Sur), with a cash cost of 191.9 cents per pound, compared to 151.9 cents per pound in 2017, and a total cash
cost of U.S.$454 million in 2018, compared to U.S.$411 million in 2017. During the first six months of 2019,
this division produced 42,284 metric tons of copper with a cash cost of 265.4 cents per pound and a total cash
cost of U.S.$247 million.

e The Salvador Division operates the Salvador mine and concentrator and the smelter/refinery complex at

65
Potrerillos, which has the capacity to treat 671,000 metric tons of concentrate. In 2018, this division produced
60,840 metric tons of copper cathodes, or 3.4% of CODELCO”s total copper output (including CODELCO”s
share of the El Abra deposit and Anglo American Sur), with a cash cost of 223.5 cents per pound, compared to
198.7 cents per pound in 2017, and a total cash cost of U.S.$296 million in 2018, compared to U.S.$269 million
in 2017. During the first six months of 2019, this division produced 15,138 metric tons of copper with a cash
cost of 225.8 cents per pound and a total cash cost of U.S.$74 million. Unless the Inca Pit project (as described
below) enters the execution stage, CODELCO”s Board of Directors has decided to phase out mining operations
at the Salvador mine by 2021, or sooner, if warranted by market and operational conditions, specifically
marketability of its copper, cash costs and annual reviews of performance. The Potrerillos smelter and refinery
would continue to operate upon any cessation of the mining operations at Salvador.

+ The Ventanas Division was created in connection with the acquisition of the Ventanas smelter/refinery complex
from Chile”s state-owned mining company ENAMI in May 2005. In 2018, this division refined 409,049 metric
tons of copper, compared to 410,024 metric tons of copper in 2017. Pursuant to the terms of the acquisition,
CODELCO is required to provide on market terms the necessary smelting and refining capacity for the
treatment of copper concentrate delivered by the small- and medium-sized mining industry that ENAMI serves.

For a description of CODELCO”s associations with other companies, see “Business and Properties—
Copper Production—Associations, Joint Ventures and Partnerships” below.

Beginning in late 2010, CODELCO implemented a corporate reorganization plan which divided the
management of the CODELCO*s operations into Northern Operations (Operaciones Norte) and Central Southern
Operations (Operaciones Centro Sur), to supervise the divisions in the north and center-southern regions,
respectively. The reorganization was intended to simplify the organizational structure by causing all corporate
administrative and support functions to report to a single vice president, and the productive divisions to concentrate
on maximizing production, controlling costs and implementing safety measures. The Chuquicamata Division, the
Radomiro Tomic Division, the Mina Ministro Hales Division and the Salvador Division are now supervised by the
Vice President of Northern Operations (Operaciones Norte). The Andina Division, the El Teniente Division and the
Ventanas Division are now supervised by the Vice President of Central Southern Operations (Operaciones Centro
Sur).

CODELCOS”s copper production, including its share of the El Abra deposit and of Anglo American Sur,
increased to 1,806,363 metric tons during the twelve months of 2018 from 1,842,075 metric tons in the twelve
months of 2017. This decrease was mainly due to lower copper production from the Andina, Mina Ministro Hales,
Gabriela Mistral and Chuquicamata Divisions. Molybdenum production decreased by 16.2% in 2018 mainly due to
the decreased production from the Chuquicamata and the Andina Divisions.

The table below shows the production of copper from CODELCO”s mines, as compared to private sector
production in Chile, for the three-year period ended December 31, 2018 and the six-month period ended June 30,
2019:

Production of Copper from Chilean Mines (CODELCO and Private Sector)
(in thousands of metric tons)

Six
months ended
Year ended December 31, June 30,
2016 2017 2018 2019
El Teniente DivisiON….oononncnnonnnnnnnonconrnonrnornorronneornos 475 464 465 203
Radomiro Tomic Division 318 319 333 127
Chuquicamata Division …. 302 331 321 166
Mina Ministro Hales. 237 215 195 72
Andina Division … 193 220 196 84
Gabriela Mistral D 122 123 107 42
Salvador Division . 60 62 61 15
El Abra(”……. 49 38 44 18

Anglo American Sur? 71 70 84 42
CODELCO Total Production 1,827 1,842 1,806 769
Chilean Private Sector? . 3,725 3,661 4,026 1,993
Total Chilean Production …… 5,553 5,503 5,832 2,762

(1) CODELCOSs figures presented for El Abra include 49% of the mine”s total production (the share of production which corresponds to
CODELCO*s 49% direct ownership interest in the mine). The balance of El Abra’s production is included in the private sector
figures.

(2) CODELCOS*s figures presented for Anglo American Sur include 20% of the mine”s total production (the share of production which

corresponds to CODELCO”s 20% ownership interest in the mine). The balance of Anglo American Sur production is included in the
private sector figures.

(3) Source: Chilean Copper Commission.

The table below shows the breakdown of CODELCO”s own copper output for the three-year period ended
December 31, 2017 and the six-month period ended June 30, 2019:

Copper Output of CODELCO (excluding El Abra and Anglo American Sur)
(in thousands of metric tons)

Six months ended

Year ended December 31, June 30,
2016 2017 2018 2019
Cathodes … 534 508 455 179
Blister and anodes 394 382 386 104
Calcines 166 159 153 47
Concentrates …. 613 686 684 380
Total…… 1,707 1,734 1,678 710

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The following table sets forth CODELCOSs initial capital expenditures budget for the period 2019-2021 by
division, and for the executive offices, as approved by the Company?s Board of Directors as part of CODELCO”s
BDP report, which is subject to the approval of the Ministries of Finance and Mining (capital expenditures are
subject to change at the discretion of CODELCO). The capital expenditures budget is subject to an annual review
and therefore may be subject to change.

Estimated
Division Investment!”
(in millions of U.S.$)
Chuquicamata $ 3,747
El Teniente ….. 2,941
Andina…….. 1,339
Radomiro Tomic 656
Salvador . 1,164
Mina Ministro Hal 221
Gabriela Mistral 227
Ventanas. 110
Executive Office: 481
Subsidiaries 38
Deferred expe 2,460
Mota cocococnccnncinnacnnonnnrnnnnoonnnnenoncnornnn ron nnnrnnnrnnrnnn ren nenas ran ness nantes ener enero $ 13,385

(1) Includes equipment replacement and facilities repair, contributions to subsidiaries and other. Current currency,
CODELCO*s commercial guidelines May 2016.

The following table sets forth the estimated investment cost for each of CODELCOS”s principal expansion
and development projects in each division (projects are subject to change at the discretion of the Company):

Estimated

Division Project Status Investment
(in millions of U.S.$)
El Teniente. New mining level (2023) Execution”) 5,598
Chuquicamata Chuquicamata Underground (2019) Execution” 5,019
Andina Expansion phase IT (N.A.) Feasibility 3,440
OS Reallocation Plant (2020) Execution” 1,361
Salvador ccccicicconinioninnnionano. Ica Pit (2021) Feasibility 1,262
Total coccion. $ 19,571

(1) Expenditures have been invested in projects in the execution stage.

Nonetheless, the figures above reflect the estimated investments that CODELCO expected to make under
its 2019 updated BDP report. CODELCO continues to reformulate the Andina expansion project, which could
decrease the medium-term capital expenditure program. Therefore, this medium-term period more reliably reflects
CODELCO”s commitments than a longer-term period, especially considering current industry trends.

El Teniente Division

Mining Operations. The El Teniente Division is the largest division of CODELCO, based on 2018
production, and operates the El Teniente underground mine located 80 kilometers southeast of Santiago. With the
production of 465,040 metric tons in 2018, it is the world”s largest underground copper mine. For information
regarding the new mine level at the El Teniente mine, see “Summary—Competitive Strengths.”

The El Teniente deposit is also a porphyry-type ore body. The deposit covers a vertical span of over
1,500 meters. A tabular subvertical dacite porphyry intrusion two kilometers long by 200 meters wide is well
exposed in the northern part of the deposit, and a quartz-diorite stock is located at the southeast side. Wall rocks are
mostly andesites, which are strongly mineralized, containing a high concentration of chalcopyrite and bornite. The
size of the deposit is at least three kilometers north-south and close to one kilometer wide.

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El Teniente primarily produces concentrates that are smelted at the Caletones smelter. In addition to the
principal mine at El Teniente, the division performs mining operations at several other areas of the main deposit,
with a production of approximately 142,000 metric tons of ore per day. The Esmeralda area of the mine is the main
producing mine area, producing approximately 36,750 metric tons of ore per day.

As of June 30, 2019, the El Teniente Division employed 4,222 persons and produced 202,936 metric tons
of copper at a cash cost of 105.8 cents per pound and a total cash cost of U.S.$465 million, as compared to a cash
cost of 109.0 cents per pound and a total cash cost of U.S.$535 million during the first six months of 2018. In 2018,
this division had a cash cost of 106.5 cents per pound, compared to 113.5 cents per pound in 2016 and 97.2 cents per
pound in 2016, and a total cash cost of U.S.$1.1 million in 2018, compared to U.S.$1.2 million in 2017 and U.S.$1.0
million in 2016.

Copper Production and Cash Cost—El Teniente Division
(production in thousands of metric tons and cash cost in cents per pound)

Six months ended

Year ended December 31, June 30,
2016 2017 2018 2019
Copper Production 475 464 465 203
Cash Cost……….. 97.2 113.5 106.5 105.8

Smelting Operations. The El Teniente Division includes the Caletones smelter, which has the capacity to
smelt 1.25 million metric tons of concentrate per year. The El Teniente mine supplies 1.29 million metric tons of
concentrate per year to the Caletones smelter. The balance of concentrate processed by the smelter is brought by
railway from the Andina Division, 300 kilometers away.

The Caletones smelter operates two Teniente modified converters, three Pierce Smith Converters and
several refining furnaces and gas treatment plants. El Teniente has no electrolytic refining plant, and smelter output
is sold as fire-refined copper or anodes to be refined at other facilities such as the Ventanas refinery or
Chuquicamata.

Radomiro Tomic Division

Radomiro Tomic. The Radomiro Tomic deposit lies five kilometers north of the main pit at Chuquicamata.
Radomiro Tomic began production at the end of 1997. The Radomiro Tomic mine is a state of the art facility, and
the world”s largest producer of copper using the highly efficient SX-EW process.

During the first half of 2010, the Sulfide Phase 1 project was completed, which enables the treatment of
100,000 metric tons per day of sulfides from Radomiro Tomic in the Chuquicamata processing plants. In 2018, the
Radomiro Tomic Division produced 332,667 metric tons of copper.

As of June 30, 2019, the Radomiro Tomic Division employed 1,233 persons and produced 127,422 metric
tons of copper at a cash cost of 141.3 and a total cash cost of U.S.$395 million compared to a cash cost of 135.2
cents per pound and a total cash cost of U.S.$525 million during the first six months of 2018. In 2018, this division
had a cash cost of 134.1 cents per pound compared to a cash cost of 131.4 cents per pound in 2017 and 134.8 cents
per pound in 2016 and a total cash cost of U.S.$973 million in 2018, compared to a total cash cost of U.S.$ 915
million in 2017 and U.S.$936 million in 2016.

69
Copper Production and Cash Cost—Radomiro Tomic Division
(production in thousands of metric tons and cash cost in cents per pound)

Six months

Year ended December 31, ended June 30,
2016 2017 2018 2019
Copper Production Radomiro Tomi 318 319 333 127
Cash Cost Radomiro Tomic … 134.8 131.4 134.1 141.3

Chuquicamata Division

Chuquicamata—Mining Operations. Chuquicamata is one of the largest open pits in the world with a total
production of 320,744 metric tons in 2018. Located in the Atacama Desert, 1,200 kilometers north of Santiago and
240 kilometers east of the Chilean city of Antofagasta, the mine has been in continuous operation since 1915. The
Chuquicamata mine is an open-pit operation that produces predominantly sulfide concentrates, which are smelted
and refined on site. The pit size of the Chuquicamata mine is almost nine kilometers long in a north-south direction
by five kilometers wide and one kilometer deep.

The Chuquicamata deposit is a porphyry-type ore body. The most important feature of the ore body is a
north-south regional fault, the west fissure fault, which cuts the ore on the west side and creates a sharp limit on the
deposit. An oxide ore zone was a large part of the deposit and has been almost totally mined out. The mine contains
a supergene enrichment layer (a redeposit of copper, by natural forces, from higher to lower layers), which has a
thickness of almost 800 meters near the center of the mine. Five kilometers north of Chuquicamata, the ore body
narrows and merges with the Radomiro Tomic ore body. For information regarding the transformation of the
Chuquicamata mine from an open pit mine to an underground operation, see “Summary—Competitive Strengths.”

Chuquicamata—Smelting Operations. Chuquicamata utilizes one Outokumpu flash furnace, five Pierce
Smith converters and two Teniente converters to process 1.25 million metric tons of 29.6% copper concentrate per
year. Chuquicamata performs all stages of copper production from the mining process through cathode production.

As of June 30, 2019, the Chuquicamata Division employed 5,189 persons and produced 166,131 metric
tons of copper at a cash cost of 125.6 cents per pound and a total cash cost of U.S.$447 million, compared to a cash
cost of 133.4 cents per pound and a total cash cost of U.S.$392 million during the first six months of 2018. In 2018,
this division had a cash cost of 131.5 cents per pound compared to a cash cost of 130.9 cents per pound in 2017 and
118.3 cents per pound in 2016 and a total cash cost of U.S.$908 million in 2018, compared to a total cash cost of
U.S.$933 million in 2017 and U.S.$774 million in 2016.

Copper Production and Cash Cost—Chuquicamata Division
(production in thousands of metric tons and cash cost in cents per pound)

Six months ended

Year ended December 31, June 30,

2016 2017 2018 2019
Copper Production Chuquicamat: 302 331 321 166
Cash Cost Chuquicamata 118.3 130.9 131.5 125.6

Mina Ministro Hales Division
Mining Operations. The Mina Ministro Hales Division was created in September 2010 for the operation of

the Mina Ministro Hales ore body, and delivered its first tons of copper during the last quarter of 2013. In 2018, it
produced 195,485 metric tons of fine copper.

As of June 30, 2019, Mina Ministro Hales employed 763 persons and produced 72,252 metric tons of fine
copper at a cash cost of 140.4 cents per pound and a total cash cost of U.S.$216 million, compared to a cash cost of

70
111.1 cents per pound and a total cash cost of U.S.$230 million during the first six months of 2018. In 2018, this
division had a cash cost of 124.0 cents per pound, compared to a cash cost of 121.8 cents per pound in 2017 and
115.3 cents per pound in 2016 and a total cash cost of U.S.$517 million in 2018, compared to a total cash cost of
U.S.$560 million in 2017 and U.S.$584 million in 2016.

Copper Production and Cash Cost—Mina Ministro Hales Division
(production in thousands of metric tons and cash cost in cents per pound)

Six months ended

Year ended December 31, June 30,
2016 2017 2018 2019
Copper Production. 237 215 195 nn
Cash Cost……….. 115.3 121.8 124.0 140.4

Smelting and Refinery Operations. The processing of minerals will be carried out in a stand-alone
concentrator with processing capacity of 50,000 tons per day. Copper concentrates will be processed in a new
roasting plant. The project also includes a new acid plant.

Gabriela Mistral Division

The Gabriela Mistral ore body is located in Chile?s Second Region and began production in May 2008. On
January 1, 2013, CODELCO created the Gabriela Mistral Division, which operates the Gabriela Mistral mine.
Gabriela Mistral uses SX-EW technology and produced its first copper cathodes in May 2008 after a 26-month
construction period at a cost of U.S.$1.0 billion. In 2018, the Gabriela Mistral Deposit produced 107,247 metric
tons of copper.

As of June 30, 2019, the Gabriela Mistral Division employed 536 persons and produced 42,284 metric tons
of copper at a cash cost of 265.4 cents per pound and a total cash cost of U.S.$247 million, as compared to a cash
cost of 196.3 cents per pound and a total cash cost of U.S.$216 million during the first six months of 2018. In 2018,
this division had a total cash cost of 191.9 cents per pound, compared to a cash cost of 151.9 cents per pound in
2017 and 144.2 cents per pound in 2016 and a total cash cost of U.S.$411 million in 2017, compared to a total cash
cost of U.S.$387 million in 2016 and U.S.$440 million in 2015.

Copper Production and Cash Cost—Gabriela Mistral Division
(production in thousands of metric tons and cash cost in cents per pound)

Six months ended

Year ended December 31, June 30,
2016 2017 2018 2019
Copper Production 122 123 107 42
Cash Cost…….. 144.2 151.9 191.9 265.4

Andina Division

Mining Operations. The Andina Division operates the Andina mine and the Sur-Sur mine, which are
located 50 kilometers northeast of Santiago. Production at the Andina Division is split among open-pit and
underground mines. For information regarding the Andina plant reallocation project, see “Summary—Competitive
Strengths.” The Andina Division does not operate a smelter. Its production is processed at the Caletones smelter of
El Teniente, at the Ventanas refinery or at the Salvador Division, and some of its concentrate is sold to ENAMI or
other purchasers. As of June 30, 2019, the Andina Division employed 1,641 persons and produced 83,793 metric
tons of copper at a cash cost of 183.8 cents per pound and a total cash cost of U.S.$328 million, as compared to a
cash cost of 160.8 cents per pound and a total cash cost of U.S.$346 million during the first six months of 2018. In
2018, this division produced 195,531 metric tons of copper and had a cash cost of 163.7 cents per pound, compared
to a cash cost of 139.6 cents per pound in 2017 and 146.6 cents per pound in 2016 and a total cash cost of U.S.$682
million in 2018, compared to a total cash cost of U.S.$654 million in 2017 and U.S.$603 million in 2016.

71
The Río Blanco-Los Bronces porphyry-type deposit, one of the largest copper ore bodies in Chile, is
partially owned by the Andina Division. The northwest portion of this deposit is owned by the Andina Division;
Anglo Sur owns and operates the mines at Los Bronces and El Soldado along with the Chagres smelter and various
mineral resources, including Los Sulfatos and San Enrique Monolito, located in the southwest portion of the deposit.
The deposit is characterized by plentiful tourmaline and breccia rock bodies mineralized with copper sulfides,
mostly calcopyrite. CODELCO”s portion of the deposit is four kilometers in length, in the northwest to southeast
direction, with a maximum width of almost one kilometer.

Copper Production and Cash Cost—Andina Division
(production in thousands of metric tons and cash cost in cents per pound)

Six months

Year ended December 31, ended June 30,
2016 2017 2018 2019
Copper Production. 193 220 196 84
Cash Cost……….. 146.6 139.6 163.7 183.8

With the aim to increase the processing output of the Andina Division, CODELCO completed the Andina
Phase I Expansion Project in 2010. While the Andina Division had plans to continue investing to expand the mine
and increase copper production by an additional 350,000 tons of copper per year, the Company is currently
reformulating its plans in order to create an alternative that should require less investment, while at the same time
seeking to minimize the environmental impact and prolong the life of the Andina Division.

Salvador Division

Mining Operations. The Salvador Division is the smallest of CODELCOS*s divisions. In 2018, it produced
60,840 metric tons of fine copper. The complex includes the mine and concentrator at Salvador and a
smelter/refinery at Potrerillos. The Salvador mine is located 900 kilometers north of Santiago and 120 kilometers
east of the Chilean port of Chañaral. Concentrates are transported 67 kilometers from the mine to the smelter at
Potrerillos via pipeline and truck.

The Salvador Division has the smallest base reserve of ore among all of CODELCO”s divisions. The
Salvador deposit is a typical medium-sized porphyry-type ore body. There is an 80- to 200-meter thick leached
capping covering a lensoid-shaped enrichment layer roughly one kilometer in diameter that attains a maximum
thickness of about 250 meters. This enrichment layer is almost completely mined out. Mining is currently focused
on the primary ore located underneath the secondary enrichment (the so-called Inca levels).

As of June 30, 2019, Salvador employed 1,518 persons and produced 15,138 metric tons of fine copper at a
cash cost of 225.8 cents per pound and a total cash cost of U.S.$74 million, compared to a cash cost of 218.5 cents
per pound and a total cash cost of U.S.$124 million during the first six months of 2018. In 2018, this division had a
cash cost of 223.5 cents per pound, compared to a cash cost of 198.7 cents per pound in 2017 and 182.3 cents per
pound in 2016 and a total cash cost of U.S.$296 million in 2018, compared to a total cash cost of U.S.$269 million
in 2017, and U.S.$239 million in 2016.

Unless the Inca Pit project (as described below) enters the execution stage, CODELCO”s Board of
Directors has decided to phase out mining operations at the Salvador mine by 2021, or sooner, if warranted by
market and operational conditions, specifically marketability of its copper, cash costs and annual reviews of
performance. The Potrerillos smelter and refinery would continue to operate upon any cessation of the mining
operations at Salvador.

7
Copper Production and Cash Cost—Salvador Division
(production in thousands of metric tons and cash cost in cents per pound)

Six months ended

Year ended December 31, June 30,
2016 2017 2018 2019
Copper Production… 60 62 61 15
Cash Cos: 182.3 198.7 223.5 225.8

Smelting Operations. The smelting and refining operation is located at Potrerillos. This facility includes
one Teniente converter and four Pierce Smith converters for a rated annual capacity of 671,000 metric tons of
concentrate. CODELCO increased capacity of the Potrerillos smelter in May 2004 and is currently conducting
conceptual engineering for a proposed expansion of capacity of the Potrerillos refinery.

Ventanas Division

Smelting and Refinery Operations. The Ventanas Division was created in connection with the acquisition
of the Ventanas smelter and refinery from the Chilean state-owned mining company ENAMI in May 2005. The
Ventanas smelter has the capacity to treat of over 400,000 metric tons of concentrate. Ventanas refined
approximately 409,049 metric tons of copper in 2018. Pursuant to the terms of the acquisition, CODELCO is
required to provide, on market terms, the necessary smelting and refining capacity for the treatment of products for
the small- and medium-sized mining industry that ENAMI serves. As of June 30, 2019, the Ventanas Division
employed 838 persons.

Associations, Joint Ventures and Partnerships

CODELCO has undertaken several projects, business ventures and associations with certain private sector
mining and non-mining enterprises, including:

e Copper Partners Investment Company Ltd.: In March 2006, CODELCO and Minmetals created a joint venture
company equally owned by both companies. Under a 15-year sales contract covering a total of 836,250 metric
tons of copper, CODELCO sells cathodes to Copper Partners Investment Company Ltd. (“CuPIC”). The joint
venture made an initial up-front payment of U.S.$550 million to CODELCO in March 2006 and pays a price
balance on shipments during the term of the contract. In turn, the joint venture sells the cathodes to Minmetals
at market prices. Shipments under the contract commenced in June 2006. CODELCO also granted Minmetals
an option to acquire, at market price, a minority interest in a company that will be formed to exploit the
Gabriela Mistral mineral deposit. In September 2008, CODELCO and Minmetals suspended the option
indefinitely. The option may be revived upon the agreement of both parties. CODELCO and Minmetals also
agreed to identify joint opportunities in the future. On April 7, 2016, CODELCO (i) reached an agreement with
Minmetals to lower sale of copper from CODELCO to CuPIC by half and (ii) sold its 50% direct ownership
interest in CuPIC. Under this arrangement, CODELCO no longer makes payments to, directly or indirectly, or
receives payments from, directly or indirectly, Minmetals or CuPIC. This company had delivered dividends to
CODELCO in an aggregate amount of U.S.$104.7 million and U.S.$14.4 million in 2015 and 2016,
respectively.

e SCMEI Abra: In 1994, CODELCO (49%) formed a company, SCM El Abra, with Cyprus El Abra Corporation
(51%), a subsidiary of Freeport-McMoRan Inc., to develop the El Abra mine in northern Chile. The mine is a
porphyry copper open-pit facility located 105 kilometers north of the city of Calama at an altitude of 3,900
meters above sea level. Constructed at a cost of U.S.$1.1 billion, it is designed to produce 225,000 metric tons
of copper per year and includes one of the world’s largest SX-EW facilities. The El Abra project was originally
financed by a U.S.$850 million syndicated loan, which was repaid in full in November 2004.

o In October 2009, SCM El Abra approved resuming construction activities for the Sulfolix Project,
which had been deferred as a result of market conditions at the end of 2008, to extract and process (by
the leaching process) sulfide ores, which is expected to extend mine life by 13 years and enable El
Abra to produce at least 125,000 metric tons of fine copper per year. This project contains

73
approximately 1.2 billion metric tons of leachable oxide and sulfide copper, with an average ore grade
of 0.43%. The project started producing sulfides, shifting from an oxide operation, during the first
quarter of 2011 and includes milling mine ores until 2024, and is expected to generate the last cathode
in 2029 by leaching heap remains. The Sulfolix Project requires approximately U.S.$565 million of
initial equity and an additional U.S.$160 million to sustain the operations. The project is financed by
SCM El Abra’s retained earnings.

o In 2018, SCM El Abra produced 90,532 metric tons of fine copper at a cash cost of 234 cents per
pound. For the six months ended June 30, 2019, the production was 36,481 metric tons of fine copper
with a cash cost of 271 cents per pound.

o The project had delivered total dividends of U.S.$110 million, U.S.$80 million, and U.S.$10 million in
2016, 2017 and 2018, respectively, and CODELCO had received U.S.$53.9 million, U.S.$39.2 million
and U.S.$4.9 million in dividends in 2016, 2017 and 2018, respectively. In the first six months of 2019,
the project had not delivered dividends. As of June 30, 2019, the carrying value of SCM El Abra’s
ownership interest was equal to U.S.$599.9 million.

Anglo American Sur: On December 19, 2008, CODELCO purchased from ENAMI for U.S.$175 million an
option to purchase up to 49% of the equity interests of Anglo American Sur, a wholly-owned subsidiary of
Anglo American, for a price to be determined by a prescribed formula based on a multiple of historic earnings
(the “Sur Option”). Anglo American Sur owns and operates the mines at Los Bronces and El Soldado, the
Chagres Smelter and various mineral resources, including Los Sulfatos and San Enrique Monolito. In October
2011, CODELCO announced that it had arranged for a bridge loan of up to U.S.$6.75 billion from Mitsui that
would allow it to exercise the Sur Option and indicated its intent to exercise the Sur Option during the next
window for its exercise, which would occur in January 2012. On November 9, 2011, Anglo American
announced that it had sold 24.5% of the equity interests of Anglo American Sur to affiliates of Mitsubishi
Corporation. Following this sale, CODELCO announced that it retained the right to acquire up to 49% of the
equity interests of Anglo American Sur and requested from the Santiago Court of Appeals a legal order
preventing further sales of equity interests of Anglo American Sur until CODELCO was able to exercise the
Sur Option. The requested legal order was granted and, on January 2, 2012, CODELCO exercised the Sur
Option to purchase 49% of the equity interests of Anglo American Sur. Prior to and after the exercise of the
Sur Option, Anglo American and CODELCO were involved in additional legal proceedings relating to the
exercise of the Sur Option, which were ultimately settled pursuant to the settlement agreement described below.

o On August 23, 2012, CODELCO and Anglo American entered into a settlement agreement to settle
their respective claims in relation to the Sur Option. In connection with this settlement agreement,
CODELCO and Anglo American agreed that Becrux, then a wholly-owned subsidiary of Acrux, an
entity owned by CODELCO and Mitsui in the manner described below, would acquire 29.5% of the
equity interests in Anglo American Sur pursuant to the following transactions:

. On August 24, 2012, Becrux acquired (i) shares representing 24.5% of the equity interests of
Anglo American Sur for a purchase price of U.S.$1.7 billion, which was financed through a
draw down by an affiliate of CODELCO on the Aé%R Mitsui Bridge Loan Facility described
under “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources—Other Debt;” and (ii) shares representing
0.94% of the equity interests of Anglo American Sur for a purchase price of U.S.$206.8
million, which was financed by cash contributions made by Mitsui; and

. On September 14, 2012, Becrux acquired shares representing 4.0% of the equity interests of
Anglo American Sur for a purchase price of U.S.$893.2 million, which was financed by cash
contributions made by Mitsui.

o As part of the settlement agreement, Anglo American Sur transferred to CODELCO certain

undeveloped mining properties, Los Leones and Profundo, which are located to the east of
CODELCO”s Andina mine, and the shareholders of Anglo American Sur entered into a shareholders”

74
agreement that provides a framework for the ongoing governance of Anglo American Sur, which
includes board representation and participation in certain decisions for Becrux.

o Immediately following the acquisition of 29.5% of the equity interests of Anglo American Sur,
affiliates of CODELCO and Mitsui owned approximately 83% and 17%, respectively, of the equity
interests of Acrux. In connection with the refinancing of the A8%R Mitsui Bridge Loan Facility
described above under “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources—Other Debt,” an affiliate of Mitsui exercised its right to
acquire from an affiliate of CODELCO at the closing of the refinancing a number of equity interests of
Acrux representing a 4.5% stake in Anglo American Sur for a purchase price equal to U.S.$998
million. This amount was used to prepay a portion of the bridge loan previously drawn down by an
affiliate of CODELCO under the A8%R Mitsui Bridge Loan Facility in connection with the transactions
described above. Following the consummation of this transaction, affiliates of CODELCO and Mitsui
owned approximately 67.8% and 32.2%, respectively, of the equity interests of Acrux. Consequently,
CODELCO indirectly owns a 20% interest in Anglo American Sur.

o On November 26, 2016, CODELCO signed a credit agreement with Mitsui renegotiating the payment
of principal at the end of the contract. The terms established an annual interest rate of Libor +2.5%
with a five-year maturity to be payable in one installment at maturity with semi-annual interest
payments. On May 26, 2017, CODELCO signed a new credit agreement with Mitsui renegotiating the
following semi-annual payment, which was on the same terms as the first renegotiation done in
November 2016.

o On December 21, 2017, CODELCO and Mitsui agreed to merge Acrux into Becrux, as the surviving
entity. The reorganization did not affect the interest that CODELCO and Mitsui indirectly hold in
Anglo American Sur.

o Anglo American Sur fine copper production was 422,247 metric tons in 2018 with a cash cost of 149
cents per pound, compared to 348,732 metric tons in 2017 with a cash cost of 173 cents per pound and
354,178 metric tons in 2016 with a cash cost of 157 cents per pound. For the six months ended June 30,
2019, the production was 208,210 metric tons of fine copper with a cash cost of 138 cents per pound.
Anglo American Sur has distributed U.S.$0 in 2016, U.S.$ 187.3 million in 2017, U.S.$182.9 million
in 2018, and U.S.$84.4 million as of June 30, 2019 in cash dividends to Becrux, and CODELCO has a
67.8% indirect participation in Becrux. As of June 30, 2019, the carrying value of equity of Anglo
American Sur was equal to U.S.$2.8 billion, of which CODELCO has a 20% indirect participation.
See “Risk Factors.” A substantial amount of our total assets are property, plant and equipment. We
have recently recognized a significant impairment charge for certain assets and, if market and industry
conditions continue to deteriorate, further impairment charges may be recognized” for information
regarding the recorded impairment related to CODELCO*s equity investment in Anglo American Sur.

SCM Purén: CODELCO (35%) and Compañía Mantos de Oro (65%), a subsidiary of Kinross Gold Corp., own
SCM Purén. SCM Purén”s mining activities, located in the Atacama Region, east of the city of Copiapó, began
in November 2005, having produced over 801,839 ounces of equivalent gold. In 2015, the company distributed
U.S.$2.5 million in dividends to CODELCO. During 2016, 2017, 2018 and the first six months of 2019, this
company did not issue dividends. SCM Purén mines two gold and silver ore bodies through open pits.
Currently, SCM Púren is evaluating a second phase of the project, which is expected to produce 295,419 ounces
of gold equivalent over a four-year period.

Agua de la Falda S.A.: CODELCO (43%) and Minera Meridian Limitada (57%), a subsidiary of Yamaha Gold
Inc., own Agua de la Falda S.A., which was created to explore and exploit the Agua de la Falda deposit that
was in production until 2005. This company has completed its feasibility study of the Jerónimo gold deposit,
which contains over 2 million ounces of gold. The results of this study have not been satisfactory and the
partners are studying alternatives for improvement.

Inca de Oro S.A.: CODELCO (34%) and PanAust Minera Limited (66%) own Inca de Oro S.A., which was

75
created in 2009 to explore, exploit and process mineral resources in Chile and abroad. The production of Inca
de Oro S.A. is currently halted pending new market opportunities.

Deutsche Giessdraht GmbH: CODELCO (40%) and Aurubis AG (60%) own Deutsche Giessdraht GmbH, a
German corporation located in Emmerich, Germany. The company, which has been in existence since 1975,
produces continuous copper cast wire rod. CODELCO indirectly supplies copper to Deutsche Giessdraht
GmbH. On July 31, 2018, CODELCO sold its 40% ownership stake in Deutsche Giessdraht GmbH to its
partner Aurubis AG after receiving approval of the transaction by Germany”s federal antitrust regulator
(Bundeskartellamt). The sale includes an agreement which allows CODELCO to produce wire rod until
December 31, 2018 to fulfill its sales contract obligations that expire at the end of 2018.

GNL Mejillones S.A.: Due to the decrease and eventual termination of natural gas supply from Argentina,
electrical power generation companies have experienced diminished electricity generation. For this reason,
CODELCO and Suez Energy Andino S.A. through GNL Mejillones constructed an LNG re-gasification plant,
which has been operating since the beginning of 2010. GNL Mejillones has the capacity to receive, process and
store natural gas, with a send-out capacity of 5.5 million of cubic meters of gas per day, originating in Trinidad
and Tobago and purchased from SUEZ Global LNG Ltd. under a long-term supply contract. The LNG storage
tank is currently in operation. GNL has entered into a long-term agreement with E-CL for the re-gasification
and storage of approximately 15 trillion BTU (British Thermal Unit).

o GNL Mejillones provides gas required by the electricity power plant in the Sistema Interconectado del
Norte Grande, known as the SING, which supplies power to CODELCO”s operations. The project
partners have financed this project under existing take-or-pay contracts with CODELCO and other
mining companies.

o As of June 30, 2019, CODELCO owned 37% of the outstanding shares of the company, and Suez
Energy Andino S.A. owned the remaining 63% of the shares.

o On August 6, 2019, CODELCO announced the sale of its 37% stake in GNL Mejillones S.A. to to
Ameris Capital AGF, for an amount of US$193.5 million.

Salar de Maricunga SpA: In April 2017, CODELCO formed Salar de Maricunga SpA (“Salar de Maricunga”)
to develop projects for the exploration and exploitation of lithium in Chile. In March 2018, Salar de Maricunga
entered into a special lithium operating contract with Chile?s Ministry of Mining for the exploration and
development of a lithium project in the Maricunga salt flat in the northern Atacama Region of Chile. In August
2019, CODELCO subscribed a non-binding MOU with Minera Salar Blanco S.A. with the purpose of studying
how to structure a sustainable lithium project from a social, environmental and economic point of view in the
Salar de Maricunga, with the aim of the project becoming the third largest lithium producer in Chile. During the
term of the MOU, the companies will negotiate the definitive terms of the association that will allow them to
carry out this initiative, combining their experiences. This MOU seeks to enable CODELCO to participate in a
lithium project that consolidates the main mining properties of the Maricunga salt flat, based on a public-private
alliance model, according to the guidelines of the National Lithium Policy.

Technology and Research and Development Partnerships and Associations: CODELCO has entered into
associations with companies and organizations that are world leaders in research and development to increase
the integration of knowledge and innovation into mining processes. The following is a representative list of
such associations:

o BioSigma S.A.: CODELCO (66.67%) established BioSigma S.A. (“BioSigma”) in 2002 with the
Japanese company JX-Nippon Mining and Metals Corporation (33.33%). BioSigma”s mission today is
to be a company known for its competence in deploying and adapting full innovative biotechnology
solutions, adding value to mining operations by way of using environmentally sustainable
technologies. BioSigma plays a leading role in CODELCO’s efforts to develop bioleaching
technologies to improve the leaching process of primary copper sulfide ores operations that will add
more copper to solvent extraction and electro-winning plants that are not being fully used due to

76
depletion of oxidized mineral resources. In December 2012, a full industrial test of BioSigma”s
technologies commenced and was applied to mining resources in the Radomiro Tomic Division, which
involves a pioneer biomass plant to supply leaching microorganisms into low grade primary sulfide
ores heaps. The test was successfully finished in May 2014. Results indicate that BioSigma”s
bioleaching technology produced a significant improvement in copper recovery and profitability
compared to those of conventional bioleaching technologies;

Kairos Mining S.A.: Kairos Mining S.A. is a company created in December 2006 in association with
Honeywell Chile S.A., which owns 95% (CODELCO owns the remaining 5%). Kairos Mining S.A.’s
purpose is to provide services for the automation and control of industrial and mining activities, and to
supply related technology and software licenses;

Ecosea Farming S.A.: CODELCO, through its subsidiary Innovaciones en Cobre S.A., is an 91.32%
shareholder in EcoSea Farming (“EcoSea”), a technology-driven company setting the standard for
aquaculture on a global scale. The company”s objective is to incorporate the use of metallic copper
alloy meshes for fish cultivation systems, in order to take advantage of the various benefits of copper:
antimicrobial, antifouling, anti-predator, mechanically strong and infinitely recyclable. In addition,
EcoSea is discovering new properties that allow for lower operational costs and the expansion of
offshore aquaculture in exposed areas. Today, CODELCO is seeking a strategic partner that can work
with EcoSea to promote this technology on a global scale;

CoMoTech S.A.: CODELCO, through its subsidiary Innovaciones en Cobre S.A., owns 48.61% of
CoMoTech, Molibdenos y Metales S.A. owns 48.61% and The University of Chile owns the remaining
shares. CoMoTech was created for research and development purposes to increase molybdenum
demand through new and enhanced applications. CoMoTech’s results were not as expected and in
April 2016 it was dissolved; and

Copper for Energy S.A. (C4E): CODELCO, through its subsidiary Innovaciones en Cobre S.A., along
with the University of Chile, ICA and Fundación Chile formed the C4E consortium in 2010. C4E was
created to develop renewable energy and water treatment technologies and products, using copper as
the key material due to its superior conductivity and properties. C4E”s results have not been as
expected and the company is in the process of being wound up.

The following table sets forth the major mining and exploration agreements to which CODELCO is a party
as of June 30, 2019:

Major Mining and Exploration Agreements
(As of June 30, 2019)

Partner Type

Mining Co-participation in Chile

SCM El Abra Freeport-McMoRan Inc. (USA) Copper
Agua de la Falda S.A. Meridian Gold Inc. (USA) Gold
SCM Purén Compañía Mantos de Oro (Chile) Gold/Silver
Inca de Oro S.A. PanAust Minera Limited (Australia) Copper
Anglo American Sur S.A. Inversiones Anglo American Sur S.A. (England); affiliates of Copper
Mitsubishi Corporation (Japan); and Mitsui $: Co., Ltd. (Japan)
Exploration Agreement Projects
Chile
Anillo Fortune Valley Resources (Chile) Gold
Puntilla Galenosa Pucobre (Chile) Copper
Roberto Anglo American Norte S.A. Copper
International
Liberdade Pan Brazilian (Brazil) Copper/Gold
JV Codelco-Xstrata Xstrata Do Brasil (Brazil) Copper
Grupo Propiedades Ministerio de Minas y Petróleo del Ecuador (Ecuador) Copper

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CODELCO reports its inventory of mining assets, distinguishing mineral resources and mineral reserves,
according to Chilean and international regulation. The system described below for categorizing mineral ore, which
is widely used within the mining industry, is codified in Chilean Law No. 20,235 and is regulated by an
independent Chilean private entity called the Comisión Calificadora de Competencias en Recursos y Reservas
Mineras (the Commission for the Qualification of Competencies in Mineral Resources and Reserves, or
“CQCMRR”). The CQCMRR is part of the Committee for Mineral Reserves International Reporting Standards
(CRIRSCO).

Geological Resources

Geological resources are concentrations or occurrences of materials in such form, quantity (tonnage and
ore grade) and quality, based on specific geological evidence and knowledge, which allow for the calculation of the
amount, ore grade and quality of the material with some level of confidence. Geological resources are identified
and evaluated through exploration, reconnaissance and sampling. They are estimated based on geological
knowledge about the deposit, which is based on scientific concepts concerning the formation of minerals such as
oxides, sulfides and mixed ores, as well as available knowledge concerning the geological continuity of the
mineralized sectors. This is based on technical parameters, such as robustness of the genetic-geological model, and
its validation through drillings. Geological resources are further categorized as measured, indicated and inferred.

A resource is considered to be measured if CODELCO””s knowledge of the resource is extensive and direct;
if CODELCO”s knowledge of the resource is substantial but less extensive, it is considered to be indicated; and if
CODELCO'”s knowledge of the resource is only indirect, it is considered to be inferred.

Mineral Resources

Once CODELCO has achieved increased knowledge about its geological resources, it is able to generate a
long-term mining plan for the exploitation of such resources, which are then considered to be mineral resources.
Mineral resources, as well as geological resources, are sub-categorized as measured, indicated and inferred.

Ore Reserves

Ore reserves are defined as the economically mineable part of mineral resources. They include diluting
materials and allowances for losses, which may occur when the material is mined. Appropriate assessments and
studies have been carried out, which take into account rationally assumed mining, metallurgical, economic,
marketing, legal, environmental, social and governmental factors. These assessments address at the time of
reporting whether extraction is justified. Ore reserves are sub-divided in order of increasing confidence from
probable ore reserves to proved ore reserves. Ore reserves are a subset of mineral resources in the same way as
mineral resources are a subset of geological resources. The following diagram sets forth the relationships among
the different categories of resources and reserves:

78
Resources and Reserves, CODELCO

EXPLORATION

GEOLOGICAL
RESOURCES

Mining Plan
Life – of – mine

MINERAL
RESOURCES

Chilean Code: CH20.235

I
1
1
1
I
I
1
1
1
I
I
1
1
1
I
I
1
1
L

ORE

RESERVES

The modifying factors:
Consideration of mining, metallurgical, economic,
marketing, legal, environmental, social and government factor:

Based on the methods and categories described above, CODELCO*s proved and probable reserves include
47.6 million metric fine tons of copper, an amount that represents at least 26 years of future production at current

levels.

geological resources include 392.1 million metric tons of copper, for a cut-off grade of 0.2% copper.

CODELCO”s mineral resources include 134.2 million metric fine tons of copper, and its identified

CODELCO*s proved and probable reserves slightly decreased from 48.3 million metric tons in 2018 to
47.6 million metric tons in 2019, increased to 48.3 million metric tons in 2018 from 48.2 million metric tons in 2017
and decreased to 48.2 million metric tons in 2017 from 51.0 million metric tons in 2016 primarily due to the impact
on the calculation of reserves from the decrease in production at Andina mine, as a result of the reformulation of the
Andina expansion project.

The following table sets forth the amount and grade of CODELCO*s copper holdings by division according
to the methodology described above, as of December 31, 2018:

Radomiro Tomic …..
Chuquicamata…
Ministro

HaleS cocncconicoao ooo»
Gabriela Mistral
Salvador.
Andina
El Teniente …

Exploration/Business
and Subsidiaries(”….
Total………………

Geological Resources”

Mineral Resources?

Ore Reserves

Grade Fine

Tonnage? copper copper?
7,442 0.41% 30.5
14,558 0.44% 63.7
2,421 0.79% 19.2
1,469 0.34% 4.9
3,484 0.41% 14.3
22,096 0.61% 135.9
16,367 0.57% 93.4
8,421 0.36% 30.4
76,290 0.51% 392.1

(1) Geological resources cut-off grade 0.2% copper.

(2) Mineral resources with variable cut-off grade.

Grade Fine
Tonnage? copper copper*
3,972 0.45% 17.8
1,934 0.69% 13.3
1,233 0.87% 10.7
414 0.35% 1.4
828 0.59% 4.9
4,139 0.80% 32.9
4,381 0.80% 34.9
3,201 0.56% 18.1
20,104 0.67% 134.2

OreS
1,926
1,303

185
336
S8l
1,163
1,348

512
7,353

Grade

copper
0.50%
0.73%

0.91%
0.35%
0.64%
0.69%
0.85%

0.50%
0.65%

Fine
copper*
9.6
9.5
(3) In millions of metric tons.
(4) Includes artificial geological resources

The following table sets forth the copper holdings of the world and of CODELCO using the U.S.
Geological Survey system as of December 31, 2018:

World CODELCO CODELCO’s
(in millions of tons) (in millions of tons) share (%)
Geological Resources … 2,1000 392.10 19
Proved and Probable Reserv 830″ 47.6 6

(1) As defined by the U.S. Geological Survey (January 2019) and with reference to “identified resources.”
(2) Refers to copper holdings that are measured, indicated and inferred.

Each year, the Board of Directors must approve a long-term BDP of the Company. The first three years are
subject to the approval of the Ministries of Finance and Mining. This plan must include the annual investment and
financing amounts in addition to the annual profits that the Company is estimated to generate during the period. The
Ministries of Finance and Mining jointly issue a decree, pursuant to which a portion of CODELCO”s profit may be
allocated by CODELCO to the creation of capitalization and reserve funds.

The 2019 BDP enables CODELCO to develop a long-term mining plan. CODELCO reviews the terms of
the BDP annually to update or modify it for changes in business trends.

The 2019 BDP uses inferred resources to define CODELCO”s strategic vision for long-term resource
development. However, the incorporation of such resources increases gradually over time, and the inferred
resources become proved and probable reserves.

In the early stages of the 2019 BDP, production is almost exclusively based on proved and probable
reserves and mining projects are at advanced stages of engineering or at the investment stage. Mining projects must
support their economic evaluation based on pre-defined minimum proved and probable reserves in order to be
approved for investment.

Resource Development

CODELCO controls approximately 6% of the world”s proved and probable copper reserves, as such terms
are defined by the U.S. Geological Survey.

Potential geological resources, which have been identified by our internal exploration division as the result
of projects carried out through 2018, comprise resources incorporated at different stages of exploration and have not
been added into CODELCO*s copper holdings.

CODELCOSs total potential geological resources, according to our internal estimates, are approximately
2.438 million of metric tons of ore with an 0.44% average copper ore grade, and equivalent to 10.69 million metric
tons of fine copper. As explorations progress and further estimates are completed, these resources could be
incorporated into CODELCO”s copper holdings.

The following table shows the distribution of CODELCO”s potential geological resources in all districts of
CODELCO Norte and projects abroad, as of December 31, 2018:

Potential Geological Reserves’”

Fine
Region Ore”? Grade Copper Copper?
CODELCO Northern District (CND) .. 99 0.51 0.51
Don Felipe
San Andrés NW
Carmen
International ExploratiON….ocinincinnnonnonnnnncenenennncnecnecnrernncnn narco cnn rarnarnonn rar carnnrnannos 2,339 0.44 10.18
Liberdade (Brazil)
Llurimagua (Ecuador)

Total ….. 2,438 0.44 10.69

(1) Geological resources cut-off grade 0.2% copper.
(2) In millions of metric tons.

Production Costs of Copper

CODELCOSs production costs include all costs and expenses incurred in connection with the mining and
production of its copper mix and related byproducts. These production costs do not include administrative and
operating costs incurred in connection with the processing of other copper products purchased from third parties.

In 2018, CODELCO”s annual production of copper was 1.68 million metric tons, or 1.81 million metric
tons including the El Abra and Anglo American Sur interests. CODELCO continues to focus on controlling and
limiting increases in production costs. In 2018, CODELCO”s total costs and expenses were 245.1 cents per pound,
compared to 227.1 cents per pound in 2017 and 214.6 cents per pound in 2016, mainly due to the appreciation of the
Chilean peso against the U.S. dollar, lower production levels, higher input prices, reflected in higher fuel, energy
and materials expenses, a non-cash charge related to a write-off of an underground mining innovation project, an
impairment recognition in Ventanas Division and higher bonuses and employment benefits associated with 18
collective bargaining agreements. The increase in 2017 compared to 2016 is primarily attributable to the
appreciation of the Chilean peso against the U.S. dollar followed by higher interest expenses and higher fuel and
energy expenses. During the six months ended June 30, 2019, CODELCO”s total costs and expenses were
258.3 cents per pound, compared to 237.2 cents per pound for the same period in 2018, mainly due to lower
production in connection with weather disruptions in the northern area of Chile, a 14-day strike at the Chuquicamata
mine, upgrades at the Chuquicamata and Salvador smelters that suspended operations temporarily, the negative
impact of foreign exchange rate translation effects, higher bonuses and other employment benefits associated with
its collective bargaining agreements and higher financing costs.

In 2013, CODELCO also implemented a productivity and cost structured project intended to lower costs
and increase production. The initiative is comprised of: (i) performance optimization to minimize operational
disruption; (ii) budget optimization to identify expendable and necessary contracts to control the budget for
third-party services costs; (iii) energy and input costs optimization marked by a review of energy and main inputs
contracts; and (iv) a review of hygienic factors and costs, such as travel expenses and consulting services.
Moreover, CODELCO has also created a new Vice President for Productivity and Costs position with the aim of
increasing productivity, reducing costs and enhancing the cost control program.

In 2018, CODELCOS*s cash cost of production was 139.1 cents per pound compared to 135.9 cents per
pound in 2017 and 126.1 cents per pound in 2016 primarily attributable to the appreciation of the Chilean peso
against the U.S. dollar, lower production levels, and higher main input prices. The higher cash cost in 2017 is
mainly the consequence of higher operational costs, the appreciation of the Chilean peso against the U.S. dollar and
the increase in interest expenses. For the six months ended June 30, 2019, CODELCO”s cash cost was 142.3 cents
per pound, compared to 137.6 cents per pound in the same period in 2018, due to lower production levels as a result
of weather disruptions in the northern area of Chile, a 14-day strike at the Chuquicamata mine and lower by-product
credits due to lower volumes sold of molybdenum, sulfuric acid, gold and silver.

In 2018, CODELCOS’S total cash cost was U.S.$5.1 billion, compared to U.S.$5.1 billion in 2017 and
U.S.$4.7 billion in 2016. For the six months ended June 30, 2019, CODELCOSs total cash cost was U.S.$2.2 billion,
as compared to U.S.$2.4 billion for the six months ended June 30, 2018. Because a significant portion of
CODELCOSs costs are denominated in Chilean pesos, the depreciation of the Chilean peso against the U.S. dollar
reduces CODELCO*s cash costs in U.S. dollar terms and, on the other hand, the appreciation increases these costs.
See “Exchange Rates.”

The main energy sources for CODELCO”s operations are electricity, liquid fuels (such as diesel, fuel oil
and gasoline) and natural gas. Since 2004, there has been a restricted supply of natural gas from Argentina.

81
CODELCOSs production costs have increased due to these shortages, having to rely on electricity generated from
more expensive sources, such as diesel, oil or coal, and these increased costs have adversely affected CODELCO”s
results of operations.

In late 2009 and early 2010, as a palliative measure given the adverse effects of Argentina”s restriction and
in order to stabilize future energy costs, CODELCO entered into electrical supply agreements at competitive prices
for a 15-year period for its facilities in the Chuquicamata Division and for a 30-year period for facilities in the
middle-south region of Chile. Both agreements include the creation of new electrical generation capacity based on
coal. Furthermore, in 2018 CODELCO entered into an extension of the Chuquicamata Division contract for an
additional 11 years. This new agreement, effective as of 2025, provides for the creation of new electrical generation
capacity based on renewable sources. Additionally, in early 2010, CODELCO entered into a five-year supply
contract for liquid fuels with the main Chilean fuel distributors. In 2015, after the expiration of this contract,
CODELCO entered into a new five-year supply contract for liquid fuels. In August 2011, CODELCO entered into
two energy and power supply agreements with Norgener S.A. for the Mina Ministro Hales Division and the
Radomiro Tomic Division. CODELCO began to receive energy under these contracts in 2011 for Mina Ministro
Hales and began in 2017 for Radomiro Tomic, in each case lasting until 2028. During 2014, AES Gener S.A. took
over Norgener S.A., assigning CODELCO”s contract to AES Gener S.A. These energy supply contracts are
expected to meet all of CODELCO”s power requirements. In April 2012, CODELCO renewed a contract with
Pacific Hydro, involving the purchase of power generation of the Coya and Pangal hydroelectric plants, for 12 years.
Since CODELCOSs sale of the Coya and Pangal hydroelectric plants to Pacific Hydro in 2004, Pacific Hydro and
CODELCO have entered into similar supply contracts to purchase the injected energy produced by these
hydroelectric plants.

CODELCO continues to develop and refine its mine management practices and programs to limit and
reduce its costs. These initiatives include the following: (i) improved deposit identification and mining techniques;
(ii) the implementation of early retirement plans and workforce reduction programs; (iii) an investment in human
capital and continuing to attract and retain a world-class management team and professionals of the highest caliber;
(iv) improved utilization of equipment and inputs used in the processes of copper production to increase productivity
and efficiency; and (v) the development of key projects, specifically the new mine level at El Teniente, the Andina
plant reallocation and the Chuquicamata underground projects.

Marketing
General
Four of CODELCO*s wholly-owned subsidiaries and 12 of its sales representatives cover over 35 countries

around the world. The following table shows the breakdown of CODELCO’s sales by product type including
third-party products for the three years ended December 31, 2018 and the six months ended June 30, 2019:

Copper Sales by Product Type
(in thousands of metric tons)

Six months ended

Year ended December 31, June 30,
2016 2017 2018 2019
Cathodes ………… 1,359 1,233 1,231 458
Blisters and Anodes 100 119 136 10
Concentrates ……. … 596 611 529 388
Total ccoccconinnononnnnnncnnnnrnnecnnnrnnnonnnnrnnnornnnorennornnnornnnornnnrrnnnecias 2,054 1,963 1,896 856

CODELCOSs marketing strategy is focused in three major areas:

e Establishing long-term relationships. CODELCO encourages sales through annual contracts and direct
long-term relationships with copper consumers.

82
e Quality and sales service. CODELCO focuses on product quality and sales service based on timeliness,
scheduling and conditions of product delivery.

e Diversification. CODELCO has a geographically diverse sales portfolio.
Pricing and Hedging

The substantial majority of copper produced by CODELCO is sold under long-term contracts of at least
one year to customers that have long-term relationships with CODELCO. The specific commercial terms of these
contracts are negotiated annually by the parties for the following calendar year. Recently, and as part of a revamped
commercial strategy, CODELCO has agreed to sell copper under a rolling deal format known as “evergreen”
contracts with certain key customers. CODELCO”s evergreen contracts have an initial duration of three years from
the effective date and, unless terminated by either party, are automatically renewed for an additional year at the end
of the original term. The main advantage of evergreen contracts is to lock-in sales to key customers (and for
customers to have a guaranteed supply of raw material from a key supplier) over a longer period of time. For both
annual and evergreen contracts, the premium over the base price is negotiated annually and the base price is the
LME cash settlement averaged over the quotation period, which according to CODELCO”s commercial policy is the
month following the contractual or scheduled month of shipment (referred to as M+1). Products that are not
committed under long-term contracts (which represent a small percentage of CODELCO”s annual volume) are sold
throughout the year at the prevailing conditions of the spot market to either consumers or merchants.

CODELCO applies a premium policy in sales of its Grade A cathodes. Premium amounts for different
markets are adjusted in accordance with prevailing ocean freight costs and keyed to the standard terms of payment
in different markets, as well as to the individual characteristics and competitive conditions of those markets. For
2018, the base premium for CIF shipments (including shipping and insurance costs) to Rotterdam was set at U.S.$87
per metric ton, compared to U.S.$82 per metric ton in 2017 and U.S.$92 per metric ton in 2016. The estimated base
premium for 2019 is U.S.$98 per metric ton.

CODELCO sells its copper concentrates under long-term contracts. These contracts generally have
three-year terms with fixed volume. As a general rule, contracts covering one-third of the terms on one-third of the
volume are negotiated on a yearly basis. The sale price is based on world metal prices and is generally tied to the
LME settlement prices for Grade A copper cathodes minus certain treatment and refining charges.

Molybdenum is sold mainly to steel producers and merchants under annual sale contracts. Sales prices are
based on prevailing monthly averages of molybdenum dealer oxide high/low prices as quoted in “Metals Week” for
a quotation period, generally the month following the scheduled month of shipment.

CODELCO has hedged certain future copper delivery commitments and production in order to manage the
risks associated with copper price volatility in the past. CODELCO currently does not have any hedged production
commitments and therefore there is no relevant impact from hedging. See notes 29 and 30 to the Unaudited Interim
Consolidated Financial Statements.

CODELCO also periodically enters into futures contracts at the request of customers with respect to sales
of its own copper in order to provide protection to its customers against fluctuation in the sale price paid by them in
connection with such sales.

See “Risk Factors—Risks Relating to CODELCO”s Operations—CODELCO engages in hedging activity
from time to time, particularly with respect to its copper production, which may not be successful and may result in
losses to CODELCO,” notes 29 and 30 to the 2017-2018 Consolidated Financial Statements and notes 29 and 30 to
the Unaudited Interim Consolidated Financial Statements for further details regarding CODELCO”s hedging
activity.

Major Export Customers

As discussed above, most of CODELCO*s customers receive shipments on a monthly basis. Consequently,
CODELCOSs sales volume is relatively consistent throughout the year. CODELCO*s sales of copper in 2017 were

83
geographically diversified, with approximately 55% of sales made to Asia, including 40% to China, 15% of sales
made to Europe and 30% to North and South America. CODELCO”s top ten customers purchased approximately
37.8% of its total copper sales volume in 2017.

The following table shows CODELCO’”s copper sales for the three years ended December 31, 2018 to
CODELCOSs top export markets and in Chile:

CODELCOS*s Copper Sales by Destination
(in thousands of metric tons)

2016 2017 2018
China ….. 943 789 869
United State: 203 295 248
South Korea 173 123 107
Chile… 144 170 201
France. 103 95 82
78 88 72
65 58 17
48 58 30
44 37 43
41 54 48
30 51 31
22 28 22
21 29 25
15 11 5
Mexico 15 10 14
Malays: 14 7 5
Thailand 11 7 7
Vietnam. 10 12 8
Canada, 6 6 32
Othe 60 63 33
Total 2,047 1,991 1,899

(1) Until 2016, sales in Austria, the Netherlands and Denmark were done through Germany and, as a result, such sales are consolidated with
sales in Germany. In 2017, the sales figure also combines the sales in the Netherlands for comparability purposes. There were no sales in
Austria or Denmark in 2017.

The sales to China increased in 2018 as compared to 2017 primarily driven by growth in the world copper
consumption, while sales in China decreased in 2017 as compared to 2016 primarily driven by a reallocation of
supply to stronger demand in the U.S. market.

Competition

CODELCO believes that competition in the copper market is based upon price, quality of product and
timing of delivery. CODELCO’s products compete with other materials, including aluminum and plastics.
CODELCO competes with other mining companies and private individuals in connection with the acquisition of
mining concessions and mineral leases and in connection with the recruitment and retention of qualified employees.

Employees

On December 31, 2018, CODELCO employed 18,036 employees as compared to 18,562 employees as of
December 31, 2017. CODELCO spent U.S.$15.20 million during 2018 on staff development and training. A total
of 8,144 training sessions were held, with many employees attending multiple courses, for a total of approximately
70,566 participants. CODELCO employed an average work force of 18,395 persons during the twelve months of
2018.

As of December 31, 2018, approximately 92.3% of CODELCO”s employees were covered by collective
bargaining agreements with labor unions. Most of these collective bargaining agreements have terms of two to
three years.

84
In the six-month period ended June 30, 2019, CODELCO negotiated nine collective bargaining agreements
with no conflicts or work stoppages, except for one 14-day strike involving approximately 3,200 union workers in
the Chuquicamata Division.

In 2018, CODELCO negotiated 18 collective bargaining agreements. Twelve collective bargaining
agreements, covering a total of 7,081 employees at the Andina Division, Salvador Division, Mina Ministro Hales
Division, El Teniente Division and Gabriela Mistral Division, were negotiated ahead of schedule without any
conflicts or work stoppages. Five collective bargaining agreements, covering a total of 2,601 employees at the
Radomiro Tomic Division, Mina Ministro Hales Division, Chuquicamata Division and our headquarters, were
negotiated on schedule without any conflicts or work stoppages. The remaining collective bargaining agreement was
reached at the conclusion of the 39-day strike with the workers from the Andina Division.

CODELCO has experienced material work slowdowns, work stoppages and strikes in the past.

In July 2015, the Copper Workers Confederation (the “CTC”) organized an illegal 22-day strike that
primarily affected the Salvador Division and, to a lesser extent, the Mina Ministro Hales Division. In August 2015,
the CTC, AGEMA and CODELCO, in its role as facilitator, agreed to a protocol for the commencement of a
dialogue. Since then, there have been additional conversations, none of which have resulted in a review or extension
of the existing agreement, as intended by CTC. There can be no assurance that further work slowdowns or
stoppages with the CTC will not occur in the future.

As of June 30, 2019, there were 36,430 employees of regular independent operating contractors and
21,375 employees of contractors involved in the development of CODELCO*s investment projects.

Work slowdowns, stoppages and other labor-related events could increase CODELCO”s independent
contracting costs, which could have a material adverse effect on the business, financial condition, results of
operations or prospects of CODELCO. See “Risk Factors—Risks Relating to CODELCO’”s Operations—Labor
disruptions involving CODELCO”s employees or the employees of its independent contractors could affect
CODELCOSs production levels and costs.” In addition, pursuant to the Labor Code of Chile, CODELCO could be
held liable for the payment of labor and social security obligations owed to the employees of independent
contractors (or their subcontractors) if the independent contractors (or their subcontractors) do not fulfill those
payment obligations. CODELCO has agreed with a Government of Chile agency to provide a framework to
facilitate this agency”s supervision of the labor and social security obligations owed by the independent contractors
to their employees.

As part of its compensation plan, CODELCO offers each employee the opportunity to partially finance the
purchase of a first home or to obtain other personal loans granted through each employee”s severance plan. Such
home loans have a term of up to 15 years, and such personal loans have a term of less than one year. Loans of both
kinds provide for interest rates of actual inflation plus a margin of between 1% and 5%. As of June 30, 2019, an
aggregate principal amount of U.S.$195 million of these loans was outstanding.

Number of Employees by Division”

January to December Variation (%) January to June

Divisions 2016 2017 2018 2017/2018 2019

Chuquicamata. 6,126 5,679 5,650 (0.5)% 5,274
Radomiro Tomic. 1,252 1,238 1,261 1.9% 1,222
Gabriela Mistral 561 548 554 1.1% 552
Mina Ministro Hale 764 758 790 4.2% 785
Salvador 1,503 1,666 1,666 0.0% 1,569
Andina. 1,692 1,691 1,720 1.7% 1,657
El Tenient 4,549 4,526 4,395 (Q.9)% 4,223
Headquarters 460 477 483 1.3% 602
Ventanas . 952 936 894 (4.5)% 852
Shared Services (Vice Presidency of Projects) 872 855 948 10.9% 1,023
Internal Auditing 28 29 35 20.7% 41
Total……………. 18,758 18,403 18,395 0.0% 17,800

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(1) Average number of employees for the periods presented.

Chile Law No. 20,123 of 2007 (the “Chile Subcontracting Law”) governing subcontractors provides
incentives for companies to ensure that contractors and subcontractors comply with labor, health and safety
regulations and standards with respect to their own employees. The Chile Subcontracting Law gives companies the
right to request that contractors provide information on the status of their payment of labor and social security
obligations to their employees prior to the company”s payment of amounts due to contractors. Additionally,
companies have the right to withhold payments due if the contractors cannot provide evidence that they have
fulfilled their labor and social security obligations. Finally, companies are required to pay contractors” pending
labor and social security obligations with the amounts withheld from the contractors. It also regulates the provision
of temporary services by contractors and subcontractors, enabling the creation of specialized and regulated
companies for this specific purpose (Empresas de Servicios Transitorios) and defining the specific events under
which companies may hire for temporary services.

Occupational Health and Safety

CODELCO, through its structural project on occupational safety and health, has established occupational
health and safety performance indicators aimed at avoiding serious and fatal accidents and occupational illnesses. In
2018, there were four fatalities involving CODELCO personnel and CODELCO contractors. In 2019, there has
been one fatality involving CODELCO personnel. CODELCO is currently investigating the cause of this fatality.

The total number of “lost time” accidents in 2018 was 122 and the accident frequency rate was 0.86
accidents per million hours worked. During 2019, the current total number of “lost time” accidents is 62 and the
accident frequency is 0.76 accidents per million hours worked.

Comptroller General of the Republic

During 2017, the Comptroller issued three declarations (Opinions No. 15.759 and No. 18.850, both from
2017, and Final Auditor Report (Informe Final de Auditoria) No. 900/2016, from a 2016 audit) that affect
CODELCO. Two of these declarations are opinions related to labor relations that: (i) query whether CODELCO
could provide greater benefits to its employees than those currently established by law and (ii) state that, although
CODELCO may continue to engage in collective bargaining with its employees, the Comptroller reserves the right
to evaluate the amounts agreed upon. The third declarations was the result of an audit report, which maintained that
CODELCO was subject to the provisions of the Public Procurement Law (Law No. 19,886) that relates to: (1) the
prohibition on contracts between related parties and (ii) the mandatory public tender of contracts through the rules
that apply to public services. CODELCO has filed administrative appeals against all three declarations issued, and
subsequently filed an action of annulment against the three declarations issued by the Comptroller. Although
CODELCO does not question the competence of the Comptroller, CODELCO disputes the standard on which the
Comptroller is basing its conclusions. As of the date of this prospectus, CODELCO has estimated a negative effect
of approximately U.S.$100 million due to a reduction in production related to the delay in awarding specific
contracts and the delay of investments. A final decision regarding this matter is pending.

Legal Proceedings

CODELCO is involved in various pending legal actions initiated by or against the Company. These
lawsuits are inherent to the nature of the environment in which CODELCO develops its mining, industrial and
commercial activities.

In November 2015 and November 2016, CODELCO initiated a legal proceeding against a tax resolution of
the SIT seeking a rebate of approximately U.S.$9 million and U.S.$3 million in connection with the rejection of
certain expenses related to derivative agreements executed in the years 2011, 2012 and 2013. In August 2019, the
Santiago Court of Appeals issued a final decision in favor of CODELCO, discarding all of the SIP’s claims and
rendering the SIPs resolution null and void. The SII may appeal the decision before the Supreme Court.

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CODELCO has been subject to various proceedings in which workers and families of deceased workers
allege that working conditions caused the workers to contract silicosis. CODELCO has a provision related to each
of the claims detailed below:

. In September 2013, 24 former workers from the Andina Division and four families of deceased
workers initiated a civil proceeding for approximately U.S.$20 million. A final resolution was
issued in October 2017 granting the claimants a partial award which was subsequently appealed by
both claimants and defendant. In May 2019, the Supreme Court dismissed CODELCO”s appeal and
granted the claimants a final award of U.S.$800 thousand, bringing an end to this proceeding.

. In May 2017, 56 former workers from the El Salvador Division initiated a civil legal proceeding for
approximately U.S.$29.5 million. A final resolution was issued in September 2018 granting the
claimants an award of approximately U.S.$2.3 million which was subsequently appealed by both
claimants and defendant. A final decision is still pending.

In January 2016, the FESUC filed a labor claim accusing CODELCO of anti-union conduct for having
released 350 workers and claiming damages under several concepts that, in the aggregate, amount to approximately
U.S.$45 million. The proceedings are currently in the discovery period. A final ruling is pending.In March 2017,
two labor unions from Chuquicamata Division filed a labor claim accusing CODELCO of violating fundamental
labor rights and claiming payment of alleged overdue obligations that, in the aggregate, amount to approximately
U.S.$14.2 million. The proceedings were the subject matter of a first instance ruling in August 2017 dismissing the
claim. Subsequently, claimants appealed and, in November 2017, the Court of Appeals of Antofagasta upheld the
first instance ruling. Finally, the case was brought before the Supreme Court on final appeal and, in March 2018, the
Supreme Court dismissed the appeal, upholding the first instance ruling and bringing an end to this proceeding.

In April 2017, Sociedad Comercial IMS Ltda. filed a commercial claim against CODELCO requesting
specific performance of an alleged agreement to supply uniforms specially tailored for female workers, as well as
damages under several concepts that, in the aggregate, amount to approximately U.S.$14.2 million. The
proceedings are currently in the discovery period with certain evidence pending to be filed before the court. A final
ruling is still pending.

In May 2017, CODELCO and Minera Valle Aconcagua S.A. mutually decided to institute an arbitration
proceeding against each other in connection with an agreement to build and operate a tailings treatment facility and
treat tailings from CODELCO”s Andina Division. CODELCO has requested specific performance plus a charge for
power which, in the aggregate, amounts to approximately U.S.$16.1 million and alternatively has requested
termination of the agreement plus a charge for power which, in the aggregate, amounts to approximately U.S.$140
million. In turn, Minera Valle Aconcagua S.A. has requested termination of the agreement and damages in the
amount of approximately U.S.$79 million. To date, the proceedings have completed the discovery period. A ruling
was issued in September 2018 awarding Minera Valle Aconcagua S.A. approximately U.S.$43 million and awarding
CODELCO approximately U.S.$2 million. Both parties subsequently appealed the awards. In February 2019, the
parties reached a settlement whereby CODELCO paid Minera Valle Aconcagua S.A. U.S.$25 million, bringing this
proceeding to an end.

In March 2018, Eifel Ingeniería Eléctrica y Construcción Ltda. filed a civil claim against CODELCO
seeking specific performance of a service agreement for electric works at CODELCO”s Andina Division plus
damages which they claim to amount to approximately U.S.$11.1 million. The proceedings are in the initial stages
and have not yet reached the discovery period. A final ruling is still pending.

In April 2018, Trebol Minerals S.A. filed a civil claim against CODELCO”s El Salvador Division claiming
payment of unpaid services, damages, loss of profits and moral damages, plus interest thereon, all of which amounts
to approximately U.S.$12 million. The proceedings are in the initial stages and have not yet reached the discovery
period. A final ruling is still pending.

In July 2019, Ingeniería y Maquinarias Indak Limitada et al. filed a civil a claim against CODELCO
claiming payment of damages, loss of profits, loss of opportunities and moral damages, plus interest thereon,

87
amounting to approximately U.S.$46 million. The proceedings are in the initial stages and have not yet reached the
discovery period. A final ruling is still pending.

CODELCO believes that it has meritorious defenses to the claims against it and, accordingly, is vigorously
defending its rights and interests in these proceedings.

For additional details related to CODELCO*s litigation and contingencies, see note 31 to the Unaudited
Interim Consolidated Financial Statements.

88
OVERVIEW OF THE COPPER MARKET

Copper is an internationally traded commodity, the price of which is effectively established on terminal
markets including the LME and COMEX. The following table sets forth quarterly average prices for refined copper
since 2016 on the LME:

Average Copper Price
(U.S.¿/Pound)
2016
First Quarter… 221.9
Second Quarter. 214.5
Third Quarter 216.5
Fourth Quarter. 239.4
2017
SU AN 264.5
Second Quarter. 256.8
Third Quarter 288.0
Fourth Quarter. 308.8
2018
First Quarter… 315.7
Second Quarter. 311.7
Third Quarter 276.9
Fourth Quarter. 280.0
2019
SU AN 281.9
Second Quarter. 277.3
Third Quarter (through September 18, 2019) 263.6

Source: London Metal Exchange, Monthly Average Settlement.
On September 18, 2019, the closing price for refined copper on the LME was 260.59 cents per pound.

The following graph compares average market prices for copper and the level of LME, Shanghai Metal
Exchange and COMEX inventories from 1996 through July 31, 2019:

89
Copper Prices and Inventories on Commodities Exchanges

*000 tons c/lb

=> Stocks ——— Copper price

Source: Metal Exchanges: London, COMEX and Shanghai.

90
Historically, copper prices have been subject to wide fluctuations and are affected by numerous factors,
including international economic and political conditions, levels of supply and demand, the availability and costs
of substitutes, inventory levels maintained by producers and others and actions of participants in the commodities
markets. To a lesser extent, copper prices are also subject to the effects of inventory carrying costs and currency
exchange rates. In addition, the market prices of copper have occasionally been subject to rapid short-term
changes. See “Risk Factors—Risks Relating to CODELCO'”s Operations—CODELCO”s business is highly
dependent upon the price of copper.”

Opportunities for Copper

Since 2005, copper prices have experienced significant volatility. LME copper prices averaged 295.9
cents per pound in 2018, compared to 279.9 cents per pound in 2017 and 220.6 cents per pound in 2016. While
lower copper prices in 2016 reflect the global volatility, the European crisis and the fears regarding China, the
recovery in 2018 and 2017 reflects disruptions on the supply side, higher expectations in China and increased
global demand. Global demand for copper in 2017 increased by 2.2%, including a 4.5% demand increase from
China. In 2018 demand for copper is estimated that increased 2.8%, including a 5.3% demand growth from China.
Copper demand remains strong, particularly in Asia, despite the geopolitical, trade and other global uncertainties
during 2018. See “Risk Factors—Risks Relating to CODELCO”s Operations —CODELCOS*s business is highly
dependent upon the price of copper.”

There is also increased general use of copper tubing, particularly in air conditioning systems. The
quantity of copper consumed in electrical applications in cars, trains and other vehicles has also increased. In the
electricity generation and transmission area, the control of energy losses and a growing concern for higher energy
efficiency are factors that have tended to increase demand for copper, becoming the main copper usage. The
termination of widespread substitution of aluminum for copper in overhead high-voltage transmission lines also
bodes well for the metal”s future.

Historically, demand and supply of copper have demonstrated continued growth during periods of
oversupply as well as periods of overconsumption. The following graph shows the historical development of
copper supply, demand and stocks in the world from 2000 through 2018 (in thousands of metric tons):

Refined Copper Supply and Demand Worldwide Balance

25,000 1,500
aaa Balance Production Consumption
24,000 >
, 1,250
23,000 A
LI 1,000
e
22,000 “4
750
21,000
20,000 500
19,000 250
18,000
17,000
-250
16,000
-500
15,000
14,000 -750
13,000 7 — 7 7 7 7 7 7 7 7 7 7 7 — 7 7 7 1,000
NON y Ny y yN y y y Oy ON ON y y» Oy O» ON Ny on» y
3.38a.3a3a8883838388£ss2 22 8 2 op
S82.8R888883S8g8sse-_x,£2QqeOUeA.AOA OS 5 8

Sources: CODELCO, internal data (May 2019)

91
REGULATORY FRAMEWORK
Overview of the Regulatory Regime

CODELCO is a mining, industrial and commercial state-owned enterprise of indefinite duration with its
own legal personality and capital. CODELCOS*s relationship with the Government of Chile is conducted through
the Ministry of Mining. CODELCO was incorporated pursuant to Decree Law 1,350 of 1976, as amended by
Law 20,392, published in the Official Gazette on November 14, 2009, and effective as of March 1, 2010.
CODELCO is governed by Decree Law 1,350 and by Decree 146 of August 12, 1991, as amended (to conform the
same with Law 20,392) by Decree No. 3 of January 13, 2012 issued jointly by the Ministries of Finance and
Mining, and published in the Official Gazette on July 4, 2012, which sets forth CODELCO”s current bylaws, and
the general legal framework applicable to private companies regarding public disclosure (rules applicable to
publicly held companies), and other applicable regulations. CODELCO’s principal corporate purpose is to
exercise all rights acquired by Chile pursuant to the nationalization of the Chilean mining industry, namely
mining, exploration and the development of mining deposits and other rights belonging to Chile at the time of
CODELCOSs incorporation in 1976.

Principally, the amendments to Decree Law 1,350 contained in Law 20.392: (i) introduce best corporate
governance practices in conformity with recommendations made by the Organization for Economic Co-operation
and Development to CODELCO”s legal framework; (ii) make applicable the provisions of Law 18,046, (the
“Corporations Law”), to CODELCO; and (iii) vest in the President of Chile the authority and prerogatives
afforded to the shareholders of a corporation (sociedad anónima) under Chilean law, who may delegate such
authority to the Ministries of Finance and Mining, jointly. In addition, the amendments introduced significant
changes to the structure, designation and authority of the Board of Directors of CODELCO: (i) there are no longer
board member positions for the Ministers of Finance and Mining, nor for a representative of the armed forces;
(11) directors must (a) hold a professional degree granted by a State-run or State-recognized university or college or
by an equivalent foreign university and (b) have at least five years” working experience as board members,
managers, administrators or main executives at public or private companies; (iii) directors representing the
workers and foremen are no longer appointed directly by the President of Chile, but rather are appointed by the
President of Chile from short-lists presented by the FTC and both the FESUC and the ANSCO, respectively; and
(iv) directors are subject to the rules governing the rights, obligations, responsibilities and prohibitions established
in the Corporations Law.

CODELCO is subject to the supervision of: (i) the Chilean securities authority, the CMF, on the same
terms as publicly held corporations (CODELCO is registered under the Securities Registry No. 785 of the CMF)
and (ii) the Chilean Commission of Copper (Comisión Chilena del Cobre, or “COCHILCO”) or the governmental
agencies that, among other authorities, are responsible for examining the compliance with certain regulations
applicable to CODELCOSs activities and report the relevant findings to its Chief Executive Officer. Furthermore,
other government agencies in charge of specific areas, such as taxes and customs, exercise their legal authorities
with respect to CODELCO as they do in regard to any other company of the Chilean private sector. The Lower
House (Cámara de Diputados) of the Chilean Congress also maintains an overarching authority to oversee
CODELCO in the exercise of its constitutional duties.

Chilean law requires CODELCO to obtain the approval of the Ministry of Finance before it can assume
any financial indebtedness and before it can acquire assets outside Chile with financial or payment terms
exceeding one year. Although CODELCO is 100% owned by it, the Government of Chile is not legally liable for
CODELCOSs obligations unless expressly guaranteed by the Government of Chile, nor do such obligations form
any part of the direct public debt of the Government of Chile. A constitutional amendment would be required to
allow private participation in CODELCO”s ownership.

Each year, the Board of Directors must approve the BDP report of the Company for the following
three years, subject to the approval of the Ministries of Finance and Mining. This plan must include the annual
investment and financing amounts in addition to the annual profits that the Company is estimated to generate
during the period. The Ministries of Finance and Mining jointly issue a decree pursuant to which a portion of
CODELCOSs profit may be allocated by CODELCO to the creation of capitalization and reserve funds.

92
CODELCO”s Board of Directors must also submit its proposed annual budget to the Ministries of
Finance and Mining for approval. In addition, Decree Law 1,350 requires CODELCO to include as part of its
proposed annual budget a debt amortization budget that includes interest and principal payments on CODELCO”s
debts, including the notes. CODELCO”s budget and financial statements are subject to both internal and external
controls. CODELCO”s Board of Directors is responsible for monitoring its operations, and CODELCO retains
independent auditors to audit its consolidated financial statements and an internal comptroller to review its
finances, accounting and administration.

CODELCO”s Board of Directors approved corporate governance guidelines consistent with its high
transparency, probity and accountability standards which: (i) establish limits and controls on the use of resources
of the Board of Directors; (ii) implement a transparent and traceable system for the handling of hiring requests,
promotions and redundancies of CODELCO”s officers and employees; (iii) regulate the relationships between
members and management of the Board of Directors with related parties; and (iv) establish guidelines for
corporate speakers. CODELCO”s Board of Directors also agreed to consider directives that: (i) regulate lobbying
activities within CODELCO, (ii) strengthen and reform internal audit systems; and (iii) strengthen policies to
avoid any conflicts of interest.

Mining Regulations

Legal framework. CODELCO”s exploration, mining, milling, smelting and refining activities are subject
to Chilean laws and regulations which are generally applicable to all Chilean companies in the mining sector. The
legal framework which regulates CODELCO as a holder of mining concessions is contained in the Chile”s
Constitution, the Constitutional Law Governing Mining Concessions (Law 18,097 of January 21, 1982) and the
Mining Code (Law 18,248 of October 14, 1983). Under Chilean mining law, Chile is the owner of all mineral and
fossil substances, regardless of who owns the surface land in which such substances are located. Private persons
and companies may obtain mining concessions for exploration and exploitation. These concessions are granted by
judicial resolutions in accordance with the Mining Code.

Mining concessions are transferable, mortgageable and irrevocable and regulated by the same civil law
that regulates real estate rights generally. Generally, the owner of a mining concession may occupy as much of the
surface land as is necessary for mining activities upon the creation of a mining easement or upon other
authorization given by the land owner, such as a lease agreement or a license. Mining easements can be obtained
by way of direct negotiation with the surface land owner or, if the latter opposes, by way of a summary procedure
before the relevant court. Regardless of how the mining easement is obtained, the party granting the easement is
entitled to compensation should the mining activities and works caused by the owner of the mining concession
cause damage. Exploitation concessions have an indefinite duration. Exploration concessions are granted for
two years and may be extended for a maximum of two additional years subject to waiving at least half of the area
originally allocated. Prior to the expiration of the first or the second two-year period, exploration concessions can
be converted to exploitation concessions. If they are not so converted, the exploration concession terminates.

Owners of mining concessions must pay an annual fee equivalent to approximately U.S.$1.3 per hectare
in the case of exploration concessions and approximately U.S.$6.0 per hectare in the case of exploitation
concessions. However, the latter fees, within certain limits, may be credited to income taxes originated through
the exploitation of the concession. Payments of the annual fees must be made in March of each year. Failure to
make the annual fee payments may result in the loss of title to the concession through its auction.

CODELCO owns mining concessions granted by the Constitution and the Chilean Ordinary Courts for its
exploration and exploitation operations. Some of these concessions were previously held by foreign private
mining companies before being transferred to Chile in 1971 and subsequently to CODELCO upon its
incorporation in 1976. CODELCO*s principal concessions are those which give rights to the mineral deposits of
the Chuquicamata, El Teniente, Andina, Salvador, Radomiro Tomic, Gabriela Mistral and Mina Ministro Hales
Divisions. CODELCO”s concessions relating to land that is currently being mined essentially grant an indefinite
right to conduct mining operations in that land, provided that annual concession fees are paid. In 2018,
CODELCO paid total concession fees of U.S.$7.5 million. As of June 30, 2019, CODELCO has paid U.S.$8.4
million in total concession fees for 2019.

93
Pursuant to the Mining Code, all mining concessions, as well as certain raw materials, assets and other
property permanently dedicated to the exploration or extraction of minerals cannot be subject, except in extremely
limited circumstances, to an order of attachment. In addition, pursuant to the Constitution, mining concessions
corresponding to mining deposits exploited by CODELCO upon its incorporation in 1976 cannot be subject to
attachment nor to any act of disposition by CODELCO. As a result, the rights of holders to attach property of
CODELCO in the event of a default under the notes would be limited by such provisions. See “Risk Factors—
Risks Relating to the Offering—In case of a default under the notes, the ability of holders to attach property of
CODELCO may be limited by Chilean law.”

Environmental Regulations

CODELCOS”s operations are subject to national, regional and local regulations as well as international
treaties subscribed by the Government of Chile and enacted as Chilean domestic law regarding the protection of
the environment, natural resources and the effect of the environment on human health and safety, including laws
and regulations concerning water, air and noise pollution, the handling, disposal and transportation of hazardous
waste and occupational health and safety.

The General Environmental Law (Law No. 19,300), enacted in March 1994 and modified by Law No.
20,417, enacted in 2010, establishes the general environmental legal framework in Chile, including the
establishment of a range of environmental management mechanisms known as the Environmental Impact
Assessment System (Sistema de Evaluación de Impacto Ambiental), the Emission Standards and the
Environmental Quality Standards, among others. Chilean environmental laws and regulations, and the
enforcement thereof, have become increasingly stringent since 2010 and even more due to recent changes. Such
amendments include, among other significant modifications, the creation of a new institutional framework
comprised by: (i) the Ministry of the Environment (Ministerio del Medio Ambiente); (ii) the Council of Ministers
for Sustainability (Consejo de Ministros para la Sustentabilidad), (iii) the Environmental Assessment Service
(Servicio de Evaluación Ambiental); (iv) the Bureau of the Environment (Superintendencia del Medio Ambiente);
and (v) the Environmental Courts (Tribunales Ambientales), each of which are in charge of designing, evaluating
and enforcing laws and regulations relating to projects and activities that could have an environmental impact.
These institutions are fully operational. Recent legal and regulatory changes are likely to impose additional
restrictions or costs on CODELCO and also increased fines due to non-compliance with such laws and regulations,
relating to environmental litigation and protection of the environment, particularly those related to flora and fauna,
wildlife protected areas, water quality standards, mine closure, air emissions, and soil pollution. Since the Bureau
of the Environment became fully operational on December 28, 2012, infringement of environmental regulations
may result in fines of up to approximately U.S.$8.7 million, the closure of facilities and the revocation of
environmental approvals. As described in more detail below, CODELCO incurs, and may be required in the
future to incur, substantial capital and operating costs related to environmental compliance. However, many of
these costs are inextricably intertwined with the operation of CODELCO*s business as a whole.

The General Environmental Law, as complemented by additional regulations, enables the Government of
Chile to: (i) bring administrative and judicial proceedings against companies that violate environmental laws;
(ii) close non-complying facilities; (iii) revoke required operating licenses; (iv) require that companies to submit
their projects for environmental evaluation as required by applicable law; and (v) impose sanctions and fines when
companies act negligently, recklessly or deliberately in connection with environmental matters. The General
Environmental Law also grants citizens the right to bring civil actions against companies that are not in
compliance with environmental laws and regulations when such companies have caused “environmental damage,”
as defined in such law, after such non-compliance has been established by a judicial proceeding. As of the date of
this prospectus, one of these proceedings involves CODELCO, for an action brought by citizens against all the
companies that operates in the Ventanas area and the Ministry of the Environment. CODELCO is unable to fully
assess at this time the potential cost of compliance.

In 2016, the Bureau of the Environment presented claims against the Ventanas Division for the
infringement of environmental regulations and permits. In response, CODELCO presented a Compliance Plan
(Programa de Cumplimiento), which allows the Ventanas Division to comply with the Bureau of the
Environment’s requirements in a specified term and once successfully executed it may absolve the infringer from
fines or sanctions. This Compliance Plan was approved by the Bureau of the Environment in 2016 and is under
implementation by CODELCO. In 2017 the Environmental Court required a complement of this plan to include

94
the evaluation of possible environmental consequences. CODELCO has presented the required information to the
Bureau of the Environment to comply with this requirement and a final decision is pending.

In 2016, the Bureau of the Environment also required information about the El Teniente Division due to
the potential violation of environmental permits, to which CODELCO responded.

Additionally, citizens affected by environmental pollution may file a petition for relief to Chilean Courts
of Appeal, requiring the suspension of the offending activity and the adoption of protective measures through the
judicial process called recurso de protección (constitutional protection action).

If determined that CODELCO violated its environmental permits, the Bureau of the Environment could
impose a fine on CODELCO and could require CODELCO to implement environmental compensation and
mitigation measures. There can be no assurance that the Bureau of the Environment will not impose additional
fines or require that additional measures be taken. As of the date of this prospectus, CODELCO has not assessed a
potential loss as probable or such loss is not estimable.

The General Environmental Law and its regulations contain certain rules on Environmental Impact
Assessment, which have been in effect since April 1997, and that provide that CODELCO must evaluate the
environmental impact of any future project or activity listed in article 10 of Law 19,300 by means of an
environmental impact declaration or an environmental impact study depending on the significance of the
environmental impacts associated. CODELCO has conducted these environmental impact declarations and studies
pursuant to the General Environmental Law.

Chile has adopted environmental regulations requiring companies operating in Chile, including
CODELCO, to undertake programs to reduce, control and/or eliminate certain environmental impacts.
CODELCO has undertaken a number of environmental initiatives to comply with such regulations. From 2008 to
2018, CODELCO invested U.S.$2,988 million in projects, and plans to continue implementing pollution
abatement plans through additional capital investments amounting to U.S.$1,021 million from 2019 through 2020.
In 2018, CODELCO allocated U.S.$861 million to environmental projects, including the expansion of the Talabre,
Ovejería and Carén Tailings dams in the Chuquicamata, Andina and El Teniente Divisions and various projects in
Chuquicamata, Potrerillos and Caletones smelters in order to comply with the new regulation regarding
atmospheric emissions. Additionally, as part of its pollution abatement efforts, CODELCO continues to implement
water recovery systems, the costs of which are also budgeted in CODELCO’s pollution abatement plan, to
conserve resources and minimize pollution of natural water sources.

To protect and improve environmental air quality in the country, the Ministry of the Environment has the
authority to declare certain areas to be “latent zones” (zonas latentes) or “saturated zones” (zonas saturadas).
Latent zones are areas in which there exists a high risk of excessive pollution — the pollutant concentration in air
water or soil is greater than 80% of the corresponding quality standard in a certain area — and in which further
emissions are highly restricted. Saturated zones are areas in which an excessive level of pollution already has been
reached — the concentration of the air pollutant exceeds 100% of the corresponding quality standard for a pollutant
in a certain area — and in which emissions are required to be reduced and mitigation measures are required to be
implemented. In connection with the declaration of a latent or saturated zone, the Ministry of the Environment
may initiate an investigation and public-consultation process to develop a prevention or decontamination plan, as
the case may be. The whole process for approving these plans may take more than two years. Upon publication of
either type of plan, emission reduction targets and other environmental remediation actions may be required of
specific industries located within the latent or saturated zone. Measures included in the pollution prevention or
reduction plans governing CODELCO”s operations are subject to change and may become more stringent if
compliance with applicable air quality standards is not achieved.

The area surrounding the Potrerillos, Caletones and Ventanas smelting facilities have been declared
saturated zones for particulate matter (PM1o and/or MP»5) and sulfur dioxide (SO»). These areas are subject to
decontamination plans. The Ventanas decontamination plan has been recently reviewed by government authorities.
In the areas surrounding the Chuquicamata smelter, there are decontamination plans for PM1o under review and
under development, and a pollution prevention plan for SO» is currently under development. In August 2013, the

95
Ministry of the Environment enacted a decontamination plan for Chile”s Sixth Region, Central Valley, which
could potentially affect CODELCO”s operations in the region.

In addition, the relevant Environmental Assessment Service may impose further requirements on
CODELCOSs projects. Under the various plans that cover the areas where CODELCO operates, net increases in
emissions by industrial facilities in these zones, including any increased emissions from the Potrerillos, Caletones,
Ventanas and Chuquicamata smelting plants, have been banned. As of the date of this prospectus, the impact of
operating in latent and saturated zones has not been material for CODELCO; however, it could have a material
effect in the future.

A new air quality standard for an additional pollutant, primary particulate matter PM)5, was enacted by
the Ministry of the Environment in 2011 and became effective in 2012. In 2015, a new saturated zone with respect
to PM»s and latent zone with respect to PM10 in the boroughs of Concón, Quintero and Puchuncavi, the areas
where Ventanas is located, was declared and, as a result, a new decontamination plan has been recently enacted.
CODELCO estimates that the cost of complying with this new standard will be U.S.$27 million, which will be
incurred over a period of approximately four years.

In 2013, Supreme Decree No. 28 of the Ministry of the Environment, on Emission Standard for Smelting
Plants was enacted, which establishes maximum parameters of emission for PM¡o, SO, arsenic (As) and mercury
(Hg) generated by smelting plants. Certain aspects of the regulation became effective immediately while other
provisions of the new emission standards must be complied with by a later date—within three years in the case of
Ventanas smelter, and within five years in Chuquicamata, Potrerillos and Caletones smelters. CODELCO has
preliminarily estimated that the cost of complying with this new standard will be U.S.$2.0 billion, which will be
incurred over a period of approximately five years and which started in 2014, but the full cost will be determined
when all the necessary engineering projects to ensure compliance are finished and implemented. Such additional
costs could also be material.

Supreme Decree No.90/2001 of the General Secretary of the Presidency, which sets forth the standards
for discharges of liquid waste into surface water bodies, went into effect in 2006. CODELCO has invested
significant amounts to reduce liquid waste emissions to date and expects that it will continue to incur costs related
to compliance with Supreme Decree No. 90/2001. In addition, the authorities are developing water quality
standards for water bodies that CODELCO currently or may in the future discharge into, including the Loa,
Aconcagua and Cachapoal rivers. Such standards could require CODELCO to incur additional costs to manage
liquid waste discharges.

Regulations were enacted in February 2004 governing safety standards for mining operations. Pursuant
to these regulations, all mining companies, including CODELCO, were required to provide closure plans for their
mining facilities, demonstrating compliance with safety standards. These plans must be updated every five years
and must consider the requirements set forth in the environmental authorization issued for the respective facility, if
any. SERNAGEOMIN has approved the closure plans CODELCO prepared for all of its facilities.

A new mine closure regulation, Law No. 20,551, which includes health, safety and environmental
requirements along with mandatory provisions that require financial guarantees, was enacted in 2011, and became
effective in 2012. According to this law, CODELCO and other mining companies in Chile were required to submit
an assessment of the closure expenses of all its mines to the SERNAGEOMIN before 2014. Once the assessment
of closure expenses was approved, CODELCO had to provide the financial guarantee between the sixth months
since the approval and two-thirds of the project life (less than 20 years), or 15 years of the project life (more than
20 years). CODELCO obtained the approval of the closure plans for all of its Divisions from SERNAGEOMIN
and provided the financial guarantees in the term established by the law. CODELCO had total provisions
amounting to U.S.$1.6 billion for future decommissioning and site restoration costs primarily related to tailing
dams, closures of mine operations and other mining assets, including potential new governmental regulations, at
December 31, 2018, and U.S.$1.5 billion at June 30, 2019. CODELCO is currently developing a project to
estimate the additional costs of complying with this new regulation regarding mine closure, which could be
material.

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On February 4, 2018, the Environmental Court (Tribunal Ambiental) in Antofagasta, Chile issued an
interim decision which could potentially reduce the availability of a minor source of water to CODELCO in the
city of Calama. As of the date of this prospectus, CODELCO: (i) is not a party to this legal proceeding; and (ii) has
not been contacted by any party or served by the Environmental Court. If and when CODELCO becomes a party
to this proceeding, CODELCO expects to: (a) enforce all its available legal remedies against any adverse decision;
and (b) implement operational mitigation measures, if necessary.

Future legislative or regulatory developments, private causes of action or the discovery of new facts
relating to environmental matters may impose new restrictions or result in additional costs that may have a
material adverse effect on CODELCO'”s business, financial condition, results of operations or prospects. See
“Risk Factors—Risks Relating to CODELCO”s Operations—CODELCO”s compliance with environmental, health
and safety laws may require increased costs, including capital commitments, and non-compliance may subject it to
significant penalties.”

Enforceability of Obligations

CODELCO”s commercial obligations are enforceable in the same manner as those of any privately
owned company in Chile. Even though CODELCO is a state-owned enterprise, it is subject to the same laws and
regulations applicable to all private Chilean corporations. This principle is consistent with the constitution of
1980, wherein Article 19, No. 21 states that if Chile and its bodies carry out commercial activities, they will be
governed by common legislation applicable to private persons, unless a specific law approved by an absolute
majority of representatives of the Chilean Congress dictates otherwise. No such law has been passed with respect
to CODELCO.

Payment of Obligations

Article 23 of Decree Law 1,350 provides that CODELCO has the obligation to return the total proceeds
of its exports to Chile, but has no obligation to convert the proceeds to Chilean pesos in excess of its peso
requirements. The proceeds from its exports are deposited at the Central Bank of Chile, and withdrawals against
such foreign exchange deposits are made to cover CODELCO’s expenses. In addition, Article 13 of
Decree Law 1,350 directs CODELCO to prepare a Loan Amortization Budget which must include the payment of
principal of CODELCO”s debts and related interest payments, including the notes. This budget, as part of the
general budget of CODELCO, is approved annually by joint decree of the Ministry of Mining and the Ministry of
Finance and may be amended to meet non-budgeted expenses. The incurrence of any indebtedness by CODELCO
must be authorized by an official letter from the Ministry of Finance. For loans with maturity at issuance of a
duration of more than one year, this authorization is required to commence the relevant procedures.

Statutory Documents

The statutory documents of CODELCO are contained in Decree Law 1,350 published in the Official
Gazette on February 28, 1976, as amended by Law 20,392 published in the Official Gazette on
November 14, 2009, and Decree 146 published in the Official Gazette on October 25, 1991, as amended (to
conform the same with Law 20,392) by Decree No. 3 of January 13, 2012 issued jointly by the Ministries of
Finance and Mining, published in the Official Gazette on July 4, 2012. These gazettes may be seen on-line on the
Library of the Chilean Congress website (http://www.bcn.cl/) or in a booklet that CODELCO will issue upon
request, which contains free translations of the regulations into English.

9
MANAGEMENT

The Board of Directors is primarily responsible for the management and administration of CODELCO.
The Board of Directors is composed of nine members, appointed as set forth in Law 20.392, enacted on
November 4, 2009: (i) three directors are directly appointed by the President of Chile; (ii) four directors are
appointed by the President of Chile from a short-list presented by the Council of Senior Public Management
(Consejo de la Alta Dirección Pública), an entity within the National Civil Service Bureau that advises the
President of Chile, ministers and heads of services departments on the appointment of high-ranking public
positions; (ii) one director is appointed by the President of Chile from a short-list presented by the FTC; and
(iv) one director is appointed by the President of Chile from a short-list presented by both the FESUC and
ANSCO. All directors in CODELCO serve four year terms and may be reelected for new terms. The Board is
renewed on a staggered basis and may not be revoked in its entirety.

The Board of Directors is vested with all the management and asset-disposal authority, except to the
extent that Chilean law or CODELCO’”s bylaws establish such authority within the exclusive province of the
President of Chile (as discussed below), and other than the authority delegated to the Chief Executive Officer.
The main responsibilities of the Board of Directors of CODELCO are to: (i) designate and remove the Chief
Executive Officer; (ii) approve and send to the Ministry of Finance an estimate of the revenues and surplus
earnings that it will transfer to the Government of Chile in the following year”s budget; (iii) prepare the annual
budget of CODELCO and send for the approval of the Ministry of Finance; and (iv) approve the BDP report of the
Company for the following three-year period.

The President of Chile is vested with authority analogous to that of the shareholders of a corporation
(sociedad anónima) under Chilean law, which may be delegated in whole or in part to the Ministers of Finance
and Mining, jointly. Pursuant to such authority, the President of Chile: (1) participates in the designation of the
Board of Directors by designating three directors without external input and by electing six directors on the basis
of third-party short-lists; (1i) appoints the Chairman of the Board of Directors; and (iii) may approve and amend
the bylaws of the Company, by means of an executive decree issued jointly by the Ministries of Finance and
Mining. See “Risk Factors — Risks Relating to CODELCO”s Relationship with the Government of Chile.”

Senior management and administration of the Company are vested in its Board of Directors and Chief
Executive Officer. The Board of Directors is in charge of the ultimate conduct and oversight of the Company.
The Chief Executive Officer is named by the Board of Directors and remains in office so long as he/she maintains
the confidence of the Board. The Chief Executive Officer is responsible for implementing the resolutions of the
Board of Directors and supervising the activities of CODELCO. On July 12, 2019, the Board of Directors of
CODELCO appointed Octavio Araneda Osés as the new CEO, and he commenced his term on September 1, 2019.

On February 27, 2015, CODELCO”s Board of Directors appointed Alejandro Rivera Stambuk as Chief
Financial Officer, Patricio Chávez Inostroza as Vice President of Corporate Affairs $ Sustainability and César
Correa Parker as General Auditor. On January 30, 2015, CODELCO announced the creation of the Vice President
for Productivity and Costs position, to increase productivity and control costs. On February 27, 2015,
CODELCO*s Board of Directors appointed José Robles Becerra of the Vice President of Productivity and Costs.
On August 3, 2016, CODELCO announced the appointment of Nicolai Bakovic Hudig as CODELCO”s General
Counsel, with his term beginning on October 1, 2016.

On April 1, 2016, CODELCO announced a restructuring of its operations management in order to better
respond to operational business challenges and take advantage of existing operational and territorial synergies.
Through this restructuring, which was implemented beginning May 1, 2016, the Salvador Division became under
the supervision of the Vice President of Northern Operations (Operaciones Norte). Moreover, Álvaro Aliaga
Jobet was appointed as Vice President of Northern Operations (Operaciones Norte), and Octavio Araneda Osés
was appointed as Vice President of Central Southern Operations (Operaciones Centro Sur).

On March 1, 2018, CODELCO announced the appointment of Christian Toutin as General Manager of
the Salvador Division. On April 1, 2018, CODELCO announced the appointment of Roberto Ecclerfield as Vice
President of Sales. On April 27, 2018, CODELCO announced the appointment of Nicolás Rivera as General
Manager of the El Teniente Division. On September 28, 2018, CODELCO announced the appointment of
Marcelo Alvarez Jara as Vice President of Human Resources.

98
On December 27, 2018, CODELCO announced the appointment of Renato Fernandez Baeza as Vice
President of Corporate Affairs £ Sustainability. On January 16, 2019, CODELCO announced the appointment of
José Pesce Rosenthal as the Acting Vice President of Corporate Affairs 8 Sustainability, in addition to his
responsibilities as Vice President of Mining Resources Management and Development, until February 18, 2019
when Renato Fernandez Baeza assumed such position on a permanent basis.

On March 1, 2019, CODELCO announced the appointment Sergio Herbage Lundín, former Northern
District Development Manager, as the General Manager of the Gabriela Mistral Division. The same day,
CODELCO announced the appointment of Jaime Rivera Machado, former General Manager of the Mina Ministro
Hales Division, as the General Manager of Andina Division, and the appointment of Andrés Music Garrido,
former Mine Manager El Teniente Division, as the General Manager of the Mina Ministro Hales Division.
Finally, CODELCO announced the appointment of Alvaro García Gonzalez as CODELCO*s first Vice President
of Technology.

On July 26, 2019, CODELCO announced the appointment of Mauricio Barraza Gallardo, former General
Manager of the Chuquicamata Divison, as Vice President of Central Southern Operations. The same day,
CODELCO announced the appointment of Nicolás Rivera Rodriguez, former General Manager of the El Teniente
Division, as the General Manager of the Chuquicamata Division, and the appointment of Andrés Music Garrido,
the former General Manager of Mina Ministro Hales, as the General Manager of the El Teniente Division. On
August 29, 2019, CODELCO announced the appointment of Rodrigo Barrera, former Chuquicata Underground
Project Manager, as the General Manager of the Mina Ministro Hales Division. All new positions were effective as
of September 1, 2019.

99
Directors and Executive Officers

The following table sets forth the current directors and executive officers of CODELCO and their

positions:

Name

Directors
Juan Benavide Feliú….
Juan Enrique Morales Jaramillo.
Blas Tomic Errázuriz
Paul Schiodtz Obilinovich
Isidoro Palma Penco
Hernán de Solminihac Tampier .
Ignacio Briones Roja
Raimundo Espinoza Concha
Ghassan Dayoub Pseli.

Executive Officers
Octavio Araneda Osses ..
Alejandro Rivera Stambuk
Marcelo Alvarez Jara…
Roberto Ecclefield Escobar
Gerhard von Borries Harms. .
José Pesce Rosenthal .ocooocicicinononnnnonononncncncnronocornncncocoranononnos

Renato Fernandez Baeza
José Robles Becerra…..
Alvaro García Gonzalez.
Alejandro Sanhueza Diaz
Nicolai Bakovic Hudig
César Correa Parker ….
Mauricio Barraza Gallargo
Alvaro Aliaga Jobet
Nicolás Rivera Rodriguez .
Lindor Quiroga Bugueño..
Rodrigo Barrera Páez..
Sergio Herbage Lundín
Christian Toutin ….
José Sanhueza Rey
Andrés Music Garrido.
Jaime Rivera Machado

(1) Directly appointed by the President of Chile.
(2) Term expires May 2022.

Position

ChairmanV0
Director 4
Director)
Director
Director
Director 12)
Director 12)
Director’00)
Directors

Chief Executive Officer and President

Chief Financial Officer

Vice President Human Resources

Vice President Sales

Vice President Projects

Vice President Mining Resources Management and
Development

Vice President Corporate Affairs $: Sustainability
Vice President Productivity and Costs

Vice President Technology

Head of Finance

General Counsel

General Auditor

Vice President — Central Southern Operations
Vice President — Northern Operations

General Manager — Chuquicamata Division
General Manager — Radomiro Tomic Division
General Manager — Mina Ministro Hales Division
General Manager — Gabriela Mistral Division
General Manager — Salvador Division

General Manager — Ventanas Division

General Manager — El Teniente Division

General Manager — Andina Division

(3) Appointed by the President of Chile from a short list presented by the Council of Senior Public Management (Consejo de la Alta

Dirección Pública).
(4) Term expires May 2023.
(5) Term expires May 2021.

(6) Employee of CODELCO, appointed by the President of Chile from a short list presented by the Federation of Copper Workers.
(7) Raimundo Espinoza Concha was reappointed in May 2016 and his term expires May 2020.

(8) Employee of CODELCO, appointed by the President of Chile from a short list presented by the Federation of Copper Supervisors and the

National Association of Copper Supervisors.

There is no family relationship between any director or executive officer and any other director or
executive officer. The business address for the executives and directors previously listed is Huérfanos 1270,
6th floor, Santiago, Chile. No executive holds a position as an employee outside of CODELCO.
Committees of the Board of Directors
Audit, Benefits and Ethics Committee (Comité de Auditoría, Compensaciones y Ética)

CODELCO”s audit, benefits and ethics committee consists of Blas Tomic Errázuriz (Chair), Isidoro
Palma Penco (Vice Chair), Juan Enrique Morales Jaramillo and Paul Schiodtz Obilinovich, who may invite others
to assist in its work. The audit, benefits and ethics committee?s primary responsibility is to support the Board of
Directors by providing and improving internal controls by reviewing transactions with related parties and the work
of CODELCO*s internal audit department. The committee also analyzes and reviews the work and reports of the
external auditors. The committee is also responsible for analyzing observations made by Chilean regulatory
entities and for recommending measures to be taken by the management in response. CODELCOS”s audit, benefits
and ethics committee is not subject to the independence and other requirements to which U.S. public companies
are subject.

Projects and Investment Committee (Comité de Proyectos y Financiamiento de Inversiones)

The projects and investment committee consists of Isidoro Palma Penco (Chair), Juan Enrique Morales
Jaramillo (Vice Chair), Paul Schiodtz Obilinovich, Ignacio Briones Rojas and Raimundo Espinoza Concha. This
committee analyzes and recommends major mining development projects and financing of these projects.

Management Committee (Comité de Gestión)

The management committee consists of Hernán De Solminihac Tampier (Chair), Isidoro Palma Penco
(Vice Chair), Raimundo Espinoza Concha and Ghassan Dayoub Pseli. The committee is primarily responsible for
the management of the Company”s divisions and key projects. It also reviews and evaluates the performance of
subsidiaries and affiliated companies.

Corporate Governance and Sustainability Committee (Comité de Gobierno Corporativo y Sustentabilidad)

The corporate governance and sustainability committee consists of Ignacio Briones Rojas (Chair), Hernán
De Solminihac Tampier (Vice Chair), Blas Tomic Errázuriz, Juan Enrique Morales Jaramillo and Ghassan Dayoub
Pseli. The committee (i) considers any recommendations made by senior management regarding changes in
corporate or divisional structure and any changes proposed to the internal operating procedures of the Company
and responsibilities of senior management and (ii) oversees compliance with the code of conduct and corporate
governance policies and coordinates self-evaluations of members of the Board of Directors. The committee also
advises the Board of Directors with respect to matters of sustainability, providing assistance to the Board of
Directors in the Company”s sustainability policies and goals as well as analyzing the efficacy of the Company”s
policies and management systems in the areas of health, safety and the environment.

Science, Technology and Innovation Committee

In addition to the established Committees of the Board of Directors described above, in January 2016, a
new Science, Technology and Innovation Committee began to meet in a trial run as a forum for discussion among
directors about the challenges facing the corporation in these regards. The Science, Technology and Innovation
Committee consists of Juan Enrique Morales Jaramillo (Chair), Paul Schiodtz Obilinovich (Vice Chair), Hernán
De Solminihac Tampier, Ignacio Briones Rojas and Ghassan Dayoub Pseli.

101
RELATED PARTY TRANSACTIONS

In the ordinary course of its business, CODELCO engages in a variety of transactions on arm”s-length
terms with certain related parties. For information regarding these transactions, see note 3 to the Audited Annual
Consolidated Financial Statements and note 3 to the Unaudited Interim Consolidated Financial Statements.

In its dealings with Cyprus El Abra Corporation (a subsidiary of Freeport-McMoRan Inc.), the partner in
SCM El Abra, CODELCO acts through a subsidiary, as agent. CODELCO does not sell copper to Nordeutsche
Affinerie Group, its partner in Deutsche Giessradht GmbH.

Pursuant to Article 147 of the Corporations Law, CODELCO may only enter into operations with related
parties if its intent is to benefit the corporate interest, if its price, terms and conditions are consistent with those
prevailing in the market when approved, and if it follows certain requirements and procedures established by the
law.

According to Article 146 of the Corporations Law, as amended, “operations with related parties” of
CODELCO include any and all negotiations, acts, contracts or operations in which the Company must take part, as
well as:

(1) one or more related persons to the Company, pursuant to the definition contained in Article 100
of Law 18.045 (the “Securities Market Law,” as amended);

(1) a board member, manager, a main executive or a liquidator of CODELCO, acting directly or on
behalf of any persons other than the Company, or their respective spouses or relatives up to the
second degree (consanguinity or affinity);

(ii) a corporation or partnership in which one of the persons mentioned in (ii) above are direct or
indirect owners of 10% or more of its capital, board members, managers or main executives;

(iv) those persons specifically established under the CODELCO”s bylaws or reasonably identified by
the Directors” Committee, as applicable, even if the transaction with such persons (a) is not of a
relevant amount, (b) is conducted on a regular basis (as per the regularity policy determined by
the Board of Directors of CODELCO) or (c) is entered into with a subsidiary of CODELCO in
which the Company holds a direct or indirect ownership interest of at least 95%; and

(v) any company in which a board member, manager or main executive of CODELCO has served as
a board member, manager, main executive or liquidator, during the last 18 months.

Article 100 of the Securities Market Law provides that the following persons constitute a related party:
(i) the other entities of the business conglomerate to which a company belongs; (ii) parents, subsidiaries and
equity-method investors and investees of a company; (iii) all directors, managers, officers and liquidators of a
company, and their spouses or blood relatives to the second degree, or any entity controlled, directly or indirectly,
by any of the abovementioned individuals; (iv) any person that, by their own actions or with other persons under a
joint action agreement, may appoint at least one member of the management of a company or controls 10% or
more of the capital or voting capital of a stock company; and (v) other entities or persons deemed a related party
by the CMF.

The rules, requirements and procedures to approve operations with related parties apply both to the
operations of CODELCO as well as to those of its subsidiaries, regardless of their legal nature, except for some
exemptions set forth in Article 147 of the Corporations Law in which related-party transaction may be executed
without the requirements referred to above, with the prior approval of the Board of Directors.

The breach of any of the restrictions on related party transactions will not affect the validity of the

transaction. However, CODELCO or the President of Chile may demand from the breaching party, the
reimbursement for an amount equivalent to the benefits gained by the breaching party resulting from the

102
transaction. Additionally, CODELCO or the President of Chile may claim damages. Finally, the breaching party
bears the burden of proof that the transaction was carried out according to the law.

CODELCOSs policy for transactions with related parties is defined and governed by a specific internal
regulation created pursuant to general policies established by the Board of Directors and in connection with the
guidance provided by Decree Law 1,350 and the Corporations Law. CODELCO’s internal regulation prescribes
the manner in which transactions between CODELCO and related entities must be carried out and provides for
sanctions if the requirements of the regulation are not met.

103
FOREIGN INVESTMENT AND EXCHANGE CONTROLS IN CHILE

As a general matter, the Central Bank of Chile is, among other things, responsible for monetary policies
and for exchange controls in Chile. Most Chilean companies must inform the Central Bank of any international
issue of bonds and if the proceeds of the issuance are not left abroad, should be brought into Chile through a bank
or other participant in the Formal Exchange Market. Article 23 of Decree Law 1,350 provides that CODELCO
has an obligation to return the total proceeds of its exports to Chile, but has no obligation to convert such proceeds
to Chilean pesos beyond its peso requirements. These proceeds from its exports are deposited at the Central Bank
of Chile, and withdrawals against such foreign exchange deposits are made to cover CODELCO”s expenses. Asa
result, CODELCO does not require foreign exchange approval in connection with the issuance or placement of, or
payments upon the notes. See “Regulatory Framework—Payment of Obligations.”

104
DESCRIPTION OF NOTES

The notes will be issued pursuant to an indenture (the “Indenture”), dated as of February S, 20109,
between CODELCO, The Bank of New York Mellon, as trustee, paying agent, transfer agent and registrar (the
“trustee”) and The Bank of New York Mellon, Luxembourg Branch, as Luxembourg paying agent, as further
amended and supplemented from time to time.

The following description of certain provisions of the notes and of the indenture is subject to and is
qualified in its entirety by reference to the provisions of the notes and the indenture, copies of which will be
available for inspection at the office of the trustee at 240 Greenwich Street, Floor 7 East, New York, New York
10286. CODELCO urges you to read the indenture because it, and not this description, defines your rights as
holders of the notes issued under the indenture.

General

The notes will be issued by CODELCO, and CODELCO will be liable therefor and obligated to perform
all covenants and agreements to be performed by CODELCO pursuant to the notes and the indenture, including
the obligations to pay principal, interest and Additional Amounts (as defined below under “Payment of Additional
Amounts”), if any. The trustee under the indenture is The Bank of New York Mellon (the “trustee,” which term
shall include any successor trustee under the indenture).

The indenture provides for the issuance by CODELCO from time to time of notes in one or more series
up to an aggregate principal amount of notes as from time to time may be authorized by CODELCO, subject to all
required government authorizations. Notes having the same date of maturity and Interest Payment Dates (as
defined below), payable in the same currency, bearing interest at the same rate and the terms of which are
otherwise identical, are referred to as a “series.”

The notes will bear interest at the applicable rate per annum set forth on the applicable Final Terms from
the date of issuance or from the most recent Interest Payment Date (as defined below) to which interest has been
paid or provided for. Interest on the notes will be payable in accordance with the applicable Final Terms or, if any
such date is not a Business Day (as defined below), on the next succeeding Business Day (each such date, an
“Interest Payment Date”) to the person or persons (each, a “Holder”) in whose name such notes are registered in
the Security Register (as defined below). The record dates relating to the Interest Payment Dates for the notes will
be set forth in the Indenture. Interest on the notes will be calculated as indicated in the applicable Final Terms. For
the purposes hereof, the term “Business Day” means a day on which banks in The City of New York are not
authorized or required by law or executive order to be closed.

Moneys paid by CODELCO to the trustee or any paying agent for the payment of principal of (and
premium, if any) or interest on any of the notes and remaining unclaimed at the end of two years after the date on
which such principal (and premium, if any) or interest shall have become due and payable (whether at maturity,
upon call for redemption or otherwise) shall, together with interest made available for payment thereof, be repaid
to CODELCO, whereupon all liability of the trustee or such paying agent with respect to such moneys shall cease.

The notes will mature the date set forth in the applicable Final Terms. The notes will not be redeemable
prior to maturity except as described below and in the event of certain developments affecting taxation, in that case
at a price equal to the outstanding principal amount thereof, together with any Additional Amounts and accrued
interest to the redemption date. On the maturity date of the notes, CODELCO will be required to pay 100% of the
then outstanding principal amount of the series of notes plus accrued and unpaid interest thereon and Additional
Amounts, if any.

Ranking

The notes will constitute direct, general, unsecured, unconditional and unsubordinated obligations of
CODELCO. The notes rank and will rank without any preference among them and equally with all other
unsecured and unsubordinated obligations of CODELCO, other than certain obligations granted preferential
treatment pursuant to Chilean law. It is understood that this provision will not be construed so as to require
CODELCO to make payments under the notes ratably with payments being made under any other obligations.

105
The indenture contains no restriction on the amount of additional indebtedness which may be incurred by
CODELCO or its subsidiaries; however, as set forth under “—Limitation on Liens” below, the indenture contains
certain restrictions on the ability of CODELCO and its subsidiaries to incur secured indebtedness.

Registration, Form and Delivery

The trustee will initially act as paying agent, transfer agent and registrar for the notes. The notes will be
issued upon the closing of this offering in definitive, fully registered form, without coupons, in denominations as
may be agreed between CODELCO and the dealer manager and as indicated in the applicable Final Terms.. The
notes will be exchangeable, and transfers thereof will be registrable, at the office of the registrar for the notes
(including the office of the transfer and paying agent). No charge will be made to holders of the notes in
connection with any exchange or registration of transfer, but CODELCO may require payment of a sum sufficient
to cover any tax or other governmental charge payable in that connection.

The trustee will maintain at its office in the City of New York, currently located at 240 Greenwich Street,
Floor 7 East, New York, New York 10286, a security register (the “Security Register”) with respect to the notes.
The name and address of the registered Holder of each note and the amount of each note will be recorded in the
applicable Security Register, and the trustee and CODELCO may treat the person in whose name the note is
registered as the owner of such note for all purposes. For so long as the notes are represented by one or more
Global Notes, the registered owner of a Global Note, in accordance with the terms of the indenture, may be treated
at all times and for all purposes by CODELCO and the trustee as the sole owner with respect to such notes, with
respect to all payments on the notes and for all other purposes under the terms of the notes and the indenture.

The notes are being offered and sold in connection with the initial offering thereof solely in offshore
transactions to persons other than “U.S. persons,” as defined in Regulation S under the Securities Act, in reliance
on Regulation S. Following the initial offering of the notes, the notes may be resold to non-U.S. persons in
reliance on Regulation S and pursuant to Rule 144 under the Securities Act, as described under “Transfer
Restrictions.”

The Global Notes
The notes offered and sold in offshore transactions to non-U.S. persons in reliance on Regulation S under

the Securities Act will initially be issued in the form of one or more registered notes in global form (the “Global
Notes”), without interest coupons.

The notes will be subject to certain restrictions on transfer and will bear a restrictive legend as set forth
under “Transfer Restrictions.”

All interests in the Global Notes are subject to the procedures and requirements of Euroclear or
Clearstream.

Euroclear and Clearstream will hold interests in the Global Notes on behalf of their participants through
customers” securities accounts in their respective names on the books of their respective depositaries.

Certificated Notes

Notes represented by a Global Note will be exchangeable for note certificates, registered in the names of
owners of beneficial interests in the Global Notes, with the same terms and in authorized denominations, only if:

e the applicable depositary notifies us that it is unwilling, unable or no longer permitted under
applicable law to continue as depositary for that Global Note and CODELCO does not appoint
another institution to act as depositary within 90 days;

e we notify the trustee that CODELCO wishes to terminate that Global Note, or

+ an event of default has occurred with regard to the notes and has not been cured or waived.

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In any such instance, an owner of a beneficial interest in the Global Notes will be entitled to physical
delivery of the notes represented by the Global Notes equal in principal amount to that beneficial interest and to
have those notes registered in its name. The notes so issued will be in definitive registered form, in denominations
as specified by the applicable Final Terms. The notes so registered can be transferred by presentation for
registration of transfer to the transfer agent at its corporate trust office and must be duly endorsed by the holder or
his attorney duly authorized in writing or accompanied by a written instrument or instruments of transfer in form
satisfactory to us or the trustee duly executed by the holder or its attorney duly authorized in writing. CODELCO
may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
connection with any exchange or registration of transfer of definitive notes.

Clearing Systems
Euroclear

Euroclear advises that it was created in 1968 to hold securities for its participants and to clear and settle
transactions between Euroclear participants through simultaneous electronic book-entry delivery against payment,
thereby eliminating the need for physical movement of certificates and any risk from lack of simultaneous
transfers of securities and cash. Euroclear provides various other services, including securities lending and
borrowing and interfaces with domestic markets in several countries. All operations are conducted by Euroclear
Bank, S.A./N.V. and all Euroclear securities clearance accounts and Euroclear cash accounts are accounts with
Euroclear Bank, not the cooperative. The cooperative establishes policy for Euroclear on behalf of Euroclear
participants. Euroclear participants include banks (including central banks), securities brokers and dealers and
other professional financial intermediaries and may include the managers (“Euroclear participants”). Indirect
access to Euroclear is also available to other firms that clear through or maintain a custodial relationship with a
Euroclear participant, either directly or indirectly.

Securities clearance accounts and cash accounts with Euroclear Bank are governed by the Terms and
Conditions Governing Use of Euroclear and the related Operating Procedures of the Euroclear System, and
applicable Belgian laws (collectively, the “Euroclear Terms and Conditions”). The Euroclear Terms and
Conditions govern transfers of securities and cash within Euroclear, withdrawals of securities and cash from
Euroclear and receipts of payment with respect to securities in Euroclear. All securities in Euroclear are held on a
fungible basis without attribution of specific certificates to specific securities clearance accounts. Euroclear Bank
acts under the Euroclear Terms and Conditions only on behalf of Euroclear participants and has no record of or
relationship with persons holding through Euroclear participants.

Distributions with respect to the notes held beneficially through Euroclear will be credited to the cash
accounts of Euroclear participants in accordance with the Euroclear Terms and Conditions, to the extent received
by the Euroclear Bank and by Euroclear.

Clearstream

Clearstream is incorporated under the laws of Luxembourg as a professional depository. Clearstream
holds securities for Clearstream participants and facilitates the clearance and settlement of securities transactions
between Clearstream participants through electronic book-entry changes in accounts of Clearstream participants,
thereby eliminating the need for physical movement of certificates. Clearstream provides to its participants, among
other things, services for safekeeping, administration, clearance and settlement of internationally traded securities
and securities lending and borrowing. Clearstream also deals with domestic securities markets in several countries.
As a professional depository, Clearstream is subject to regulation by the Luxembourg Monetary Institute.
Clearstream participants are financial institutions around the world including underwriters, securities brokers and
dealers, banks, trust companies and clearing corporations and certain other organizations and may include the
managers. Indirect access to Clearstream is also available to others, such as banks, brokers, dealers and trust
companies that clear through or maintain a custodial relationship with a Clearstream participant either directly or
indirectly.

Distributions with respect to the notes held beneficially through Clearstream will be credited to cash
accounts of Clearstream participants in accordance with its rules and procedures, to the extent received by
Clearstream.

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Euroclear and Clearstream Arrangements

So long as Euroclear or Clearstream or their nominee or their common depositary is the registered holder
of the Global Notes, Euroclear, Clearstream or such nominee or common depositary, as the case may be, will be
considered the sole owner or holder of the notes represented by such Global Notes for all purposes under the
Indenture and the notes. Payments of principal, interest and additional amounts, if any, in respect of the Global
Notes will be made to Euroclear, Clearstream or such nominee or common depositary, as the case may be, as
registered holder thereof. None of us, the trustee, the managers or any affiliate of any of the forgoing or any person
by whom any of the above is controlled (as such term is defined in the Securities Act) will have any responsibility
or liability for any records relating to or payments made on account of beneficial ownership interests in the Global
Notes or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

Distributions of principal and interest with respect to the Global Note will be credited in U.S. dollars to
the extent received by Euroclear or Clearstream from the trustee to the cash accounts of Euroclear or Clearstream
customers in accordance with the relevant system”s rules and procedures.

Because Euroclear and Clearstream can only act on behalf of participants, who in turn act on behalf of
indirect participants, the ability of a person having an interest in the Global Notes to pledge such interest to
persons or entities which do not participate in the relevant clearing system, or otherwise take actions in respect of
such interest, may be affected by the lack of a physical certificate in respect of such interest.

The holdings of book-entry interests in the Global Notes through Euroclear and Clearstream will be
reflected in the book-entry accounts of each such institution. As necessary, the registrar will adjust the amounts of
the Global Notes on the register for the accounts of the common depositary to reflect the amounts of notes held
through Euroclear and Clearstream, respectively.

Initial Settlement

Investors holding their notes through Euroclear or Clearstream accounts will follow the settlement
procedures applicable to conventional eurobonds in registered form. Notes will be credited to the securities
custody accounts of Euroclear and Clearstream holders on the settlement date against payment for value on the
settlement date.

Covenants

CODELCO has agreed to restrictions on its activities for the benefit of holders of the notes. The following
restrictions will apply to the notes:

Consolidation, Merger, Conveyance, Sale or Lease

Nothing contained in the indenture prevents CODELCO from consolidating with or merging into another
corporation or conveying, transferring or leasing its properties and assets substantially as an entirety to any person,
provided that: (i) the corporation formed by such consolidation or into which CODELCO is merged or the person
which acquires by conveyance or transfer, or which leases, the properties and assets of CODELCO substantially as
an entirety is a corporation organized and existing under the laws of Chile and expressly assumes, by supplemental
indenture, the due and punctual payment of the principal of and interest and Additional Amounts, if any, on all
outstanding notes and the performance of every covenant in the indenture on the part of CODELCO to be
performed or observed; (ii) immediately after giving effect to such transaction no Event of Default (as defined
below), and no event which, after notice or lapse of time or both, would become an Event of Default, shall have
happened and be continuing; and (iii) CODELCO has delivered to the trustee an officers” certificate and an
opinion of counsel, each stating that such consolidation, merger, conveyance, transfer or lease and such
supplemental indenture complies with the foregoing provisions relating to such transaction.

Limitation on Liens

Nothing contained in the indenture restricts or prevents CODELCO or any Restricted Subsidiary (as
defined below) from incurring any additional indebtedness; provided that neither CODELCO nor any Restricted

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Subsidiary will (i) issue, assume or guarantee any indebtedness for money borrowed (“Debt”) if such Debt is
secured by a lien upon, or (ii) directly or indirectly secure any outstanding Debt by a lien upon, any Principal
Property (as defined below) or upon any shares of stock of, or indebtedness of, any Restricted Subsidiary, now
owned or hereafter acquired, without effectively providing that the notes shall be secured equally and ratably with
such Debt, except that the foregoing restrictions shall not apply to (i) liens on any Principal Property acquired,
constructed or improved after the date of issuance of the notes to secure or provide for the payment of the purchase
price or cost of construction or improvements (including costs such as increased costs due to escalation, interest
during construction and similar costs) thereof incurred after the date of the issuance of the notes, or existing liens
on property acquired, provided such liens shall not apply to any property theretofore owned by CODELCO or any
Restricted Subsidiary other than theretofore unimproved real property, (ii) liens on any Principal Property or
shares of stock or indebtedness acquired from a corporation merged with or into CODELCO or a Restricted
Subsidiary, (iii) liens to secure Debt of a Restricted Subsidiary to CODELCO or another Subsidiary, (iv) the sale
or other transfer of any interest in property of the character commonly referred to as a “production payment,”
(v) liens over any property at the time of acquisition of such property by CODELCO or any of its Restricted
Subsidiaries which lien was not (or is not) created in connection with such acquisition, (vi) liens in existence on
the date of the offering of the notes, (vii) liens on deposits to secure, or any lien otherwise securing, the
performance of bids, statutory obligations, surety bonds, appeal bonds, performance bonds and other obligations of
a like nature incurred in the ordinary course of business, (viii) liens created on any property to secure Debt
incurred in connection with the financing of such property, the repayment of which Debt is to be made from the
revenues arising out of, or other proceeds of realization from, such property, with recourse to those revenues and
proceeds and other property used in connection with, or forming the subject matter of, such property, but without
recourse to any other property of CODELCO or any Restricted Subsidiary and (ix) any extension, renewal or
replacement (or successive extensions, renewals or replacements), in whole or in part, of any lien referred to in the
foregoing clauses (i) to (iii) or (v), (vi) and (viii), inclusive of any Debt secured thereby, provided that the
principal amount of Debt so secured thereby shall not exceed the principal amount of Debt so secured at the time
of such extension, renewal or replacement and that such extension, renewal or replacement lien shall be limited to
all or part of the property which secured the lien extended, renewed or replaced (plus improvements on or
additions to such property). Notwithstanding the foregoing, CODELCO and one or more Restricted Subsidiaries
may issue, assume or guarantee Debt secured by liens which would otherwise be subject to the foregoing
restrictions in an aggregate principal amount which, together with the aggregate outstanding principal amount of
all other Debt of CODELCO and its Restricted Subsidiaries that would otherwise be subject to the foregoing
restrictions (not including Debt permitted to be secured under clauses (i) through (ix) above) and the aggregate
value of the sale-and-lease-back transactions described under “—Limitation on Sale-and-Lease-Back
Transactions” below (other than sale-and-lease-back transactions the proceeds of which have been applied as
provided in clause (b) under “—Limitation on Sale-and-Lease-Back Transactions” below), does not at the time of
issuance, assumption or guarantee thereof exceed 20% of Consolidated Net Tangible Assets. “Consolidated Net
Tangible Assets” is defined as the total of all assets (including reevaluations thereof as a result of commercial
appraisals, price level restatement or otherwise) appearing on the consolidated balance sheet of CODELCO and its
Subsidiaries as of the then most recent date filed by CODELCO with the CMF, but excluding goodwill, trade
names, trademarks, patents, unamortized debt discount and all other like intangible assets (which term shall not be
construed to include such reevaluations), less the aggregate of the current liabilities of CODELCO and its
Subsidiaries appearing on such balance sheet. The term “Principal Property” means any mineral property,
concentrator, smelter, refinery or rod mill located within Chile, of CODELCO or any Subsidiary except any such
property, plant or facility which the Board of Directors by resolution declares is not of material importance to the
total business conducted by CODELCO and its Subsidiaries as an entity. The term “Subsidiary” means any
corporation more than 50% of the outstanding voting stock of which is owned, directly or indirectly, by
CODELCO and of which CODELCO has the power to direct the management. The term “Restricted Subsidiary”
means (i) any Subsidiary which owns, directly or indirectly, any Principal Property and (ii) any Subsidiary which
owns, directly or indirectly, any stock or debt of a Restricted Subsidiary.

Limitation on Sale-and-Lease-Back Transactions

The indenture provides that neither CODELCO nor any Restricted Subsidiary will enter into any
arrangement with any person (other than CODELCO or a Restricted Subsidiary), or to which any such person is a
party, providing for the leasing to CODELCO or a Restricted Subsidiary for a period of more than three years of
any property or assets which has been or is to be sold or transferred by CODELCO or such Restricted Subsidiary
to such person or to any person (other than CODELCO or a Restricted Subsidiary) to which funds have been or are

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to be advanced by such person on the security of the leased property or assets unless either (1) CODELCO or such
Restricted Subsidiary would be entitled, pursuant to the provisions described under “—Limitation on Liens”
above, to incur Debt in a principal amount equal to or exceeding the value of such sale-and-lease-back transaction,
secured by a lien on the property or assets to be leased, without equally and ratably securing the notes, or
(ii) CODELCO, during or immediately after the expiration of six months after the effective date of such
transaction (whether made by CODELCO or a Restricted Subsidiary), applies to the voluntary retirement of
indebtedness of CODELCO (including the notes) maturing by its terms more than one year after the original
creation thereof (“Funded Debt”) an amount equal to the value of such transaction, less an amount equal to the
sum of (a) the principal amount of notes delivered, within six months after the effective date of such arrangement,
to the trustee for retirement and cancellation and (b) the principal amount of other Funded Debt voluntarily retired
by CODELCO within such six-month period, in each case excluding retirements of notes and other Funded Debt
as a result of conversions or pursuant to mandatory sinking fund or mandatory prepayment provisions or by
payment at maturity.

Periodic Reports

CODELCO will furnish, to the noteholders and to prospective purchasers of notes, upon request to the
trustee, any information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act so long as
the notes are not freely transferable under the Securities Act.

Events of Default

An Event of Default with respect to the notes is defined in the indenture as being any of the following
(each an “Event of Default”): (1) default for 30 days in payment of any interest on the notes; (ii) default in
payment of principal of the notes; (iii) default in the performance, or breach, of any covenant or warranty or
obligation of CODELCO in the indenture and continuance of such default or breach for a period of 60 days after
written notice is given to CODELCO by the trustee or to CODELCO and the trustee by the holders of at least
33 1/3% in aggregate principal amount of the notes; (iv) default under any bond, debenture, note or other evidence
of indebtedness for money borrowed, or under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any indebtedness for money borrowed by CODELCO or
any Subsidiary, whether such indebtedness now exists or shall hereafter be created, in an aggregate principal
amount exceeding U.S.$50 million (or its equivalent in any other currency or currencies) which default (x) shall
constitute the failure to pay any portion of the principal of such indebtedness when due and payable, whether at
maturity, upon redemption or acceleration or otherwise, or (y) shall have resulted in such indebtedness becoming
or being declared due and payable prior to the date on which it would otherwise become due and payable, in either
case, if such default shall continue for more than 30 Business Days and within such 30 Business Days the time for
payment of such amount has not been expressly extended (provided that if such default under such indenture or
instrument shall be remedied or cured by CODELCO or waived by the holders of such indebtedness, then the
event of default with respect to the notes shall be deemed likewise to have been remedied, cured or waived); and
(v) certain events of bankruptcy or insolvency of CODELCO or any Significant Subsidiary. “Significant
Subsidiary” is defined in the indenture as a Subsidiary, the total assets of which exceed 10% of the total assets of
CODELCO and its subsidiaries on a consolidated basis as of the end of the most recently completed year. The
trustee shall not be charged with knowledge of any Event of Default with respect to the notes unless a written
notice of such default or Event of Default shall have been given to an officer of the trustee who has direct
responsibility for the administration of the indenture and the notes by CODELCO or any holder of notes.

The indenture provides that (i) if an Event of Default (other than an Event of Default described in
clause (v) above) shall have occurred and be continuing with respect to the notes, either the trustee or the holders
of not less than 33!/3% of the total principal amount of the notes of such series then outstanding may declare the
principal of all such outstanding notes and the interest accrued thereon, if any, to be due and payable immediately
and (ii) if an Event of Default described in clause (v) above shall have occurred, the principal of all such
outstanding notes and the interest accrued thereon, if any, shall become and be immediately due and payable
without any declaration or other act on the part of the trustee or any holder of such notes. The indenture provides
that the notes owned by CODELCO or any of its affiliates shall be deemed not to be outstanding for certain
purposes, including declaring the acceleration of the maturity of the notes. Upon the satisfaction by CODELCO of
certain conditions, including (i) the payment of all fees and expenses of the trustee, (ii) CODELCO”s deposit with
the trustee of a sum sufficient to pay all outstanding amounts then due on the applicable notes (other than principal

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due by virtue of the acceleration) together with interest on such amounts through the date of the deposit and (iii)
all Events of Default (other than non-payment of principal that became due by virtue of the acceleration upon the
event of default) have been cured or waived, the declaration described in clause (i) of this paragraph may be
annulled by the holders of a majority of the total principal amount of the applicable notes then outstanding. Past
defaults, other than non-payment of principal, interest and compliance with certain covenants, may be waived by
the holders of a majority of the total principal amount of the applicable notes outstanding.

The trustee must give to the holders of the notes notice of all uncured defaults known to it with respect to
the notes within 30 days after a Responsible Officer of the trustee has received written notification of such a
default (unless such default shall have been cured); provided, however, that, except in the case of default in the
payment of principal, interest or Additional Amounts, the trustee shall be protected in withholding such notice if it
in good faith determines that the withholding of such notice is in the interest of the holders of the notes.
“Responsible Officer” is defined in the indenture as any officer of the trustee with direct responsibility for the
administration of the indenture and, with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of his knowledge of and familiarity with the particular subject.

No holder of notes may institute any proceeding, judicial or otherwise, under the indenture unless (i) such
holder shall have given the trustee written notice of a continuing Event of Default with respect to the notes of that
series, (ii) the holders of not less than 33!/3% of the total principal amount of the notes of that series then
outstanding shall have made written request to the trustee to institute proceedings in respect of the Event of
Default, (ii) such holder or holders shall have offered the trustee such reasonable indemnity as the trustee may
require, (iv) the trustee shall have failed to institute an action for 60 days thereafter and (v) no inconsistent
direction shall have been given to the trustee during such 60-day period by the holders of a majority of the total
principal amount of the notes of such series. Such limitations, however, do not apply to any suit instituted by a
holder of a note for enforcement of payment of the principal or interest on the notes on or after the respective
stated maturity expressed in such notes.

The indenture provides that, subject to the duty of the trustee during default to act with the required
standard of care, the trustee will be under no obligation to exercise any of its rights or powers under the indenture
at the request or direction of any holders of the notes, unless such holders shall have offered to the trustee
reasonable indemnity.

CODELCO is required to furnish to the trustee annually a statement as to the performance by CODELCO
of certain of its obligations under the indenture and as to any default in such performance.

Payment of Additional Amounts

All payments of principal and stated interest under the notes by CODELCO will be made without
deduction or withholding for or on account of any present or future taxes, assessments, duties or governmental
charges of whatever nature imposed or levied by or on behalf of Chile or any political subdivision or territory or
possession thereof or therein (the “Taxing Jurisdiction”) unless the withholding or deduction of such taxes,
assessments, duties or governmental charges is required by law or regulation or by the official interpretation
thereof. In that event, CODELCO will pay to each Holder of a note such additional amounts (“Additional
Amounts”) as may be necessary in order that each net payment on such note after such deduction or withholding
will not be less than the amount provided for in such note to be then due and payable; provided, however, that the
foregoing obligation to pay Additional Amounts will not apply to:

() any tax, assessment, duty or other governmental charge that would not have been so
deducted or withheld but for (i) the existence of any present or former connection between the Holder or
the beneficial owner of the note (or between a fiduciary, settlor, beneficiary, member or shareholder of, or
possessor of a power over, such Holder or beneficial owner, if such Holder or beneficial owner is an
estate, trust, partnership or corporation) and the Taxing Jurisdiction imposing such tax, assessment, duty
or other governmental charge (including, without limitation, such Holder or beneficial owner (or such
fiduciary, settler, beneficiary, member, shareholder or possessor) being or having been a citizen or
resident thereof or being or having been engaged in a trade or business or present therein or having, or
having had, a permanent establishment therein) other than the mere receipt of payments in respect of a
note or the holding or ownership of a note or beneficial interest therein; or (ii) the presentation of a note

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(where presentation is required) for payment on a date more than 30 days after the date on which such
payment became due and payable or the date on which payment thereof is duly provided for, whichever
occurs later;

(ii) any estate, inheritance, gift, sales, transfer, personal property, capital gains, excise or
similar tax, assessment, duty or other governmental charge;

(iii) any tax, assessment, duty or other governmental charge that is payable other than by
withholding from payments of (or in respect of) principal of, or any interest on, the notes;

(iv) any tax, assessment, duty or other governmental charge that would not have been imposed
but for the failure to comply with certification, information or other reporting requirements concerning
the nationality, residence or identity of the Holder or beneficial owner of the note, if compliance is
required by statute or by regulation of the Taxing Jurisdiction as a precondition to relief or exemption
from all or part of such tax, assessment, duty or other governmental charge, or to a reduction in the
applicable tax rate, and proper notice has been sent to the Holder or beneficial owner; or

(v) any combination of items (1), (ii), (1ii), and (iv) above.

Nor shall Additional Amounts be paid with respect to any payment of the principal of or any interest on
any note to any Holder or beneficial owner that is a fiduciary or partnership or other than the sole beneficial owner
of such note to the extent such payment would be required by the laws of the Taxing Jurisdiction to be included in
the income for tax purposes of a beneficiary or settlor with respect to such fiduciary or a member of such
partnership or a beneficial owner who would not have been entitled to such Additional Amounts had it been a
Holder of such note.

If CODELCO pays Additional Amounts in respect of the Chilean withholding tax on payments of interest
or premium, if any, made by CODELCO in respect of the notes to a Foreign Holder (as defined in “Taxation”)
assessed at a rate of 4%, and a refund is provided with respect to such withholding tax, CODELCO shall have the
right to receive and be entitled to such funds from the relevant Taxing Jurisdiction.

Redemption

CODELCO will not be permitted to redeem the notes before their stated maturity, except as set forth
below. The notes will not be entitled to the benefit of any sinking fund—meaning that CODELCO will not
deposit money on a regular basis into any separate account to repay your notes. In addition, you will not be
entitled to require CODELCO to repurchase your notes from you before the stated maturity.

Optional Redemption

We may redeem on one or more occasions some or all of the notes before they mature.

We may redeem the notes, in whole or in part, at our option at any time and from time to time, prior to
date stated in the applicable Final Terms (the “Par Call Date”) at a redemption price equal to the greater of (i)
100% of the principal amount of the notes to be redeemed or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest thereon as if redeemed on the Par Call Date (exclusive of any interest
accrued and unpaid to the date of redemption) discounted to the date of redemption on a semi-annual basis
(assuming a 360-day year consisting of twelve 30 day months) at the applicable Treasury Rate plus a spread to be
indicated in the Final Terms, plus, in either case, accrued and unpaid interest, if any, to the date of redemption.

Notes called for redemption become due on the date fixed for redemption (the “Redemption Date”).
Notices of redemption will be mailed by first-class mail at least 30 but not more than 60 days before the
Redemption Date to each holder of notes to be redeemed at its registered address. The notice of redemption for the
notes will state the amount to be redeemed. On and after the Redemption Date, interest ceases to accrue on any
notes that are redeemed. If less than all the notes are redeemed at any time, the trustee will select notes by lot or on
a pro rata basis or by any other method that the trustee deems fair and appropriate.

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For purposes of determining the optional redemption price, the following definitions are applicable:

“Comparable Treasury Issue” means the United States Treasury security or securities selected by an
Independent Investment Banker as having an actual or interpolated maturity that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of
a comparable maturity to the Par Call Date.

“Comparable Treasury Price” means, with respect to any redemption date, (i) the average of five
Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest Reference
Treasury Dealer Quotations, or (ii) if the Independent Investment Banker is unable to obtain at least five such
Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations obtained by the
Independent Investment Banker.

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by
CODELCO from time to time to act as the “Independent Investment Banker.”

“Reference Treasury Dealer” means primary U.S. Government securities dealers in New York City
(“Primary Treasury Dealers”), and two other nationally recognized investment banking firms that are Primary
Treasury Dealers selected from time to time by CODELCO; provided, however, that if any of the foregoing shall
cease to be a Primary Treasury Dealer, CODELCO shall substitute therefor another nationally recognized
investment banking firm that is a Primary Treasury Dealer.

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any
redemption date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing
to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m., New York City time, on
the third business day preceding that redemption date.

“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual
equivalent yield to maturity (computed as of the third business day immediately preceding that redemption date) of
the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of
its principal amount) equal to the Comparable Treasury Price for that redemption date.

Tax Redemption

The notes may be redeemed at the election of CODELCO, in whole, but not in part, by the giving of
notice as provided in “—Notices” below (which notice shall be irrevocable), at a price equal to the outstanding
principal amount thereof, together with any Additional Amounts and accrued and unpaid interest to the redemption
date, if, as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated
thereunder, including a holding by a court of competent jurisdiction) of the Taxing Jurisdiction, or any change in
the official application, administration or interpretation of such laws, regulations or rulings in such Taxing
Jurisdiction, CODELCO has or will become obligated to pay Additional Amounts on the applicable notes in
excess of the Additional Amounts that would be payable were payments of interest on the notes subject to 4%
withholding (“Excess Additional Amounts”), and if such change or amendment is announced or becomes effective
on or after the date of the agreement to purchase the notes and such obligation cannot be avoided by CODELCO
taking measures it considers reasonable and that are available to it (for this purpose, reasonable measures shall not
include any change in CODELCOS”s or any successor”s jurisdiction of incorporation or organization or location of
its principal executive or registered office); provided, however, that no such notice of redemption shall be given
earlier than 60 days prior to the earliest date on which CODELCO would be obligated to pay such Excess
Additional Amounts, were a payment in respect of the notes then due. Prior to the giving of notice of redemption
of such notes, CODELCO will deliver to the trustee an officers” certificate and a written opinion of recognized
Chilean counsel independent of CODELCO to the effect that all governmental approvals necessary for CODELCO
to effect such redemption, if any, have been or at the time of redemption will be obtained and in full force and
effect and that CODELCO is entitled to effect such a redemption, and setting forth in reasonable detail the
circumstances giving rise to such right of redemption. See “Taxation—Chilean Taxation.”

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Notices

For so long as the notes are outstanding in global form, notices to be given to holders will be given to the
depositary, in accordance with its applicable procedures as in effect from time to time. If notes are issued in
individual definitive form, notice to holders of the notes will be given by mail to the addresses of such holders as
they appear in the security register. In addition, so long as the notes are represented by a global security deposited
with a common depositary for Clearstream and Euroclear, notices to holders may be given by delivery to
Clearstream and Euroclear, and such notices shall be deemed to be given on the date of delivery to Clearstreamand
Euroclear.

Replacement of Notes

In case of mutilated, destroyed, lost or stolen notes, application for replacement thereof may be made to
the trustee or CODELCO. Any such note shall be replaced by the trustee in compliance with such procedures, and
on such terms as to evidence and indemnification, as the trustee or CODELCO may require and subject to any
applicable law or regulation. All such costs as may be incurred in connection with the replacement of any notes
shall be borne by the applicant. Mutilated notes must be surrendered before new ones will be issued.

Modification of the Indenture

CODELCO and the trustee may, without the consent of the holders of notes, amend, waive or supplement
the indenture or the notes for certain specified purposes, including among other things: (i) to evidence
CODELCOSs succession by another corporation, and the assumption by such party of CODELCO”s obligations;
(11) to add to CODELCO”s covenants or surrender any of its rights or powers for the benefit of all or any series of
notes; (iii) to cure any ambiguity, defect or inconsistency in the indenture; (iv) to provide for the issuance of any
new series of securities, and/or add to the rights of any holders of any series of notes; (v) to provide for the
appointment of a successor trustee; (vi) to add any additional Events of Default for the benefit of any or all series;
(vii) to provide for the issuance of securities in bearer form; and (viii) to make any other change to the indenture as
shall not adversely affect the interests of any holder of the notes.

In addition, with certain exceptions, the indenture and the notes may be modified by CODELCO and the
trustee with the consent of the holders of a majority in aggregate principal amount of the notes of the series
affected thereby then outstanding, but no such modification may be made without the consent of the holder of each
outstanding note affected by the modification which would:

(i)change the maturity of any principal of, or any premium on, or any installment of interest on,
any note, or reduce the principal amount thereof or the rate of interest or any premium (or Additional
Amounts, if any) payable thereon, or change the method of computing the amount of principal thereof or
interest or premium (or Additional Amounts, if any) payable thereon on any date, or change any place of
payment where, or the coin or currency in which, the principal or interest (including Additional Amounts)
on any note are payable, or impair the right of holders to institute suit for the enforcement of any such
payment on or after the date when due;

(ii)reduce the percentage in aggregate principal amount of outstanding notes of such series,
where the consent of holders is required for any such modification or for any waiver of compliance with
certain provisions of the indenture or certain defaults thereunder and their consequences provided for in
the indenture; or

(iii) modify provisions relating to waiver of certain defaults, waiver of certain covenants and the
provisions summarized in this paragraph, including provisions governing the amendment of the
indenture, except to increase any such percentage or to provide that certain other provisions of the
indenture cannot be modified or waived without the consent of the holder of each outstanding note
affected by the modification.

The indenture provides that the notes owned by CODELCO or any of its affiliates shall be deemed not to
be outstanding for, among other purposes, consent to any such modification.

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Defeasance and Covenant Defeasance

CODELCO, at its option, at any time upon the satisfaction of certain conditions described below, may
elect to be discharged from its obligations with respect to the notes. In general, upon a defeasance, CODELCO
shall be deemed to have paid and discharged the entire indebtedness represented by the notes and to have satisfied
all of its obligations under the notes, except for: (1) the rights of holders of notes to receive, solely from the trust
fund established for such purposes, payments in respect of the principal of, and interest, and Additional Amounts,
if any, on the notes when such payments are due; (ii) certain provisions relating to ownership, registration and
transfer of the notes; (iii) the covenant relating to the maintenance of an office or agency in New York City, and
(iv) certain provisions relating to the rights, powers, trusts, duties and immunities of the trustee.

In addition, CODELCO, at its option, at any time, upon the satisfaction of certain conditions described
below, may discharge its obligation to comply with the covenants specified above under “—Consolidation,
Merger, Conveyance, Sale or Lease, *

”«

Limitation on Liens” and “—Limitation on Sale-and-Lease-Back
Transactions.” In order to cause a defeasance or covenant defeasance with respect to the notes, CODELCO will
be required to (i) deposit funds or obligations issued by the United States in an amount sufficient to provide for the
timely payment of principal, interest and all other amounts due under the notes with the trustee, and (ii) satisfy
certain other conditions, including delivery to the trustee of an opinion of independent tax counsel of recognized
standing to the effect that beneficial owners of notes will not recognize income, gain or loss for U.S. federal
income tax purposes as a result of such deposit and defeasance and will be subject to U.S. federal income tax on
the same amount and in the same manner and at the same times as would have been the case if such deposit and
defeasance had not occurred. Such opinion of counsel in the case of defeasance must refer to and be based upon a
ruling of the Internal Revenue Service or a change in applicable U.S. federal income tax law occurring after the
date of the indenture.

Governing Law; Submission to Jurisdiction; Sovereign Immunity

The indenture provides that it and the notes will be governed by, and will be construed and interpreted in
accordance with, the law of the State of New York. The indenture provides that CODELCO will maintain at all
times during the life of the notes an office or agent in the Borough of Manhattan, The City of New York, upon
whom process may be served in any action arising out of or based on the notes which may be instituted in the
Supreme Court of the State of New York or the United States District Court for the Southern District of New
York, in either case in the Borough of Manhattan, The City of New York, by any holder of a note, and CODELCO
will expressly accept the jurisdiction of any such court.

To the extent that CODELCO may be entitled, in any jurisdiction in which judicial proceedings may at
any time be commenced with respect to the notes, to claim for itself or its revenues or assets any immunity from
suit, jurisdiction, attachment in aid or execution of a judgment or prior to a judgment, execution of a judgment or
any other legal process with respect to its obligations under the notes, and to the extent that in any such
Jurisdiction there may be attributed to CODELCO such an immunity (whether or not claimed), CODELCO will
irrevocably agree not to claim and will irrevocably waive such immunity to the maximum extent permitted by law.

Article 226 of the Mining Code of Chile prohibits the attachment and judicial sale of a debtor?s mining
concessions and installations and other goods permanently dedicated to exploration or extraction of minerals
relating to those mining concessions, except with respect to mortgages. However, a debtor may consent to such
attachment and sale, provided that the consent is given in the same judicial proceeding in which the attachment
and sale is sought. The general waiver of immunity by CODELCO in the notes will not be effective with respect
to immunity under Article 226. In addition, pursuant to the Constitution, mining concessions corresponding to
mining deposits exploited by CODELCO upon its creation in 1976 cannot be subject to attachment or to any act of
disposition by CODELCO.

Further Issues of Notes

Without the consent of the holders, CODELCO may create and issue additional notes with terms and
conditions that are the same (or the same except as to scheduled interest payments prior to the time of issue of the
additional notes) as the terms and conditions of the notes. CODELCO may consolidate the additional notes to
form a single series with the notes; provided, however, that unless such additional notes are issued under a

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separate CUSIP number, such additional notes must be part of the same “issue” as the outstanding series of notes
for U.S. federal income tax purposes, issued pursuant to a “qualified reopening” as the outstanding series of notes
for U.S. federal income tax purposes, or issued with no more than a de minimis amount of original issue discount.

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TAXATION
General

The following is a summary of certain Chilean tax and U.S. federal income tax considerations (and
certain EU related tax consequences) relating to the purchase, ownership and disposition of notes. The summary
does not purport to be a comprehensive description of all the tax considerations that may be relevant to a decision
to purchase the notes, and, except to the extent certain EU-related tax consequences are described below, it does
not describe any tax consequences arising under the laws of any national, state, or local taxing jurisdiction other
than the United States and Chile.

This summary is based on the tax laws of Chile and the United States as in effect on the date of this
prospectus, as well as regulations, rulings and decisions of Chile and the United States available on or before such
date and now in effect. All of the foregoing is subject to change, which may apply retroactively and could affect
the continued validity of this summary.

Prospective purchasers of the notes should consult their own tax advisors as to the Chilean, United States
or other tax consequences of the purchase, ownership and disposition of the notes, taking into account the
application of the tax considerations discussed below to their particular situation, as well as the application of
state, local, foreign or other tax laws.

On February 4, 2010, Chile and the United States entered into a tax treaty (the “Treaty”), which has been
ratified by the Chilean Congress, but must be ratified by the competent authorities of the United States before it
can enter into effect, and which may apply to income generated in Chile or the United States by a resident of either
country. Investors should consult their own advisors regarding the application of the Treaty to their particular
circumstances and the date on which a particular Treaty provision will enter into effect.

Chilean Taxation

The following is a general summary of the material consequences under Chilean tax law, as currently in
effect, of an investment in the notes made by a “Foreign Holder.” For purposes of this summary, the term
“Foreign Holder” means (i) an individual not resident or domiciled in Chile or (ii) a legal entity that is not
incorporated under the laws of Chile, unless the notes are assigned to a branch or a permanent establishment of
such entity in Chile. For purposes of Chilean taxation, (a) an individual is a resident of Chile if such individual
has remained in Chile for more than six months in any calendar year, or for more than six months within two
consecutive fiscal years and (b) an individual is domiciled in Chile if such individual resides in Chile with the
intention of remaining in Chile (the intention will be determined according to the circumstances).

Under Chile”s income tax law (the “Income Tax Law”), payments of interest or premium, if any, made by
CODELCO in respect of the notes to a Foreign Holder will generally be subject to a Chilean withholding tax
assessed at a rate of 4% (the “Chilean Interest Withholding Tax”).

Pursuant to the terms of the Income Tax Law, interest, premiums, remuneration for services, financial
expenses and any other contractual surcharges under credit facilities entered into or disbursed on or after January
1, 2015, and which are paid or credited to an account or made available to “related entities” of CODELCO in
respect of loans or liabilities existing during the year in which the indebtedness is considered to be excessive, are
subject to a 35% penalty tax that CODELCO is required to pay. The withholding tax applicable to the interest
payments made by us can be used as a credit against such 35% penalty tax. Indebtedness will be considered to be
excessive when at the end of the corresponding fiscal year a “total annual indebtedness” to entities incorporated,
domiciled or established in a foreign country or in Chile, either related or not, exceeds three times the equity of
CODELCO, calculated pursuant to the provisions of article 41 F of the Income Tax Law. Under the “Excessive
Indebtedness” rules, a lender or creditor will be deemed to be related to CODELCO if: (1) the beneficiary (1.e.,
lender or creditor) is incorporated, domiciled, resident or established in one of the territories or jurisdictions listed
in section 41 H of the Income Tax Law; (ii) each of the beneficiary (i.e., lender or creditor) and CODELCO belong
to the same corporate group or, directly or indirectly, owns or participates in 10% or more of the capital or the
profits of the other, or if the beneficiary and CODELCO have a common partner or shareholder which, directly or
indirectly, owns or participates in 10% or more of the capital or the profits of both, and such beneficiary is

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incorporated, domiciled, resident or established outside Chile; (iii) the indebtedness is guaranteed directly or
indirectly by a third-party, unless they are not related to CODELCO, in the terms of clauses (1) or (ii) above, or
(iv) hereafter, and such third-party guarantees the obligations for a fee determined under market conditions;
however, the beneficiary shall be deemed related when the non-related third-party has executed an agreement or
obtained the funds to guarantee the indebtedness granted to CODELCO with a related party of the latter under the
terms established in clauses (i) or (ii), above and (iv) hereafter; (iv) the relevant financial instruments documenting
such indebtedness are placed and acquired by independent entities and such indebtedness is subsequently acquired
or transferred to a related entity according to subsections (i) to (iii) above; or (v) one party (i.e., beneficiary or
CODELCO) conducts one or more operations with a third-party who, in turn, directly or indirectly conducts one or
more similar or identical operations with a related party of such party.

The Income Tax Law provides that a Foreign Holder is subject to income tax on Chilean source income.
Chilean source income is defined by the Income Tax Law as income arising from goods located in Chile or
activities performed in Chile, regardless of the domicile or residence of the taxpayer. The Income Tax Law
establishes that capital gains derived from the sale of bonds issued by a Chilean taxpayer in Chile are considered
Chilean source income. Hence, as the notes are not issued in Chile, capital gains arising from the sale or other
dispositions by a Foreign Holder of the notes will not be deemed as Chilean source income.

As described above, CODELCO has agreed, subject to specific exceptions and limitations, to pay to the
holders of notes Additional Amounts in respect of the Chilean Interest Withholding Tax in order that any interest
or premium the Foreign Holder receives, net of the Chilean Interest Withholding Tax, equals the amount which
would have been received by such Foreign Holder in the absence of such withholding. See “Description of
Notes—Payment of Additional Amounts.”

A Foreign Holder will not be liable for estate, gift, inheritance or similar taxes with respect to its holdings
unless the notes held by a Foreign Holder are either located in Chile at the time of such Foreign Holder”s death, or,
if the notes are not located in Chile at the time of a Foreign Holder”s death, if such notes were purchased or
acquired with monies obtained from Chilean sources.

The issuance of the notes is subject to a stamp tax, which will be payable by CODELCO.

If the stamp tax is not paid when due, Chiles Tax Law imposes penalties (fines, interests and
readjustments), which will also be payable by CODELCO. In addition, until such tax (and any penalty) is paid,
Chilean courts would not enforce any action brought with respect to the notes. We have agreed to pay promptly
such tax when due.

United States Taxation

This summary of U.S. federal income tax considerations deals with U.S. Holders (as defined below) that
will hold CODELCO notes as capital assets and whose functional currency is the U.S. dollar. It does not purport
to be a comprehensive description of all of the tax considerations that may be relevant to a particular investor”s
decision to purchase notes and generally does not address the tax treatment of U.S. Holders that may be subject to
special tax rules, such as certain banks, tax-exempt entities, partnerships (or entities classified as partnerships for
U.S. federal income tax purposes) or partners therein, insurance companies, dealers in securities, nonresident alien
individuals present in the United States for 183 days or more during a taxable year, or persons that will hold notes
as part of an integrated investment (including a “straddle”) consisting of the notes and one or more other positions,
nor does it address the tax treatment of U.S. Holders that do not acquire notes as part of the initial distribution at
the notes” “issue price,” which will equal the first price to the public (not including bond houses, brokers or similar
persons or organizations acting in the capacity of underwriters, placement agents or wholesalers) at which a
substantial amount of the notes is sold for money.

As used in this section “—United States Taxation,” the term “U.S. Holder” means a beneficial owner of a

note that is a citizen or resident of the United States or a U.S. domestic corporation or that otherwise will be
subject to U.S. federal income taxation on a net income basis in respect of the notes.

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This summary is based on the Internal Revenue Code of 1986, as amended to the date hereof,
administrative pronouncements, judicial decisions, and final, temporary and proposed Treasury Regulations,
changes to any of which subsequent to the date of this prospectus may affect the tax consequences described
herein. Investors should consult their own tax advisors in determining the tax consequences to them of
purchasing, owning, and disposing of the notes, including the application in their particular circumstances of the
U.S. federal income tax considerations discussed below, as well as the application of state, local, foreign, other tax
laws or the Medicare tax on net investment income and possible changes in tax laws.

U.S. Holders that use an accrual method of accounting for tax purposes (“accrual method holders”)
generally are required to include certain amounts in income no later than the time such amounts are reflected on
certain financial statements (the “book/tax conformity rule”). The application of the book/tax conformity rule thus
may require the accrual of income earlier than would be the case under the general tax rules described below,
although it is not entirely clear to what types of income the book/tax conformity rule applies. Recently released
proposed regulations generally would exclude, among other items, original issue discount and market discount (in
either case, whether or not de minimis) from the applicability of the book/tax conformity rule. Although the
proposed regulations generally will not be effective until taxable years beginning after the date on which they are
issued in final form, taxpayers generally are permitted to elect to rely on their provisions currently. Accrual
method holders should consult with their tax advisors regarding the potential applicability of the book/tax
conformity rule to their particular situation.

Taxation of Interest and Additional Amounts. The gross amount of interest and Additional Amounts
(including any Chilean Interest Withholding Tax withheld from interest payments and any Additional Amounts in
respect thereof) will be taxable to a U.S. Holder as ordinary interest income in respect of the notes at the time it
accrues or is actually or constructively received in accordance with the holder?s method of accounting for U.S.
federal income tax purposes. It is expected that the notes will not be issued with more than a de minimis amount
of original issue discount for U.S. federal income tax purposes.

Subject to generally applicable restrictions and conditions, Chilean Interest Withholding Tax withheld
from payments of interest on the notes, or from Additional Amounts, at the appropriate rate applicable to the U.S.
Holder will be treated as a foreign income tax eligible (1) for credit against a U.S. Holder”s U.S. federal income tax
liability, or (ii) at the election of such U.S. Holder, for deduction in computing such U.S. Holder”s taxable income
provided that the U.S. Holder does not elect to claim a foreign tax credit for any foreign income taxes paid or
accrued for the relevant taxable year. Interest and Additional Amounts will constitute income from sources
without the United States for foreign tax credit purposes. Such income generally will constitute “passive category
income” or, in the case of certain U.S. Holders, “general category income.”

The calculation of foreign tax credits and, in the case of a U.S. Holder that elects to deduct foreign taxes,
the availability of such deduction, involves the application of rules that depend on a U.S. Holder’s particular
circumstances. U.S. Holders should consult their own tax advisors regarding the availability of foreign tax credits
and the treatment of Additional Amounts.

Taxation of Dispositions.A U.S. Holder will generally recognize taxable gain or loss upon the sale,
exchange, redemption or other taxable disposition of the notes in an amount equal to the difference between the
amount realized upon such sale, exchange, redemption or other disposition (less any accrued interest and, in the
case of a redemption, any Additional Amounts with respect to accrued interest, which will be taxable in the
manner described above under “—Taxation of Interest and Additional Amounts”) and such U.S. Holder”s adjusted
tax basis in those notes. A U.S. Holder”s adjusted tax basis in a note will generally equal such U.S. Holder”s
initial investment in the note. Such gain or loss will be capital gain or loss, and will be long-term capital gain or
loss if the notes are held for more than one year. Certain non-corporate U.S. Holders (including individuals) may
be eligible for a preferential rate in respect of long-term capital gain. The deduction of capital losses is subject to
limitations.

Capital gain or loss recognized by a U.S. Holder generally will be U.S. source gain or loss.

Consequently, if any such gain would be subject to Chilean withholding tax, a U.S. Holder may not be able to
credit the tax against its U.S. federal income tax liability unless such credit can be applied (subject to applicable

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conditions and limitations) against tax due on other income treated as derived from foreign sources. U.S. Holders
should consult their own tax advisors as to the foreign tax credit implications of a disposition of the notes.

Foreign Asset Reporting. Certain U.S. Holders that own “specified foreign financial assets” with an
aggregate value in excess of U.S.$50,000 on the last day of the taxable year or U.S.$75,000 at any time during the
taxable year are generally required to file an information statement along with their tax returns, currently on Form
8938, with respect to such assets. “Specified foreign financial assets” include any financial accounts held at a non-
U.S. financial institution, as well as securities issued by a non-U.S. issuer (which would include the notes) that are
not held in accounts maintained by financial institutions. Higher reporting thresholds apply to certain individuals
living abroad and to certain married individuals. Regulations extend this reporting requirement to certain entities
that are treated as formed or availed of to hold direct or indirect interests in specified foreign financial assets based
on certain objective criteria. U.S. Holders who fail to report the required information could be subject to
substantial penalties. In addition, the statute of limitations for assessment of tax would be suspended, in whole or
part. Prospective investors should consult their own tax advisors concerning the application of these rules to their
investment in the notes, including the application of the rules to their particular circumstances.

Information Reporting and Backup Withholding. Payments of interest and Additional Amounts on the
notes and sales or redemption proceeds that are made within the United States or through certain U.S.-related
financial intermediaries generally are subject to information reporting and to backup withholding unless
(i) the holder is an exempt recipient that, if required, establishes its exemption or (ii) in the case of backup
withholding, the holder provides a correct taxpayer identification number and certifies that it is not subject to
backup withholding.

Any amounts withheld under the backup withholding rules from a payment to a holder will be refunded
(or credited against such holder”s U.S. federal income tax liability, if any), provided the required information is
properly furnished to the U.S. Internal Revenue Service on a timely basis.

The Proposed Financial Transaction Tax

The European Commission has published a proposal (the “Commission”s Proposal”) for a Directive for a
common financial transaction tax (“FTT”) in Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria,
Portugal, Slovenia and Slovakia (the “participating Member States”). However, Estonia has since stated that it
will not participate.

The Commission’s Proposal has very broad scope and could, if introduced in its current form, apply to
certain dealings in the notes in certain circumstances.

Under the Commission”s Proposal, the FTT could apply in certain circumstances to persons both within
and outside of the participating Member States. Generally, it would apply to certain dealings in the notes where at
least one party is a financial institution, and at least one party is established in a participating Member State.
A financial institution may be, or be deemed to be, “established” in a participating Member State in a broad range
of circumstances, including (i) by transacting with a person established in a participating Member State or
(ii) where the financial instrument which is subject to the dealings is issued in a participating Member State.

The FTT remains subject to negotiation between the participating Member States and the legality of the
proposal is uncertain. It may therefore be altered prior to any implementation, the timing of which remains
unclear. Additional EU Member States may decide to participate and/or certain of the participating Member States
may decide to withdraw.

Prospective holders of the notes are advised to seek their own professional advice in relation to the FTT.

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PLAN OF DISTRIBUTION

Subject to the terms and conditions of the subscription agreement between CODELCO and the deal
manager, the deal manager has agreed to purchase from the Company the principal amount of notes at the initial
offering price set forth on the applicable Final Terms, less commissions.

The subscription agreement provides that the obligations of the deal manager to purchase the notes
offered hereby are subject to certain conditions precedent and that the dealer manager will purchase all of the notes
offered by this prospectus if any of these notes are purchased. The dealer manager may use any of its affiliates to
offer and sell any of the notes.

After the initial offering, the dealer manager may change the offering price and other selling terms.

CODELCO has agreed to indemnify the dealer manager against certain liabilities, including liabilities
under the Securities Act, and to contribute to payments the dealer manager may be required to make in respect of
any of these liabilities.

The notes have not been registered under the Securities Act. The dealer manager has agreed that it will
offer or sell the notes only in offshore transactions in reliance on Regulation S under the Securities Act. The notes
being offered and sold pursuant to Regulation S may not be offered, sold or delivered in the United States or to, or
for the account or benefit of, any U.S. person, unless the notes are registered under the Securities Act or an
exemption from, the registration requirements thereof is available. Resales of the notes are restricted as described
under “Transfer Restrictions.”

With respect to each offering of the notes under the Program, until 40 days following after the later of the
commencement of such offering and the closing date, any offer or sale of notes within the United States by a
broker-dealer (whether or not participating in any of the offerings) may violate the registration requirements of the
Securities Act. Each purchaser of the notes will be deemed to have made acknowledgments, representations and
agreements as described under “Transfer Restrictions.”

The notes are a new issue of securities without an established trading market. The deal manager may
make a market in the notes after completion of the offering, but will not be obligated to do so and may discontinue
any market-making activities at any time without notice. No assurance can be given as to the liquidity of the
trading market for the notes or that an active market for the notes will develop. If an active public trading market
for the notes does not develop, the market price and liquidity of the notes may be adversely affected. If the notes
are traded, they may trade at a discount from their initial offering price, depending on prevailing interest rates, the
market for similar securities, our operating performance and financial condition, general economic conditions and
other factors.

In connection with the offering of the notes, the deal manager may engage in overallotment, stabilizing
transactions and syndicate covering transactions. Overallotment involves sales in excess of the offering size,
which creates a short position for the deal manager. Stabilizing transactions involve bids to purchase the notes in
the open market for the purpose of pegging, fixing or maintaining the price of the notes. Syndicate covering
transactions involve purchases of the notes in the open market after the distribution has been completed in order to
cover short positions. Stabilizing transactions and syndicate covering transactions may cause the price of the notes
to be higher than it would otherwise be in the absence of those transactions. If the deal manager engages in
stabilizing or syndicate covering transactions, they may discontinue them at any time without notice.

The deal manager and its affiliates may have performed certain commercial banking, investment banking
or advisory services for us from time to time for which they have received customary fees and expenses. The deal
manager may, from time to time, continue to engage in transactions with and perform services for us in the
ordinary course of their business.

In addition, in the ordinary course of their business activities, the deal manager and its affiliates may
make or hold a broad array of investments and actively trade debt and equity securities (or related derivative
securities) and financial instruments (including bank loans) for their own account and for the accounts of their

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customers. Such investments and securities activities may involve securities and/or instruments of ours or our
affiliates. The dealer manager may hedge their credit exposure to us consistent with their customary risk
management policies. Typically, such dealer manager would hedge such exposure by entering into transactions
which consist of either the purchase of credit default swaps or the creation of short positions in our securities,
including potentially the notes offered hereby. Any such short positions could adversely affect future trading
prices of the notes offered hereby. The deal manager and its affiliates may also make investment
recommendations and/or publish or express independent research views in respect of such securities or financial
instruments and may hold, or recommend to customer that they acquire, long and/or short positions in such
securities and instruments.

Delivery of the notes will take place as indicated in the applicable Final Terms.

Prohibition of Sales to EEA Retail Investors

The notes are not intended to be offered, sold or otherwise made available to and should not be offered,
sold or otherwise made available to any retail investor in the European Economic Area (“EEA”). For these
purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of
Article 4(1) of MiFID Il; or (ii) a customer within the meaning of Directive (EU) 2016/97 (as amended, the
“Insurance Mediation Directive”), where that customer would not qualify as a professional client as defined in
point (10) of Article 4(1) of MiFID Il; or (iii) not a qualified investor as defined in the Prospectus Regulation. No
key information document required by Regulation (EU) No 1286/2014 (as amended, the “PRIIPs Regulation”) for
offering or selling packaged retail and insurance based investment products or otherwise making them available to
retail investors in the EEA has been prepared and therefore offering or selling the notes or otherwise making them
available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation.

For purposes of this provision, the expression “Prospectus Regulation” means Regulation (EU)
2017/1129 (as amended) and includes any relevant implementing measure in any Member State of the European
Economic Area. The expression “offer” includes the communication in any form and by any means of sufficient
information on the terms of the offer and the notes to be offered so as to enable an investor to decide to purchase
or subscribe the notes.

Notice to Prospective Investors in the United Kingdom

The dealer manager has represented and agreed that:

(1) it has only communicated or caused to be communicated and will only communicate or cause to be
communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of
the FSMA) received by it in connection with the issue or sale of the Securities in circumstances in which Section
21(1) of the FSMA does not apply to the Company; and

(ii) it has complied and will comply with all applicable provisions of the FSMA with respect to
anything done by it in relation to the Securities in, from or otherwise involving the United Kingdom.

Notice to Prospective Investors in Canada

The notes may be sold only to purchasers purchasing, or deemed to be purchasing, as principal that are
accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the
Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration
Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the notes must be made in
accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable
securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies
for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation,
provided that the remedies for rescission or damages are exercised by the purchaser within the time limit
prescribed by the securities legislation of the purchaser”s province or territory. The purchaser should refer to any

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applicable provisions of the securities legislation of the purchaser’s province or territory for particulars of these
rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (“NI 33-105”), the dealer
manager is not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts
of interest in connection with this Program.

Notice to Prospective Investors in Hong Kong

The notes may not be offered or sold in Hong Kong by means of any document other than (a) to
“professional investors” as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong (the “SFO”)
and any rules made under the SFO Ordinance; or (b) in other circumstances which do not result in the document
being a “prospectus” as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance
(Cap. 32) of Hong Kong or which do not constitute an offer to the public within the meaning of that ordinance;
and no advertisement, invitation or document relating to the notes may be issued or may be in the possession of
any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the
contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under
the securities laws of Hong Kong) other than with respect to the notes which are or are intended to be disposed of
only to persons outside Hong Kong or only to “professional investors” as defined in the SFO and any rules made
under that ordinance.

Notice to Prospective Investors in Italy

The offer of the notes has not been registered with the Commissione Nazionale per le Societá e la Borsa
(Italian Securities and Exchange Commission, or the “CONSOB”) pursuant to Italian securities legislation and,
accordingly, the notes may not be offered, sold or distributed to the public in the Republic of Italy (“Italy”) nor
may copies of this prospectus or of any other document relating to the notes be distributed in Italy, except:

(1) to investitori qualificati (qualified investors), as defined in Article 2, paragraph (e) of the
Prospectus Regulation as implemented by Article 34-ter of CONSOB Regulation No. 11971 of
May 14, 1999, as amended from time to time, (the “Issuers Regulation”); or

(1) in any other circumstances where an express exemption from compliance with the restrictions on
offers to the public applies, as provided under Article 100 of the Italian Legislative Decree
No. 58 of February 24, 1998, as amended from time to time, (the “Financial Services Act”) and
Article 34-ter of the Issuers Regulation.

Moreover, and subject to the foregoing, any offer, sale or delivery of the notes or distribution of copies of this
prospectus or any other document relating to the notes in Italy under (1) or (ii) above must be:

(1) made by an investment firm, bank or financial intermediary permitted to conduct such activities
in Italy in accordance with the Financial Services Act, CONSOB Regulation No. 16190 of
29 October 2007, as amended from time to time, and Legislative Decree No. 385 of
September 1, 1993, as amended from time to time (the “Banking Act”);

(ii) in compliance with Article 129 of the Banking Act and the implementing guidelines of the Bank
of Italy, as amended from time to time, pursuant to which the Bank of Italy may request

information on the issue or the offer of securities in Italy; and

(iii)in compliance with any other applicable laws and regulations or requirement imposed by the Bank of
Italy, CONSOB or other Italian authority.

Any investor purchasing the notes in this offering is solely responsible for ensuring that any offer or resale of the
notes it purchased in the offering occurs in compliance with applicable Italian laws and regulations.

123
Notice to Prospective Investors in Japan

The notes have not been and will not be registered under the Financial Instruments and Exchange Act,
and the notes have not been offered or sold and will not be offered or sold, directly or indirectly, in Japan or to, or
for the benefit of, any resident of Japan (which term as used herein means any person resident in Japan, including
any corporation or other entity organized under the laws of Japan), or to others for re-offering or resale, directly or
indirectly, in Japan or to, or for the benefit of, a resident of Japan, except as pursuant to an exemption from the
registration requirements of, and otherwise in compliance with, the Financial Instruments and Exchange Act and
any other applicable laws, regulations and ministerial guidelines of Japan.

Notice to Prospective Investors in Singapore

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore.
Accordingly, this prospectus or any other document or material in connection with the offer or sale, or invitation
for subscription or purchase, of the notes may not be circulated or distributed, nor may the notes be offered or sold,
or be made the subject of an invitation for subscription or purchase, of such notes, whether directly or indirectly, to
persons in Singapore other than (i) to an institutional investor under Section 274 of the Securities and Futures Act,
Chapter 289 of Singapore (the “SEA”), (11) to a relevant person pursuant to Section 275(1), or any person pursuant
to Section 275(1A), and in accordance with the conditions specified in Section 275, of the SFA, or (iii) otherwise
pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

Where the notes are subscribed or purchased under Section 275 of the SFA by a relevant person which is:

(1) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole
business of which is to hold investments and the entire share capital of which is owned by one or
more individuals, each of whom is an accredited investor; or

(ii) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments
and each beneficiary of the trust is an individual who is an accredited investor,

securities (as defined in Section 239(1) of the SFA) of that corporation or the beneficiaries” rights and interest
(howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has
acquired the notes pursuant to an offer made under Section 275 of the SFA, except:

(1) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in
Section 275(2) of the SFA), or to any person arising from an offer referred to in Section
275(1A), or Section 276(4)(1(B) of the SFA;

(ii) where no consideration is or will be given for the transfer;
(ii) where the transfer is by operation of law;
(iv) as specified in Section 276(7) of the SFA; or

(v) as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and
Debentures) Regulations 2005 of Singapore.

Notification under Section 309(B)(1)NX(c) of the SFA. The Company has determined that the Securities are
(A) prescribed capital markets products (as defined in the Securities and Futures (Capital Markets Products)
Regulations 2018) and (B) Excluded Investment Products (as defined in MAS Notice SFA 04-N12: Notice on the
Sale of Investment Products and MAS Notice FAA-N16: Notice on Recommendations on Investment Products).

Notice to Prospective Investors in Switzerland

This prospectus is not intended to constitute an offer or solicitation to purchase or invest in the notes
described herein. The notes may not be publicly offered, sold or advertised, directly or indirectly, in, into or from
Switzerland and will not be listed on the SIX Swiss Exchange or on any other exchange or regulated trading
facility in Switzerland. Neither this prospectus nor any other offering or marketing material relating to the notes

124
constitutes a prospectus as such term is understood pursuant to article 652a or article 1156 of the Swiss Code of
Obligations, and neither this prospectus nor any other offering or marketing material relating to the notes may be
publicly distributed or otherwise made publicly available in Switzerland.

Notice to Prospective Investors in Chile

The notes may not be offered or sold in Chile, directly or indirectly, by means of a “Public Offer” (as
defined under Law 18.045 and regulations from the CMFE). Chilean institutional investors (such as banks, pension
funds and insurance companies) are required to comply with specific restrictions relating to the purchase of the
notes. Pursuant to Chilean law, a public offering of securities is an offering that is addressed to the general public
or to certain specific categories or groups thereof. Considering that the definition of public offering is quite broad,
even an offering addressed to a small group of investors may be considered to be addressed to a certain specific
category or group of the public and therefore be considered public under applicable law. On June 27, 2012, the
CMF issued Norma de Carácter General No. 336 (General Rule No. 336, hereinafter “NCG 336”), which is
intended to govern the private offering of securities in Chile. NCG 336 provides that the offering of securities that
meet the conditions described therein shall not be considered public offerings in Chile and shall be exempted from
complying with the general rules applicable to public offerings.

Notice to Prospective Investors in China

The notes are not being offered or sold and may not be offered or sold, directly or indirectly, in the People”s
Republic of China (the “PRC”) (for such purposes, not including the Hong Kong and Macau Special
Administrative Regions or Taiwan), except as permitted by the securities laws of the PRC.

Notice to Prospective Investors in the Dubai International Financial Centre

This prospectus relates to an Exempt Offer in accordance with the Markets Rules 2012 of the Dubai Financial
Services Authority (“DFSA”). This prospectus is intended for distribution only to persons of a type specified in
the Markets Rules 2012 of the DFSA. It must not be delivered to, or relied on by, any other person. The DFSA
has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The DFSA has
not approved this prospectus nor taken steps to verify the information set forth herein and has no responsibility for
this prospectus. The notes to which this prospectus relates may be illiquid and/or subject to restrictions on their
resale. Prospective purchasers of the notes offered should conduct their own due diligence on the notes. If you do
not understand the contents of this prospectus, you should consult an authorized financial advisor.

Notice to Prospective Investors in Taiwan

The dealer manager has represented and warranted that the offer of the notes has not been and will not be
registered with the Financial Supervisory Commission of Taiwan pursuant to relevant securities laws and
regulations and the notes may not be sold, issued or offered within Taiwan through a public offering or in a
circumstance which constitutes an offer within the meaning of the Securities and Exchange Act of Taiwan
requiring registration or approval of the Financial Supervisory Commission of Taiwan. The dealer manager has
represented and warranted that no person or entity in Taiwan has been authorized to offer, sell, give advice
regarding or otherwise intermediate the offering and sale of the notes in Taiwan.

Notice to Prospective Investors in the Republic of Korea

The dealer manager has represented and agreed that the notes have not been and will not be offered, delivered
or sold directly or indirectly in Korea or to any resident of Korea except as otherwise permitted under applicable
Korean laws and regulations. The dealer manager has undertaken to ensure that any securities dealer to which it
sells the notes confirms that it is purchasing such notes as principal and agrees with such dealer manager that it
will comply with the restrictions described above.

125
TRANSFER RESTRICTIONS

The notes have not been and will not be registered under the Securities Act or with any securities
regulatory authority in any jurisdiction and may not be offered or sold in the United States or to, or for the account
or benefit of, U.S. persons except that notes may be offered or sold to persons other than U.S. persons as such term
is defined in Regulation S under the Securities Act in offshore transactions in reliance upon Regulation S.

(1) You acknowledge that:

(1) the notes have not been registered under the Securities Act or any other securities laws and are
being offered for resale in transactions that do not require registration under the Securities Act or any
other securities laws; and

(ii) the notes may not be offered, sold or otherwise transferred except under an exemption from, or in
a transaction not subject to, the registration requirements of the Securities Act or any other applicable
securities laws, and, if applicable, in compliance with the conditions for transfer set forth in paragraph
below.

(2) You represent that you are not a U.S. person (as defined in Regulation S under the Securities Act) or
purchasing for the account or benefit of a U.S. person and you are purchasing notes in an offshore transaction in
accordance with Regulation $.

(3) You acknowledge that neither we nor the managers nor any person representing us or the managers
has made any representation to you with respect to us or the offering of the notes, other than the information
contained or incorporated by reference in this prospectus. You represent that you are relying only on this
prospectus in making your investment decision with respect to the notes. You agree that you have had access to
such financial and other information concerning us and the notes as you have deemed necessary in connection with
your decision to purchase notes, including an opportunity to ask questions of and request information from us.

(4) You agree, and each subsequent holder of the notes by its acceptance of the notes will agree, that the
notes may be offered, sold or otherwise transferred only:

(i) in an offshore transaction complying with Rule 903 or Rule 904 of Regulation S under the
Securities Act; or

(ii) pursuant to an exemption from registration under the Securities Act (if available).

As a condition to registration of transfer of the notes pursuant to the exemption referred to in clause (ii)
above, we or the trustee may require delivery of any documents or other evidence that we or the trustee each, in
our or its discretion, deems necessary or appropriate to evidence compliance with such exemption, and, in each
case, in accordance with the applicable securities laws of the states of the United States and other jurisdictions.

In addition, with respect to each offering of the notes under the Program, until 40 days following after the
later of the commencement of such offering and the closing date, an offer or sale of notes within the United States
by a broker-dealer whether or not participating in any of the offerings may violate the registration requirements of
the Securities Act.

(5) You acknowledge that we, the managers and others will rely upon the truth and accuracy of the above
acknowledgments, representations and agreements. You agree that if any of the acknowledgments, representations
or agreements you are deemed to have made by your purchase of notes is no longer accurate, you will promptly
notify us and the managers. If you are purchasing any notes as a fiduciary or agent for one or more investor
accounts, you represent that you have sole investment discretion with respect to each of those accounts and that
you have full power to make the above acknowledgments, representations and agreements on behalf of each
account.

126
Each purchaser of notes must comply with all applicable laws and regulations in force in any jurisdiction
in which it purchases, offers or sells notes or possesses or distributes this prospectus or any part of it and must
obtain any consent, approval or permission required by it for the purchase, offer or sale by it of notes under the
laws and regulations in force in any jurisdiction to which it is subject or in which it makes such purchases, offers
or resales, and neither the Company nor the managers shall have any responsibility therefor.

127
GLOSSARY OF CERTAIN MINING TERMS

Andesite: A fine-grained volcanic rock, usually dark grey in color, with an average composition of
50-60% sulphur dioxide.

Anode Copper: Blister copper that has undergone further refinement to remove impurities. In an anode furnace,
the blister copper is blown with air and a hydrocarbon redundant to upgrade its purity to approximately
99.5% copper. It is then cast into keystone-shaped slabs that are shipped to an electrolytic refinery.

Anodic Slime: A product with a high content of precious metals that settles on the bottom of an electrolytic cell in
the copper refinery during the production of copper cathodes. The product is called anode, or anodic, slime due to
its muddy appearance. Anode slimes have a high commercial value based on their precious metals content (silver,
gold, platinum and palladium).

Blister Copper: Copper that has been cast after passing through a converter. Blister copper is approximately
99.0% copper and takes its name from the “blisters” that form on the surface during cooling.

Breccia: A rock conglomerate made up of highly angular coarse fragments.

Calcopyrite: A combination of copper and iron sulfide with a metallic yellow-gold color, containing
34.7% copper, 30% iron and 26% sulfur.

Cathode: Copper produced by an electrochemical refining process that has been melted and cast into cakes,
billets, wire bars or rods usually weighing approximately 90kg.

Concentration: The process by which crushed and ground ore is separated into metal concentrates and reject
material through processes such as flotation. Concentrates are shipped to a smelter for further processing.

Concentrator: A plant where concentration takes place.
Converter: A plant that conducts a principal phase of the smelting process, blowing oxygen-enriched air through,
molten metal, causing oxidation and the removal of sulfur and other impurities. In the case of copper, the product

of this process is blister copper.

Copper Concentrate: A product of the concentrator usually containing 25% to 30% copper. It is the raw feed
material for smelting.

Copper Grade: The concentration of copper in a given volume of rock, usually expressed as a percentage.

Dacite: A fine-grained volcanic rock similar in composition to andesite but containing a greater abundance of
quartz crystals that are frequently visible to the naked eye.

Development: Activities related to the building of infrastructure and the stripping and opening of mineral
deposits, commencing when economically recoverable reserves can reasonably be estimated to exist and generally
continuing until commercial production begins.

Diorite: A dark, coarsely crystalline igneous rock, similar in composition to granite that is composed principally
of silica, alumina, calcium and iron.

Electrolytic Refining: Electrochemical refining of copper anodes. Copper anodes are placed between layers of
refined copper sheets in a tank through which an acid copper sulfate solution is circulated. A low voltage current
is introduced, causing the transfer of copper from the anodes to the pure copper sheets, and producing
99.98% copper cathodes. Impurities, often containing precious metals, settle to the bottom of the tank.

Electrowinning: The process of directly recovering copper from solution by the action of electric currents.

128
Exploration: Activities associated with ascertaining the existence, location, extent or quality of a mineral deposit.
Fine Copper: 99.99% pure copper obtained through metallurgical processes.

Flotation: A process of copper concentrate production in which mineral particles attach themselves to the bubbles
in an oily froth and rise to the surface, where they are skimmed off. This process is used primarily for the
concentration of sulfide ores.

Flux: A high grade silica, which reacts with iron oxides formed during smelting and converting stages to create a
molten slag.

Geological Resources (measured, indicated and inferred): Concentrations or occurrences of materials in such
form, quantity (tonnage and ore grade) and quality, based on specific geological evidence and knowledge, which
allows for the calculation of the amount, ore grade and quality of the material with some level of confidence.

Grade A Copper: Electrolytic copper, in the form of cathodes, that (i) is at least 99.99% pure, (ii) meets the
LMES’s highest standards for copper quality, and (iii) is named in the LME-approved list of brands of Grade A
copper.

Indicated Resources (geological or mineral resources): Resources about which CODELCO”s knowledge is
substantial but less extensive than its knowledge of measured resources.

Inferred Resources (geological or mineral resources): Resources about which CODELCO””s knowledge is only
indirect.

Intrusion: A geologic processes in which magmatic material flows to the earth’s surface through pre-existing
rocks.

Leached Capping: An abundant mass of iron oxide concentrated in the upper zones of a porphyry copper
deposit.

Leaching: The process of extracting a soluble metallic compound from an ore by selectively dissolving it in a
suitable solvent.

Matte: A high density liquid that is produced during the concentrate fusion stage of the pyro-metallurgical
process.

Matte Sulfide: A high density liquid containing copper and iron sulfides that is produced of the concentrate
fusion stage of the pyro-metallurgical process.

Measured Resources (geological or mineral resources): Resources about which CODELCO”s knowledge is
both extensive and direct.

Milling: A treatment process in which ore is ground into a fine powder.
Mine: Mines are the source of mineral-bearing material found near the surface or deep in the ground.

Mineral Deposit: A mineralized underground body that has been probed by a sufficient number of closely-spaced
drill holes and/or underground sampling measurements to support an estimate of sufficient tonnage and ore grade
to warrant further exploration or development. Mineral deposits or mineralized materials do not qualify as
commercially minable ore reserves (i.e., proved reserves or probable reserves), as prescribed under standards of
the U.S. Bureau of Mines Circular 831 of 1980, until a final and comprehensive economic, technical, and legal
feasibility study based upon the test results has been concluded.

129
Mineral Resources (measured, indicated and inferred): Geological resources about which CODELCO has
achieved increased knowledge and which enable CODELCO to generate a long-term mining plan for the
exploitation of such resources.

Mineralization: A deposit of rock containing one or more minerals for which the economics of recovery have not
yet been established.

Molybdenum: A metallic element, grayish in color, that resembles chromium and tungsten in many properties,
and is used especially in strengthening and hardening steel.

Ore: A mineral or aggregate of minerals from which metal can be economically mined or extracted.
Ore Grade: The average amount of metal expressed as a percentage or in ounces per metric ton.
Ore Deposit: Category including all geological resources, mineral resources and ore reserves.

Ore Reserves: The economically mineable part of a mineral resource.

Ounces: Unit of weight. A troy ounce equals 31,103 grams or 1.097 avoirdupois ounces.
Outokumpu Flash Furnace: Pyro-metallurgical technology used to smelt copper concentrate.
Overburden: The alluvium and rock that must be removed in order to expose an ore deposit.

Oxide Ore: Metalliferous minerals altered by weathering, surface waters, and their conversion, partly or wholly,
into oxides, carbonates, or sulfates.

Pierce Smith Converter: Horizontal furnace to remove impurities from white metal by oxidation.
Porphyry: Rock with siliceous minerals and fine-medium grained size.
Porphyry-type Ore Body: Deposit of porphyric rocks with economic mineralization.

Probable Ore Reserves: Ore reserves about which CODELCO””s knowledge is substantial but less extensive than
its knowledge of proved ore reserves.

Proved Ore Reserves: Ore reserves about which CODELCO”s knowledge is both extensive and direct.
Quantities of proved ore reserves are computed from dimensions revealed in outcrops, trenches, workings or drill
holes, and grade and quality are computed from the results of detailed sampling. Sites for inspection, sampling
and measurement of proved ore reserves are spaced so closely together, and the geologic character of the ore is so
well defined, that its size, shape, depth and mineral content are well established.

Reclamation: The process of restoring mined land to a condition established by applicable law. Reclamation
standards vary widely, but usually address issues of ground and surface water, topsoil, final slope gradients,
overburden and revegetation.

Refining: The purification of crude metallic substances.

Reverberatory Furnace: A furnace with a shallow hearth and a ceiling that reflects flames toward the hearth or
radiates heat toward the surface of the charge.

Rod Mill: A large rotating cylinder in which metal rods are used for grinding ore.

Slag: A residue of the smelting process containing iron and other impurities, which the Company disposes of with
its other industrial solid waste.

130
Smelting: A pyro-metallurgical process in which metal is separated by fusion from those impurities with which it
may be chemically combined or physically mixed.

Solvent Extraction: A method of separating one or more substances from a chemical solution by treatment with a
suitable organic solvent.

Subvertical: Amount of waste material removed during mining per metric ton of ore extracted in a near-vertical
spatial orientation.

Sulfide Ore: Ore characterized by the inclusion of metal in the crystal structure of a sulfide mineral.

Tabular: Having a near-rectangular geometric configuration close to a rectangular shape.

Tailings: Finely ground rock from which valuable minerals have been extracted by concentration.

Teniente Converter: A horizontal rotary furnace into which matte, concentrates and flux are placed, and through
which oxygen-rich air is blown to provide sufficient heat to smelt the concentrates. Off-gases are captured and
transported to the acid plant.

Teniente Modified Converter: An advanced pyro-metallurgical technology used to smelt copper concentrate.

Ton: A unit of weight. One metric ton equals 2,204.6 pounds. One short ton equals 2,000 pounds. Unless
otherwise specified in this document, “tons” refers to metric tons.

Tourmaline: A dark-green hydrosilicate that exists in altered rock zones in some ore deposits.

131
GENERAL INFORMATION
Authorization

The Ministry of Finance of Chile authorized the issuance of the notes by Resolution No. 1,813 dated
September 12, 2019.

CODELCO’s Board of Directors authorized the issuance of the notes in its ordinary session of
April 25, 2019 by means of Reserved Agreement No. 15/2019.

CODELCO has obtained or will obtain from time to time all other consents and authorizations necessary
under Chilean law for the issuance of the notes.

Litigation
CODELCO is not involved in any litigation or arbitration proceeding which is material in the context of the

issuance of the notes. CODELCO is not aware of any material litigation or arbitration proceeding that is pending
or threatened.

Clearing

The notes have been accepted for clearance through the clearing systems of Euroclear System and
Clearstream Banking, S.A. The securities codes will be specified on the Final Terms.

Listing
CODELCO may list the notes issued under the Program on a securities exchange.
Registration and Form
The notes have been issued in registered, book-entry form through the facilities of Euroclear and

Clearstream, and will be issued in certificated form only under the limited circumstances described in this
prospectus.

Financial Condition

There has been no material adverse change in CODELCO*s financial condition and prospects since the
date of the last audited financial statements.

132
O

CODELCO

CODELCO – CHILE

Unaudited interim consolidated financial statements as of June 30, 2019 and for
the six-month and three-month periods ended June 30, 2019 and 2018

(Translation into English of the unaudited interim consolidated financial statements
originally issued in Spanish — see Note 1.2)
TABLE OF CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ……..uuomccoccoomosmosoos 7
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) .
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS – DIRECT METHOD
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY …..

L GENERAL INFORMATION

1. Corporate Information
2. Basis of Presentation of the Consolidated Financial Statements

ll. SIGNIFICANT ACCOUNTING POLICIES

1. Significant Judgments and Key Estimates
2. Significant accounting policies
3. New standards and interpretations adopted by the Corporation
4. New accounting pronouncements

lll… EXPLANATORY NOTES

1. Cash and cash equivalents

2. Trade and other receivables…………… .41
3. Balance and transactions with related parties .. .43
4. InventoriesS oocconoconnnnonnnononininonananonanos .47
5. Income taxes and deferred taxes…….. .48
6. Current and non-current tax assets and liabilities. .51
7. Non-current assets or disposal groups classified as held for sale . .51
8. Property, Plant and EquipMeNt ….noononcccononacconincnnannonancnnonannnraos .52
9. Investments accounted for using the equity . .55
10. Intangible assets other than goodwil! ….. .63

11. SubsidiarieS …….ococonnnnnsmmm**”.
12. Other non-current non-financial assets
13. Current and non-current financial assets
14. Other financial liabilities ……………………
15. Fair Value of financial assets and liabilities .
16. Fair value hierarchy…….

17. Trade and other payables .. .79
18. Other provisions ……. .80
19. Employee benefits .81
20. Equity ………. .84

21. Revenue…….
22. Expenses by nature…
23. Impairment of Assets
24. Other income and expenses by function.
25. Finance COSÉS .onononoconanonnnranannonaninon .90
26. Operating segments……….
27. Foreign exchange differences
28. Statement of cash flOWS ……..ocococinocononos
29. Financial risk management, objectives and policies .
30. Derivatives CONtractS ….ococonocononocinanonnnos … 101
31. Contingencies and restrictiONS……….cooconnonenonnnnnnnnenanconannn conan co nannornnnaroron corona rnnno ro nro rara no rra nr rn ano ra rnara ninos 104

F-2
32.
33.
34.
35.
36.

Guarantees
Balances in foreign

SanctionS …………..
Environmental Expenditures

Subsequent events

currency

F-3

CORPORACION NACIONAL DEL COBRE DE CHILE
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of June 30, 2019 (Unaudited) and December 31, 2018
(In thousands of US dollars – ThUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

6/30/2019 12/31/2018
Notes
Assets
Current Assets
Cash and cash equivalents 1 478,871 1,229,125
Other current financial assets 13 401,888 231,409
Other current non-financial assets 23,763 6,805
Trade and other currentreceivables 2 2,006,725 2,212,209
Accounts receivable from related parties, current 3 20,256 92,365
Inventories 4 2,045,002 2,042,648
Current tax assets 6 48,247 13,645
Total current assets other than assets or groups ofassets for
disposition classified as held for sale or held as distributable to 5,024,752 5,828,206
owners
Non-current assets or disposal groups classified as held for sale 7 89,519 –
[ Total current assets 5,114,271 5,828,206
Non-current assets
Other non-current financial assets 13 162,816 145,751
Other non-current non-financial assets 12 9,198 6,817
Non-currentreceivables 2 96,063 84,731
Accounts receivable from related parties, non-current 3 18,030 20,530
Non-current inventories 4 555,968 457,070
Investments accounted for using equity method 9 3,484,027 3,568,293
Intangible assets other than goodwill 10 47,056 48,379
Property, plantand equipment 8 28,242,219 26,754,998
Investment property 981 981
Non-current tax assets 6 144,745 143,606
Deferred tax assets 5 35,144 31,443
Total non-current assets 32,796,247 31,262,599
Total Assets 37,910,518 37,090,805

The accompanying notes are an integral part of these interim consolidated financial statements.

F-4
CORPORACION NACIONAL DEL COBRE DE CHILE

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of June 30, 2019 (Unaudited) and December 31, 2018
(In thousands of US dollars – ThUS$)

(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

Notes 6/30/2019 12/31/2018
No
Liabilities and Equity
Liabilities
Current liabilities
Other current financial liabilities 14 1,185,501 872,277
Trade and other current payables 17 1,638,656 1,546,584
Accounts payable to related parties, current 3 141,930 150,916
Other current provisions 18 839,807 384,249
Current tax liabilities 6 9,322 10,777
Current provisions for employee benefits 19 330,182 510,034
Other current non-financial liabilities 96,643 64,575
[Total current liabilities 4,242,041 3,539,412 ]
Non-current liabilities
Other non-current financial liabilities 14 14,634,405 14,674,510
Non-current payables 19,312 26,613
Other non-current provisions 18 1,610,406 1,600,183
Deferred tax liabilities 5 4,506,057 4,586,168
Non-current provisions for employee benefits 19 1,329,094 1,315,520
Other non-current non-financial liabilities 4,289 4,530
Total non-current liabilities 22,103,563 22,207,524
Total liabilities 26,345,604 25,746,936
Equity
Issued capital 20 5,619,423 5,219,423
Accumulated deficit (302,999) (198,917)
Other reserves 20 5,330,675 5,354,159
[ Equity attributable to owners of the parent 10,647,099 10,374,665 |
Non-controlling interests 20 917,815 969,204
Total equity 11,564,914 11,343,869
[ Total liabilities and equity 37,910,518 37,090,805 |

The accompanying notes are an integral part of these interim consolidated financial statements.

FS
CORPORACION NACIONAL DEL COBRE DE CHILE

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

For the six month and three month periods ended June 30, 2019 and 2018 (Unaudited)
(In thousands of US dollars – TRUS$)

(Translation into English of the consolidated financial statements originally issued in Spanish — see

Note 1.2)
Notes 1/1/2019 1/1/2018 4/1/2019 411/2018
NW 6/30/2019 6/30/2018 6/30/2019 6/30/2018
Revenue 2 5,916,749 7,426,464 2,766,611 3,906,611
Cost of sales (4,661,912) (5,577,274) (2,352,840) (2,969,801)
[Gross profit 1,254,837 1,849,190 413,71 936,810
Other Income, by function Za 90,713 65,511 46,304 7,823
Reversal of impaiment loss determined in accordance with IFRS 9 588 1,315 223 54
Distribution costs (7,784) (9,746) (5,390) (4,076)
Administrative expenses (203,446) (232,345) (115,429) (127,664)
Other expenses 24b (085,326) (964,409) (524,367) (488,696)
Other gains 13,114 8,248 6,311 822
[Income (loss) from operating activities 162,696 717,764 (178,577) 325,561
Finance income 17,568 24,709 8,568 14,608
Finance costs 2 (260,139) (237,609) (109,196) (114,203)
Share of profit of associates and joint ventures accounted for using equity method 9 5,233 73,723 12,010 56,680
Foreign exchange difference 21 (60,182) 95,645 (6,219) 127,454
[lLoss) income for the period before tax (134,724) 674,232 (273,414) 410,100
Benefit (loss) tax expense continuing operations 5 34,490 (430,318) 165,815 (234,317)
[Net (loss) income for the period (100,234) 249,914 (107,599) 175,783
Net (loss) income attributable to owners of parent (104,573) 223,307 (112,718) 159,311
Net income attributable to non-contraling interests 20b 4,339 20,607 5,119 16,472
[Not (loss) income for the period (100,234) 243,914 (107,599) 175,783

The accompanying notes are an integral part of these interim consolidated financial statements.

FG
CORPORACION NACIONAL DEL COBRE DE CHILE
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
CONTINUED
For the six month and three month periods ended June 30, 2019 and 2018 (Unaudited)
(In thousands of US dollars – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Notes 1/1/2019 1/1/2018 4/1/2019 4/1/2018
No 6/30/2019 6/30/2018 6/30/2019 6/30/2018

[Net (loss) income for the period (100,234) 243,914 (107,599) 175,783
Components of other comprehensive income that will not be reclassified to profit
or loss, before tax:

(Losses) gains on remeasurement of defined benefit plans, before tax (3,861) (5,288) 369 (1,834)
Share of other comprehensive income (loss) of associates and joint ventures accounted – 635 (43) –
for using the equity method that will not be reclassified to profit or loss before tax

Other comprehensive (loss) income that will not be reclassified to profit or loss (3,861) (4,653) 326 (1,834)
before tax

Components of other comprehensive income that will be reclassified to profit or

loss, before tax:

(Losses) gains on exchange difference on translation, before tax (123) 225 790 (1,203)
(Losses) gains on cash flow hedges, before tax (63,068) 75,196 3,378 21,274
Share of other comprehensive income (loss) of associates and joint ventures accounted 7 (668) 8 (991)
for using equity method that will be reclassified to profit or loss, before tax

po comprehensive (loss) income that will be reclassified to profit or loss before (63,184) 74,753 4,176 19,080
Other comprehensive (loss) income, before tax (67,045) 70,100 4,502 17,246
Income tax effect on components of other comprehensive income which will not

be reclassified to profit or loss

Income tax effect relating to cash flow hedges in other comprehensive income 5 2,565 3,028 (328) 1,359
Income tax effect of components of other comprehensive income which will be

reclassified to profit or loss

Income tax effect relating to cash flow hedges of the other comprehensive income 5 40,994 (48,877) (2,196) (13,828)
Total other comprehensive (loss) income (23,486) 24,251 1,978 4,777
Total Comprehensive (loss) Income (123,720) 268,165 (105,621) 180,560
Comprehensive (loss) income attributable to:

Comprehensive (loss) income attributable to owners of the parent (128,059) 247,558 (110,740) 164,088
Comprehensive income attributable to non-controlling interests 20.b 4,339 20,607 5,119 16,472
[Total comprehensive (loss) income (123,720) 268,165 (105,621) 180,560

The accompanying notes are an integral part of these interim consolidated financial statements.

F-7
CORPORACION NACIONAL DEL COBRE DE CHILE
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS – DIRECT METHOD
For the six month periods ended June 30, 2019 and 2018 (Unaudited)
(In thousands of US dollars – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

Notes 1/1/2019 1/1/2018
No 6/30/2019 6/30/2018
Cash flows provided by operating activities:
Receipts from sales of goods and rendering of services 6,331,628 8,366,174
Other cash receipts from operating activities 28 987,521 858,939
Payments to suppliers for goods and services (3,964,052) (4,634,204)
Payments to and on behalf of employees (966,688) (1,041,767)
Other cash payments from operating activities 28 (640,860) (701,726)
Dividends received 84,372 59,971
Income taxes paid (39,468) (27,973)
[ Cash flows provided by operating activities 1,792,453 2,879,414
Cash flows used in investing activities:
Other payments to acquire equity or debt instruments of other entities (240) –
Purchase of property, plant and equipment (2,107,817) (1,855,342)
Interest received 14,169 16,458
Other outflows of cash (204,590) (131,338)
[ Cash flows used in investing activities (2,208,478) (1,970,222)
Cash flows used in financing activities:
Proceeds from borrowings long term 1,300,000 600,000
Proceeds from borrowings short term 465,000 26,807
Total proceeds from borrowings 1,765,000 626,807
Repayment of borrowings (1,843,963) (185,219)
Payments of finance lease liabilities (72,180) (11,966)
Dividends paid – (445,246)
Interest paid (313,424) (292,622)
Other cash inflow 209,497 1,833
Cash flows used in financing activities (255,070) (306,413)
(Decrease) Increase in cash and cash equivalents before effect of (761,095) 602,779
exchange rate
Effect of exchange rate changes on cash and cash equivalents 10,841 (38,515)
(Decrease) increase in cash and cash equivalents (750,254) 564,264
Cash and cash equivalents at beginning of period 1 1,229,125 1,448,835
Cash and cash equivalents at end of period 1 478,871 2,013,099

The accompanying notes are an integral part of these interim consolidated financial statements.

FS
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CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

GENERAL INFORMATION
Corporate Information

Corporación Nacional del Cobre de Chile (hereinafter referred to as “Codelco”, “Codelco – Chile”, or the
“Corporation”), is, in Management’s opinion, the largest copper producer in the world. Codelco’s most
important product is refined copper, primarily in the form of cathodes. The Corporation also produces copper
concentrates, blister and anode copper and by-products such as molybdenum, anode slime and sulfuric
acid.

The Corporation trades its products based on a policy aimed to sell refined copper to manufacturers or
producers of semi-manufactured products.

These products contribute to diverse fields of community development, particularly those intended to
improve areas such as public health, energy efficiency, and sustainable development, among others.

Codelco-Chile is registered under Securities Registry No. 785 of the Chilean Commission for the Financial
Market (the “CMF”), and is subject to its supervision. According to Article No. 10 of Law No. 20392 (related
to the new Corporate Governance of Codelco), such supervision shall be on the same terms as publicly
traded companies, notwithstanding the provisions in Decree Law (D.L.) No.1349 of 1976, which created the
Comisión Chilena del Cobre (“Chilean Copper Commission”).

Codelco’s head office is located in Santiago, Chile, at 1270 Huérfanos Street, telephone number (56-2)
26903000.

Codelco was incorporated through D.L. No. 1350 of 1976, which is the statutory decree applicable to the
Corporation. In accordance with the statutory decree, Codelco is a government-owned mining, industrial
and commercial company, which is a separate legal entity with its own equity, Codelco Chile currently carries
out its mining business through its Chuquicamata, Radomiro Tomic, Ministro Hales, Gabriela Mistral,
Salvador, Andina, El Teniente and Ventanas divisions. The Gabriela Mistral division is in charge of the ore
deposit of the same name, whose operations were, until December 31, 2012, the responsibility of its
subsidiary Minera Gaby SpA., a wholly owned subsidiary of the Corporation which was absorbed by Codelco
on that date.

The Corporation also carries out similar activities in other mining deposits in association with third parties.

In accordance with letter e) of Article 10 of Law No. 20392, Codelco is governed by its organic standards
set forth in Decree Law No. 1350 (D.L. No. 1350) and that of its by-laws, and in matters not covered by them
and, insofar as they are compatible and do not contradict the provisions of such standards, by the rules that
govern publicly traded companies and the common laws as applicable to them.

In accordance with D.L. No. 1350 Section IV related to the Company’s Exchange and Budget Regulations.

Codelco’s financial activities are conducted following an annual budgeting program that is composed of an
Operations Budget, an Investment Budget and a Debt Amortization Budget.

F-10
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The tax system applicable to Codelco’s taxable income is in accordance with Article 26 of D. L. No.1350
which refers to Decree Law No. 824 on Income Tax of 1974 and Decree Law No. 2398 (Article 2) of 1978,
as applicable. The Corporation’s taxable income is also subject to a Specific Mining Tax in accordance with
Law No. 20026 of 2005.

The Corporation is subject to Law No. 13196, which mandates the payment of a 10% tax over the foreign
currency return on the actual sale revenue of copper production, including its by-products. On January 27,
2017, Law No. 20989, article 3, establishes changes in the application of Law No. 13196 as of January 1,
2018, through which the Corporation will deposit annually, no later than December 15 of each year, the
funds established in article 1 in that law.

The subsidiaries whose financial statements are included in these unaudited interim consolidated financial
statements correspond to companies located in Chile and abroad, which are detailed in Note 11.2.d.

The associates and joint ventures located in Chile and abroad, are detailed in the Explanatory Notes Section
Ill of Note 9.

Basis of Presentation of the Consolidated Financial Statements

The Corporation’s consolidated statements of financial position as of June 30, 2019 and December 31, 2018
and the unaudited consolidated statements of comprehensive income for the six month and three month
periods ended June 30, 2019 and 2018, changes in equity and of cash flows for the six month periods ended
June 30, 2019 and 2018, have been prepared in accordance with International Accounting Standards (IAS)
No. 34. Interim Financial Reporting, as incorporated in the International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB).

These unaudited interim consolidated financial statements include all information and disclosures required
in annual financial statements.

These unaudited interim consolidated financial statements have been prepared from accounting records
maintained by the Corporation.

The unaudited interim consolidated financial statements of the Corporation are presented in thousands of
United States dollar (*U.S. dollar”).

Responsibility for the Information and Use of Estimates

The Board of Directors of the Corporation has been informed of the information included in these unaudited
interim consolidated financial statements and expressly declared its responsibility for the consistent and
reliable nature of the information included in such financial statements as of June 30, 2019 and for the six-
month and three-month periods ended June 30, 2019 and 2018, which financial statements fully comply
with IFRS as issued by the lASB. These unaudited interim consolidated financial statements as of June 30,
2019 and for the six-month and three-month periods ended June 30, 2019 and 2018 were approved by the
Board of Directors at a meeting held on August 29, 2019.
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Accounting Principles

These unaudited interim consolidated financial statements reflect the financial position of Codelco and ¡ts
subsidiaries as of June 30, 2019 and December 31, 2018, and the results of their operations for the six
month and three month periods ended June 30, 2019 and 2018, changes in equity and cash flows for the
six month periods ended June 30, 2019 and 2018, and their related notes, all prepared in accordance with
lAS 34, Interim Financial Reporting, in consideration of the presentation instructions of the Commission for
the Financial Market (“CMF”).

For the convenience of the reader, these consolidated financial statements and their accompanying notes
have been translated from Spanish into English.

SIGNIFICANT ACCOUNTING POLICIES
Significant Judgments and Key Estimates

In preparing these unaudited interim consolidated financial statements, the use of certain critical accounting
estimates and assumptions that affect the amounts of assets and liabilities recognized as of the date of the
financial statements and the amounts of revenue and expenses recognized during the reporting period is
required. Such preparation also requires the Corporation’s Management to exercise its judgment in the
process of applying the Corporation’s accounting policies. The areas involving a higher degree of judgment
or complexity, or areas where assumptions and estimates are significant to the unaudited interim
consolidated financial statements are as follows:

a) Useful economic lives and residual values of property, plant and equipment – The useful lives
and residual values of property, plant and equipment that are used for calculating depreciation are
determined based on technical studies prepared by specialists (internal or external). The technical
studies consider specific factors related to the use of assets.

When there are indicators that could lead to changes in the estimates of the useful lives of such assets,
these changes are made by using technical estimates to determine the impact of any change.

b) Ore reserves – The measurements of ore reserves are based on estimates of the ore resources that
are legally and economically exploitable, and reflect the technical and environmental considerations of
the Corporation regarding the amount of resources that could be exploited and sold at prices exceeding
the total cost associated with the extraction and processing.

The Corporation applies prudent judgment in determining the ore reserves, and as such, possible
changes in these estimates might significantly impact the estimates of net revenues over time. In
addition, these changes might lead to modifications in usage estimates, which might have an effect on
depreciation and amortization expense, calculation of stripping cost adjustments, determination of
impairment losses, expected future disbursements related to decommissioning and restoration
obligations, long term defined benefits plans’ accounting and the accounting for financial derivative
instruments.

F-12
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The Corporation estimates ¡ts reserves and mineral resources based on the information certified by the
Competent Persons of the Corporation, who are defined and regulated according to Law No. 20235.
These estimates correspond to the application of the Certification Code of Ore Reserves, Resources
and Exploration, issued by the Mining Committee which was instituted through the aforementioned law.
This does not modify the global volume of the Corporation’s ore reserves and resources.

Notwithstanding the above, the Corporation also periodically reviews such estimates, supported by
world-class external experts, who certify the reserves as determined.

c) Impairment of non-financial assets – The Corporation reviews the carrying amount of its assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any
such indicator exists, the recoverable amount of the assets is estimated in order to determine the
extent of the impairment loss. In testing impairment, the assets are grouped into cash generating
units (“CGUs”) to which the assets belong, where applicable. The recoverable amount of these
CGUs is calculated as the present value of the expected future cash flows from such assets,
considering a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. If the recoverable amount of the assets is lower than their
carrying amount, an impairment loss is recognized. Goodwill and -lived assets are indefinitely-lived
tested for impairment at least annually.

The Corporation defines the CGUs and also estimates the timing and cash flows that such CGUs will
generate. Subsequent changes in the grouping of the CGU, or changes in the assumptions supporting
the estimates of cash flows or the discount rate, may impact the carrying amounts of the corresponding
assets.

Estimates of assumptions influencing the calculation of cash flows, such as the price of copper or
treatment charges and refining charges, among others, are determined based on studies conducted
by the Corporation using uniform criteria over different periods. Any changes to these criteria may
impact the estimated recoverable amount of the assets.

The Corporation has assessed and defined that the CGUs are determined at the level of each of its
current operating divisions.

Impairment testing also is performed at the level of associates and joint arrangements.

d) Provisions for decommissioning and site restoration costs – The Corporation is obliged to incur
decommissioning and site restoration costs when such site restoration or decommissioning ¡is required
due to a legal or constructive obligation. Costs are estimated on the basis of a formal closure plan and
are reassessed annually or as of the date such obligations become known. The initial estimate of
decommissioning and site restoration costs is recognized as property, plant and equipment in
accordance with IAS 16, and simultaneously a liability in accordance with IAS 37, is recorded.

F-13
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

removal and restoration, weighted by a structure of market prices of goods and services, reflecting the
best current knowledge related to carrying out such activities, as well as techniques and more efficient
construction procedures to date. In the process of valuation of these activities, the assumptions of the
exchange rate for tradable goods and services is made, as well as a discount rate, which considers the
time value of money and the risks associated with the liabilities, which is determined based, where
applicable, on the currency in which disbursements are expected to be made.

The liability amounts recognized at the end of each reporting date represent management’s best
estimate of the present value of the future decommissioning and site restoration costs. Changes to
estimated future costs that result from changes in the estimated timing or amount of the outflow of
resources embodying economic benefits required to settle the obligation, or a change in the discount
rate are added to, or deducted from, the cost of the related asset in the current period (as well as the
associated liability). The amount deducted from the cost of the asset shall not exceed its carrying
amount. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognized
immediately in profit or loss.

If the adjustment results in an addition to the cost of the asset, Codelco considers whether this is an
indication that the new carrying amount of the asset may not be fully recoverable. If it is considered
such an indicator, Codelco tests the asset for impairment by estimating its recoverable amount, and
accounts for any impairment loss in accordance with IAS 36.

The decommissioning costs are initially recorded at the moment when a plant or other assets are
installed. Such costs are capitalized as part of property, plant and equipment and discounted to their
present value. These decommissioning costs are charged to net income over the life of the mine,
through depreciation of the corresponding asset. Depreciation expense ¡is included in cost of sales,
while the unwinding of the discount in the provision is included in finance costs.

Provisions for employee benefits – Provisions for employee benefits related to severance payments
and health benefits for services rendered by the employees are determined based on actuarial
calculations using the projected unit credit method, and are recognized in other comprehensive income
or profit or loss (depending on the accounting standards applicable).

The Corporation uses assumptions to determine the best estimate of future obligations related to these
benefits. Such estimates, as well as assumptions, are determined by management using the
assistance of external actuaries. These assumptions include demographic assumptions, discount rate
and expected salary increases and rotation levels, among other factors.

Accruals for open invoices – The Corporation uses information on future copper prices, through which
it recognizes adjustments to its revenues and trade receivables, due to the conditions in provisional
pricing arrangements. These adjustments are updated on a monthly basis, See Notes 2 r) “Revenue
from contracts with customers” of Note 2 “Significant accounting policies” below.

g) Fair value of derivatives and other financial instruments – Management may use its judgment to

choose an adequate and proper valuation method for financial instruments that are not quoted in an

F-14
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

active market. In the case of derivative financial instruments, assumptions are based on observable
market inputs, adjusted depending on factors specific to the instruments among others.

h) Lawsuits and contingencies – The Corporation assesses the probability of lawsuits and contingency

losses on an ongoing basis according to estimates performed by its legal advisors. For cases in which
management and the Corporation’s legal advisors believe that a loss is not probable of occurring or
where probable, may not be estimated reliably, no provisions are recognized.

Application of IFRS 16 that include the following:

– Estimation of the lease term;
– Determine if it is reasonably true that an extension or termination option will be exercised;
– Determination of the appropriate rate to discount lease payments.

Revenue recognition -The Corporation determines appropriate revenue recognition for its contracts
with customers by analyzing the type, terms and conditions of each contract or agreement with a
customer.

As part of the analysis, the management must make judgments about whether an agreement or
contract is legally enforceable, and whether the agreement includes separate performance obligations.
In addition, estimates are required in order to allocate the total price of the transaction to each
performance obligation based on the stand-alone selling price of the promised goods or services
underlying each performance obligation. (The Corporation applies the constraint on variable
consideration as defined in IFRS 15, if applicable).

Although the abovementioned estimates have been made based on the best information available as of
the date of issuance of these consolidated financial statements, itis possible that new developments could
lead the Corporation to modify these estimates in the future. Such modifications, if applicable, would be
adjusted prospectively, as required by IAS 8 “Accounting Policies, Changes in Accounting Estimates and
Errors.”

2. Significant accounting policies

Period covered – The accompanying unaudited interim consolidated financial statements of
Corporación Nacional del Cobre de Chile include the following statements:

– Unaudited interim consolidated statements of financial position as of June 30, 2019 and December
31, 2018.

– Unaudited interim consolidated statements of comprehensive income for the six month and three
month periods ended June 30, 2019 and 2018.

– Unaudited interim consolidated statements of changes in equity for the six month periods ended
June 30, 2019 and 2018.

– Unaudited interim consolidated statements of cash flows for the six month periods ended June 30,
2019 and 2018.

F-15
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

b) Basis of preparation – The unaudited interim consolidated financial statements of the Corporation as
of June 30, 2019 and for the six-month and three-month periods ended June 30, 2019 and 2018, has
been prepared in accordance with the instructions from the Commission for the Financial Market which
fully comply with IFRS as issued by the lASB.

The consolidated statement of financial position as of December 31, 2018 (audited), and the
consolidated statement of income for the six month and three month periods ended June 30, 2018
(unaudited), the consolidated statement of changes in equity and consolidated statement of cash flows
for the six-month period ended June 30, 2018 (unaudited), which are included for comparative
purposes, have been prepared in accordance with IFRS issued by the lASB, on a basis consistent with
the criteria used for the same periods ended June 30, 2019, except for the adoption of the new IFRS
standards and interpretations adopted by the Corporation as of and for the six-month periods ended
June 30, 2019, which are disclosed in note 11.3.

These consolidated financial statements have been prepared based on the accounting records kept by
the Corporation.

c) Functional Currency – The functional currency of Codelco is the U.S. dollar, which is the currency of
the primary economic environment in which the Corporation operates and the currency in which it
receives ¡ts revenues.

The functional currency of subsidiaries, associates and joint ventures, is the currency of the primary
economic environment in which those entities operate and the currency in which they receive their
revenues. However, for those subsidiaries and associates that are an extension of the operations of
Codelco (entities that are not self-sufficient and whose main transactions are with Codelco); the
functional currency is also the U.S. dollar.

The presentation currency of Codelco’s consolidated financial statements is the U.S. dollar.

d)Basis of consolidation – The consolidated financial statements incorporate the financial statements
of the Corporation and its subsidiaries.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Corporation
obtains control, and continue to be consolidated until the date such control ceases. Specifically, income
and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated
statement from the date the Corporation gains control until the date when the Corporation ceases to
control the subsidiary.

The financial statements of the subsidiaries are prepared for the same reporting period as the
Corporation, using consistent accounting policies.

All assets, liabilities, equity, income, expenses and cash flows related to transactions between

consolidated companies are fully eliminated on consolidation. Non-controlling interests in equity and in
the comprehensive income of the consolidated subsidiaries are presented, respectively, under the line

F-16
CORPORACION NACIONAL DEL COBRE DE CHILE

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

items “Total Equity: Non-controlling interests” in the consolidated statement of financial position and
“Net income attributable to non-controlling interests” and “Comprehensive income attributable to non-
controlling interests” in the consolidated statement of comprehensive income.

The companies included in the consolidation are as follows:

6/30/2019 1213112018
Taxpayer 1D Number Company Country ena 2% Ownership % Ownership
Direct Indirect Total Total

Foreign [Chile Copper Limited England EP 100.00] ] 100.00] 100.00]
Foreign [Codelco do Brasil Mineracao Brazil BRL , 100.00] 100.00] 100.00]
Foreign [Codelco Group Inc. e os of US$ 100.00] y 100.00] 100.00]
Foreign [Codelco ntemational Limited Bermuda US$ 100.00] , 100.00] 100.00]
Foreign [Codelco Kupferhandel GmbH Germany EURO 100.00] , 100.00] 100.00]
Foreign [Codelco Metals Inc. e os o US$ J 100.00] 100.00 100.00]
Foreign [Codelco Semices Limited England cap , 100.00] 100.00] 100.00]
Foreign [Codelco Shanghai Company Limited China RMB 100.00] , 100.00] 100.00]
Foreign [Codelco Technologies Lt4. Bermuda US$ , 100.00] 100.00] 100.00]
Foreign [Codelco USA Inc. e os of US$ y 100.00] 100.00] 100.00]
Foreign [Codelco Canada Canada US$ , 100.00] 100.00] 100.00]
Foreign Ecometales Limited Channel Islands US$ , 100.00] 100.00] 100.00]
Foreign Exploraciones Mineras Andinas Ecuador EMSAEC S.A. Ecuador US$ , 100.00] 100.00] 100.00]
Foreign [Cobrex Prospeccao Mineral Brazil BRL , 51.00] 51.00 51.00]
78.860.780-5 [Compañía Contractual Minera los Andes Chile US$ 99.97 0.3 100.00] 100.00]
79.566.720-2 Isapre Chuquicamata Ltda. Chile cp 98.30 1.70 100.00] 100.00]
81.767.200 Asociación Garantizadora de Pensiones Chile cp 96.69 , 96.59 96.69]
88.497.104 Clínica San Lorenzo Limitada Chile ap 99.90 0.10] 100.00] 100.00]
76.521.2502 San Lorenzo Instlución de Salud Previsional Ltda Chile CLP , 100.00] 100.00] 100.00]
89.441.300: Isapre Río Blanco Ltda. Chile cp 99.99 0.01 100.00] 100.00]
96.817.780 Ejecutora Proyecto Hospilal del Cobre Calama S.A. Chile US$ 99.90] 0.01 100.00] 100.00]
96.819.040-7 [Complejo Portuario Mejillones S.A. Chile US$ 99.99 001 100.00] 100.00]
96.991.1809 [Codelco Tec SpA Chile US$ 99.91 0.09 100.00] 100.00]
199.569.520-0 Exploraciones Mineras Andinas S.A, Chile US$ 99.90 0.10] 100.00] 100.00]
099.573.600-4 Clinica Rio Blanco S.A. Chile cp 99.00 4.00 100.00] 100.00]
76.064.682-2 Centro de Especialidades Médicas Río Blanco Ltda. Chile cp 99.00 4.00 100.00] 100.00]
77.773.2603 Inversiones Copperteld SpA Chile US$ 99.99 001 100.00] 100.00]
76.043.396-9 Innovaciones en Cobre S.A. Chile US$ 0.8] 99.95] 100.00] 100.00]
76.148,3382 Sociedad de Procesamiento de Molibdeno Ltda Chile US$ 99.95 0.5 100.00] 100.00]
76.173.357-5 Inversiones Gacrux SpA Chile US$ 100.0] , 100.00] 100.00]
76.231.838-5 Inversiones Mineras Nueva Acrux SpA Chile US$ , 67.80] 67.80] 67.80]
76.237.866-3 Inversiones Mineras Los Leones SpA Chile US$ 100.0] , 100.00] 100.00]
76.173.783 Inversiones Mineras Becrux SpA Chile US$ , 67.80] 67.80] 67.80]
76.124.156-7 Centro de Especialidades Médicas San Lorenzo Ltda Chile US$ , 100.00] 100.00] 100.00]
76.255.061-k Central Eléctrica Luz Minera SpA Chile US$ 100.0] , 100.00] 100.00]
70.905.705 Fusat Chile ole , , . ,
76.34.3707 Instituto de Salud Previsional Fusat Ltda, Chile ole , 100.00 100.00] 100.00]
78.304.040 [Cento de Servicios Médicos Porvenir Ltda, Chile cp , 99.00 99.00 99.00]
77.928.3903 Inmobiliaria e Inversiones Rio Cipreces Ltda. Chile ole , 99.90 99.90 99.90]
77.270.0202 Prestaciones de Senicios de la Salud Inersalud Ltda Chile cp , 99.00 99.00 99.00]
76.754.301-8 Salar de Maricunga SpA Chile cp 100.0 J 100.00] 100.00]

F-17
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

For the purposes of these consolidated financial statements, subsidiaries, associates, acquisitions
and disposals and joint ventures are defined as follows:

+ Subsidiaries – A subsidiary is an entity over which the Corporation has control. Control is
exercised if, and only if, the following conditions are met: the Corporation has i) power to direct
the relevant activities of the subsidiaries unilaterally; ii) exposure or rights to variable returns from
these entities; and iii) the ability to use ¡its power to influence the amount of these returns.

The Corporation reassesses whether or not it controls a subsidiary if facts and circumstances
indicate that there are changes to one or more of the elements of control listed above.

The unaudited interim consolidated financial statements include all assets, liabilities, revenues,
expenses and cash flows of Codelco and its subsidiaries, after eliminating all inter-company
balances and transactions.

The value of the participation of non-controlling shareholders in equity, net income and
comprehensive income of subsidiaries are presented, respectively, in the headings “Non-
controlling interests” of the consolidated statement of financial position; “Net income attributable
to non-controlling interests”; and “Comprehensive income attributable to non-controlling interests.”

+. Associates – An associate is an entity over which Codelco has significant influence. Significant
influence ¡is the power to participate in the financial and operating policy decisions of the associate
but is not control or joint control over those policies.

Codelco’s interest ownership in associates is recognized in the consolidated financial statements
under the equity method. Under this method, the initial investment is recognized at cost and
adjusted thereafter to recognize changes in Codelco’s share of the comprehensive income of the
associate, less any impairment losses or other changes to the investment in net assets of the
associate.

Appropriate adjustments to the Codelco’s share of the associate’s profit or loss after acquisition
are made in order to account for depreciation of the depreciable assets and related deferred tax
balances based on their fair values at the acquisition date.

+. Acquisitions and Disposals – The results of businesses acquired are incorporated in the
consolidated financial statements from the date when control is obtained; the results of businesses
sold during the period are included in the consolidated financial statements up to the effective date
of disposal. Gains or losses on disposal is the difference between the sale proceeds (net of
expenses) and the carrying amount of the net assets attributable to the ownership interest that
has been sold (and, where applicable, the associated cumulative translation adjustment).
If control is lost over a subsidiary, the retained ownership interest in the investment will be
recognized at its fair value.

F-18
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

At the acquisition date of an investment in a subsidiary, associate or joint venture, any excess of
the cost of the investment (consideration transferred) plus the amount of the non-controlling
interest in the acquiree plus the fair value of any previously held equity interest in the acquiree,
where applicable, over Codelco’s share of the net fair value of the identifiable assets and acquired
liabilities is recognized as goodwill. Any excess of Codelco”s share of the net fair value of the
identifiable assets and acquired liabilities over the consideration transferred, after reassessment,
is recognized immediately in profit or loss in the period in which the investment is acquired.

+. Joint Ventures – The entities that qualify as joint ventures are accounted for using the equity
method.

e) Foreign currency transactions and Reporting currency conversion- Transactions in currencies
other than the Corporation’s functional currency are recognized at the rates of exchange prevailing
at the dates of the transactions. At the end of each reporting period, foreign currency transactions
denominated in foreign currencies are converted at the rates prevailing at that date. Exchange
differences on such transactions are recognized in profit or loss in the period in which they arise and
are included in line item “Foreign exchange differences” in the consolidated statement of
comprehensive income.

At the end of each reporting period, assets and liabilities denominated in Unidades de Fomento (UF
or inflation index-linked units of account) are translated into U.S. dollars at the closing exchange rates
at that date (6/30/2019: US$41.09; 12/31/2018: US$39.68; 6/30/2018: US$41.71). The expenses and
revenues in Chilean pesos have been expressed in dollars at the observed exchange rate,
corresponding to the date of the accounting recording of each operation.

The financial statements of subsidiaries, associates and jointly controlled entities, whose functional
currency is other than the presentation currency of Codelco, are translated as follows for purposes of
consolidation:

+. Monetary assets and liabilities are translated using the prevailing exchange rate on the closing
date of the financial statements.

+ Income and expenses for each statement of comprehensive income are translated at average
exchange rates for the period.

+ Non-monetary assets and liabilities as well as equity are translated at historic exchange rates.

+ All resulting exchange differences are recognized in other comprehensive income and
accumulated in equity under the heading “Reserve on exchange differences on translation”.

The exchange rates used in each reporting period were as follows:

. Closing exchange ratios
Relation
6/30/2019 12/31/2018 6/30/2018
USD /CLP 0.00147 0.00144 0.00154
USD /GBP 1.26984 1.27000 1.31926
USD /BRL 0.26055 0.25848 0.25874
USD /EURO 1.13688 1.14390 1.16754

F-19
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

f) Offsetting balances and transactions: In general, assets and liabilities, income and expenses, are
not offset in the financial statements, unless required or permitted by an IFRS or when offsetting
reflects the substance of the transaction as well as when it is the intention of the Corporation to settle
a transaction net.

Income or expenses arising from transactions which, for contractual or legal reasons, permit the
possibility of offsetting and which the Corporation intends to liquidate for their net value or realize the
assets and settle the liabilities simultaneously, are stated net in the statement of comprehensive
income.

g) Property, plant and equipment and depreciation — Items of property, plant and equipment are
initially recognized at cost. Subsequent to initial recognition, they are measured at cost, less any
accumulated depreciation and any accumulated impairment losses.

Extension, modernization or improvement costs that represent an increase in productivity, capacity or
efficiency, or an increase in the useful life of the assets are capitalized as increasing the cost of the
corresponding assets.

Furthermore, assets acquired under finance lease contracts are included in property, plant and
equipment.

The assets included in property, plant and equipment are depreciated, as a general rule, using the
units of production method, when the activity performed by the asset is directly attributable to the mine
production process. All other assets included in property, plant and equipment are depreciated using
the straight-line method.

The assets included in property, plant and equipment and certain intangibles (software) are
depreciated over their economic useful lives, as described below:

Category Useful Life
Land Not depreciated
Land on mine site Units of production
Buildings Straight-line over 20-50 years
Buildings in underground mine levels Units of production level
Vehicles Straight-line over 3-7 years
Plant and equipment Units of production
Smelters Straight-line
Refineries Units of production
Mining rights Units of production
Support equipment Units of production
Intangibles – Software Straight-line over 8 years
Open pit and underground mine
development Units of production

F-20
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Leased assets are depreciated over the lease term or their estimated useful life, whichever is shorter.

Estimated useful lives, residual values and depreciation method are reviewed at the end of each
reporting period, and any change in estimates is recognized prospectively.

Additionally, depreciation methods and estimated useful lives of assets, especially plants, facilities and
infrastructure may be revised at the end of each year or during the year according to changes in the
structure of reserves of the Corporation and productive long-term plans updated as of that date.

This review may be made at any time if the conditions of ore reserves change significantly as a result
of new known information, confirmed and officially released by the Corporation.

Gains or losses on the sale of disposal of an asset are calculated as the difference between the net
disposal proceeds received and the carrying amount of the asset, and are included in profit or loss
when the asset is derecognized.

Construction in progress includes the amounts invested in the construction of property, plant and
equipment and in mining development projects. Construction in progress is transferred to assets in
operation once the testing period has ended and when they are ready for use; at that point, depreciation
begins to be recognized.

Borrowing costs that are directly attributable to the acquisition or construction of assets that require a
substantial period of time before they are ready for use or sale are capitalized as part of the cost of the
corresponding items of property, plant and equipment.

The ore deposits owned by the Corporation are recorded in the accounting records at US$1.

Notwithstanding the above, those reserves and resources acquired as part of acquisition of entities
accounted for as business combinations, are recognized at their fair value.

h) Intangible assets – The Corporation initially recognizes these assets at acquisition cost. Subsequent
to initial recognition, intangible assets are amortized in a systematic way over their economic useful
life, except for those assets with indefinite useful life, which are not amortized. Indefinitely-lived
intangible assets are tested for impairment at least annually, and whenever there is an indication that
these assets may be impaired. Definitely-lived intangible assets are tested for impairment when an
indicator of impairment has been identified. At the end of each reporting period, these assets are
measured at their cost less any accumulated amortization (when applicable) and any accumulated
impairment losses.

The main intangible assets are described as follows:
Research and Technological Development and Innovation Expenditures: The expenditures for

the development of Technology and Innovation Projects are recognized as intangible assets at their
cost and are considered to have indefinite useful lives.

F-21
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Development expenses for technology and innovation projects are recognized as intangible assets at
cost, if and only if, all of the following have been demonstrated:
e The technical feasibility of completing the intangible asset so that it will available for use or
sale;
The intention to complete the intangible asset is to use or sell it;
The ability to use or sell the intangible asset;
That the intangible asset will generate probable future economic benefits;
The availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset; and
e The ability to measure reliably the expenditure attributable to the intangible asset during its
development.

Research expenses for technology and innovation projects are recognized in profit or loss when
incurred.

i) Impairment of property, plant and equipment and intangible assets – The carrying amounts of
property, plant and equipment and intangible assets with finite useful lives are reviewed to determine
whether there is an indication that those assets have suffered an impairment loss. If any such
indicator exists, the Corporation estimates the asset’s recoverable amount to determine the extent of
the impairment loss which ¡is then recorded.

For assets with indefinite useful lives, their recoverable amounts are annually estimated at the end of
each reporting period.

When an asset does not generate cash flows that are independent from other assets, Codelco
determines the recoverable amount of the CGU to which the asset belongs.

The Corporation has defined each of its divisions as a cash generating unit.

Recoverable amount of an asset is the higher of fair value less costs of disposal and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. On the other hand, the fair value less cost of disposal is usually determined for
operational assets considering the Life of Mine (‘LOM”), based on a model of discounted cash flows,
while the assets not included in LOM as resources and potential resources to exploit are measured by
using a market model of multiples for comparable transactions.

If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, an
impairment loss is recognized immediately in profit or loss, reducing the carrying amount to its
recoverable amount. When an impairment loss subsequently reverses, the carrying amount of the
asset or CGU is increased to the revised estimate of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognized for the asset or CGU in prior years.

F-22
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The estimates of future cash flow for a CGU are based on future production forecasts, future prices of
basic products and future production costs. Under IAS 36 “Impairment of Assets”, there are certain
restrictions for future cash flows estimates related to future restructurings and future cost efficiencies.
When calculating value in use, it is also necessary to base the calculations on the spot exchange rate
at the date of calculation.

j) Expenditures for exploration and evaluation of mineral resources, mine development and
mining operations – The Corporation has defined an accounting policy for each of these
expenditures.

Development expenses for deposits under exploitation whose purpose is to maintain production levels
are recognized in profit or loss when incurred.

Exploration and evaluation costs such as: drillings of deposits, including expenses necessary to locate
new mineralized areas and engineering studies to determine their potential for commercial exploitation
are recognized in profit or loss, normally at the pre-feasibility stage.

Pre-operating and mine development expenses (normally after feasibility engineering is reached)
incurred during the execution of a project and until its start-up are capitalized and amortized in relation
to the future production of the mine. These costs include stripping of waste material, constructing the
mine’s infrastructure and other works carried out prior to the production phase.

Finally, costs for defining of new areas or deposit areas in exploitation and of mining operations (PP3.E)
are recognized in property, plant and equipment and are amortized through profit or loss over the
period during which the benefits are obtained.

k) Stripping costs – Costs incurred in removing mine waste materials (overburden) in open pits that
are in production, that provide access to mineral deposits, are recognized in property, plant and
equipment, when the following criteria set out in IFRIC 20 Stripping Costs in the Production Phase of
a Surface Mine are met:

– Itis probable that the future economic benefits associated with the stripping activity will flow to the
entity.

– Itis possible to identify the components of an ore body for which access has been improved as a
result of the stripping activity.

– The costs relating to that stripping activity can be measured reliably.

The amounts recognized in property, plant and equipment are depreciated according to the units of

production extracted from the ore body related to the specific stripping activity which generated this
amount.

F-23
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

1) Income taxes and deferred taxes – Codelco and its Chilean subsidiaries recognize annually income
taxes based on the net taxable income determined as per the standards established in the Income
Tax Law and Article 2 of D.L. 2398, as well as, the specific tax on mining referred to in Law 20026 of
2005. Its foreign subsidiaries recognize income taxes according to the tax regulations in each country.

In addition, Codelco’s taxable income in each period is subject to the tax regime established in Article
26 of D.L. No. 1350, which states that tax payments will be made on March, June, September and
December of each year, based on a provisional tax calculation.

Deferred taxes on temporary differences and other events that generate differences between the
accounting and tax bases of assets and liabilities are recognized in accordance with IAS 12 “Income
taxes.

Deferred taxes are also recognized for undistributed profits of subsidiaries, associates and joint
ventures, originated by withholding tax rates on remittances of dividends paid out by such companies
to the Corporation.

m) Inventories – Inventories are measured at cost, when such does not exceed net realizable value. Net
realizable value represents the estimated selling price for inventories less all estimated costs of
completion and costs necessary to make the sale (¡,e,, marketing, sales and distribution expenses).
Costs of inventories are determined according to the following methods:

– Finished products and products in process: These inventories are measured at their average
production cost determined using the absorption costing method, including labor, depreciation of fixed
assets, amortization of intangibles and indirect costs of each period. Inventories of products in process
are classified in current and non-current, according to the normal cycle of operation.

– Materials in warehouse: These inventories are measured at their acquisition cost. The Corporation
estimates an allowance for obsolescence considering the turnover rate of slow-moving materials in the
warehouse.

– Materials in transit: These inventories are measured at cost incurred until the end of reporting period.
Any difference as a result of an estimate of net realizable value of the inventories lower than its carrying
amount is recognized in profit or loss.

n)Dividends – In accordance with Article 6 of D.L. 1350, the Corporation has a mandatory obligation to
distribute its net income as presented in the financial statements. The payment obligation is
recognized on an accrual basis.

o) Employee benefits – Codelco recognizes a provision for employee benefits when there is a present
obligation (legal or constructive) as a result of services rendered by its employees.

The employment contracts stipulate, subject to compliance with certain conditions, the payment of an
employee termination indemnity when an employment contract ends. In general, this corresponds to

F-24
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

one monthly salary per year of service and considers the components of the final remuneration which
are contractually defined as the basis for the indemnity. This employee benefit has been classified as
a defined benefit plan.

Codelco has also agreed to post-employment medical care benefits for certain employees, which are
paid based on a fixed percentage applied to the monthly taxable salary of employees covered by this
agreement. This employee benefit has been classified as a defined benefit plan.

These plans continue to be unfunded as of June 30, 2019.

The employee termination indemnity and the post-employment medical plan obligations are determined
using the projected unit credit method, with actuarial valuations being carried out at the end of each
reporting period. The defined benefit plan obligations recognized in the statement of financial position
represent the present value of the accrued obligations. Actuarial gains and losses are recognized
immediately in other comprehensive income and will not be reclassified to profit or loss.

The Corporation’s management uses assumptions to determine the best estimate of these benefits.
The assumptions include an annual discount rate, expected increases in salaries and tumover rate,
among other factors.

In accordance with ¡ts operating optimization programs to reduce costs and increase labor productivity
by incorporating new current technologies and/or better management practices, the Corporation has
established employee retirement programs by amending certain employment contracts or collective
union agreements to include benefits encouraging employees to early retire. Accordingly, these
arrangements are accounted for as termination benefits and required accruals are established based
on the accrued obligation at current value. In case of employee retirement programs which involve
multi-year periods, the accrued obligations are updated using a discount rate determined based on
financial instruments denominated in the same currency and similar maturities that will be used to pay
the obligations.

p) Provisions for decommissioning and site restoration costs – The Corporation is obliged to incur
decommissioning and site restoration costs when such site restoration or decommissioning is
required due to a legal or constructive obligation. Costs are estimated on the basis of a formal closure
plan and cost estimates are annually reviewed.

A provision is recognized for decommissioning and site restoration costs. The amount of the provision
is the present value of the expenditures expected to be required to settle the obligation. The provision
is initially recognized with a corresponding increase in the carrying amount of the related assets.

The provision for decommissioning and site restoration costs is accreted over time to reflect the

unwinding of the discount with the accretion expense included in finance costs in the statement of
income. The carrying amount of the related asset is depreciated over its useful life.

F-25
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Changes in the measurement of the decommissioning and site restoration provision that result from
changes in the estimated timing or amount of the outflow of resources embodying economic benefits
required to settle the obligation, or a change in the discount rate, are added to, or deducted from, the
cost of the related assets in the period when changes occurred. The amount deducted from the cost of
the related assets cannot exceed its carrying amount. If a decrease in the liability exceeds the carrying
amount of the asset, the excess is recognized immediately in profit or loss.

If the adjustment results in an addition to the cost of an asset, the Corporation considers whether this
is an indication that the new carrying amount of the asset may not be fully recoverable. If such an
indicator exists, the Corporation tests the asset for impairment by estimating its recoverable amount,
and recognizes an impairment loss, if any.

The effects of the updating of the liability, due to the effect of the discount rate and / or passage of time,
is recorded as a financial expense.

q) Leases

Leases as of January 1, 2019 – Effective January 1, 2019, IFRS 16 Leases becomes effective, for
which the Corporation evaluates its contracts at initial application to determine whether they contain a
lease. The Corporation recognizes an asset for right of use and a corresponding liability for lease with
respect to all lease agreements in which Codelco is the lessee, except for short-term leases (defined
as a lease with a lease term of 12 months or less) and leases of low-value assets. For these leases,
the Corporation recognizes lease payments as an operating cost on a straight-line basis over the term
of the lease unless another systematic basis is more representative of the time pattern in which the
economic benefits of the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that have not been
paid at the commencement date, discounted using the implicit lease rate. If this rate cannot be easily
determined, the Corporation uses the incremental loan rate.

The incremental rate for loans used by Codelco is determined by estimating the interest rate that the
Corporation would have to pay for borrowing the necessary funds to obtain an asset of an equivalent
nature similar value to the asset by right of use of the respective lease, in a similar economic
environment over a similar term.

Lease payments included in the measurement of the lease liability mainly include fixed payments,
variable payments that depend on an index or a rate and the exercise price of a purchase option.
Variable payments that do not depend on an index or a rate are excluded.

The lease liability is subsequently measured as follows: the carrying amount increased to reflect the

interest on the lease liability (using the effective rate method) and the carrying amount is reduced to
reflect the lease payments made.

F-26
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The Corporation revalues the lease liability as to the discount rate (and makes the corresponding
adjustments to the asset for respective right of use) when:

– There is a change in the term of the lease or;
– There is a change in the assessment of an option to purchase the underlying asset or;
– There is a change in an index or rate which generates a change in cash flows.

The right-of-use assets include the amount of the initial measurement of the lease liability, the lease
payments made before or until the start date less the lease incentives received and any initial direct
costs incurred less any costs of dismantlement (if applicable — see above). The assets for right to use
are subsequently measured at cost less accumulated depreciation and accumulated losses due to
impairment.

When the Corporation incurs a cost obligation to dismantle or remove a leased asset, restore the
location in which it is located or restore the underlying asset to the condition required by the terms and
conditions of the lease, a provision is recognized and measured in accordance with IAS 37. Costs are
included in the corresponding asset for right of use, unless those costs are incurred to produce
inventories.

The right-of-use assets are depreciated during the shorter period between the term of the lease and
the useful life of the underlying asset. If a lease transfers the ownership of the underlying asset or the
cost of the asset for right of use reflects that the Corporation expects to exercise ¡ts option to purchase,
the right-of-use asset is depreciated over the useful life of the underlying asset. Depreciation is made
from the start date of the lease.

The assets for right of use and the lease liability are presented under “Property, plant and equipment”
and “Other financial liabilities”, respectively, in the interim consolidated statement of financial position.

Leases until December 31, 2018- Leases are classified as finance leases whenever the terms of the
lease transfer substantially all the risks and rewards of ownership to the Corporation. All other leases
are classified as operating leases. Operating lease costs are recognized as an expense on a straight-
line basis over the lease term.

Assets held under finance leases are initially recognized as assets at the inception of the lease at either
their fair value or the present value of the minimum lease payments (discounted at the interest rate
implicit in the lease), whichever is lower. Lease payments are apportioned between finance costs and
reduction of the lease obligation so as to achieve a constant rate of return on the remaining balance of
the liability. Lease obligations are included in other current or non-current liabilities, as appropriate.

In accordance with IFRIC 4 “Determining whether an Arrangement contains a Lease”, an arrangement
is, or contains a lease if fulfilment of the arrangement is dependent on the use of a specific asset or
assets and if the arrangement conveys the right to use the asset, even if that right is not explicitly
specified.

F-27
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

r) Revenue from Contracts with Customers – Revenue is recognized in an amount that reflects the
consideration to which the entity expects to be entitled in exchange for transferring goods or services.

– — Sale of mineral goods and / or by-products: Contracts with customers for the sale of mineral
goods and / or by-products include the performance obligation for the delivery of the physical goods
and the associated transportation service, at the place agreed with the customers. The Corporation
recognizes revenue from the sale of goods at the time control of the asset is transferred to the
customer, according to the shipment or dispatch of the products, in accordance with the agreed
conditions, such revenue being subject to variations related to the content and / or sale price at
the date of its liquidation. Notwithstanding the foregoing, there are some contracts where control
is transferred substantially to the client based on the receipt of the product instead of the buyer’s
corresponding destination, thus recognizing revenue at the time of said transfer. When services of
transport of goods are provided, the Corporation recognizes revenue when the service obligation
is satisfied.

Sales that have discounts associated with volume subject to compliance with goals are recognized
net, estimating the probability that the volume target will be reached.

Sales contracts include a provisional price at the shipment date. The final price is generally based
on the London Metals Exchange (“LME”) price. Revenue from sales of copper is measured using
estimates of the future spread of metal prices on the LME and/or the spot price at the date of
shipment, with subsequent adjustments made upon final pricing recognized as revenue. The terms
of sales contracts with customers contain provisional pricing arrangements whereby the selling
price for metal concentrate is based on prevailing spot prices on a specified future date after
shipment to the customer (the “quotation period”). Consequently, the final price is set at the dates
indicated in the contracts. Adjustments to provisional sale prices occur based on movements in
quoted market prices on the LME up to the date of final pricing. The period between provisional
invoicing and final pricing is typically between one and nine months. Changes in fair value over the
quotation period and until final pricing are estimated by reference to forward market prices for
applicable metals.

In terms of hedge accounting established by IFRS 9, the Corporation has opted to continue
applying the hedge accounting requirements of the IAS 39 instead of the requirements of the new
standard. Therefore, the generated no effects both at the level of account balances or at the level
of disclosures.

Sales in the Chilean market are recognized in conformity with the regulations that govern domestic
sales as indicated in Articles 7, 8 and 9 of Law No. 16624, modified by Article 15 of Decree Law
No. 1349 of 1976, on the determination of sales prices for the internal market which does not differ
from IFRS 15.

As indicated in the note related to hedging policies in the market of metal derivatives, the

Corporation enters into operations in the market of metal derivatives. Gains and losses from those
which are fair value hedges contracts are recognized as revenues.

F-28
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

– — Rendering of services: Additionally, the Corporation recognizes revenue for rendering services,
which are mainly related to the processing of minerals bought from third parties. Revenue from
rendering of services is recognized when the amounts can be measured reliably and when the
services have been provided.

s) Derivative contracts – Codelco uses derivative financial instruments to reduce the risk of fluctuations
in sales prices of its products and of exchange rates.

Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and
are subsequently measured to their fair value at the end of each reporting period.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash
flow hedges is recognized in other comprehensive income and accumulated in equity under the item
“Cash flow hedge reserve.” The gain or loss relating to the ineffective portion is immediately recognized
in profit or loss, and included in the “Finance cost” or “Finance income” line items. Amounts previously
recognized in other comprehensive income and accumulated in equity are reclassified to profit or loss
in the periods when the hedged item affects profit or loss, in the same line as the effect for the
fluctuation in the recognized hedged item.

A hedge relationship is considered highly effective when changes in fair value or in cash flows of the
underlying item directly attributable to the hedged risk are offset by changes in fair value or cash flows
of the hedging instrument, with an effectiveness ranging from 80% to 125%. Changes in fair value
accumulated in other comprehensive income are subsequently reclassified from equity to profit or loss
in the same period or periods during which the hedged item affects profit or loss. Upon discontinuation
of hedge accounting and depending on the circumstances, the cumulative gain or loss on the hedging
instrument remains in equity until the hedged transaction occurs or, if the hedged transaction is not
expected to occur, the amount accumulated in other comprehensive income is reclassified to profit or
loss.

The total fair value of hedging derivatives is classified as “non-current financial asset or liability”, if the
remaining maturity of the hedged item is greater than 12 months, and as “current financial asset or
liability”, if the remaining maturity of the hedged item ¡is less than 12 months.

The derivative contracts held by the Corporation have been entered into to apply the risk hedging
policies and are accounted for as indicated below:

– — Hedging policies for exchange rate risk: The Corporation enters into exchange rate derivatives
to hedge exchange rate variations between the U.S. dollar and the currencies of transactions the
Corporation undertakes. In accordance with the policies established by the Board of Directors, these
hedge transactions are only entered into when there are recognized assets or liabilities, forecasts
of highly probable transactions or firm commitments. The Corporation does not enter into derivative
transactions for non-hedging purposes.

F-29
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

– — Hedging policies for metal market prices risk: In accordance with the policies established by the
Board of Directors, the Corporation entered into derivative contracts to reduce the inherent risks in
the fluctuations of metal prices.

The hedging policies seek to cover expected cash flows from the sale of products by fixing the sale
prices for a portion of future production. When the sales agreements are fulfilled and the derivative
contracts are settled, the results from sales and derivative transactions are offset in profit or loss in
revenue,

Hedging transactions carried out by the Corporation in the metal derivatives market are not
undertaken for speculative purposes.

– Embedded derivatives: The Corporation has established a procedure that allows for evaluation of
the existence of embedded derivatives in financial and non-financial contracts. Where there is an
embedded derivative, and the host contract is not a financial instrument and the characteristics and
risks of the embedded derivative are not closely related to the host contract, the derivative ¡is
required to be recognized separately.

t) Financial information by segment – The Corporation has defined its Divisions as its operating
segments in accordance with the requirements of IFRS 8, Operating Segments. The mining deposits
in operation, where the Corporation conducts its extractive and processing activities are managed by
the following Divisions: Chuquicamata, Radomiro Tomic, Ministro Hales, Gabriela Mistral, Salvador,
Andina and El Teniente, In addition, the smelting and refining activities are managed at the Ventanas
Division. All these Divisions have a separate operational management, which reports to the Chief
Executive Officer, through the North and South Central Vice-President of Operations, respectively.
Income and expenses of the Head Office are allocated to the defined operating segments.

u)Presentation of Financial Statements – The Corporation presents (i) its statements of financial
position classified as “current and non-current”, (ii) profit or loss or loss and other comprehensive
income in one statement and the classification of expenses within profit or loss by function, and (iii)
its statement of cash flows using the direct method.

v) Current and non-current financial assets – The Corporation determines the classification of its
financial assets at the time of initial recognition. The classification depends on the business model in
which the investments are managed and the contractual characteristics of their cash flows.

The Corporation’s financial assets are classified into the following categories:
– Fair value through profit or loss:
Initial recognition: This category includes those financial assets not qualifying under the categories

of Fair Value through Other Comprehensive Income or Amortized Cost. These instruments are
initially recognized at fair value.

F-30
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Subsequent recognition: Their subsequent recognition is at fair value, recording in the consolidated
statement of comprehensive income, in the line “Other gains (losses)” any changes in fair value.

Amortized cost:

Initial recognition: This category includes those instruments with respect to which the objective of
the business model of the Corporation is to hold the financial instrument to collect contractual cash
flows and such cash flows consist of solely payments of principal and interest. This category
includes certain Trade and other current receivables, and the loans included in other non-current
financial assets.

Subsequent recognition: These instruments are subsequently measured at amortized cost using
the effective interest method. The amortized cost of a financial asset is the amount at which the
financial asset is measured at initial recognition minus the principal repayments, plus the cumulative
amortization using the effective interest method of any difference between that initial amount and
the maturity amount, adjusted for any impairment allowance.

Codelco did not irrevocably choose to designate any of its investment assets at fair value with effect
on other comprehensive income.

Interest income ¡is recognized in profit or loss and is calculated by applying the effective interest
rate to the gross carrying amount of a financial asset. For financial assets measured at amortized
cost that are not part of a designated hedging relationship, exchange differences are recognized in
profit or loss in the “Foreign exchange difference” line item.

At fair value through other comprehensive income:

Initial measurement: Financial assets that meet the criteria “Solely payments of principal and
interest” (SPPI) are classified in this category and must be maintained within a business model both
to collect the cash flows and to sell the financial assets. These instruments are initially recognized
at fair value.

Subsequent recognition: Their subsequent valuation is at fair value. Interest income calculated
using the effective interest rate method, foreign exchange gains and losses and impairment are
recognized in income. Other net gains and losses are recognized in other comprehensive income.
On derecognition, the gains and losses accumulated in other comprehensive income are
reclassified to income.

w)Financial liabilities – Financial liabilities are initially recognized at fair value net of transaction costs.

Subsequent to their initial recognition, the valuation of the financial liabilities will depend on their
classification, within which the following categories are distinguished:

– — Financial liabilities at fair value through profit or loss: This category includes financial
liabilities defined as held for trading.

F-31
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Changes in fair value associated with own credit risk are recorded in other comprehensive
income.

– — Financial liabilities at amortized cost: This category includes all financial liabilities other than
those measured at fair value through profit or loss.

The Corporation includes in this category bonds, obligations and other current payables.

These financial liabilities are measured using the effective interest rate method, recognizing
interest expense based on the effective rate.

The effective interest rate method is a method of calculating the amortized cost of a financial
liability and of allocating interest expense over the relevant period. The effective interest rate
is the rate that exactly discounts estimated future cash payments through the expected life of
the financial liability, or where appropriate, a shorter period, to the net carrying amount on initial
recognition.

Trade and other current payables are financial liabilities that do not explicitly accrue interest
and are recognized at their nominal value, which approximates its fair value.

Financial liabilities are derecognized when the liabilities are paid or expire.

x) Impairment of financial assets – The Corporation measures the loss allowance at an amount equal
to lifetime expected credit losses for its certain of its trade receivables. For this, it uses the simplified
approach as a requirement under IFRS 9.

The provision matrix is based on an entity’s historical credit loss experience over the expected life of
such trade receivables and is adjusted for forward-looking estimates taking into account the most
relevant macroeconomic factors that affect bad debts.

y) Cash and cash equivalents and statement of cash flows prepared using the direct method – The
statement of cash flows reflects changes in cash and cash equivalents that took place during the
period, determined under the direct method. For the purposes of preparing the statement of cash
flows, the Corporation has defined the following:

– Cash flows: inflows and outflows of cash or cash equivalents, which are defined as highly liquid
investments maturing in less than three months with a low risk of changes in value.

– — Operating activities are the principal revenue-producing activities of the Corporation and other
activities that are not investing or financing activities.

– Investing activities are the acquisition and disposal of long-term assets and other investments
not included in cash equivalents.

F-32
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

– — Financing activities are activities that result in changes in the size and composition of net equity
and borrowings of the Corporation.

Bank overdrafts are classified as external resources in current liabilities.

z) Law No. 13196 – Law No. 13196 requires the payment of a 10% special export tax on receivables of
the sales proceeds that Codelco receives and transfers to Chile from the export of copper and related
by-products produced by Codelco. The Chilean Central Bank deducts 10% of the amounts that
Codelco transferred to its Chilean bank account. The amount recognized for this concept is presented
in the statement of income within line item other expenses.

On January 27, 2017, Law No. 20989, article 3, establishes changes in the application of Law No.
13196 as of January 1, 2018, through which the Corporation will deposit annually, no later than
December 15 of each year, the funds established in article 1 in that law.

aa) Cost of sales – Cost of sales is determined according to the absorption costing method, including the
direct and indirect costs, depreciation, amortization and any other expenses directly attributable to
the production process.

ab) Environment – The Corporation adheres to the principles of sustainable development, which foster
the economic development while safekeeping the environment and the health and safety of its
collaborators. The Corporation recognizes that these principles are central for the well-being of its
collaborators, care for the environment and success in its operations.

ac) Classification of current and non-current balances – In the consolidated statement of financial
position, the balances are classified according to their maturities, that is, as current for those with a
maturity equal to or less than twelve months and as non-current for those with a greater maturity.
Where there are obligations whose maturity is less than twelve months, but whose long-term
refinancing is insured upon a decision by the Corporation whose intention is to refinance, through
credit agreements available unconditionally with long-term maturity, these could be classified as non-
current liabilities.

ad) Non-current assets or groups of assets for disposition classified as held for sale: The
Corporation classifies as non-current assets or groups of assets for disposal, classified as held for
sale, properties, plants and equipment, investments in associates and groups subject to
expropriation (group of assets that are going to be disposed of together with their directly related
liabilities), for which, at the closing date of the financial statements, their sale has been committed
to or steps have been initiated and it is estimated that it will be carried out within the twelve months
following said date. These assets or groups subject to disposal are valued at book value or the
estimated sale value minus the costs necessary for sale, whichever is less, and are no longer
amortized from the moment they are classified as non-current assets held for sale. Non-current
assets or groups of assets for disposal classified as held for sale and the components of the groups
subject to disposal classified as held for sale are presented in the consolidated statement of financial
position on a line for each of the following concepts: “Non-current assets or groups of assets for

F-33
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

disposition classified as held for sale” and/or “Non-current liabilities or groups of liabilities for
disposition classified as held for sale.”

New standards and interpretations adopted by the Corporation

The accounting policies adopted in the preparation of the unaudited interim consolidated financial
statements are consistent with those applied in the preparation of the Corporation’s annual consolidated
financial statements for the year ended December 31, 2018, except for the adoption of new standards,
interpretations and amendmenkts, effective from January 1, 2019, which are:

a) IFRS 16, Lease:
In the current period, the Corporation has applied IFRS 16 Leases for the first time.

IFRS 16 introduces new or modified requirements with respect to the accounting for leases. lt introduces
significant changes to lease accounting for lessees by removing the distinction between operating and
financial leases; requires the recognition, at the outset, of an asset for right to use and a lease liability for all
leases, except for short-term leases and leases of low-value assets. In contrast to the accounting for the
lessee, the requirements for the accounting of the lessor remain largely unchanged. Details of these new
requirements are described in Chapter Il, note 2, letter q Leases. The impact of the adoption of IFRS 16 in
the consolidated financial statements of the Corporation is described below.

The initial application date of IFRS 16 for the Corporation is January 1, 2019.

The Corporation has applied IFRS 16 with the cumulative effect of the initial application of the standard,
recognized as of January 1, 2019. Consequently, it has not restated the comparative financial information.

Impact of the new definition of a lease

The change in the definition of a lease is mainly related to the concept of control. IFRS 16 determines
whether a contract contains a lease on the basis of whether the client has the right to control the use of an
identified asset for a period of time in exchange for a consideration.

Impact on the accounting of leases

Operating Leases – IFRS 16 changes with respect to how the Corporation accounts for leases previously
classified as operating leases under IAS 17, which, with this change, are recognized in the assets and
liabilities of the statement of financial position.

The Corporation has re-evaluated all of its contracts at the date of initial application. . As a result of the
foregoing, leases have been re-assessed in accordance with the new requirements of IFRS 16.

F-34
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Transition rules

As of the transition date of January 1, 2019, the Corporation recognizes its leases with the accumulated
effect on the date of initial application, opting to recognize a right to use asset equal to the lease liability.

Practical expedients applied in the transition to operating leases

– Discount rate applied to a lease portfolio;

– Short-term lease exemption for those contracts whose term ends within twelve months from January
1,2019;

– Review of onerousness according to evaluation of onerous contracts under IAS 37 as an alternative to
a deterioration review;

– Measurement of right-of-use assets at lease liability amount at date of initial application;

Impact on assets, liabilities and equity as of January 1, 2019

Balances . Balances
jor ti Adjustment diusted b
prior to IERS 46 adjusted by
IFRS 16 IFRS 16
ThUs$
ThUs$ ThUs$
Property, plant and equipment (1) 26,754,998 368,890 27,123,888
Total Assets 37,090,805 368,890 37,459,695
Other current financial liabilities 872,277 94,281 966,558
Other non-current financial liabilities 14,674,510 274,609 14,949,119
Total Liabilities 25,746,936 368,890 26,115,826
Net Effect 113088697) 2 + 111343869

F-35
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Reconciliation of operating leases under lAS 17 disclosed as of December 31, 2018 and lease
liabilities recognized as of January 1, 2019

Reconciliation of operating leases January 1, 2019

ThUS $

Operating lease commitments as of December 31, 2018, as disclosed in the 266.351
consolidated financial statements in accordance with 1AS17. ?
Less initial recognition exceptions:

Short-term leases (55,360)

Leases with variable payments that do not depend on an index or a rate (69,070)

Low-value leases (220)
Total lease liabilities recognized as of January 1, 2019 141,701
Plus:
Leases identified in existing contracts as of January 1, 2019 under IFRS 16 (1) 414,326
Discounted using the incremental borrowing rate at the date ofthe initial application 4.87%
(January 1, 2019) re
Discounted financing lease liabiliies recognized as of January 1, 2019 368,890
Lease liabiliies related to leases previously classified as financial leases 107,839
Total lease liabilities recognized on January 1, 2019 476,729
Consisting of:
Lease liabilities current portion 115,791
Lease liabiliies non-current portion 360,938
Total lease liabilities recognized on January 1, 2019 476,729

(1) The Corporation has re-evaluated all of its contracts at the date of initial application, including those
that under lAS 17 and IFRIC 4, had not been identified as leases. As a result of the foregoing, leases
have been included in accordance with the new requirements of IFRS 16.

b) IFRIC 23 Uncertainty about treatment of income tax

IFRIC 23 establishes how to determine a tax position when there is uncertainty about the treatment for
income tax. For this determination, the steps are as follows:

i. determine if uncertain tax positions should be evaluated separately or as a whole;

li. evaluate if the tax authority is likely to accept an uncertain tax treatment used, or proposed to be
used, by an entity in its tax returns:

– Ifacceptable, the entity must determine its accounting tax position in a manner consistent with the tax
treatment used or planned to be used in its tax return.

– Ifuncertain, the entity must reflect the effect of uncertainty in the determination of its accounting tax
position.

F-36
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The Corporation adopted IFRIC 23 under the modified retrospective application option without re-
expression of comparative information.

The application of IFRIC 23 has not materially affected the consolidated financial statements of Codelco.
c) Amendments to IFRS 9, Features of prepayment with negative compensation

The amendments to IFRS 9 clarify that for purposes of evaluating whether a prepaid feature meets the
condition of cash flows that are only principal and interest payments (SPPI), the party exercising the
option could pay or receive reasonable compensation for the prepayment regardless of the reason for
the prepayment. The application of these amendments had no impact on the consolidated financial
statements of the Corporation, however it could affect the accounting of future transactions or
agreements.

d) Amendments to IAS 28, Long-term investments in associates and joint ventures

The amendments clarify that when applying IFRS 9 to long-term investments, an entity does not take
into account the adjustments to its carrying amounts required by IAS 28. The application of these
amendments had no impact on the consolidated financial statements of the Corporation, however, it
could affect the accounting of future transactions or agreements.

e) Amendments to IAS 19, Employee Benefits Plan Amendment, Curtailment or Settlement

The amendmenkts clarify that the past service cost (or of the gain or loss on settlement) is calculated by
measuring the defined benefit liability (asset) using updated assumptions and comparing benefits offered
and plan assets before and after the plan amendment (or curtailment or settlement) but ignoring the
effect of the asset ceiling (that may arise when the defined benefit plan is in a surplus position). IAS 19
is now clear that the change in the effect of the asset ceiling that may result from the plan amendment
(or curtailment or settlement) is determined in a second step and ¡is recognized in the normal manner in
other comprehensive income. The amendments to lAS 19 require the use of updated actuarial
assumptions to remeasure the service cost and the net interest for the remainder of the reporting period
after the change to the plan. The application of these amendments had no impact on the consolidated
financial statements of the Corporation, however it could affect the accounting of future transactions or
agreements.

f) Annual improvements cycle 2015 – 2017 (amendments to IFRS 3, IFRS 11, IAS 12 and lAS 23)

– Amendments to IFRS 3 and IFRS 11: Adds paragraphs on treatment for acquisitions in
participations previously held in a joint operation.

– Amendments to lAS 12: Add paragraph on treatment of taxes related to dividends payable.
– Amendments to lAS 23: Modify wording on application of the capitalization rate.

The application of these amendments had no impact on the consolidated financial statements of the
Corporation, however it could affect the accounting of future transactions or agreements.

F-37
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

4. New accounting pronouncements

application is not yet mandatory:

The following new IFRS, amendments and interpretations had been issued by the lASB, but their

January 1, 2021

New IFRS Date of mandatory application Summary
Establishes the principles for the
IFRS 17, Insurance Contracts | Annual periods beginning on or after | recognition, measurement,

presentation and disclosure of
insurance contracts, reinsurance
contracts and investment contracts
with discretional participating
features and supersedes IFRS 4
Insurance contracts.

Amendments to IFRS

Date of mandatory application

Summary

Amendment to IFRS 10 and
IAS 28: Sale or Contribution of
Assets

Date to be determined by IASB.

Recognizes the profits or losses of
sales of assets between an
investor and an associate or a joint
venture, which are recognized for
the total when the transaction
involves assets which constitute a
business and are recognized
partially when the assets do not
constitute a business.

Definition of a Business
(Amendments to IFRS 3)

Annual reporting periods beginning
on or after January 1, 2020

Clarifies that to be considered a
business, an acquired set of
activities and assets must include,
at a minimum, an input and a
substantive process that together
significantly contribute to the ability
to create outputs

Definition of Material
(Amendments to lAS 1 and IAS
8)

Annual reporting periods beginning
on or after January 1, 2020

Clarifies the definition of ‘material’
and aligns the definition used in the
Conceptual Framework and the
standards.

F-38

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Modifications Conceptual
Framework for the Report
Revised Financial

Annual periods initiated on or after
the January 1, 2020

It incorporates some new
concepts, provides updated
definitions and recognition criteria
for assets and liabilities. This
modification accompanies a
separate document, “Modifications
to the References to Conceptual
Framework in the Rules IFRS “,
which establishes amendments to
other IFRS in order to update the
references to the new Conceptual
Framework

The Administration does not expect significant impacts with respect to standards, amendments and

interpretations indicated above.

F-39

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

EXPLANATORY NOTES

Cash and cash equivalents

The detail of cash and cash equivalents as of June 30, 2019 and December 31, 2018, ¡is as follows:

ltem 6/30/2019 | 12/31/2018
TRUS$ THUS$

Cash on hand 53,657 25,033
Bank balances 185,250 59,030
Time deposits 224,129 | 1,131,049
Mutual Funds – Money Market 456 1,698
Repurchase agreements 15,379 12,315
Total cash and cash equivalents 478,871 1,229,125

Interest on time deposits is recognized on an accrual basis using the contractual interest rate of each of
these instruments.

The Corporation does not hold any significant amounts of cash and cash equivalents that have a restriction
on use.

Trade and other receivables

Accruals for open sales invoices

As mentioned in the Summary of Significant Accounting Policies Section, the Corporation adjusts ¡ts
revenues and trade receivable balances, based on future copper prices through the recognition of an
accrual for open sales invoices.

When future price of copper is lower than the provisional invoicing price, the accrual is presented in the
statement of financial position as follows:

– For those customers that have due balances with the Corporation the accrual is presented as a
deduction from the line item trade and other current receivables.

– For those customers that do not have due balances with the Corporation the accrual is presented
in the line item trade and other current payables.

When the future copper price is higher than the provisional invoicing price, the accrual is added to the
line item trade and other current receivables.

According to the foregoing, as of June 30, 2019 and for provisions for unfinished sales invoices, a
negative provision of ThUS$75,720 is presented in the trade and other current receivables.

As of December 31, 2018, a negative provision is presented in the trade and other current receivable
of ThUS$96,396 and a provision of ThUS$5,025 in the trade accounts payable ¡tem of current liabilities,

F-40
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

associated to customers that do not present balances owed to Codelco; totaling a negative effect of
ThUS$101,421 for open invoices related to customers with no outstanding amounts to Codelco.

Trade and other receivables

The following table sets forth trade and other receivables balances, with their corresponding
allowances for doubtful accounts:

Current Non-Current
Items 6/30/2019 12/31/2018 6/30/2019 12/31/2018
TRUS$ THUS$ ThUS$ TRUS$

Trade receivables (1) 1,362,611 1,542,420 555 820
Allowance for doubtful accounts (3) (29,401) (37,811) – –
Subtotal trade receivables, net 1,333,210 1,504,609 555 820
Other receivables (2) 679,829 712,446 95,508 83,911
Allowance for doubtful accounts (3) (6,314) (4,846) – –
Subtotal other receivables, net 673,515 707,600 95,508 83,911
Total 2,006,725 2,212,209 96,063 84,731

(1) Trade receivables correspond to the sales of copper and its by-products, those that in general
are sold in cash or through banks.

(2) Other receivables mainly consist of the following items:

+ Corporation’s employee short-term loans and mortgage loans, both monthly deducted from
the employee’s salaries. Mortgage loans granted to the Corporation’s employees for
ThUS$55,069 are secured with collateral.

+ Reimbursement receivables from insurance companies.

+ Advance payments to suppliers and contractors.

+ Accounts receivable for tolling services (Ventanas Smelter).

+ VAT credit and other refundable taxes of ThuS$198,417 and ThUS$201,274 as of June 30,
2019 and December 31, 2018, respectively.

(3) The Corporation recognizes an allowance for doubtful accounts based on its expected credit
loss model.

The reconciliation of changes in the allowance for doubtful accounts for the periods ended June 30,
2019 and for the year ended December 31, 2018, were as follows:

6/30/2019 12/31/2018
Items

ThHUS$ TRHUS$
Opening balance 42,657 40,100
Net Increases 1,350 7,215
Write-offs/applications (8,292) (4,658)
Total movements (6,942) 2,557
Closing balance 35,715 42,657

F-41
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

As of June 30, 2019 and December 31, 2018, the balance of past due but not impaired trade
receivables, is as follows:

o 6/30/2019 12/31/2018
Maturity
ThUS$ ThUS$
Less than 90 days 4,218 3,473
Between 90 days and 1 year 3,150 4,789
More than 1 year 8,183 10,266
Total trade receivables past-due but not impaired 15,551 18,528

Balance and transactions with related parties

Transactions with related persons

In accordance with Law on New Corporate Governance, the members of Codelco’s Board are, in terms
of transactions with related persons, subject to the provisions of Title XVI of Law on Corporations,
which sets the requirements regarding transactions with related parties in publicly traded companies
and their subsidiaries.

Notwithstanding the foregoing, pursuant to the provisions of the final paragraph of Article 147 b) of Title
XVI, which contains exceptions to the approval process for transactions with related parties, the
Corporation has established a general policy over customary transactions (which was informed
through a significant event notice to the CMF), that defines customary transactions as those carried
out with its related parties in the normal course of business, which contributes to the social interest and
are necessary to the normal development of Codelco’s activities.

Likewise, consistent with the legal framework, the Corporation maintains within its internal framework
a specific policy about transactions between related persons and companies with Codelco’s
employees. Codelco’s Corporate Policy No.18 (*CCP No. 18”), the latest version currently in force, was
approved by the Chief Executive Officer and the Board of Directors.

Accordingly, Codelco without the authorization required in CCP No. 18 and of the Board of Directors,
when required by Law or by the Corporation by-laws, shall not enter into any contracts or agreements
involving one or more Directors, its Chief Executive Officer, the members of Division’s Managing
Committees, Vice-presidents, Legal Counsel, General Auditor, Division Chief Executive Officers,
Advisors of Senior Management, employees who must make recommendations and/or have the
authority to award tenders, assignments of purchases and/or contracting goods and services, and
employees in management positions (up to fourth hierarchical level in the organization), including their
spouses, children and other relatives up to second degree of relation, with a direct interest, represented
by third parties or on behalf of another person. Likewise, CCP No. 18 requires administrators of
Corporation’s contracts to declare all related persons, and disqualify himself/herself if any related
persons are involved within the field of his/her job responsibilities.

F-42
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

This prohibition also includes the companies in which such administrators are involved through
ownership or management, either directly or through representation of other natural persons or legal
entities, as well as those individuals who also have ownership or management in those companies.

The Board of Directors has been informed and approved certain transactions as defined in CCP No.
18. The most significant transactions with related persons and the amounts involved are detailed in the

following table:

111/2019 111/2018 41112019 411/2018
Entity Tor cumry | Natureoftnertationsmip | DeSSption ofthe | or3o/2019 | euorzora | cmoIzoW | crozote
number transaction Amount Amount Amount Amount
ThUS$ ThUs$ ThUS$ ThUS$
Admiistación de Sistemas y Servicios Herman Vero Valenzuela [yg 3491232 | ope lEmpuoycosrolatvo Semicos 200
Rojas E.LR.L
Anglo American Sur S.A. 77.762.240-9 | Chile — [Associate Supplies 16 55 55
Arcadis Chile S.A. 89.371.203 | Chile |[Employee’s relaive Services 351 3,51
Asociación Chilena de Seguridad 70.360.100-6 | Chile — |[Memberof Board of directors Services – 852 – 852
B.Bosch S.A, 84.716.400K | Chile — [Employee’s relative Supplies 3,618 – 3,618 –
Centro de Capacitación y Recreación Radomiro Tomic. 75.985.550-7 | Chile — |[Oterrelated Services 62 847 – –
Exploraciones Mineras Andinas S.A. 99.569.520-0 | Chile — [Subsidiary Services – 358,130 – 358,130
Fismidth S.A, 89.564.200-6 | Chile [Employee’s relaive Supplies 7 – 7 –
Fundacion Educacional de Chuquicamata. 72.747.309 | Chile — |Founder member donor Services 134 –
Fundación Orquesta Sinfónica Infantil de los Andes. 65.018.784-9 | Chile |Founder member donor Services 270 297
Classtech S.A. 87.949.5008 | Chile — [Employee’s relaive Supplies – 3 –
Highservice ingeniería y constucción ltda. 76.378:396-0 | Chile — |[Employee’s relaive Services 680 680
Industial Support Company Ltda 77.276.2804 | Chile [Employee’s relaive Services 22,691 – 2,144
Industial y Comercial Arimatemb Ltda. 76.108.720-7 | Chile — |[Employee’s relaive Services 2 2 20 –
Inoxa S.A. 99.513.620-1 | Chile |[Employee’s relaive Services – 468 468
Institución de Salud Previsional Chuquicamata Ltda. 79.56.7202 | Chile — |Subsidiary Services 3,257 101 – 101
Komatsu Chile S.A. 96.843.130-7. | Chile — |Employee’s relaive Services and Supplies 10,729 2,347 8,307 –
Linde Gas Chile S.A. 20.100.000 | Chile — |Employee’s relative Supplies 76 9 6t
Marsol S.A. 91.443.000-3 | Chile [Employee’s relaive Supplies 84 – 84 –
San Lorenzo Isapre Limitada 76.521.2502 | Chile — |Subsidiary Services – 25,945 – 25,945
Servicios de Ingeniería IMA S.A. 76.523.610 | Chile — [Employee’s relative Services – 125 – 125
Soc. de Prod. y Serv. Solava Lida 78.663..520-9 | Chile — [Employee’s relaive Supplies s7 – – –
Sociedad Contractual Minera El Abra. 96.701.3404 | Chile — [Associate Supplies 7 73
Sodimac S.A. 96.792.430K | Chile — [Employee’s relative Supplies 1,644 1
Sonda S.A. 83.628.104 | Chile — [Employee’s relaive Services 22 –
Suez Medioambiente Chile S.A. 77.441.8709 | Chile — |[Employee’s relaive Supplies s7 –
[Transelec Norte S.A, 99.521.950 | Chile |MemberofBoard of directors Services 4411

Key Management of the Corporation

In accordance with the policy established by the Board of Directors and its related regulations, the
transactions with the Directors, the Chief Executive Officer, Vice Presidents, Corporate Auditor, the
members of the Divisional Management Committees and Divisional General Managers shall be
approved by the Board of Directors.

During the six month and three month periods ended June 30, 2019 and the year ended December 31,

2018, the members of the Board of Directors have received the following amounts as per diems,
salaries and fees:

F-43

1/1/2019 1/1/2018 4/1/2019 4/1/2018
Taxpayer Nature of the Description ofthe | 6/30/2019 6/30/2018 6/30/2019 6/30/2018
Name Country . . .
number relationship transaction Amount Amount Amount Amount
THUS$ THUS$ THUS$ ThUS$
Blas Tomic Errázuriz 5.390.891-8 Chile [Director Directors’s fees 60 63 29 31
Dante Contreras Guajardo 9.976.475-9 Chile [Director Directors’s fees – 34 – 8
Ghassan Dayoub Pseli 14.695.762-5 Chile — [Director Directors’s fees 48 51 23 25
Ghassan Dayoub Pseli 14.695.762-5 Chile [Director Payroll 81 65 2 18
Hernán de Solminihac Tampier 6.263.304-2 Chile — [Director Directors’s fees 48 16 23 16
Ignacio Briones Rojas 12.232.813-9 Chile — [Director Directors’s fees 48 16 23 16
Isidoro Palma Penco 4.754.025-9 Chile [Director Directors’s fees 48 51 23 25
Juan Benavides Feliú 5.633.221-9 Chile [Chairman ofthe Board [Directors’s fees 72 2 35 25
Juan Morales Jaramillo 5.078.923-3 Chile [Director Directors’s fees 48 51 23 25
Laura Albomoz Pollmann 10.338.467-2 Chile [Director Directors’s fees – 34 8
Oscar Landerretche Moreno 8.366.611-0 Chile [Chairman ofthe Board [Directors’s fees – 51 – 13
Paul Schiodtz Obilinovich 7.170.7199 Chile [Director Directors’s fees 48 51 23 25
Raimundo Espinoza Concha 6.512.182-4 Chile — [Director Directors’s fees 48 51 23 25
Raimundo Espinoza Concha 6.512.182-4 Chile [Director Payroll 20 28 10 10

The Ministry of Finance through Supreme Decree No. 100, dated February 5, 2018, established the
compensation for the Corporation’s Directors. The compensation to Board of Director members, is as

follows:

The Directors of Codelco will receive a fixed monthly compensation of Ch$3,931,757 (three million
nine hundred and thirty one thousand, seven hundred and fifty seven Chilean pesos) for meeting
attendance. The payment of the monthly compensation is dependent on meetings attended.

The Chairman of the Board will receive a fixed monthly compensation of Ch$7,863,513 (seven
million eight hundred and sixty three thousand, five hundred and thirteen Chilean pesos).

Each member of the Directors Committee, whether the one referred to in Article 50 bis) of Law
No. 18046 or another established by the Corporation by-laws, will receive a fixed additional
monthly compensation of Ch$1,310,584 for meeting attendance, regardless of the number of
committees of which they are members. In addition, the Chairman of the Directors’ Committee will
receive a fixed monthly compensation of Ch$2,621,171 for meeting attendance.

d. The compensation established in DS No. 36 is effective for a period of two years, as from June 1,

2018, and will be updated on January 1, 2019, in accordance with the same provisions that govern
the general salary adjustments of officials of the public sector. For the year 2019, the readjustment
is 3.5%.

On the other hand, the short-term benefits of key management of the Corporation paid during the
six month periods ended June 30, 2019 and 2018, were ThUS$7,684 and ThUS$8,549, respectively.

The methodology to determine the remuneration of key management was approved by the Board of
Directors at a meeting held on January 29, 2003.

F-44
CORPORACION NACIONAL DEL COBRE DE CHILE

During the six month periods ended June 30, 2019 and 2018, severance indemnities were paid to

key management of the Corporation for ThUS$1,362 and ThUS$1,135, respectively.

There were no payments to key management for other non-current benefits during the six month
periods ended June 30, 2019 and 2018.

There are no share based payment plans granted to Directors or key management personnel of
the Corporation.

Transactions with companies in which Codelco has ownership interest

The Corporation undertakes commercial and financial transactions that are necessary for ¡ts activities
with its subsidiaries, associates and joint ventures (“related parties”). The financial transactions
correspond mainly to loans granted (mercantile current accounts).

Commercial transactions with related companies mainly consist of purchases/sales of products or
rendering of services carried out under market conditions and prices, which do not bear any interest or
indexation.

As of the date of these financial statements, the Corporation has not recognized any allowance for
doubtful accounts with respect to receivable balances from ¡ts related companies.

The detail of accounts receivable and payable between the Corporation and its related parties as of
June 30, 2019 and December 31, 2018, is as follows:

Accounts receivable from related companies:

. Current Non-current
Taxpayer Nature of the Indexation
Name Country ás ss 6/30/2019 | 12/31/2018 | 6/30/2019 | 12/31/2018
number relationship currency
Thus$ TRus$ THus$ ThUSs$
77.762.940-9 Anglo American Sur S.A. Chile Associate US$ 10,198 88,497 –
76.063.022-5 Inca de Oro S.A. Chile Associate US$ 425 380 – –
76.255.054-7 Planta Recuperadora de Metales SpA. Chile Associate US$ 8,271 3,099 17,806 20,306
196.701.340-4 Sociedad Contractual Minera El Abra Chile Associate US$ 1,356 383 – –
196.801.450-1 ¡Agua de la Falda S.A. Chile Associate US$ 6 6 224 22
Totals 20,256 92,365 18,030 20,530
Accounts payable to related companies:
. Current Non-current
Taxpayer Nature of the Indexation
Name Country a . 6/30/2019 | 12/31/2018 | 6/30/2019 | 12/31/2018
number relationship currency
THUS$ ThHUS$ TRUS$ THUS$
77.762.940-9 Anglo American Sur S.A. Chile Associate US$ 117,608 125,913 –
96.701.340-4 Sociedad Contractual Minera El Abra Chile Associate US$ 22,184 22,940
76.255.054-7 Planta Recuperadora de Metales SpA Chile Associate US$ 2,138 2,063

Totals

141,930

150,916

F-45

CORPORACION NACIONAL DEL COBRE DE CHILE

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the transactions carried out between the Corporation and its related
companies and their corresponding effects in profit or loss for the six month and three month periods
ended June 30, 2019 and 2018:

1H72019 112018 AMIZOTO 472018
6/30/2019 6/30/2018 6/30/2019 6/30/2018,
Taxpayer . . Index ttects on net incomel Effects on net Effects on net Effects on net
Pd Entity Nature ofthe transaction | County | repo, (charges) credits income (Charges)/ income (charges)/ income (charges)!
Amount Amount credits Amount credits Amount credits
THUSS Thus$ THUSS THuS$. THUS$. THUSS Thuss THuSS

96.801.450-1 [Agua dela Falda S.A [Sales ofserices [Chile CLP 2 2 2 2 1 1 1 1
96.801.450-1 [Agua dela Falda S.A, [Capital contributon [Chile US$ 190 – – – 190 – – –
77.762940-9 [Anglo American Sur SA. Dividends received Chile US$ 84,372 59,003 – –
77.762.940: [Anglo American Sur SA. Dividendsreceivable Chi US$ – -| 123900 – – – 123,900
77.762940-9 [Anglo American Sur SA. [Sales of goods Chi US$ 8992 8932| 57048 57,048 8992 892 – –
777629409 [Anglo American Sur SA. [Sales of services [Chile cle 4,279 4279 3923 3923 1,042 1,042 3919 3919
77.762940-9 [Anglo American Sur SA. Purchase of products Chile US$ 349,993 (549,998)| — 362487 (362487)| — 157/71 (167,171) 206,749 (206,749)

Foreing [Deutsche Geissdraht GmbH Dividends received [Germany | EURO – – 968 – – – 968 –
76.063.022-5 [Inca de Oro SA, [Sales ofsevices Chi cle 36 8 7o a 26 4 2 4
77.781.030 [Kairos Mining [Semvices [Chile cle 11,022 (11022| 13844 (13,844)| 3353 (3.359) 2285 (2285)
76.255.054-7 [Planta Recuperadora de Metales SpA [nterestloans [Chile US$ 510 510 510 510 256 256 256 256
76.255.054-7 [Planta Recuperadora de Metales SpA [Services [Chile US$ 11611 (1611) 9,669 (9.569) 8,390 (6.390) 6:45 (6,145)
76.255.054-7 [Planta Recuperadora de Metales SpA [Sales ofservices [Chile cle 4,695 4,695 940 940 4,695 4,695 940 940
76.255.054-7 [Planta Recuperadora de Metales SpA [Sales of goods [Chile US$ 14 4 4,077 4077 14 14 4077 4977
96.701.340-4 [Soc. Contractual Minera El Abra Purchase of products [Chile US$ 107,793 (107,798)| — 156,444 (156.444) 58,924 (58924) 82,705 (82,705)
96.701.3404 [Soc. Contactual Minera El Abra [Sales of goods [Chile US$ 12,444 12.444 | — 12695 12,695 5400 5400 9,196 9,196
96.701.340-4 [Soc. Contractual Minera El Abra [Ober sales Chile US$ 746 746 373 373 373 373 – –
96.701.340-4 [Soc. Contractual Minera El Abra Perceived commissions — [Chile US$ 43 43 56 56 2 2 2 2
96.701.340-4 [Soc. Contractual Minera El Abra Joer purchases. [Chi US$ 39 (89) – – – – – –

d) Additional information

The current account receivable from Planta Recuperadora de Metales SpA. corresponds to the loan
agreement granted to build its plant, which was signed on July 7, 2014.

The purchase/sales of products transactions with Anglo American Sur S.A., are regular business
activity transactions to buy/sell copper and other products. On the other hand, there are certain
transactions related to the contract entered into with the subsidiary Inversiones Mineras Nueva Acrux
SpA (whose non-controlling shareholder is Mitsui) and Anglo American Sur S.A., under which the latter
agreed to sell a portion of its annual copper output to said subsidiary.

Inventories

The detail of inventories as of June 30, 2019 and December 31, 2018, ¡is as follows:

Current Non-current
Items 6/30/2019 12/31/2018 6/30/2019 12/31/2018
THus$ THus$ THUS$ THUus$
Finished products 199,763 446,344 – –
Subtotal finished products, net 199,763 446,344 – –
Products in process 1,337,721 1,137,605 555,968 457,070
Subtotal products in process, net 1,337,721 1,137,605 555,968 457,070
Material in warehouse and other 612,793 555,504 – –
Obsolescence allowance adjustment (105,275) (96,805) – –
Subtotal material in warehouse and other, net 507,518 458,699 – –
Total Inventories 2,045,002 2,042,648 555,968 457,070

The amount of inventories of finished goods transferred to cost of sales for the six month periods ended
June 30, 2019 and 2018 were ThUS$4,639,337 and ThUS$5,550,856, respectively.

F-46
5.

For the six month periods ended June 30, 2019 and 2018, the Corporation has not reclassified strategic
inventories to Property, Plant and Equipment.

The reconciliation of changes in the allowance for obsolescence ¡s detailed below:

Changes in Allowance for Obsolescence 6/30/2019 1213112018
ThUS$ ThUS$
Opening Balance (96,805) (94,083)
Period provision (8,470) (2,722)
Closing Balance (105,275) (96,805)

For the six month periods ended June 30, 2019 and 2018, the Corporation recognized write-offs of
damaged inventories for ThUS$758 and ThUS$785, respectively.

The provision for the net realizable value of inventories was ThUS$51,589 for the six month ended June
30, 2019 (ThUS$29,133 for the six month ended June 30, 2018).

During the six month periods ended June 30, 2019 and 2018, increases in the provision for net realizable
value were ThUS$22,456 and decrease ThUS$18,388, respectively.

As of June 30, 2019 and 2018, there are no unrealized gains or losses recognized on the intercompany
sales of inventories of finished products.

As of June 30, 2019 and 2018, there are no inventories pledged as security for liabilities.
Income taxes and deferred taxes

a) Composition of income tax expense

1/1/2019 1/1/2018 4/1/2019 4/1/2018
Items 6/30/2019 | 6/30/2018 | 6/30/2019 | 6/30/2018
Thus$ Thus$ Thus$ Thus$
Current income tax (4,168) (71,322) (2,848) (83,523)
Efect of Deferred Taxes 40,253 (362,357) 167,676 (208,322)
Adjustments to current tax from the prior period – 2,922 1,618 2,922
Other (1,595) 439 (631) 4,606
Total tax expense 34,490 (430,318) 165,815 (234,317)

F-47
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

b) Deferred tax assets and liabilities:

The following table details deferred tax assets and liabilities:

Deferred tax assets 6/30/2019 12/31/2018
ThUus$ TRUS$
Provisions 1,337,149 1,429,060
Financial leasing 16,988 13,162
Customers advance 503,621 250,255
Other 5,001 4,603
Total deferred tax assets 1,862,759 1,697,080
Deferred tax liabilities 6/30/2019 12/31/2018
TRUS$ TRUS$
Tax on mining activity 185,441 163,280
Property, plant and equipment variations 961,616 889,841
Post-employ ment benefit obligations 16,695 10,346
Accelerated depreciation for tax purposes 4,975,563 5,017,532
Fair value of mining properties acquired 108,518 108,518
Hedging derivatives — future contracts 16,977 12,282
Undistributed profits of subsidiaries 34,726 50,006
Assets classified as held for sale 34,136 –
Total deferred tax liabilities 6,333,672 6,251,805

The following tables sets forth the deferred taxes as presented in the statement of financial position:

Deferred taxes 6/30/2019 12/31/2018
TRUS$ THUS$
Non-current assets 35,144 31,443
Non-current liabilities 4,506,057 4,586, 168
Net 4,470,913 4,554,725

The effects of deferred taxes on the components of other comprehensive income are as follows:

6/30/2019 | 3/31/2018

Deferred taxes on components of other comprehensive income
ThUS$ Thus$

Credit (charge) cash flow hedge 40,994 (48,877)
Defined Benefit Plans 2,565 3,028
Total deferred tax effect on components of other comprehensive income (loss) 43,559 (45,849)

F-48
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the reconciliation of the effective tax rate:

6/30/2019
Reconciliation of tax rate Taxable Base At the Tax rate

25.0% 40.0% 5% 25.0% 40.0% 5% Total

ES Thus$ THus$ THuS$ THUS$ Thus$ Thus$
Tax efect on the income (loss) before taxes (138,873) — (138,873) (138,873) 34,718 55,549 6944 97,211
Tax effect on the income (loss) before taxes of subsidiaries 4,149 4,149 4,149 (1,037) (1,660) (207) (2,904)
Tax effect consolidated profit (loss) before taxes (134,724) — (134,724) (134,724) 33,681 53,889 6737 94,307
Permanent differences:
First category income tax (25% ) 70,587 (17,647) (17,647)
Specific tax for state-owned entites Art. 2 D.L. 2398 (40% ) 26,344 (10,538) (10,538)
Specific tax on mining activities 571,637 (28,582) (28,582)
Single Tax Art 21 Inc. N*1 (1,434)
Difterences tax previous years (1,616)
TOTAL TAX EXPENSE 16,034 43,351 — (21,845) 34,490

6/30/2018
Reconciliation of tax rate Taxable Base At the Tax rate

25.0% 40.0% 5% 25.0% 40.0% 5% Total

ES Thus$ THus$ THuS$ THUS$ Thus$ Thus$
Tax efect on the income (loss) before taxes 637,011 637,011 637,011 (159,253) (254,804) (31,851) — (445,908)
Tax effect on the income (loss) before taxes of subsidiaries 37,221 37,221 37,221 (9,305) (14,888) (1,862) (26,055)
Tax effect consolidated profit (loss) before taxes 674,232 674,232 674,232 (168,558) (269,692) (33,713) (471,963)
Permanent differences:
First category income tax (25% ) (67,704) 16,926 16,926
Specific tax for state-owned entities Art. 2 D.L. 2398 (40% ) (106,779) 42,712 42,712
Specific tax on mining activities 389,816 (19,491) (19,491)
Single Tax Art 21 Inc. N*1 (1,424)
Others 2,922
TOTAL TAX EXPENSE (451,632) — (226,980) — (53,204) (430,318)

Pursuant to Article 2 of the Decree Law 2398, Codelco is subject to an additional tax rate of 40% on
income before taxes and dividends received in accordance with the law.

On September 29, 2014, Law No. 20780 entitled “Tax Reform which modifies the Income Tax System,
and which introduces various adjustments on the Tax System”, was enacted.

The principal changes, among others, was the creation of two optional tax systems: (i) The Attributed
Income System established a progressive increase in the first category income tax rate to 21%, 22.5%,
24% and 25% for fiscal years 2014, 2015, 2016 and 2017, respectively; and (ii) the Partially Integrated
System, established a progressive increase in the first category income to 21%, 22.5%, 24%, 25.5%
and 27% for fiscal years 2014, 2015, 2016, 2017 and 2018, respectively.

Notwithstanding the above, the Corporation has applied the General Taxation Regime, with
progressive first category income tax rates of 21%, 22.5%, 24% and 25% for fiscal years 2014, 2015,
2016 and 2017 onwards, respectively. The Corporation, as a state-owned company, did not have the
option to apply the tax regimes stated in the Tax Reform. Meanwhile, the subsidiaries and associates
applied the partially integrated tax system by default.

F-49
CORPORACION NACIONAL DEL COBRE DE CHILE

In relation to the specific tax on mining activities the tax rate applicable is 5% under Law No. 20469.

The Corporation, as a Taxpayer of first category, is liable to the single Tax of 40%, contained in the
first paragraph of Article 21 of the Income Tax Law No. 824, in numbers i), li) and iii) , the disbursements

incurred in said numerals.

6. Current and non-current tax assets and liabilities

The current tax balance is presented net of monthly provisional payments as an asset or liability in Current
Taxes, as the case may be, determined as indicated in section II. Main accounting policies, 2.1):

Current Tax Assets 6/30/2019 | 12/31/2018
ThHUS$ TRUS$
Taxes to be recovered 48,247 13,645
Total Current Tax Assets 48,247 13,645
Current Tax Liabilities 6/30/2019 | 12/31/2018
ThHUS$ TRUS$
Monthly Provisional Pay ment Provision 6,386 6,910
Provision Tax 2,936 3,867
Total Current Tax Liabilities 9,322 10,777
6/30/2019 | 12/31/2018
Items
ThHUS$ TRUS$
Non-Current Tax Assets 144,745 143,606
Total Non-Current Tax Assets 144,745 143,606

Non-current recoverable taxes correspond to advance tax payments made provisionally and which are
probable of realization through utilization on future income tax returns. These non-current recoverable taxes
are not expected to be utilized in the current period. The Corporation has tax loss carryforwards of

ThUS$729,679.

7. Non-current assets or disposal groups classified as held for sale
As of June 30, 2019, the balance of the item Non-current assets or groups of assets for disposal classified
as held for sale, of the consolidated current asset, corresponds entirely to the 37% share of the capital held
by the Corporation in the company GNL Mejillones S.A.

At the date of issuance of these financial statements, the Corporation is in the process of selling its stake in

said company, a transaction that was finalized in August 2019. (See note 36).

F-50

8. Property, Plant and Equipment

a) Theitems of property, plant and equipment as of June 30, 2019 and December 31, 2018, are as follows:

: 6/30/2019 12/31/2018

Property, Plant and Equipment, gross hUSS$ ThUSS$

Construction in progress 9,434,186 8,808,652
Land 174,110 173,926
Buildings 5,333,748 5,403,295
Plant and equipment 15,876,559 15,894,046
Fixtures and fitings 58,713 58,807
Motor vehicles 2,075,731 2,062,920
Land improvements 5,632,215 5,619,800
Mining operations 8,049,294 7,214,915
Mine development 4,294,795 4,117,362
Assets by right of use 646,406 –
Other assets 1,202,730 1,380,354
Total Property, Plant and Equipment, gross 52,778,487 50,734,077

Property, Plant and Equipment, accumulated depreciation 6/30/2019 12/31/2018

ES Thus$
Construction in progress – –
Land 9,470 8,964
Buildings 3,058,785 3,048,902
Plant and equipment 10,298, 149 10,125,253
Fixtures and fittings 45,713 43,878
Motor vehicles 1,432,127 1,378,911
Land improvements 3,363,241 3,207,244
Mining operations 4,839,188 4,728,591
Mine development 835,168 804,318
Assets by right of use 184,167 –
Other assets 470,260 573,018
Total Property, Plant and Equipment, accumulated depreciation 24,536,268 23,979,079

Property, Plant and Equipment, net 6/30/2019 12/31/2018

THuUSs$ Thus$
Construction in progress 9,434,186 8,808,652
Land 164,640 164,962
Buildings 2,274,963 2,354,393
Plant and equipment 5,578,410 5,768,793
Fixtures and fittings 13,000 14,929
Motor vehicles 643,604 684,009
Land improvements 2,268,974 2,352,556
Mining operations 3,210,106 2,486,324
Mine development 3,459,627 3,313,044
Assets by right of use 462,239 –
Other assets 732,470 807,336
Total Property, Plant and Equipment, net 28,242,219 26,754,998

F-51
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CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The balance of construction in progress, is directly associated with the operating activities of the
Corporation, and relates to the acquisition of equipment for projects in construction and associated
costs toward their completion.

The Corporation has signed insurance policies to cover the possible risks to which the various
property, plant and equipment items are subject, as well as the possible claims that may arise for the
period of its activities. Such policies sufficiently cover the risks to which they are subject in
Management opinion.

Borrowing costs capitalized for the six month periods ended June 30, 2019 and 2018 were
ThUS$182,643 and ThUS$143,014, respectively. The annual capitalization average rate for the
periods ended June 30, 2019 and 2018 was 4.35% and 4.33%, respectively.

Expenses on exploration and drilling of deposits recognized in profit or loss and the cash outflows
disbursed for the same concepts are presented in the following table:

1/11/2019 1/1/2018
Expenditure on exploration and drilling reservoirs 6/30/2019 | 12/31/2018
ThuS$ TRUS$
Recognized in profit /(loss) 22,537 38,174
Cash outflows disbursed 19,864 30,970

The detail of “Other assets” under “Property, plant and equipment” is as follows:

Other assets, net 6/30/2019 | 12/31/2018
ThUS$ TRUS$

Leased assets (1) – 93,334
Mining properties from the purchase of Anglo American Sur S.A. 402,000 402,000
Maintenances and other major repairs 261,686 235,091
Other assets — Calama Plan 63,199 72,225
Other 5,585 4,686
Total other assets, net 732,470 807,336

(1) As of January 1, 2019, the lease agreements under lAS 17 and IFRIC 4 become part of the lease
agreements under IFRS 16 that are classified under the name of assets for right of use.

During the first quarter of 2018, US$103.6 million were reclassified from the line item Intangible
assets other than goodwill, to Construction in Progress of Property, plant and equipment,
corresponding to assets of the Continuous Mining project (see note 10 Intangible Assets other than
goodwill) that could potentially be used in other operations and / or projects of the Corporation.

Subsequently, US$66.4 million (US$23 million after taxes) from the assets mentioned above were
written off as of June 30, 2018.

F-53
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The Corporation currently has no ownership restrictions relating to assets belonging to Property,
plant and equipment, except for leased assets whose legal title corresponds to the lessor.

Codelco has not pledged any items of property, plant and equipment as collateral to third parties in
order to enable the realization of its normal business activities or as a commitment to support
payment obligations.

According to the policy indicated in note 2 ¡), referring to property, plant and equipment and intangible
assets, and as indicated in note 23, for the year ended December 31, 2018, the Corporation
recorded an impairment in the value of the Ventanas assets for an amount of ThUS$198,898 before
taxes. At June 30, 2019, the property, plant and equipment assets showed no indicators of
impairment or reversals of impairments recognized in previous years, so that no adjustments were
made to the value of the assets at that date. (see note 23).

As of June 30, 2019, the composition by asset class of assets for right of use is:

Assets by right of use 6/30/2019 1/1/2019
THUS$ TRUS$
Buildings 21,598 24,069
Plant and equipment 316,887 283,750
Motor vehicles 107,044 140,960
Fixtures and fitings 10,871 12,028
Others assets by right of use 5,839 6,265
Total Assets by right of use 462,239 467,072

Investments accounted for using the equity method

The following table sets forth the carrying amount and the share of profit (loss) of the investments accounted
for using the equity method:

Equity Interest Carrying Value Net income (loss) Net income (loss)

Associates Taxpayer Funct. 4/1/2019 | 1/1/2018 | 4/1/2019 | 4/1/2018
Numbers Cuurenc. | 6/30/2019 | 12/31/2018 | 6/30/2019 | 12/31/2018 | 6/30/2019 | 6/30/2018 | 6/30/2019 | 6/30/2018

% % Thus$ Thus$ THuS$ | TRUS$ | US$ | RUSS
Agua de la Falda S.A. 96.801.450-1 US$ | 4226% | 42.26% 5,014 4,953 (129) (158) (67) (60)
Anglo American Sur S.A. 77.762.940-9 US$ 29.5% 29.5% 2,845,854 | 2,835,412 10,442 61,137 14,69% 49,686

Inca de Oro S.A. 73.063.022-5 US$ 33.19% 33.19% 12,913 12,913 – – 2

Kairos Mining S.A. 76.781.030-K US$ 40.00% 5.00% 55 – – – – –
Minera Purén SCM 76.028.880-2 US$ 35.0% 35.0% 9,950 9,902 48 1 28 6
Planta Recuperadora de Metales SpA 76.255.054-7 US$ 34.0% 34.0% 10,326 10,365 (89) 97 – 97
Sociedad Contractual Minera El Abra 96.701.340-4 US$ 49.0% 49.0% 599,915 610,339 | (10,198) 9,037 (5,298) 5,308
Sociedad GNL Mejillones S.A. 76.775.710-7 US$ 37.0% 37.0% – 84,409 5,109 3,609 2,634 1,663
TOTAL 3,484,027 | 3,568,293 5,233 73,723 12,010 56,680

F-54
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Associates
Agua de la Falda S.A.

As of June 30, 2019, Codelco holds a 42.26% ownership interest in Agua de la Falda S.A., with the
remaining 57.74% owned by Minera Meridian Limitada.

The corporate purpose of this company is to exploit deposits of gold and other minerals, in the third
region of Chile.

Sociedad Contractual Minera El Abra

Sociedad Contractual Minera El Abra was incorporated in 1994. As of June 30, 2019, Codelco holds a
49% ownership interest, with the remaining 51% owned by Cyprus El Abra Corporation, a subsidiary
of Freeport-McMoRan Copper 8 Gold Inc.

The company business activities involve the extraction, production and selling copper cathodes.

Sociedad Contractual Minera Purén

As of June 30, 2019, Codelco holds a 35% ownership interest, with the remaining 65% owned by
Compañía Minera Mantos de Oro.

This company’s corporate purpose is to explore, identify, survey, investigate, develop and exploit
mining deposits in order to extract, produce and process minerals.

Sociedad GNL Mejillones S.A.

As of December 31, 2018, Codelco holds a 37% ownership interest, with the remaining 63% owned by
Suez Energy Andino S.A. These current shareholdings were established on November 5, 2010, when
the Corporation did not participate in the capital increase agreed to at Shareholders’ meeting of such
company. Prior to the capital increase, the Corporation and Suez Energy Andino S.A. held a 50%
ownership interest each.

As of June 30, 2019, the balance of the item Non-current assets or disposal groups classified as held

for sale, of the consolidated current asset, corresponds entirely to the 37% share of the capital held
by the Corporation in the company GNL Mejillones S.A.

At the date of issuance of these financial statements, the Corporation is in the process of selling ¡ts
stake in said company, a transaction that ended in August 2019. (See note 36).

The corporate purpose of this company is the production, storage, marketing, transportation and
distribution of all types of fuel, and the acquisition, construction, maintenance and operation of

F-55
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

infrastructure facilities and construction projects necessary for transport, reception, processing and
storage both in Chile and abroad, by itself or in partnership with third parties.

Inca de Oro S.A.

On June 1, 2009, Codelco’s Board of Directors authorized the incorporation of a new company aimed
to develop studies allowing the continuity ofthe Inca de Oro Project, which is a wholly-owned subsidiary
of Codelco.

On February 15, 2011, the business association of Codelco and Minera PanAust IDO Ltda. in respect
to the Inca de Oro deposit was approved. As a result Minera PanAust IDO Ltda holds 66% ownership
interest and the remaining 34% is held by Codelco.

This transaction resulted in a gain after taxes of ThUS$33,668 recognized in the year ended December
31, 2011.

At the Extraordinary meeting of the shareholders held on December 30, 2014, a capital increase of
ThUS$102,010 was agreed upon, reducing Codelco’s ownership interest to 33.19%.

As of December 31, 2015, the Corporation reduced the carrying amounts of mining property and
exploration and evaluation expenditures as a result of an impairment loss recognized.

As of June 30, 2019, Codelco holds a 33.19% ownership interest in this company.
Planta Recuperadora de Metales SpA

On December 3, 2012, Planta Recuperadora Metales SpA was incorporated by Codelco, which held a
100% ownership interest of this company.

On July 7, 2014, Codelco reduced its ownership interest in Planta Recuperadora de Metales SpA to
51%, with the remaining 49% ownership interest held by LS-Nikko Copper Inc.

On October 14, 2015, Codelco reduced its ownership interest to 34% interest, with LS-Nikko Copper
Inc, holding the remaining 66%.

As of June 30, 2019, LS-Nikko Copper Inc, is the controlling shareholder of this company based on the
control elements set out in the shareholders’ agreement.

The principal business activity of the company is the processing of intermediate products of the refining
and processing of copper and other metals aiming to recover the copper, other metals and other sub
products, their transformation to commercial products and the selling and distribution of all classes of
goods or inputs derived from such process.

F-56
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Deutsche Giessdraht GmbH

On July 31, 2018 the share sale agreement was finalized representative of the shareholding held by
CK in Deutsche Giessdraht GmbH maintained by Codelco Kupferhandel GmbH. (CK), which until
before that date was the holder of a 40% stake in the capital of DG.

The acquiring company of the shares was the Aurubis Company AG, which was, until before the sale
transaction, the majority shareholder of DG. The result after taxes of this transaction was Euro 17,157
Thousands (ThUS $ 20,095 in its equivalence to the exchange rate of the date of the transaction).

Anglo American Sur S.A.

As June 30, 2019, the controlling shareholder of Anglo American Sur S.A. is Inversiones Anglo
American Sur S.A. holding a 50.06% ownership interest, while the non-controlling interest is held by
Inversiones Mineras Becrux SpA., which in turn is a subsidiary controlled by Codelco with a 67.8%
ownership interest. Consequently, Codelco exercises significant influence in Anglo American Sur S.A.
through its indirect ownership interest of 29.5%.

On December 21, 2017, according to archive No. 12285 / 2017, by public deed, it was agreed between
the shareholders to merge the Acrux SpA Mining Investment Company (“Absorbed Company”) into the
Investment Company Minera Becrux SpA (“Absorbing Company”), which took effect as of December
22, 2017, where the Absorbing Company acquires all the assets and liabilities of the Absorbed
Company, which would be dissolved without the need for its liquidation. In addition, the Absorbing
Company ¡is responsible for the payment of all taxes owed or which may be owed by the Absorbed
Company.

The principal activities of the Company are the exploration, extraction, exploitation, production,
processing and trading of minerals, concentrates, precipitates, copper bars and all metallic and non-
metallic minerals, all fossil substances and liquid and gaseous hydrocarbons. This includes the
exploration, exploitation and use of all natural energy sources capable of industrial use and the
products or by-products obtained, as well as any other related, connected or complementary activities
on which the shareholders agree.

Kairos S.A.

Until before November 26, 2012, the Corporation held a 40% stake in conjunction with Honeywell
Chile S.A. who was the majority shareholder with 60% of the capital stock of Kairos Mining S.A.

On November 26, 2012, the Corporation sold part of its stake to Honeywell Chile SA, which implies
that Codelco maintained a 5% interest as of December 31, 2012, while the remaining 95% was held
Honeywell Chile S.A. The result of this pre-tax operation was ThUS$13.

On June 6, 2019, Codelco purchased 350 shares of Kairos Mining from Honeywell Chile S.A.,
increasing ¡ts participation from 5% to 40%.

F-57
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

As of June 30, 2019, the control of the company lies in Honeywell Chile S.A. which owns 60% of the
shares and while Codelco owns the remaining 40%.

The purpose of the company is to provide automation and control services for industrial and mining
activities and to provide technology and software licenses.

The following tables provide details of asset and liabilities of the associates as of June 30, 2019 and
December 31, 2018, and their profit (loss) for the six-month and three-month periods ended June 30,
2019 and 2018:

Assets and Liabilities 6/30/2019 12/31/2018
TRUS$ TRUS$
Current Assets 1,583,820 1,805,003
Non-current Assets 5,623,174 5,637,321
Current Liabilites 756,171 1,008,086
Non-current Liabilites 1,664,717 1,699,529
1/1/2019 1/1/2018 4/1/2019 4/1/2018
Net Income 6/30/2019 6/30/2018 6/30/2019 6/30/2018
Thus$ ThUS$ TRUS$ TRUS$
Revenue 1,485,556 1,605,473 739,340 892,645
Cost of sales (1,464,893) (1,349,058) (596,368) (696,842)
Profit for the period 20,663 256,415 142,972 195,803
Movements of Investment in Associates 1/1/2019 1/1/2018
6/30/2019 6/30/2018
THUS$ ThUS$
Opening balances 3,568,293 3,665,601
Contributions 240 –
Dividends – (123,900)
Result of the period 5,233 73,723
Reclassification assets as held for sale (89,513) –
Other comprehensive income (226) (540)
Other – (621)
Final balance 3,484,027 3,614,263

The following tables provide details of asset and liabilities of the principal associates as of June 30, 2019
and December 31, 2018, and their profit (loss) for the six-month and three-month periods ended June
30, 2019 and 2018.

F-58
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Anglo American Sur S.A.
Assets and liabilities 6/30/2019 12/31/2018
TRUS$ Thus$
Current Assets 991,056 1,164,724
Non-current Assets 4,059,221 4,104,271
Current Liabilites 598,372 890,874
Non-current Liabilities 1,241,701 1,226,503

See note 20. Letter b) participation non-controlling note

11112019 11112018 4/1/2019 4/11/2018
Net Income 6/30/2019 6/30/2018 6/30/2019 6/30/2018
ThUS$ ThuSs$ ThUS$ ThUS$
Revenue 1,208,438 1,232,726 589,277 731,369
Costof sales (1,149,852)| — (1,004,076) (527,533) (551,194)
Profit for the period 58,586 228,650 61,744 180,175

Sociedad Contractual Minera El Abra

A and liabilities 6/30/2019 12/31/2018

ThUS$ ThUS$
Current Assets 526,870 576,167
Non-current Assets 1,054,213 1,013,165
Current Liabilities 83,540 73,458
Non-current Liabilities 273,227 270,283
1/1/2019 1/1/2018 4/1/2019 4/1/2018
Net Income 6/30/2019 6/30/2018 6/30/2019 6/30/2018
TRUS$ TRUS$ ThuS$ Thus$
Revenue 220,085 316,293 120,239 165,998
Cost of sales (240,897) (297,850) (131,051) (155, 165)
Profit (loss) for the period (20,812) 18,443 (10,812) 10,833

b) Additional information on unrealized profits (losses)

Codelco enters into transactions for the purchase and sale of copper with Sociedad Contractual Minera
El Abra. As of June 30, 2019 and December 31, 2018, there were no unrealized profits (losses)
recognized in the carrying amount of inventories of finished products.

The Corporation has recognized unrealized profits for the purchase of rights to use the LNG terminal

from the El Abra Mining Contract Company for ThUS$3,920 as of June 30, 2019, (as of December 31,
2018: Thus$3,920).

F-59
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Investments in associates acquired

On August 24, 2012, Codelco recognized the acquisition of ownership interest in Anglo American Sur
S.A. which resulted in the initial recognition of the cost of the investment for ThUS$6,490,000 that
corresponded to the proportionate share (29.5%) of the net fair value of the identifiable assets and
liabilities acquired.

In determining the share of the fair value of the identifiable assets and liabilities acquired, the
Corporation considered the resources and mineral reserves that could be measured reliably and the
assessment of intangibles and all other considerations about contingent assets and liabilities.

The allocation of the purchase price at fair value between the identifiable assets and liabilities was
prepared by management using its best estimate and taking into account all relevant and available
information at the acquisition date of Anglo American Sur S.A.

The acquisition did not result in obtaining control of the acquired company.

The Corporation used a discounted cash flows model to estimate cash flow projections, based on the
life of mine. These projections were based on estimated production and future prices of minerals,
operating costs and capital costs, among other estimates made at the date of acquisition. Additionally,
proven and probable resources to explore were not included in the mine plan, therefore, they were
valued separately using a market model. Such resources are included in item “Mineral Resources.”

As part of this process and by applying the valuation criteria indicated above, the fair value of the net
assets of Anglo American Sur S.A. was US$22,646 million, therefore the proportionate share acquired
by Inversiones Mineras Becrux SpA (29.5%) was equivalent to US$6,681 million at the acquisition date.

Additional information on impairment of investments accounted for using the equity method

As of December 31, 2015, the Corporation identified indicators of impairment in the operating units of
Anglo American Sur S.A. Consequently, and with the purpose of making the corresponding
adjustments to the investment in this associate, the Corporation estimated its recoverable amount.

In determining the recoverable amount, the Corporation applied the methodology of fair value less
costs of disposal. The recoverable amount of the operating units was determined based on the life of
mine by using a discounted cash flow model whose main assumptions included ore reserves declared
by the associate, copper price, supply costs, foreign exchange rates, discount rate and market
information for the long-term asset valuation. The discount rate used was annual rate of 8% after taxes.

Furthermore, the proven reserves not included in the LOM, as well as the probable reserves to explore,
have been valued using a multiples market approach for comparable transactions. Such methodology
is consistent with the methodologies used at the acquisition date, which is described in letter c) above.

The recoverable amount as estimated was less than the carrying amount of the identified assets of the
associate, therefore, the Corporation recognized an impairment loss of ThUS$2,439,495, which was

F-60
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

included within the line item “Share of profit or loss of associates and joint ventures accounted for using
the equity method” in the consolidated statement of comprehensive income for the year ended
December 31, 2015. The impairment loss was mainly attributable to the drop in copper prices during
the year 2015.

Subsequent to recognition of the impairment, there has been no indicators requiring the recognition of
further impairment losses on the recoverable amount of the investment held in Anglo American Sur
S.A.

As of December 31, 2016, the parent company of Anglo American Sur S.A. reviewed the discounted
cash flow model of its cash generating units (CGU), determining an impairment loss for the El Soldado
CGU of US$200 million due to the uncertainty related to obtaining the required approval of its
operational plan from the National Mining and Geology Service (“SERNAGEOMIN” in its Spanish
acronym), which raised questions about the generation of future economic benefits to support the value
of the assets related to such CGU.

Consequently, and with the purpose of making the corresponding adjustments to the recognition its
investment in the associate, the Corporation estimated its recoverable amount by considering the fair
value of the identified net assets of the associate El Soldado. The recoverable amount as estimated
was less than the carrying amount of the identified assets of the associate, therefore, the Corporation
recognized an impairment loss of ThUS$78,811 over the identified assets related to El Soldado
operations, which was included within the line item “Share of profit or loss of associates and joint
ventures accounted for using the equity method” in the statement of comprehensive income for the
year ended December 31, 2016.

On April 27, 2017, the SERNAGEOMIN approved the updated mine plan for El Soldado, based on this
resolution Anglo American Sur S.A. has resumed the operations of the mine. Consequently, the
company recognized a reversal of an impairment loss for US$193 million.

As of December 31, 2017, Codelco made a corresponding adjustment to the identified assets at the
acquisition date of the investment associated with El Soldado operations by recognizing a reversal of
an impairment loss of ThUS$67,277, which is presented in the line item “Share of profit or loss of
associates and joint ventures accounted for using the equity method.”

As of June 30, 2019 and 2018, there are no indicators of impairment and reverse, therefore, there have
been no adjustments recognized to the carrying amounts of the assets.

Share of profit or loss for the year

The share in profit or loss of the associate Anglo American Sur S.A. recognized for the six-month
periods ended June 30, 2019 was income of ThUS$17,283 (income of ThUS$67,462 for the periods
ended June 30, 2018). In addition, the Corporation has made appropriate adjustments to its share of
profit or loss in the associate for depreciation of the depreciable assets based on the fair values at the
acquisition date, which resulted in an expense of ThUS$6,841 for the six-month periods ended June
30, 2019 (an expense of ThUS$6,315 for the six-month periods ended June 30, 2018) recognized

F-61
10.

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

within line item “Share of profit or loss of associates and joint ventures accounted using the equity
method” in the consolidated statement of comprehensive income.

Intangible assets other than goodwill

As of June 30, 2019 and December 31, 2018, the intangible assets other than goodwill are described as
follows:

a) This item is composed of the following:

Intangible assets composition 6/30/2019 1213112018
TRUS$ LES
Intangible assets with finite useful lives, net 39,098 40,421
Intangible assets with indefinite useful lives 7,958 7,958
Total 47,056 48,379
b) Carrying amount and accumulated amortization:
6/30/2019
Accumulated

intangible assets Gross Amortization Net

ThuS$ TRUS$ TRUS$
Trademarks, patents and licenses 28 – 28
Water rights 7,958 – 7,958
Sofware 2,298 (1,415) 883
Other intangible assets 38,201 (14) 38,187
Total 48,485 (1,429) 47,056

12/31/2018
Accumulated

intangible assets Gross Amortization Net

ThuS$ TRUS$ TRUS$
Trademarks, patents and licenses 28 – 28
Water rights 7,958 – 7,958
Sofware 2,803 (1,351) 1,452
Other intangible assets 38,950 (9) 38,941
Total 49,739 (1,360) 48,379

F-62
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

c) Reconciliation of the carrying amount at beginning and end of the period:
Trademarks, Technological
Water
Movements patents and rights Software | developmentand | Other Total
licenses innovation
Reconciliation of changes in intangible assets other than goodwill
Intangible assets other than goodwill. Opening balance (1/1/2019) 28 7,958 1,452 – 38,941 48,379
Changes in intangible assets other than goodwill
Increases other than those arising from business combinations, intangible assets other than goodwill – – 53 – 53
Amortization, intangible assets other than goodwill – – (243) – (1,104) (1,347)
Increases (decreases) in transfers and other changes, intangible assets other than goodwill
Increases (decreases) in transfers and other changes, intangible assets other than goodwill – – –
Increases (decreases) due to other changes, intangible assets other than goodwill – (879) – 350 (29)
Increase (decrease) in transfers and other changes, intangible assets other than goodwill – – (879) – 350 (29)
Provisions and withdrawals of service, intangible assets other than goodwill
Service retirements / retirements, intangible assets other than goodwill
Provisions and withdrawals of service, intangible assets other than goodwill – – – –
Increase (decrease) in intangible assets other than goodwill – – (569) – (754) (1,323)
Intangible assets other than goodwill. Final Balance 6/30/2019 28 7,958 883 – 38,187 47,056
Trademarks, Technological
Water
Movements patents and rights Software | development and | Other Total
licenses innovation

Reconciliation of changes in intangible assets other than goodwill
Intangible assets other than goodwill. Opening balance (1/1/2018) 28 7,959 1,693 175,710 33,727 219,117
Changes in intangible assets other than goodwill
Increases other than those arising from business combinations, intangible assets other than goodwill – – 586 704 9,261 10,551
Amortization, intangible assets other than goodwill – – (503) – (852) (855)
Increases (decreases) in transfers and other changes, intangible assets other than goodwill
Increases (decreases) in transfers and other changes, intangible assets other than goodwill – (103,638) – | (103,638)
Increases (decreases) due to other changes, intangible assets other than goodwill – 0) (149) – (7) (157)
Increase (decrease) in transfers and other changes, intangible assets other than goodwill – 0) (149) (103,638) (7), (103,795)
Provisions and withdrawals of service, intangible assets other than goodwill
Service retirements / retirements, intangible assets other than goodwill – – (175) (72,776)| — (3,688)| (76,639)
Provisions and withdrawals of service, intangible assets other than goodwill – (175) (72,776) (3,688) (76,639)
Increase (decrease) in intangible assets other than goodwill – (0) (241) (175,710)| — 5214 | — (170,738)
Intangible assets other than goodwill. Final Balance 12/31/2018 28 7,958 1,452 – 38,941 48,379

d) Additional Information

As of January 1, 2018, the balance of ThUS$175,710 corresponded mainly to the internally generated
technological development project: Continuous Mining.

Continuous Mining is a project of the Corporation aimed toward development of an internal
technological breakthrough associated with the exploitation of underground mines, the main
Characteristics of the project are: (1) reduction in the exposure of workers to mineral extraction areas;
(2) increasing the pace of mineral extraction; and (3) simultaneous mineral extraction from different
sections.

F-63
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

at Chuquicamata Underground and of the new mining projects of Codelco. During the 2018 period,
project studies were carried out and Management has decided not to continue with it.

In view of the discontinuance of the project during the first quarter of 2018, a write-off of US$71.7 million
before tax (US$25 million after taxes) associated with basic engineering, construction and equipment
was recognized in profit or loss. In addition, US$103.6 million were reclassified to Property, plant and
equipment in relation to those assets that might potentially be used in other operations and / or projects
of the Corporation. As a result of a subsequent review, an additional write-off for US$66.4 million (see
note 8 Property, plant and equipment) of assets was recognized. Consequently, the total write-offs as
of December 31, 2018, related to this project is US$138.1 million (US$48 million after taxes).

As of June 30, 2019 and 2018, there are no fully amortized intangible assets that are still in use.

For the six-month periods ended June 30, 2019 and 2018, research and technological development
and innovation expenditures recognized in assets were ThUS$808 and ThUS$380, respectively. On
the other hand, research recognized in expense was ThUS$1,036 and ThUS$3,498 for the six -month
ended June 30, 2019 and 2018 respectively.

11. Subsidiaries

The following tables set forth a detail of assets, liabilities and profit (loss) of the Corporation’s subsidiaries,
prior to consolidation adjustments:

Assets and liabilities 6/30/2019 12/31/2018
ThUS$ ThuS$
Current assets 519,708 621,753
Non Current Assets 3,601,432 3,605,801
Current Liabilities 280,246 305,030
Non Current Liabilities 1,101,673 1,122,471
1/1/2019 1/1/2018 4/1/2019 4/1/2018
Profit (loss) 6/30/2019 6/30/2018 6/30/2019 6/30/2018
ThUS$ TRUS$ TRUS$ ThUuS$
Ordinary Income 603,527 1,121,776 319,209 587,777
Ordinary Expenses (613,452) (1,098,287) (310,299) (561,426)
Profit (loss) of period (9,925) 23,489 8,910 26,351

F-64
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

12. Other non-current non-financial assets

Other non-current non-financial assets as of June 30, 2019 and December 31, 2018, are as follows:

Other non-current non-financial assets 6/30/2019 (12/81/2018
ThUS$ | ThUuS$
Advance pay ment (Law No. 13196) (1) 3,518 4,433
Other 5,680 2,384
Total 9,198 6,817

(1) Corresponds to the record of the commitment related to Law No. 13196 to the advance payment
received for the copper sales contract signed with Copper Partners Investment Company Limited.
This amount will be amortized according to the shipments made.

13. Current and non-current financial assets

Current and non-current financial assets included in the statement of financial position are as follows:

6/30/2019

At fair value though

Amortized Cost

Derivatives for hedging

Total financial

nara . . profit and loss assets
Classification in the statement of financial –
ce Hedging Cross currency
position o
derivatives swap
ThUS$ ThUS$ ThUS$ ThUS$ ThUus$
Cash and cash equivalents 456 478,415 478,871
Trade and other current receivables 547,511 1,459,214 2,006,725
Non – current receiv ables 96,063 96,063
Current receivables from related parties 20,256 20,256
Non – current receivables from related parties 18,030 – 18,030
Other current financial assets 393,880 8,008 – 401,888
Other non – current financial assets 19,281 242 143,293 162,816
TOTAL 547,967 2,485,139 8,250 143,293 3,184,649
12/31/2018

At fair value though

Amortized Cost

Derivatives for hedging

Total financial

A . . profit and loss assets
Classification in the statement of financial –
Le Hedging Cross currency
position o
derivatives swap
ThUS$ ThUS$ ThUS$ ThUS$ ThUus$
Cash and cash equivalents 1,698 1,227,427 1,229,125
Trade and other current receivables 789,710 1,422,499 2,212,209
Non – current receiv ables 84,731 84,731
Current receivables from related parties 92,365 92,365
Non – current receivables from related parties 20,530 – 20,530
Other current financial assets 187,870 43,539 – 231,409
Other non – current financial assets – 23,089 14,962 107,700 145,751
TOTAL 791,408 3,058,511 58,501 107,700 4,016,120

F-65

+ Fair value through profit or loss: As of June 30, 2019, this category mainly includes receivables from
provisional invoicing sales. Section 11.2.r.

+ Amortized cost: lt corresponds to financial assets held within a business model whose objective is to
hold financial assets to collect contractual cash flows that are solely payments of principal and interest
on the principal outstanding. These assets are not quoted in an active market.

The effects on profit or loss recognized for these assets are mainly from financial income and exchange
differences from balances denominated in currencies other than the functional currency.

No material impairments were recognized in trade and other receivables.

e Derivatives for Hedging: Corresponds to the balance for changes in the fair value of derivative
contracts to cover existing transactions (cash flow hedges) and that affect the profit or loss when
transactions are settled or when, to the extent required by accounting standards, a compensation effect
is charged (credited) to the income statement. The detail of derivative hedging transactions is included
in the Note 30.

As of June 30, 2019 and December 31, 2018, there were no reclassifications between the different
categories of financial instruments, under the accounting standards at the respective dates.

14. Other financial liabilities
Current and non-current interest-bearing borrowings consists of loans from financial institutions, bond
issuance obligations and finance leases, which are measured at amortized cost using the effective interest

rate method.

The following tables set forth other current/non-current financial liabilities:

6/30/2019
Current Non-current
Items Amortized Cost Hedging Amortized Cost Hedging
derivatives Total derivatives Total
THUS$ THUS$ TUS$ THUSS THuS$ TUS$

Loans from financial institutions 859,479 – 859,479 2,072,426 – 2,072,426
Bonds issued 169,638 – 169,638 12,017,148 – 12,017,148
Financial Lease 138,601 – 138,601 347,437 – 347,437
Hedging derivatives – 17,332 17,332 – 136,029 136,029
Other financial liabilities 451 – 451 61,365 – 61,365

Total 1,168,169 17,332 1,185,501 14,498,376 136,029 14,634,405

12/31/2018
Current Non-current
o Hedging o Hedging
Items Amortized Cost A Amortized Cost A
derivatives Total derivatives Total
THUS$ ThHus$ ThHUS$ THUS$ ThHus$ ThHUS$

Loans from financial institutions 404,871 – 404,871 2,107,078 – 2,107,078
Bonds issued 435,429 – 435,429 12,310,307 – 12,310,307
Financial Lease 21,510 – 21,510 86,329 – 86,329
Hedging derivatives – 10,096 10,096 – 106,824 106,824
Other financial liabilities 371 – 371 63,972 – 63,972

Total 862,181 10,096 872,277 14,567,686 106,824 14,674,510

F-66
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Loans from financial institutions:

The loans obtained by the Corporation aim to finance production operations oriented towards the foreign
market.

On August 23, 2012, the subsidiary Inversiones Gacrux SpA (Gacrux) signed a credit agreement with
Oriente Copper Netherlands BV (a subsidiary of Mitsui 8 Co, Ltd, (“Mitsui”)) for approximately US$1,863
million, renewable monthly until November 26, 2012, after which, if not paid or renegotiated, will
automatically become a loan with a 7.5 year maturity from the date of disbursement, and an annual rate
Libor + 2.5%. This loan has no underlying guarantees given by Codelco.

On October 31, 2012, the credit agreement was amended, the new terms established an annual fixed
interest rate of 3.25% and a 20-year maturity, to be paid in 40 semi-annual installments of principal and
interest, and maintaining the “non-recourse” (no underlying guarantee) condition. Under previous
agreements, Mitsui is entitled to an additional interest equivalent to one-third of the savings obtained by
Gacrux under the renegotiated credit as compared to the conditions from the credit agreement originally
signed. Thus, Mitsui (through its subsidiary) held an option to acquire from Gacrux an additional 15.25%
of the shares of Inversiones Mineras Acrux SpA (“Acrux””), at a fixed price of approximately US$998
million. These funds were fully allocated to a portion of Gacrux’s debt under the Credit Agreement.

On November 26, 2012, Mitsui exercised the call option and acquired the additional ownership interest
in Acrux. The proceeds received were used by Codelco to partially pre-pay the debt with Mitsui.

On November 26, 2016, Codelco signed a credit agreement with Oriente Copper Netherlands BV
renegotiating the payment of principal at the end of the contract. The terms established an annual interest
rate of Libor +2.5% with a 5 year maturity to be payable in one installment at maturity with semi-annual
interest payment.

On May 26, 2017, Codelco signed a credit agreement with Oriente Copper Netherlands BV renegotiating
the semi-annual payment. The terms established an annual interest rate of Libor +2.5% with a 5 year
maturity to be payable in one installment at maturity with semi-annual interest payment.

The credit agreements obtained in 2016 and 2017, mentioned above, were paid on May 23, 2018.

As of June 30, 2019, the outstanding balance of the credit agreements is TRUS$611,512.

Bond issued:

On May 10, 2005, the Corporation issued and placed bonds in the domestic market for a nominal amount
of UF 6,900,000 of a single series labeled “Series B”, which consists of 6,900 bonds for UF 1,000 each.

These bonds are payable in a single installment on April 1, 2025, at an annual interest rate of 4% and
semi-annual interest payments.

F-67
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

On September 21, 2005, the Corporation issued and placed bonds in the U.S. market under Rule 144-
A and Regulation S, for a nominal amount of ThUS$500,000. These bonds are payable in a single
installment on September 21, 2035, at an annual interest rate of 5.6250% and semi-annual interest
payments.

On October 19, 2006, the Corporation issued and placed bonds in the U.S. market under Rule 144-A
and Regulation S, for a nominal amount of ThUS$500,000. These bonds are payable in a single
installment on October 24, 2036, at an annual interest rate of 6.15% and semi-annual interest payments.

On January 20, 2009, the Corporation issued and placed bonds in the U.S. market under Rule 144-A
and Regulation S, for a nominal amount of ThUS$600,000. These bonds are payable in a single
installment on January 15, 2019, at an annual interest rate of 7.5% and semi-annual interest payments.
On August 3, 2017, principal was paid for an amount of ThUS$333,155.

On November 4, 2010, the Corporation issued and placed bonds in the U.S. market under Rule 144-A
and Regulation S, for a nominal amount of ThUS$1,000,000. These bonds are payable in a single
installment on November 4, 2020, atan annual interest rate of 3.75% and semi-annual interest payments.
On August 3, 2017 and February 6, 2019, principal was paid for an amount of ThUS$414,763 and
ThUS$183,051 respectively.

On November 3, 2011, the Corporation issued and placed bonds in the U.S. market under Rule 144-
A and Regulation S, for a nominal amount of ThUS$1,150,000. These bonds are payable in a single
installment on November 4, 2021, atan annual interest rate of 3.875% and semi-annual interest
payments. On August 3, 2017 and February 6, 2019, principal was paid for an amount of TRUS$665,226
and ThUS$247,814 respectively.

On July 17, 2012, the Company issued and placed bonds in the U.S. market under Rule 144-A and
Regulation S, for a nominal amount of ThUS$2,000,000. These bonds are payable in two installments
(i) Thus$1,250,000 at an annual interest rate of 3%, On August 22, 2017, principal was paid for an
amount of ThUS$412,514, with maturity on July 17, 2022, and (ii) TRUS$750,000 at an annual interest
rate of 4.25% with maturity on July 17, 2042, and each have annual interest payments.

On August 13, 2013, the Corporation issued and placed bonds in the U.S. market, under Rule 144-A
and Regulation S, for a nominal amount of ThUS$750,000, payable in a single installment on August 13,
2023, at an annual interest rate of 4.5% and semi-annual interest payments. On August 22, 2017 and
February 26, 2019, principal was paid for an amount of ThUS$162,502, ThUS$228,674 and ThUS$270
respectively.

On October 18, 2013, the Corporation issued and placed bonds in the U.S. market, under Rule 144-A
and Regulation S, for a nominal amount of ThUS$950,000, payable in a single installment on October
18, 2043, at an annual interest rate of 5.625% and semi-annual interest payments.

On July 9, 2014, the Corporation issued and placed bonds in the international financial markets, under

Rule 144-A and Regulation S, for a nominal amount of EUR$600,000,000, payable in a single installment
on July 9, 2024, at an annual interest rate of 2.25% and semi-annual interest payments.

F-68
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

On November 4, 2014, the Corporation issued and placed bonds in the U.S. market, under Rule 144-A
and Regulation S, for a nominal amount of ThUS$980,000, payable in a single installment on November
4, 2044, at an annual interest rate of 4.875% and semi-annual interest payments.

On September 16, 2015, the Corporation issued and placed bonds in the U.S. market, under Rule 144-
A and Regulation S, for a nominal amount of ThUS$2,000,000, payable in a single installment on
September 16, 2025, at an annual interest rate of 4.5% and semi-annual interest payments. On August
22, 2017 and February 12, 2019, principal was paid for an amount of ThUS$378,655 and ThUS$552,754
respectively.

On August 24, 2016, the Corporation issued and placed bonds in the local market for a nominal amount
of UF10,000,000 of single series labeled “Series C”, which consists of 20,000 bonds for UF500 each.
These bonds are payable in a single installment on August 24, 2026, at an annual interest rate of 2.5%
and semi-annual interest payments.

On July 25, 2017, the Corporation made an offer in New York to buy its bonds issued in dollars with
maturities between 2019 and 2025, repurchasing USD 2,367 million.

On August 1, 2017, the Corporation issued and placed bonds on the North American market, under
standard 144-A and Regulation S, for a total, nominal, amount of ThUS$2,750,000. ThUS$1,500,000,
with an annual coupon rate of interest of 3.625% and semi-annual interest payments which will mature
on August 1, 2027, while ThUS$1,250,000, with an annual coupon of 4.5% and semi-annual interest
payments, will mature on August 1, 2047.

These operations allowed optimizing the debt maturity profile of Codelco. As a result of these
transactions, 86% of the funds from the new issue (US$2,367 million) were used to refinance old debt.
The average interest rate of refinanced funds decreased from 4.36% to 4.02%.

The effect recognized in profit and loss associated with this refinancing was a charge of US$ 42 million
after tax.

On May 18, 2018, Codelco issued a bond for US$600 million with 30 year maturity in the market of
Formosa, Taiwan. The bond issued is denominated in US dollars, had a yield of 4.85% and a prepayment
option at the issue value that can be exercised from the fifth year onwards at its par value.

On January 28, 2019, the Corporation in New York made an offer to purchase its bonds issued in dollars
with maturities between 2020 and 2025, repurchasing USD 1,526,782 million.

Subsequently, on February 5, 2019, the Corporation issued and placed bonds in the North American
market, under Rule 144-A and Regulation S, for a total nominal amount of ThUS$1,300,000, which
maturity will be 5 February 2049 with a coupon of 4.375% per annum and interest payments on a semi-
annual basis.

The effect recognized in results associated with this refinancing was a charge of US$15 million after
taxes.

F-69
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

As of June 30, 2019 and December 31, 2018, the Corporation is not required to comply with any financial
covenants related to borrowings from financial institutions and bond obligations.

– Financial debt commissions and expenses:

Transaction costs incurred in obtaining financial resources are deducted from the loan proceeds and are
amortized using the effective interest rate.

Finance leases:

Leasing operations are generated by contracts, mainly for buildings and machinery.

F-70
1-3

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CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The present value of future lease payments for financial lease obligations are detailed in the following table:

6/30/2019 12/31/2018
Financial Leases Gross Interest Present Value Gross Interest Present Value
THUS$ ThUS$ TRUS$ TRUS$ TRUS$ TRUS$
Less than 90 days 35,418 (3,133) 32,285 6,902 (1,735) 5,167
Between 90 days and 1 year 116,030 (9,714) 106,316 21,529 (5,186) 16,343
Between 1 and 2 years 117,276 (4,778) 112,498 23,385 (5,943) 17,442
Between 2 and 3 years 68,651 (4,940) 63,711 20,079 (4,807) 15,272
Between 3 and 4 years 45,757 (2,343) 43,414 13,628 (3,699) 9,929
Between 4 and 5 years 57,610 (1,692) 55,918 19,946 (2,812) 17,134
More than 5 years 73,974 (2,078) 71,89 35,126 (8,574) 26,552
Total 514,716 (28,678) 486,038 140,595 (32,756) 107,839

The expense related to short-term leases, low-value assets and variable leases not included in the
measurement and or amortization of lease liabilities for the six-month periods ended June 30, 2019 is
presented in the following table:

1/1/2019
Lease expense 6/30/2019
ThHUS$
Short-term leases 55,562
Low value leases 36,865
Variable lease pay ments not included in the initial measurement or remeasurement of 590,914
liabilities (excluding, where application, changes in indices or rates)
TOTAL 683,341

The operating lease payments recognized in the statement of comprehensive income for the six-month
periods ended June 30, 2018 totaled ThUS$112,220.

The table below details changes in CODELCOSs liabilities classified as financing activities in the statement
of cash flow, including both cash and non-cash changes for the six months ended June 30, 2019 and

December 31, 2018:

Changes that do not represent cash flow
Initial Balance at Flows of cash Financial Cost Adjustment | Effective Interest ]— Other Final Balance at
Liabilities forfinancing activities 11112019 From Used Total (m Exchange accretion/amortiza 6/30/2019
US$ muss | TWUS$ | muss | US$ US$ US$ THUS$ US$ US$

Loans wih financial insttuions 2,511,949 | — 465,000 (98,046) — 366,954 53,002 – – 2,931,905
Bond Obligaions 12,745,736 | 1,300,000 | (2,191,206)| (891,206) 305,847 19,608 – 6.801 12,186,786
Obligations for coverage 116,132 – (13,156)| — (13,156) 10,203 3,947 24,372 . 10,856 152,354
Paid Dividens – – – – . – –
Financial assets for hedge derivaives (107,700) 10,839 10,839 (28,820) (22,612) (143,298)
Finance leases 107,839 – (72,180)| — (72,180) 17.950 7,288 . 425,141 486,038
Capital contribution -| 400,000 -| 400,000 – . –
Other 64,343 – (56,321)| (56,321) 53,214 . – – 580, 61,816
[Total liabilities from financing activities 15,438,209 | 2/165,000 | (2,420,070)| (255,070) 440,216 7,023 1,760 6,801 436,577 15,675,606

F-76

15.

16.

Changes that do not represent cash flow

Initial Balance at Flows of cash Financial Cost Adjustment | Effective Interest ]— Other Final Balance at
Liabilities forfinancing activities 11112018 From Used Total (m Exchange accretion/amortiza 12/31/2018
US$ muss | TWUS$ | muss | US$ US$ US$ THUS$ US$ US$

Loans wih financial insttuions 2,460,384 | 300,000 | (333,027)| (33,027) 84,592 – – – – 2,511,949
Bond Obligaions 12,249,406 | 600.000 | — (541,341)| — 58,659 543,874 (101,299) – (4,904) – 12,745,736
Obligations for coverage 83,89 – (18,930)| — (18,980) 20,070 35,884 (4,788) . 116,132
Paid Dividens – (602,461)| (602,461) – . . .
Financial assets for hedge derivaives (137,544) – – – 66,177 (36.333) – (107,700)
Finance leases 102,711 (27,130)| — (27,130) 2,714 2,645 . 26,839 107,839
Capital contribution -| 600,000 -| 600,000 – – . – .
Other 69,813 – (89,200)| (99,200) 82,886 . – – 10,844 64,343
[Total liabilities from financing activities 14,828,666 | 1,500,000 | —(1,622,089)| (122,089) 734,196 3,407 (41,121) (4,904) 37,683 15,438,299

(1) The finance costs consider the capitalization of interest, which for the six-month ended June 30,
2019 and 2018, amounts to TRUS$182,643 and ThUS$143,014 respectively.

Fair Value of financial assets and liabilities

The carrying amount of financial assets is a reasonable approximation to their fair value, therefore, no
additional disclosures are required in accordance with IFRS 7 with respect thereto.

Regarding financial liabilities, the following table shows a comparison as of June 30, 2019 between the
carrying amount and the fair value of financial liabilities other than those whose carrying amount is a
reasonable approximation of fair value.

Comparison value book vs fair value | Accounting treatment for Carrying amount Fair value
as of June 30, 2019 valuation ThUS$ ThHus$
Financial liabilities:
Bond Obligations Amortized cost 12,186,786 13,528,613

Fair value hierarchy

The estimated fair value for the Corporation’s portfolio of financial instruments is based on valuation
techniques and observable inputs. Considering the hierarchy of the data used in these valuation techniques,
the assets and liabilities measured at fair value can be classified into the following levels:

+» Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

+ Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or
liabilities, either directly (i,e, as prices) or indirectly (i,e, derived from prices).

+ Level 3: Inputs are significant unobservable inputs for the asset or liability.

F-77

The following table presents financial assets and liabilities measured at fair value as of June 30, 2019:

Financial instruments measured at fair 6/30/2019
value Level 1 Level 2 Level 3 Total
ThUS$ ThUus$ ThUS$ ThUS$

Financial Assets

Provisional price sales contracts – 547,511 – 547,511
Cross Currency Swap – 143,203 – 143,293
Mutual fund units 456 – – 456
Metal futures contracts 8,250 – – 8,250
Financial Liabilities

Metal futures contracts 323 684 – 1,007
Cross Currency Swap – 152,354 152,354

There were no transfers between the different levels during the six-month periods ended June 30, 2019.

17. Trade and other payables

The detail of trade and other current payables as of June 30, 2019 and December 31, 2018, is as follows:

Currents
Items 6/30/2019 12/31/2018
TRUS$ ThUuS$
Trade pay ables 1,240,319 1,317,623
Payables to employees 83,468 21,561
Withholdings 181,659 72,681
Withholding taxes 58,739 60,621
Other pay ables 74,471 74,098
Total 1,638,656 1,546,584

F-78
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

18. Other provisions

The detail of other current and non-current provisions as of June 30, 2019 and December 31, 2018, is as

follows:
Current Non-current
Other Provisions 6/30/2019 | 12/31/2018 | 6/30/2019 | 12/31/2018
TRUS$ TRUS$ TRUS$ ThUS$
Sales-related provisions (1) 1,751 2,692
Operating (2) 223,813 233,277
Law No. 13196 549,295 93,309 – –
Other provisions 64,753 51,771 21,492 20,153
Onerous Contract (3) 195 3,200 179 4,534
Decommissioning and restoration (4) – – | 1,546,678 1,506, 162
Legal proceedings – 42,057 69,334
Total 839,807 384,249 | 1,610,406 | 1,600,183

(1) Corresponds to a sales-related accruals, which includes charges for freight, loading, and unloading that
were not invoiced at the end of the period.

(2) Corresponds to a provision for customs duties, freight on purchases, electricity, among others.

(3) Corresponds to a provision recognized for an onerous contract with Copper Partners Investment
Company Ltd, See Note 30 b).

(4) Corresponds to the provision for future decommissioning and site restoration costs primarily related to
tailing dams, closures of mine operations and other mining assets. The amount of the provision is the
present value of future expected cash flows discounted at a pre-tax rate of 2.03% for the obligations in
Chilean currency and 2.78% for the obligations in U.S. dollar. Both, discount rates reflect the
corresponding assessments of the time value of money and the risks specific to the liability. The discount
rate does not reflect risks for which future cash flow estimates have been made. The discount period
varies between 9 and 54 years.

The Corporation determines and recognized this liability in accordance with the accounting policy
described in Note 2, letter p) on Significant Accounting Policies.

Changes in Other provisions, were as follows:

1/1/2019
6/30/2019
Changes Other Provisions, Decommissioning Contingencies Total
non-current and restoration
THUS$ ThHUS$ THuss$ ThHUS$

Opening balance 24,687 1,506,162 69,334 1,600,183
Financial expenses – 18,058 – 18,058
Pay ment of liabilities (297) – (17,079) (17,376)
Foreign currency translation 3,222 23,868 1,277 28,367
Provision increase (4,355) – – (4,355)
Other increases (decreases) (1,586) (1,410) (11,475) (14,471)
Closing Balance 21,671 1,546,678 42,057 1,610,406

F-79
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

19. Employee benefits
a. Provisions for post-employment benefits and other long term benefits

Provision for post-employment benefits mainly corresponds to employee severance indemnities and
medical care plans. The provision for severance indemnities recognizes the contractual obligation that
the Corporation has with its employees/retirees regardless of the reason for employee’s departure. The
provision for medical care plans recognizes the contractual obligation that the Corporation has with its
retirees/employees to cover their medical care costs.

Both long-term employee benefits are stated in the terms of employment contracts and collective
bargaining agreements as agreed to by the Corporation and its employees.

These defined benefit liabilities are recognized in the statement of financial position, at the present value
of the defined benefit obligation. The discount rate applied is determined by reference to the market
yields of government bonds in the same currency and estimated term of the post-employment benefit
obligations.

The defined benefit obligations are denominated in Chilean pesos, therefore the Corporation is exposed
to foreign exchange rate risk.

Actuarial gains and losses resulting from changes in actuarial assumptions and experience adjustments
are recognized in other comprehensive income and are not subsequently reclassified to profit or loss.

For the six-month periods ended June 30, 2019, there were no significant changes in post-employment
benefits plans.

The following actuarial assumptions were used in the actuarial calculation of the defined benefit plans:

Assumptions 6/30/2019 12/31/2018
Retirement plan Health plan Retirement plan Health plan
Annual Discount Rate 4,49% 4.93% 4,49% 4.93%
Voluntary Annual Tumover Rate for Retirement (Men) 4.00% 4.00% 4.00% 4.00%
Voluntary Annual Tumover Rate for Retirement (Women) 3.70% 3.70% 3.70% 3.70%
Salary Increase (real annual average) 4.03% 0.00% 4.03% –
Future Rate of Long-Term Inflation 3.00% 3.00% 3.00% 3.00%
Inftation Health Care 0.00% 5.05% – 5.05%
Mortality tables used for projections CB14-RV14 CB14-RV14 CB14-RV14 CB14-RV14
Average duration of future cash flows (years) 7.50 17.25 7.50 16.94
Expected Retirement Age (Men) 60 60 60 60
Expected Retirement Age (Women) 59 59 59 59

F-80
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

term behavior of historical salaries paid by the Corporation. The mortality tables used were those issued
by the CMF, which are considered an appropriate representation of the Chilean market given the lack of
comparable statistical series to develop independent studies. The period over which the obligation is

being amortized corresponds to the estimate of the period over which the cash flows will occur.

December 31, 2018, is as follows:

The detail of current and non-current provisions for employment benefits as of June 30, 2019 and

Current Non-current
Accrual for employee benefits 6/30/2019 12/31/2018 6/30/2019 12/31/2018
TRUS$ ThHUS$ TRUS$ TRUS$

Employees’ collective bargaining agreements 105,742 204,040 – –
Employee termination benefit 24,036 27,247 813,608 802,260
Bonus 30,093 60,616
Vacation 154,552 183,628 – –
Medical care programs (1) 496 460 497,719 496,323
Retirement plans (2) 5,654 17,620 8,760 8,355
Other 9,609 16,423 9,007 8,582

Total 330,182 510,034 1,329,094 1,315,520

(1) Corresponds to a provision recognized for the obligations with health care institutions as agreed

with current and former employees.

(2) Correspond to the provision recognized for early retirement benefits provided to employees.

The reconciliation of the present value of the post-employment benefit obligation, is as follows:

1/1/2019 1/11/2018
6/30/2019 12/31/2018
Movements
Retirement plan | Health plan |Retirement plan| Health plan
TRUS$ TRUS$ TRUS$ ThUS$

Opening balance 829,507 496,783 882,090 523,649
Service cost 27,422 8,983 72,821 9,962
Financial cost 7,756 4,645 15,966 11,520
Paid contributions (47,783) (22,180) (57,166) (39,779)
Actuarial (gains)/losses 3,676 (149) 16,576 30,200
Transfer from other benefits – 3,335 –
Subtotal 820,578 488,082 933,622 535,552
(Gains) Losses on foreign exchange rate 17,066 10,133 (104,115) (38,769)
Final Total 837,644 498,215 829,507 496,783

The technical revaluation (actuarial gain/loss as defined under IAS 19) of the liability for compensation
benefits for years of service has been made, for the six-month periods ended June 30, 2019. Such was

F-81

charged to equity, which consists of an actuarial loss of ThUS$3,676, corresponding primarily to a
change in financial assumptions.

For the obligation generated by health benefit plans, an actuarial gain of ThUS$149 has been
determined, consisting of an adjustment for experience loss.

The balance of the defined benefit liability as of June 30, 2019, comprises a short term portion of
ThUS$24,036 and ThUS$496 for the termination indemnities plan and the medical care plan,
respectively. The expected amount of the defined benefit liability projected at June 30, 2020, consists of
ThUS$889,448 for the termination indemnities plan and ThUS$485,022 for the medical care plan. The
expected monthly average future disbursements related to defined benefit plans are of TRUS$2,003 for
termination indemnities and of ThUS$41 for medical care.

The following table sets forth the sensitivity analysis of the value of the each line item for a change in
estimates, respectively, from the medium (used in the estimate recorded) to the low and from the medium
to the high; the second to the last column represents the change between the low and medium and the
last column represents the change between the medium and the high:

Severance Benefits for Years of Service Low Medium High Reduction Increase
Financial effect on interest rates 3.490% 4,490% 5.490% 5.46% 4.78%
Financial effect on the real increase in income 3.530% 4.030% 4.530% 2.21% 2.34%
Demographic effect of job rotations 3.470% 3.970% 4.470% 0.75% 0.67%
Demographic effect on mortality tables -25.00% CB14-RV14, Chile] 25.00% 0.07% 0.07%

Health Benefits and Other Low Medium High Reduction Increase
Financial effect on interest rates 3.926% 4.926% 5.926% 16.67% 11.19%
Financial effect on health inflation 4.550% 5.050% 5.550% -5.03% 7.78%
Demographic effect, planned retirement age 58 / 57 60 / 59 62/61 5.04% -2.88%
Demographic effect on mortality tables -25.00% CB14-RV14, Chile] 25.00% 11.39% 6.20%

c. Retirement benefits and conflict termination bonus

The Corporation under its operational optimization programs seeks to reduce costs and increase labor
productivity, and through the incorporation of modern technologies and/or best management practices
has established employee retirement programs by making corresponding modifications to employment
contracts or collective bargaining agreements, with benefits encouraging early retirement. The early
retirement plans are recognized as a liability and expense as the Corporation can no longer withdraw
the offer of those benefits.

As of June 30, 2019 and December 31, 2018, the termination benefits current balance was ThUS$5,654
and ThUS$17,620, respectively, while the non-current balance was ThUS$8,760 and ThUS$8,355,
respectively. The non-current portion is associated with the provision related to the term of the collective
bargaining process that Codelco’s management negotiated during the month of December 2012 with the
employee unions of the Chuquicamata Division. The non-current amounts recognized have been
discounted using a discount rate equivalent to that used for calculating employee benefits provisions and
whose outstanding balances are part of the balances as of June 30, 2019 and December 31, 2018.

F-82
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

d. Employee benefits expenses

The employee benefit expenses recognized for the six-month and three-month periods ended June 30,
2019 and 2018, are as follows:

1/1/2019 1/1/2018 4/1/2018 4/1/2018
Expense by Nature of Employee
6/30/2019 6/30/2018 6/30/2019 6/30/2018
Benefits

ThUS$ TRUS$ ThUus$ Thus$
Benefits – Short term 792,648 869,827 397,315 429,348
Benefits – Post employment 8,983 2,077 7,855 372
Benefits – Termination 22,934 17,918 15,150 5,419
Benefits by years of service 27,422 32,399 17,767 17,636
Total 851,987 922,221 438,087 452,775

20. Equity

The Corporation’s total equity as of June 30, 2019 is TRUS$11,564,914 (ThUS$11,343,869 as of December
31, 2018 and ThUS$11,911,482 as of June 30, 2018).

In accordance with article 6 of Decree Law 1350 of 1976, it is established that, before March 30 of each
year, the Board must approve the Corporation’s Business and Development Plan for the next three-year
period. Taking that plan as a reference, and keeping in mind the Corporation’s balance sheet for the
immediately preceding year and aiming to ensure its competitiveness, before June 30 of each year the
amounts that the Corporation shall allocate to the formation of capitalization funds and reserves shall be
determined by decree from the Ministries of Mining and Treasury.

Net income shown in the balance sheets, after deducting the amounts referred to in the previous paragraph,
shall belong to the State and becomes part of the Nation’s general income.

Pursuant to the Exempt Decree No. 184 of June 27, 2014 of the Ministry of Finance, the Corporation was
authorized to capitalize US$200 million of the net profit of the financial statements as of December 31, 2013.
Those resources were charged to the profits of 2014.

On October 24, 2014, the President of the Republic of Chile signed Law No. 20790. Such Law sets forth an
extraordinary capital contribution of up to US$3 billion for the Corporation during the period of 2014-2018.
The resources obtained from such capital contribution, together with the capitalization of the profits obtained
during such period — up to US$800 million — generated in that period, will serve to boost the Investment
Plan in mining projects, sustainability, mining development and renewal of equipment and industrial plants.
At December 31, 2014, there were no capitalized resources under such statute.

Pursuant to the Exempt Finance Decree (Decree No. 197 of December 31, 2015 issued by the Ministry of

Finance), the Corporation was authorized to capitalize US$225 million of the net profit registered in the
financial statements as of December 31, 2014.

F-83
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Those resources were to be taken from the profits for year 2015 for their capitalization.

Pursuant to the ORD Finance Ministry Officio No. 1410 dated on May 27, 2016, it was established that the
aforementioned Decree confirms the impossibility of capitalizing the aforementioned US$225 million,
consequently the capitalization fund comprised of said amount was reversed.

On October 28, 2015, it was reported that after reviewing the Development Business Plan 2014-2018 for
Codelco, it was decided to make a capital contribution of US$600 million that was made effective on
December 2, 2015.

On December 1, 2016, it was informed that, pursuant to Article 1 of Law No. 20790, it was decided to make
an extraordinary capital contribution of US$500 million, which was made effective on December 28, 2016.

Both capital contributions were funded by the Public Treasury through the sale of financial assets.

On January 27, 2017, Law No. 20989 on extraordinary capitalization was enacted. The Law authorizes the
transferring of funds from application of the Copper Reserved Law to the Public Treasury, allowing an
extraordinary capitalization to Codelco of up to US$950 million for year 2017 aiming to reduce Codelco’s
indebtedness in an amount equivalent to the difference between the funds transferred as required by the
Reserved Law No. 13196 and cash flow surpluses obtained by the Corporation.

On March 13, 2017, through Decree No. 322 an extraordinary capital contribution was authorized under
Article 2 of Law No. 20989, for a total amount of US$475 million. The capital contribution was made effective
on April 13, 2017.

By Exempt Decree of Treasury No. 1698, dated November 17, 2017, in accordance with the provisions of
Article 1 of Law No. 20790, it was decided to make an extraordinary contribution of capital for an amount of
US$520 million, which were recorded on December 22, 2017.

On October 16, 2018, the Ministry of Finance issued Exempt Decree 311 in which it has an extraordinary
capital contribution for Codelco pursuant to Law No. 20,790 of US $ 1,000 million, which will be made in a
first part for US $ 600 million and in a second part for US $ 400 million, and that will be transferred in
installments that will not be timed later than December 31, 2018 and February 28, 2019 respectively.

On December 26, 2018 the Corporation received the first part of the contribution to capital for US $ 600
million.

On February 26, 2019 the Corporation received the second part of the contribution to capital for US $ 400
million.

As of 2019, the Corporation has established that dividend payments will not be made as long as there are
prepayments of dividends paid in excess.

F-84
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

As of June 30, 2019, the Corporation has not paid dividends, due to the fact that in 2018 there were
advances of dividends paid in excess as follows:

ThUS$
Dividends payable as of December 31, 2017 295,842
Advance dividends as of December 31, 2018 155,719
Advance dividends overpaid as of December 31, 2018 150,900
Total dividends paid as of December 31, 2018 602,461

As of June 30, 2018, the dividends paid amounted to ThUS$445,245, and provisioned dividends payable
as follows:

ThUS$
Dividends payable as of December 31, 2017 295,842
Advance dividends as of June 30, 2018 149,403
Total dividends paid as of June 30, 2018 445,245

The consolidated statement of changes in equity discloses the changes in the Corporation’s equity.

The movement and composition of other equity reserves is presented in the consolidated statement of
changes in equity.

Reclassification adjustments from other comprehensive income to profit or loss resulted in an income of
ThUS$1,507 and a loss of ThUS$3,207 for the six-month periods ended June 30, 2019 and 2018,
respectively.

a) Other reserves

The detail of other reserves as of June 30, 2019 and December 31, 2018, is as follows:

Other Reserves 6/30/2019 | 12/31/2018
ThHUS$ ThUS$
Reserve on exchange differences on translation (6,986) (6,863)
Reserve of cash flow hedges 25,471 47,792
Capitalization fund and reserves 4,962,393 4,962,393
Reserve of remeasurement of defined benefit plans (275,776) (274,480)
Other reserves 625,573 625,317
Total other reserves 5,330,675 5,354,159

F-85
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

b) Non-controlling interests

The detail of non-controlling interests, included in equity and profit or loss, as of and for each reporting

period, is as follows:

Non-controlling Net equity Gain (loss)
Societies participation

6/30/2019 | 12/31/2018 | 6/30/2019 | 12/31/2018 1/11/2019 1/11/2018 4/1/2019 4/1/2018

6/30/2019 6/30/2018 6/30/2019 6/30/2018

% % ThUS$ ThUus$ ThUus$ ThUs$ ThUus$ ThUS$
Inversiones Gacrux SpA | 32.20% 32.20% 917,814 969,203 4,316 20,598 5,088 16,471
Others – 1 1 23 9 31 1
Total 917,815 969,204 4,339 20,607 5,119 16,472

For the six-month periods ended June 30, 2019, Inversiones Gacrux SpA did not distribute any
dividends to non-controlling interests.

The percentage of non-controlling interest in Inversiones Mineras Becrux SpA (previously Inversiones
Mineras Acrux SpA) generates a non-controlling interest in our subsidiary Inversiones Gacrux SpA,
which presents the following figures relating to its statement of financial position, statement of

comprehensive income and cash flows:

F-86

Assets and liabilities 6/30/2018 | 12/31/2018
TRUS$ ThUS$
Current Assets 267,662 361,568
Non-current assets 2,850,814 2,839,764
Current liabilities 167,200 176,742
Non-current liabilities 573,969 593,078
1/11/2019 1/1/2018 4/1/2019 4/1/2018
Results 6/30/2019 | 6/30/2018 | 6/30/2019 | 6/30/2018
TRUS$ ThUS$ LES TRUS$
Revenues 370,676 443,981 177,399 256,259
Expenses (369, 176) (394,806) (167,448) (210,529)
Profit of the period 1,500 49,175 9,951 45,730
1/11/2019 1/1/2018
Cash flow 6/30/2019 | 6/30/2018
TRUS$ ThUS$
Net cash flow from operating activities 83,776 47,264
Net cash flow using investing activities (81,215) –
Net cash flow using financing activities (92,303) (189,676)
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

21.

22.

23.

Revenue

Revenues for the six-month and three-month periods ended June 30, 2019 and 2018, are as follows:

1/11/2019 1/1/2018 4/1/2019 4/1/2018
Item 6/30/2019 6/30/2018 6/30/2019 6/30/2018
TRUS$ ThUS$ ThHUS$ ThUS$
Revenue from sales of own copper 4,879,212 5,785,916 2,272,187 3,057,634
Revenue from sales of third-party copper 487,019 1,020,724 239,612 536,752
Revenue from sales of moly bdenum 317,465 347,275 139,170 169,487
Revenue from sales of other products 229,677 264,108 114,654 136,055
Gain in futures market 3,376 8,441 988 6,683
Total 5,916,749 7,426,464 2,766,611 3,906,611

The Corporation’s revenue is recognized at a point in time.
The breakdown of revenue ¡is presented in explanatory note No.26 Operating Segments.

Expenses by nature

Expenses by nature for the six-month and three-month periods ended June 30, 2019 and 2018, are as
follows:

1/1/2019 1/11/2018 4/1/2019 4/11/2018
Item 6/30/2019 6/30/2018 6/30/2019 6/30/2018
TRUS$ ThUS$ TRUS$ TRUS$
Short-term benefits to employees 792,648 869,827 397,315 429,348
Depreciation 580,692 589,609 318,121 303,010
Amortization 425,028 453,818 223,680 221,715
Total 1,798,368 1,913,254 939,116 954,073

Impairment of Assets
As of June 30, 2019, there are no indications of impairment evaluation in the Corporation.

As of December 31, 2018, the Corporation made a calculation of the recoverable amount of its cash
generating unit Ventanas Division, for the purpose of checking the existence of a deterioration in the value
of the assets associated with said division, the carrying amount of which amounted to US$323 million.

The aforementioned calculation of the recoverable amount determined a value of US$124 million, which
compared with the amount in books, implied an acknowledgment of an impairment loss of assets for
ThUS$198,898 (before tax), which was recorded in the Other ¡item expenses by function, of the
comprehensive income statement for the year 2018.

F-87
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

24.

The recoverable amount determined for the calculation of the impairment loss corresponds to value in use
using a 7.2% annual discount rate before taxes. The main variables used to determine the recoverable
amount of this asset correspond to the price of acid, cost of treatment and refining, exchange rates and

discount rates.

The aforementioned loss due to impairment is mainly generated by the fall in the costs of treatment and

refining.

As of June 30, 2019 and December 31, 2018 there are no signs of additional deterioration or reversals of

impairment recognized in previous years.

Other income and expenses by function

Other income and expenses by function for the six-month and three-month periods ended June 30, 2019

and 2018, are as follows:

a) Other income by function

1/11/2019 1/1/2018 4/1/2019 4/1/2018

Item 6/30/2019 6/30/2018 6/30/2019 6/30/2018

TRUS$ ThUS$ ThUS$ ThUS$
Penalties to suppliers 9,109 10,508 5,292 5,110
Delegated Administration 2,547 2,787 1,172 1,320
Miscellaneous sales (net) 26,031 15,042 13,233 9,863
Customer recovery 7,907 7,907 –
Other income (loss) 45,119 37,174 18,700 (8,470)
Total 90,713 65,511 46,304 7,823

b) Other expenses by function
1/1/2019 1/11/2018 4/1/2019 4/1/2018
Item 6/30/2019 6/30/2018 6/30/2019 6/30/2018
Thus$ ThUus$ Thus$ Thus$

Law No. 13196 (456,697) (598,330) (225,306) (302,857)
Research expenses (39,047) (56,493) (19,110) (21,730)
Bonus for the end of collective bargaining (110,776) (67,941) (74,566) (34,131)
Expenses plan (22,934) (17,918) (15,150) (5,419)
Write-off of investment projects (3,905) (138,198) (3,905) (66,450)
Write-off of property, plant 8. equipment (24,242) (2,162) (7,632) (2,158)
Medical care plan (8,983) (2,077) (7,855) (872)
Write-off inventories (758) (785) 220 (341)
Allowance for doubtful accounts (1,307) – – –
Contingency expenses (5,721) (30,912) (4,389) (25,038)
Fixed indirect costs, low production level (281,893) (14,777) (152,663) (6,569)
Other (29,159) (34,816) (14,107) (23,631)
Total (985,326) (964,409) (524,367) (488,696)

F-88

25.

26.

Finance costs

The detail of finance costs for the six-month and three-month periods ended June 30, 2019 and 2018, is as
follows:

1/11/2019 1/1/2018 4/1/2019 4/1/2018
Item 6/30/2019 6/30/2018 6/30/2019 6/30/2018
Thus$ Thus$ Thus$ Thus$

Bond interest (140,712) (136,939) (46,875) (63,703)
Bank loan interest (46,117) (36,187) (24,074) (18,652)
Unwinding of discount on severance indemnity provision (7,018) (8,790) (3,424) (4,458)
Unwinding of discount on other non-current provisions (22,459) (23,267) (11,195) (11,678)
Other (43,833) (32,426) (23,628) (15,712)
Total (260,139) (237,609) (109,196) (114,203)

Operating segments

The Corporation has defined its Divisions as its operating segments in accordance with the requirements of
IFRS 8, Operating Segments. The revenues and expenses of the Head Office are allocated among the
defined operating segments.

The mining deposits in operation, where the Corporation conducts its extractive and processing activities
are managed by the following Divisions: Chuquicamata, Radomiro Tomic, Ministro Hales, Gabriela Mistral,
Salvador, Andina and El Teniente. In addition, the smelting and refining activities are managed at the
Ventanas Division. All these Divisions have a separate operational management, which reports to the Chief
Executive Officer, through the North and South Central Vice-President of Operations, respectively.

The information on each Division and their corresponding mining deposits is as follows:

Chuquicamata

Types of mine sites: Open pit mines

Operating: since 1915

Location: Calama — Region |!

Products: Electro refined and electrolytic (electro-obtained) copper cathodes and copper concentrate

Radomiro Tomic

Types of mine sites: Open pit mines

Operating: since 1997,

Location: Calama — Region |!

Products: Electro refined and electrolytic (electro-obtained) copper cathodes and copper concentrate

Ministro Hales

Type of mine: Open pit mine
Operating: since 2014
Location: Calama — Region |!

F-89
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Products: Calcined copper, copper concentrates

Gabriela Mistral

Type of mine: Open pit mine

Operating: since 2008

Location: Calama — Region |!

Products: Electrolytic (electro-obtained) cathodes

Salvador

Type of mine: Underground mine and open pit mine

Operating: since 1926

Location: Salvador — Region |!

Products: Electro refined and electrolytic (electro-obtained) copper cathodes and copper concentrate

Andina

Type of mines: Underground and open pit mines
Operating: since 1970

Location: Los Andes – Region V

Product: Copper concentrate

El Teniente

Type of mine: Underground mine

Operating: since 1905

Location: Rancagua — Region VI

Products: Fire-refined copper and copper anodes

a) Allocation of Head Office revenue and expenses

Revenue and expenses controlled by the Head Office are allocated to the Divisions based on following
criteria.

The main items are asigned based on the following criteria:

Revenue and Cost of Sales of Head Office commercial transactions

+ Allocation to the operating segments is made in proportion to revenues of each Division.

Other income, by function

+ Other income by function, associated and identified with each Division, is directly allocated.

+ Recognition of realized profits and other income by way of subsidiaries are allocated in proportion to
the revenues of each Division.

+ The remaining other income is allocated in proportion to the aggregate of balances of “other income”
and “finance income” of each Division.

F-90
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Distribution costs

+ Expenses associated and identified with each Division are directly allocated.
+ Distribution costs of subsidiaries are allocated in proportion to the revenues of each Division.

Administrative Expenses

+ Administrative expenses associated and identified with each Division are directly allocated,

+ Administrative expenses recorded in cost centers associated with the sales function and
administrative expenses of subsidiaries are allocated in proportion to the revenues of each Division.

+ Administrative expenses recorded in cost centers associated with the supply function are allocated
in proportion to inventory balances in warehouse in each Division.

+ Theremaining administrative expenses are allocated in proportion to operating cash outflows of each
Division.

Other Expenses, by function

+ Other expenses associated and identified with each Division are directly allocated.

+ Expenses for pre-investment studies and other expenses by function of subsidiaries are allocated in
proportion to the revenues of each Division.

Other gains

+ Other gains associated and identified with each Division are directly allocated.
+ Other gains of subsidiaries are allocated in proportion to the revenues of each Division.

Finance Income

+ Finance income associated and identified with each Division is directly allocated.

+ Finance income of subsidiaries is allocated in proportion to the revenues of each Division.

+ The remaining finance income is allocated in relation to the operating cash outflows of each Division.

Finance costs

+ Finance costs associated and identified with each Division are directly allocated.
+ Finance costs of subsidiaries are allocated in proportion to the revenues of each Division.

Share in profit (loss) of associates and joint ventures accounted for using the equity method
+ Share in profit or loss of associates and joint ventures identified for each Division is directly allocated.
Foreign exchange differences

+ Foreign exchange differences identifiable with each Division are directly allocated.

F-91
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

+ Foreign exchange difference of subsidiaries is allocated in proportion to the revenues of each
Division.

+ The remaining foreign exchange differences are allocated in relation to operating cash outflows of
each Division.

Contribution to the Chilean Treasury under Law No. 13196

+ The amount of the contribution is allocated and accounted for in proportion to the invoiced and
recorded amounts for copper and sub-product exports of each Division, that are subject to the
surcharge.

Income tax benefit (expense)

+ Corporate income tax under D.L. 2398 and specific mining tax are allocated based on the income
before income taxes of each Division, considering for this purpose the income and expenses
allocation criteria of the Head Office and subsidiaries mentioned above.

+ Other tax expenses are allocated in proportion to the corporate income tax, specific mining tax and
tax under D.L. 2398 of each Division.

b) Transactions between segments

Transactions between segments mainly related to products processing services (or tolling services), are
recognized as revenue for the segment rendering the tolling services and as the cost of sales for the
segment that receives the service. Such recognition is made in the period in which these services are
rendered, as well as ¡ts elimination in the consolidated corporate financial statements.

Additionally, the reallocation of the profit and loss assumed by Ventanas Division, associated with the
corporate mineral processing contract between Codelco and Enami, in which a distribution is applied
based on the revenue of each division is included as a transaction between segments.

c) Cash flows by segments
The operating segments defined by the Corporation, has a cash management which refers mainly to
operational activities that need to be covered periodically with funds constituted in each of these
segments and whose amounts are not significant in relation to corporate balances of cash and cash
equivalents.

Conversely, activities such as obtaining financing, investment and payment of relevant financial
obligations are mainly based at the Head Office.

F-92
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The assets and liabilities related to each operating segment, including the Corporation’s head office as of
June 30, 2019 and December 31, 2018, are detailed in the following tables:

The revenue segregated per geographical areas are the following:

1/11/2019 1/11/2018 4/1/2019 4/1/2018
Revenue per geographical areas 6/30/2019 6/30/2018 6/30/2019 6/30/2018
TRUS$ TRUS$ ThUS$ ThUS$
Total revenue from domestic customers 757,593 586,794 352,154 304,226
Total revenue from foreign customers 5,159,156 6,839,670 2,414,457 3,602,385
Total 5,916,749 7,426,464 2,766,611 3,906,611
1/11/2019 1/11/2018 4/1/2019 4/1/2018
Revenue per geographical areas 6/30/2019 6/30/2018 6/30/2019 6/30/2018
TRUS$ TRUS$ ThUS$ ThUS$
China 904,337 2,151,133 402,375 1,109,616
Restof Asia 848,681 1,043,363 406,983 486,619
Europe 1,965,756 705,033 979,085 (179,569)
America 1,783,314 1,982,488 959,296 985,284
Other 414,661 1,544,447 18,872 1,504,661
Total 5,916,749 7,426,464 2,766,611 3,906,611

During the periods January – June 2019 and 2018, there is no income from ordinary activities from
transactions with a single client, representing 10 percent or more of the income of ordinary activities of the
Corporation.

F-95
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

27. Foreign exchange differences

The detail of foreign exchange differences for the six-month and three-month periods ended June 30, 2019
and 2018, is as follows:

1/1/2019 | 1/1/2018 | 4/1/2019 | 4/1/2018
Gain (loss) from foreign exchange differences recognized in income | 6/30/2019 | 6/30/2018 | 6/30/2019 | 6/30/2018
Thus$ Thus$ Thus$ ThUuS$

Gain from foreign exchange differences 35,389 187,242 8,468 158,869
Loss from foreign exchange differences (95,571)| (91,597) (14,687) (31,415)
Total exchange difference, net (60,182) 95,645 (6,219)| 127,454

28. Statement of cash flows

The following table shows the items that comprise other collections and payments from operating activities
in the Statement of Cash Flows:

1/1/2019 1/11/2018
Other collections from operating activities 6/30/2019 6/30/2018
Thus$ ThUus$
VAT Refund 817,091 747,385
Other 170,430 111,554
Total 987,521 858,939
1/1/2019 1/11/2018
Other payments from operating activities 6/30/2019 6/30/2018
Thus$ ThUus$
Finance hedge and sales (5,238) 8,078
VAT and other similar taxes paid (635,622) (709,804)
Total (640,860) (701,726)

During the six-month periods ended June 30, 2019, as indicated in the equity note, capital contributions
were received for a total of ThUS$400,000, which are presented in other cash inflows (outflows)
corresponding to the net cash flows from (used in) activities of financing. During the period January – June
2018, no capital contributions were received.

29. Financial risk management, objectives and policies

Codelco has committees within its organization to set out strategies allowing to reduce the financial risks to
which it may be exposed.

F-96
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The risks to which Codelco is exposed and a brief description of the management procedures that are
carried out in each case, are described below:

a. Financial risks

Exchange rate risk:

According to IFRS 7, exchange rate risk is understood to be the risk that arises from financial
instruments that are denominated in foreign currencies, that is, a currency other than the
Corporation’s functional currency (US dollar).

Codelco’s activities that generate this exposure correspond to funding in UF, accounts payable and
receivable in Chilean pesos, other foreign currencies used in its business operations and obligations
with employees.

The majority of transactions in currencies other than US$ are denominated in Chilean pesos. Also,
there is another portion in Euro, which corresponds mainly to a long-term loan issued through the
international market, which exchange rate risk is mitigated with hedging instruments (Swap).

Taking into consideration the financial assets and liabilities as of June 30, 2019 as the base, a
fluctuation (positive or negative) of 10 Chilean pesos against the U.S. dollar (keeping the other
variables constant), could affect profits before taxes by US$39 million in net income, respectively.
This result is obtained by identifying the main items (including assets and financial liabilities)
denominated in foreign currencies in order to measure the impact on profit or loss that a variation
of +/- 10 Chilean pesos would have in terms of US$, with respect to the closing exchange rate at the
end of the reporting period.

As of June 30, 2019 there are not time deposits denominated in Chilean pesos (ThUS$270,021 as of
December 31, 2018).

Interest rate risk:

This risk arises from interest rate fluctuations in Codelco’s investment and financing activities. This
movement can affect future cash flows or the market value of fixed rate financial instruments.

These rate variations refer to U.S. dollar variations, mostly with respect to the LIBOR rate. To manage
this risk, Codelco maintains an adequate combination of fixed and variable rate debt, which is
complemented by the possibility of using interest-rate derivatives to meet the strategic guidelines
defined by Codelco’s Corporate Finance Department.

It is estimated that, on the basis of net debt balance as of June 30, 2019, a 1% change in interest

rates on the financial liabilities subject to variable interest rates would mean approximately a US$10
million change in finance costs, before tax. This estimation is made by identifying the liabilities

F-97
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

assigned variable interest, accrued at the end of the financial statements, which may vary with a

change of one percentage point in variable interest rates.

Total fixed and variable interest rate obligations maintained by Codelco as of June 30, 2019

correspond to amounts of ThUS$12,798,298 and ThUS$2,320,393, respectively.
b. Market risks

– — Commodity price risk:

As a result of its commercial operations and activities, the Corporation’s income is mainly exposed

to the volatility of copper prices and certain sub-products such as gold and silver.

Copper and molybdenum concentrate sale agreements and copper cathode sale agreements
generally provide for provisional pricing of sales at the time of shipment, with final pricing based
on the monthly average market price for specified future periods. At the reporting date, the
provisionally priced metal sales are marked-to-market, with adjustments (both gains and losses)
being recorded in revenues in the consolidated statement of comprehensive income. Forward
prices at the period-end are used for copper sales, while period-end average prices are used for
molybdenum concentrate sales due to the absence of an assets futures market. (See Note 2.r)
“Income from Activities Ordinary Procedures from Contracts with Customers “of section II” Main

policies countable ”).

For the six-month periods ended June 30, 2019, if the future price of copper fluctuates by + / – 5%
(with the other variables constant), the result would vary + / – US$173 million before taxes as a
result of setting the mark to market of sales revenue to provisional prices in effect as of June 30,
2019 (MTMF 605). For the estimate indicated, all of those physical sales contracts were valued
according to the monthly average immediately following the close of the financial statements, and
proceeds to be estimated regarding what the final settlement price will be if there is a difference

of + / – 5% with respect to the future price known to date for this period.

In order to protect cash flow and adjust, where necessary, ¡ts sales contracts to its trade policy,
the Corporation holds operations in futures markets. At the end of the reporting period, these
contracts are adjusted to fair value, recording this effect, at the settlement date of the hedging

transactions as part of net product sales.

As of June 30, 2019, a variation of U.S. £ 1 in the price per pound of copper, considering
derivatives contracted by the Corporation, involves a change in income or payments for existing
contracts (exposures) of US$2,061 before taxes. This calculation is obtained from a simulation
curves of future copper prices, which are used to assess the subscribed derivative instruments by
the Corporation; estimations would vary with respect to the exposure related these instruments

¡if there is an increase of U.S. $0.01 decrease in the price per pound of copper.

F-98
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The Corporation has not entered into any hedging transactions with the specific purpose of
hedging the price risk caused by fluctuations in prices of production inputs.

Cc. Liquidity risk

The Corporation ensures that it has sufficient resources, such as pre-approved credit lines (including
refinancing), in order to meet short-term requirements, after considering the necessary working capital
for its operations and any other commitments it has.

In this sense, Codelco Chile maintains resources at its disposal sufficient to meet its obligations,
whether in cash, liquid financial instruments or credit facilities.

In addition, the Finance Department constantly monitors the Corporation’s cash flow projections based
on short and long term projections and available financing alternatives. In addition, the Corporation
estimates that it has enough headroom to increase the level of borrowing for the normal requirements
of its operations and investments established in its development plan.

In this context, according to current existing commitments with creditors, the cash requirements to
cover financial liabilities classified by maturity and presented in the statement of financial position are
detailed as follows:

Less than Between one More than
Maturity of financial liabilities as of 6/30/2019 one year and five years five years
ThUS$ ThUus$ ThUus$

Loans from financial institutions 859,479 1,210,609 861,817
Bonds 169,638 1,513,244 10,503,904
Finance leases 138,601 275,541 71,896
Derivatives 17,332 – 136,029
Other financial liabilities 451 61,365 –
Total 1,185,501 3,060,759 11,573,646

d. Credit risk

This risk comprises the possibility that a third party does not fulfill its contractual obligations, thereby
causing a loss for the Corporation.

Given the Corporation’s sales policy, principally with cash and advance payments and bank letters of
credit, the uncollectability of client debt balances is minimal. This is complemented by the familiarity
the Corporation has with its clients and the length of time it has operated with them. Therefore, the
credit risk of these transactions is not significant.

The indications with respect to the payment conditions to the Corporation are detailed in every sales
contract and the negotiation management is under the charge of the Vice Presidency of Marketing.

F-99
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

In general, the Corporation’s other accounts receivable have a high credit quality according to the
Corporation’s evaluations, based on each debtor’s solvency analysis and payment history.

The maximum exposure to credit risk as of June 30, 2019 is represented by the financial asset items
presented in the Corporation’s Statement of Financial Position.

The Corporation’s accounts receivable do not include customers with balances that could be classified
as a significant concentration of debt and would represent a material exposure for Codelco. This
exposure is distributed among a large number of clients and other counterparties.

In the customer items, the provisions, which are not significant, are included based on the review of
the outstanding balances and characteristics of the clients, destined to cover eventual insolvencies.

In explanatory note 2, trade and other receivables presents past due balances that have not been
impaired.

The Corporation estimates that unimpaired amounts overdue over 30 days are recoverable based on
clients’ historical payment behavior and their existing credit ratings.

As of June 30, 2019 and 2018, there are no receivable balances that have been renegotiated.
Codelco works with major banks, which have high national and international ratings, and continually
assesses them; therefore, the risk that could affect the availability of the Corporation’s funds and
financial instruments is not significant.

Also, in some cases, to minimize credit risk, the Corporation has contracted credit insurance policies
through which it transfers to third parties the commercial risk associated with some aspects of its
business.

During the six-month periods ended June 30, 2019 and 2018, no guarantees have been executed to
ensure the collection of third party debt.

Personnel loans mainly related to mortgage loans, according to programs included in union
agreements, which are paid for through payroll discounts.

30. Derivatives contracts

The Corporation has entered into transactions to hedge cash flows, to minimize the risk of foreign exchange
rate variations and sales price variations, detailed as follows:

a. Hedges

The Corporation has taken measures to protect itself from exchange rate and interest rate variations,
whose positive fair value, net of taxes, amounts to TNUS$22,937.

F-100
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The following table summarizes the detail of the financial hedges contracted by the Corporation:

June 30, 2019

Fi ial
Type of asta Fair value of
Hedged item Bank derivative| Maturity | Currency | Amount o o hedging Asset Liability
contract ceoin9 instruments
instrument
ThUS$ Thus$ ThUS$ Thus$ | Thus$
Bond UF Mat. 2025 [Credit Suisse (USA) Swap 4/1/2025 | US$ 283,491 208,519 101,422 358,435 | (257,013)
Bond EUR Mat 2024 [Santander (Chile) Swap 7/9/2024 | US$ 341,064 409,650 (67,890) | 396,481 | (464,371)
Bond EUR Mat 2024 |Deustche Bank (England) | Swap 7/9/2024 | US$ 341,064 409,680 (67,455) | 396,481 | (463,936)
Bond UF Mat. 2026 [Santander (Chile) Swap | 8/24/2026| US$ 410,856 406,212 41,871 497,944 | (456,073)
Total 1,376,475| 1,434,061 7,948 1,649,341 | (1,641,393)
December 31, 2018
Financial .
Type of bligation: Fair value of
Hedged item Bank derivative Maturity Currency Amount ong o hedging Asset Liability
hedging ;
contract ; instruments
instrument
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Bond UF Mat. 2025 [Credit Suisse (USA) Swap 4/1/2025 US$ 273,765 208,519 84,365 334,180 (249,815)
Bond EUR Mat 2024 [Santander (Chile) Swap 7/9/2024 US$ 343,170 409,650 (63,592) 388,339 (441,931)
Bond EUR Mat 2024 |Deustche Bank (England) Swap 7/9/2024 US$ 343,170 409,680 (63,170) 388,339 (441,509)
Bond UF Mat. 2026 ¡Santander (Chile) Swap 8/24/2026 US$ 396,761 406,212 23,335 458,627 (435,292)
Total 1,356,866 1,434,061 938 1,569,485 (1,568,547)

As of June 30, 2019, the Corporation does not maintain margin deposits.

The current methodology for valuing currency swaps is to use the bootstrapping technique from the
mid – swap rate to construct the curves (zero) in UF and US$ respectively, from market information.

The notional amounts are detailed below:

Notional amount of contracts with final maturity

Less than 90 | More than 90 More than5 | Non- t
June 30, 2019 Currency ess than ore than Current Total | 1to3years | 3to5 years ore nan encuen
days days years Total
ThUS$ ThUs$ ThUS$ ThUS$ ThUS$ ThUS$ ThUs$
Currency derivates ThUs$ 44,290 7,109 51,399 120,939 114,892 1,512,833 1,748,664

Cash flows hedging contracts and commercial policy adjustment

The Corporation enters into metals hedging activities. Such results increase or decrease the total sales
revenue based on the market prices of the metals. As of June 30, 2019, these operations generated a
gain of ThUS$4,081.

F-101
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

b.1.

b.2.

b.3.

Commercial flexibility operations of copper contracts

The purpose of these contracts is to adjust the price of shipments to the price defined in the
Corporation’s related policy, defined in accordance with the London Metal Exchange (LME). As of
June 30, 2019, the Corporation performed derivative market transactions of copper that represent
392,275 metric tons of fine copper. These hedging operations are performed as part of the
Corporation’s commercial policy.

The current contracts as of June 30, 2019, present a positive fair value of ThUS$7,247 and their
final result will only be known at their maturity, offsetting the hedging transactions with revenue from
the sale of the hedged products.

The transactions settled as of periods ended June 30, 2019 resulted in a net positive effect on net
income of ThUS$5,054, which is comprised of the amounts received for sales contracts for
ThUS$4,349 and the amounts paid for purchases contracts for ThUS$705.

Commercial Transactions of Current Gold and Silver Contracts

As of June 30, 2019, the Corporation maintains derivative contracts for the sale of gold for ThOZT
954,

The contracts outstanding as of June 30, 2019 show a negative fair value of TRUS$4. The final
result will only be known at the expiration of such operations, after offsetting between hedging and
income from the sale of the goods. These hedging operations expire up until August 2019.

The operations completed between January 1 and June 30, 2019, generated a negative effect on
results of ThuS$973, corresponding to values per physical sales contracts for a negative amount
of ThUS$973.

Cash flow hedging operations backed by future production

The Corporation does not possess cash flow hedges backed by future production as of June 30,
2019.

The following tables set forth the maturities of metal hedging activities, as referred to in point b
above:

June 30, 2019 Maturity date
ThUS$ 2019 2020 2021 2022 2023 Upcoming Total

Flex Com Cobre (Asset) 5,474 2,648 – – – – 8,122
Flex Com Cobre (Liability) (383) (40) (452) – – – (875)
Flex Com Gold/Silver (4) – – (4)
Price setting –
Metal options – – – – – – –
Total 5,087 2,608 (452) – – – 7,243

F-102
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

December 31, 2018 Maturity date
ThUs$ 2019 2019 2020 2021 2022 Upcoming Total

Flex Com Cobre (Asset) 43,539 13,969 993 – – – 58,501
Flex Com Cobre (Liability) (56) (62) – – – – (118)
Flex Com Gold/Silver (671) – – – – – (671)
Price setting – –
Metal options – – – –
Total 42,812 13,907 993 – – – 57,712

¡June 30, 2019 Maturity date

All figures in thousands of

metric tons ounces 2019 2020 2021 2022 2023 Upcoming Total
Copper Futures [MT] 196.53 174.05 21.70 – – – 392.28
Gold/Silver Futures [ThOZ] 954.00 – – – 954.00
Copper price setting [MT] – –
Copper Options [MT]

December 31, 2018 Maturity date

All figures in thousands of

metric tons ounces 2019 2020 2021 2022 2023 Upcoming Total
Copper Futures [MT] 300.10 110.45 10.30 – – – 420.85
Gold/Silver Futures [ThOZ] 349.57 – – – – – 349.57
Copper price setting [MT] – –
Copper Options [MT]

31. Contingencies and restrictions
a) Litigations and contingencies

There are various lawsuits and legal actions initiated by or against the Corporation, which derive from its
operations and the industry in which it operates. In general, these are civil, tax, labor and mining
litigations, all related to the Corporation’s activities.

In the opinion of Management and its legal advisors, the lawsuits where the Corporation is being sued
and could have negative results do not represent significant loss contingencies or cash flows. Codelco
defends its rights and employs all corresponding relevant legal instances, resources and procedures.

The most significant lawsuits that involve Codelco are related to the following matters:

– Tax proceedings: There is a tax proceeding for liquidation No.141 of tax year 2015 and
Exempt Resolution No. 89 of 2016 issued by the Internal Revenue Service (SIl), for which the
Corporation presented the corresponding appeals, which were received and resolved in favor of the
Tax and Customs Courts, a resolution that was appealed by the SI!.

– Labor proceedings: Labor proceedings brought by the workers of the Andina Division against the
Corporation with regard to occupational diseases (silicosis).

F-103
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Mining proceedings and others arising from the Operation: The Corporation has been participating,
and will probably continue to participate, as plaintiff and defendant in given court proceedings
involving its mining operation and activities, through which it seeks to exercise certain actions or set
up certain defenses in relation to given mining concessions that have been established or are in the
process of being established, as well as also with regard to its other activities. These proceedings
currently do not involve any given amount and do not have any essential effect on Codelco’s
development.

At the date of issuance of these financial statements, the Codelco faces various lawsuits and legal
actions against it for a total of approximately US$268 million corresponding to 366 cases. According
to the estimate made by the legal advisors of the Corporation, 282 cases, which represent 77.05% of
the universe, have associated probable loss results amounting to TAUS$42,057. There are also 64
cases, representing 17.49% for an amount of ThUS$205,935, for which it is more likely than not, that
the ruling will not be against the Corporation.

Lawsuit under administrative law: On August 2, 2017, a Nullity in Public Law claim was filed in the
25th Civil Court of Santiago against Audit Report No. 900 of 2016, issued by the General
Comptrollership of the Republic on May 10, 2017. At this date, the discussion stage has been
completed and the evidence submitting stage should start soon.

For litigation with a probable unfavorable outcome for the Corporation, the necessary provisions has
been recognized as “provisions for legal proceedings.”

b) Other Commitments

On May 31, 2005, Codelco, through its subsidiary Codelco International Ltd. signed an agreement
with Minmetals to form a company, CuPIC, in which both companies have an equal equity interest.
A 15-year copper cathode sales contract to that associated company was agreed upon, as well as
a purchase contract from Minmetals to CupiC for the same period and for equal monthly shipments
to complete a total of 836,250 metric tons. Each shipment shall be paid for by the buyer at a price
formed by a fixed re-adjustable component plus a variable component, which depends on current
copper prices at the time of shipment.

During the first quarter of 2006 and on the basis of the negotiated financial terms, financing contracts
were formalized with the China Development Bank allowing CuPIC to make the US$550 million
advance payment to Codelco in March 2006.

With regard to financial obligations incurred by the associate CuPIC with the China Development
Bank, Codelco Chile and Codelco International Ltd, must meet certain commitments, mainly relating
to the delivery of financial information. In addition, Codelco Chile must maintain 51% ownership of
Codelco International Limited.

According to the Sponsor Agreement, dated March 8, 2006, the Codelco International Ltd.
subsidiary gave its participation in CuPIC as a guarantee to the China Development Bank.

F-104
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Subsequently, on March 14, 2012, CUuPIC paid off its debt to the abovementioned bank. As of
December 31, 2017. Codelco does not hold any indirect guarantee regarding its participation in this

associated company.

On December 17, 2015, the Codelco administration presented a restructuring for the Supply

Contract, which implies the removal of its share in CUPIC.

On April 7, 2016, the Corporation formalized the removal of its share in CUPIC, of which Codelco
retained 50% ownership through the subsidiary Codelco International. Until that date, Codelco
shared the ownership of the Company in the same proportion with the company Album Enterprises

Limited (a subsidiary of Minmetals).

In order to realize the above mentioned term of the shareholding, Codelco signed a set of

agreements which formalized primarily the following issues:

+ Copper sales contract modifications from Codelco to CUPIC signed in 2006, which establishes
the reduction of half of the outstanding tonnage to deliver to this company and in which Codelco

pays to CUPIC the amount of ThUS$99,330.

+ Reduction of share capital in CuPIC, equivalent to the 50% of the Codelco International shares

in said company and by which CuPIC repays to Codelco the amount of ThUS$99,330.

+ Waiver of Codelco to any dividends associated with the profits generated by CUPIC from January

1, 2016 and the date of signing the agreement.

+ —Additionally, the cessation of dividends reception as a consequence of the removal of the
Codelco share in the ownership of CuPIC since 2016, led to a reduction of the net profit
estimated to Codelco until the end of the contract signed with that company (year 2021). This
implied that such contract qualifies as an onerous contract, according to IAS 37, which negatively
impacts on earnings before tax of Codelco in ThUS$22,184 (negative net tax effect of

ThUS$6,599 as of April 7, 2016).

li… Regarding the financing agreement signed on August 23, 2012, between the subsidiary, Gacrux
Inversiones SpA and Mitsui 8, Co. Ltd. for the acquisition of the 24.5% stake in Anglo American Sur
S.A. which was subsequently amended on October 31, 2012, a pledge is included over the shares
that the subsidiary has on Acrux Inversiones SpA (shared participation with Mitsui and minority
shareholder in Anglo American Sur S.A.), in order to ensure compliance with the obligations that

the financial agreement contemplates.

This pledge extends to the right to collect and receive from Acrux dividends which have been agreed
in the corresponding meetings of shareholders of the company and any other distributions paid or

payable to Gacrux respect of the pledged shares.

On December 22, 2017 according to archive No. 12326 / 2017, it was established that, Gacrux,
the Creditor and the Guarantee Agent, the latter representing the Guaranteed Parties, modified , by

F-105
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

virtue of the Merger (see Note 2d), the Contract of Pledge and the Modified Pledge Agreement as
to the pledge on transferable securities and the commercial pledge, as well as the restrictions and
prohibitions established in the Pledge Contract and in the Modified Pledge Contract, making it
subject to , by virtue of the Merger, to two thousand thirteen million two hundred and forty-five
thousand four hundred and seventy-three shares pledge issued by Becrux, owned by Gacrux,

hereinafter the “Pledged Becrux Shares.”

lil. Law 19.993 dated December 17, 2004, authorized the purchase of the Refinery and Smelter Las
Ventanas assets from ENAMI, establishing that the Corporation must ensure that the smelting and
refining capacity required is maintained, without any restriction and limitation, for treating the
products of the small and medium mining sector sent by ENAMI, under the form of toll production

or another form agreed upon by the parties.

iv. — Obligations with the public for bond issues means that the Corporation must meet certain restrictions
related to limits on pledges and leaseback transactions on its principal assets and on its ownership

interest in subsidiaries.

The Corporation has complied with these conditions as of June 30, 2019 and December 31, 2018.

v. On January 20, 2010, the Corporation signed two energy supply contracts with Colbún S.A., which
includes energy and power sales and purchases for a total of 510 MW of power. The contract
provides a discount for that unconsumed energy from Codelco’s SIC divisions with respect to the
amount of contracted power. The discount is equivalent to the value of the sale of that energy on

the spot market.

The contracted power for supplying these Divisions is comprised by two contracts:
– Contract No.1 for 176 MW, current until December 2029

– Contract No.2 for 334 MW, current until December 2044. This contract is based on energy
production from Colbún’s Santa María thermal power station, which is currently in operation.
This plantis coal-fired, and therefore the electric energy tariff rate applied for the energy supplied

to Codelco is linked to the price of coal.

Both of these contracts comply with Codelco’s long-term energy and power requirements from the

SIC of approximately 510 MW.

Through these contracts, which operate through take or pay, the Corporation agrees to pay for the
contracted energy and Colbún undertakes to reimburse at market price the energy not consumed

by Codelco.

These contracts have maturity dates in 2029 and 2044.

vi. On November 6, 2009, Codelco signed the following long-term electric energy supply contracts with

ELECTROANDINA S.A. (associate until January 2011), which matured in August 2017.

F-106
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

For the electric power supply of the Chuquicamata’s work center, there are three contracts:

Engie for a 15-year term from January 2010, that is maturing in December 2024, for 200
MW capacity, and another contract for a 200 MW capacity which was signed in January

2018 and will be effective as of January 2025 with maturity in December 2035.
CTA effective from 2012 for 80 MW capacity, maturity in 2032.

vii. On August 26, 2011, Codelco signed two energy supply contracts with AESGener. The first one for
the Minister Hales division for a 99 MW capacity and the second contract for the Radomiro Tomic

work center, for a maximum capacity of 145 MW. Both contracts will mature in 2028.

viii. On November 11, 2011, Law No. 20551 was published in the Official Journal, which regulates the
tasks and closure of mining facilities. Additionally, on November 22, 2012, the Supreme Decree No.
41 of the Minister of Mining, which approves the Regulations of this Law, was published in the Diario

Oficial.

This law requires the Corporation, among other requirements, to provide financial guarantees to the
State to ensure the implementation of closure plans. It also establishes the obligation to make

contributions to a fund which aims to cover the costs of post-closure activities.

The Corporation, in accordance with the mentioned regulation, provided to SERNAGEOMIN the
Mine Closure Plan (ARO) for all of the Codelco operating divisions in 2014, which were approved

in 2015 in accordance with the provisions of the Act.

The mine closure plans delivered to SERNAGEOMIN were developed by invoking the transitional
regime of the Act, which was specified for the affected mining companies under the general
application procedure (extraction capacity > 10,000 tons per month), and which, at the date of
enactment of the Law, will abide in operation and move forward with a mine closure plan previously

approved under Mine Safety Regulations Supreme Decree No. 132.

The Corporation considers that the accounting liability recorded caused by this obligation differs
from the law’s requirement, mainly by differences concerning the horizon that is considered for the
projection of flows, in which the law requires the determination of the obligations in terms of mineral
reserves, while the financial-accounting approach incorporates some of its mineral resources.
Therefore, the discount rate established by law, may differ from that used by the Corporation under
the criteria set out in lAS 37 “Provisions, Contingent Liabilities and Contingent Assets” and

described in Note 2, letter p) of Main Accounting Policies.

As of June 30, 2019, the Corporation has agreed guarantees for an annual amount of U.F.
28,061,769 to comply with the aforementioned Law No. 20.551. The following table details the main

given guarantees:

F-107
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Transmitter Mine site Amount Currency Date Maturity date a ThUS$
Banco Estado Radomiro Tomic 2,691,723 UF 11-30-2018 11-11-2019 0.08 110,591
Banco Estado Ministro Hales 911,821 UF 11-29-2018 11-14-2019 0.08 37,463
Banco De Chile Ministro Hales 541,257 UF 12-6-2018 11-14-2019 0.10 22,238
Banco De Chile Chuquicamata 2,300,000 UF 12-5-2018 11-27-2019 0.10 94,497
Banco Bci Chuquicamata 4,600,000 UF 11-30-2018 11-27-2019 0.15 188,994
Banco ltau Chuquicamata 915,319 UF 12-27-2018 11-27-2019 0.16 37,606
Banco De Chile El Teniente 2,632,299 UF 12-5-2018 12-2-2019 0.10 108,150
Banco Santander El Teniente 5,000,000 UF 12-20-2018 12-2-2019 0.15 205,428
Banco Estado Gabriela Mistral 1,513,907 UF 11-29-2018 12-15-2019 0.08 62,200
Banco ltau Salvador 2,700,000 UF 8-8-2018 2-18-2020 0.10 110,931
Banco Santander Salvador 611,647 UF 2-6-2019 2-18-2020 0.15 25,130
Banco Estado Andina 3,310,724 UF 10-29-2018 5-3-2020 0.07 136,023
Banco De Chile Ventanas 333,069 UF 12-13-2018 9-19-2019 0.07 13,684
Total 28,061,766 1,152,935

ix. On August 24, 2012, Codelco through its subsidiary Inversiones Mineras Nueva Acrux SpA (Nueva
Acrux) (which minority shareholder is Mitsui), signed a contract with Anglo American Sur S.A. Under
this contract, Codelco agreed to sell a portion of its annual copper production to the mentioned
subsidiary, who in turn agrees to purchase such production.

Such annual portion is determined by the share of Codelco’s indirect subsidiary, Inversiones
Mineras Becrux SpA (also shared ownership with Mitsui), maintained for the shares of Anglo
American Sur S.A.

In turn, the subsidiary Nueva Acrux agrees to sell to Mitsui, the products purchased under the
agreement described in the preceding paragraphs.

The contract expiration will occur when the shareholders agreement of Anglo American Sur S.A
ends or other events related to the completion of mining activities of the company take place.

On June 11, 2019, Codelco and Anglo American Sur S.A. signed an agreement that ensures and
optimizes the operation of their respective copper mines, Andina and Los Bronces, respectively.
This agreement is similar to others that the same parties have signed during the last 40 years and
that favor the independent, safe and sustainable operation of these neighboring mines.

32. Guarantees

The Corporation as a result of its activities has received and given guarantees.

The following tables list the main guarantees given to financial institutions:

F-108
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Direct Guarantees provided to Financial Institutions
_ 6/30/2019 12/31/2018
Creditor of the Guarantee Type of Guarantee o maturity | THUSs | muss
Ministy ofnational goods Projectof exploitaion CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministry ofnational goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministry ofnational goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministry ofnational goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministry ofnational goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
Ministy of national goods Projectof exploitation CLP 8/28/2019 8 –
General Directorate of Maritime Territory and Merchant Marine Maritime concession CLP 3/1/2020 1,554 –
General Directorate of Maritime Territory and Merchant Marine Maritime concession CLP 6/30/2020 3 –
General Directorate of Maritime Territory and Merchant Marine Maritime concession CLP 7/15/2020 254 –
Minestry of Public Works j UF 12/31/2019| 24,297 –
Minestry of Public Works UF 10/1/2019 559 566
Viabilty management Building project UF 3/1/2020 1 –
Viabilty management Building project UF 3/1/2020 1 –
Viabilty management Building project UF 3/1/2020 1 –
Viabilty management Building project UF 3/1/2020 1 –
Ministry ofnational goods Projectof exploitation UF 6/19/2020 8 –
Ministry ofnational goods Projectof exploitation UF 6/19/2020 8 –
Ministy of national goods Projectof exploitation UF 6/19/2020 8 –
Oriente Copper Netherlands B.V. Pledge on shares USD 11/11/2032 | 877,813 | 877,813
Sernageomin Environmental UF 3/18/2019 – 17,920
Sernageomin Environmental UF 5/9/2019 – | 137,355
Sernageomin Environmental UF 5/12/2019 – 39,150
Sernageomin Environmental UF 5/12/2019 – 38,215
Sernageomin Environmental UF 5/25/2019 – | 192,789
Sernageomin Environmental UF 5/25/2019 – | 103,290
Sernageomin Environmental UF 5/25/2019 – 96,395
Sernageomin Environmental UF 6/1/2019 – | 110,322
Sernageomin Environmental UF 6/1/2019 – | 273,875
Sernageomin Environmental UF 6/13/2019 – 73,210
Sernageomin Environmental UF 6/13/2019 – 11,980
Sernageomin Environmental UF 9/19/2019 13,684 –
Sernageomin Environmental UF 11/11/2019| 110,591 –
Sernageomin Environmental UF 11/14/2019| 37,463 –
Sernageomin Environmental UF 11/14/2019| — 22,238 –
Sernageomin Environmental UF 11/27/2019| 94,497 –
Sernageomin Environmental UF 11/27/2019| — 188,994 –
Sernageomin Environmental UF 11/27/2019| 37,606 –
Sernageomin Environmental UF 12/2/2019 | 108,150 –
Sernageomin Environmental UF 12/2/2019 | 205,428 –
Sernageomin Environmental UF 12/15/2019| 62,200 –
Sernageomin Environmental UF 2/18/2020 | 110,931 –
Sernageomin Environmental UF 2/18/2020 25,130 –
Sernageomin Environmental UF 5/3/2020 | 136,023
Total 2,057,619 | 1,972,879

As for the documents received as collateral, they cover mainly obligations of suppliers and contractors
related to the various development projects. Below are given the amounts received as collateral, grouped
according to the Operating Divisions that have received these amounts:

F-109
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Guarantees received from third parties
Division 6/30/2019 12/31/2018
ThUus$ ThUS$
Andina 520 3,891
Chuquicamata 1,184 2,445
Casa Matriz 871,244 803,719
Salvador 622 1,311
El Teniente 2,952 4,137
Ventanas 87 105
Total 876,609 815,608

33. Balances in foreign currency

a) Assets by Type of Currency

6/30/2019 12/31/2018
Category
Thus$ ThUSs$

Liquid assets 880,759 1,460,534
US Dollars 783,745 1,383,897
Euros 50,012 25,482
Other currencies 4,249 4,547
Non-indexed Ch$ 42,651 46,129
U.F. 102 479
Cash and cash equiv alents 478,871 1,229,125
US Dollars 381,904 1,152,715
Euros 50,012 25,482
Other currencies 4,249 4,547
Non-indexed Ch$ 42,604 46,109
U.F. 102 272
Other current financial assets 401,888 231,409
US Dollars 401,841 231,182
Euros

Other currencies – –
Non-indexed Ch$ 47 20
U.F. – 207
Short and long term receivables 2,141,074 2,409,835
US Dollars 1,447,491 1,789,757
Euros 115,374 62,857
Other currencies 347 320
Non-indexed Ch$ 557,938 482,180
U.F. 19,924 74,721
Trade and other receivables 2,006,725 2,212,209
US Dollars 1,409,028 1,676,862
Euros 115,374 62,580
Other currencies 347 320
Non-indexed Ch$ 463,091 398,966
U.F. 18,885 73,481

F-110
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Category 6/30/2019 12/31/2018
ThuS$ ThUuS$
Rights account receivables, non-current 96,063 84,731
US Dollars 177 –
Euros – 277
Other currencies – –
Non-indexed Ch$ 94,847 83,214
UF. 1,039 1,240
Due from related companies, current 20,256 92,365
US Dollars 20,256 92,365
Euros – –
Other currencies – –
Non-indexed Ch$ – –
UF. – –
Due from related companies, non-current 18,030 20,530
US Dollars 18,030 20,530
Euros – –
Other currencies – –
Non-indexed Ch$ – –
UF. – –
Rest of assets 34,888,685 33,220,436
US Dollars 34,151,407 32,171,442
Euros 194 705
Other currencies 746 279
Non-indexed Ch$ 41,991 377,119
UF. 694,347 670,891
Total assets 37,910,518 37,090,805
US Dollars 36,382,643 35,345,096
Euros 165,580 89,044
Other currencies 5,342 5,146
Non-indexed Ch$ 642,580 905,428
UF. 714,373 746,091

F-111
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

b) Liability by type of currency:

6/30/2019 12/31/2018
Current liability by currency Up to 90 days | 90 days to 1 year | Up to 90 days | 90 days to 1 year
ThUS$ ThUs$ ThUus$ ThUs$

Current liabilities 3,451,114 790,927 3,049,854 489,558
US Dollars 2,412,826 652,323 1,824,181 452,648
Euros 93,568 – 107,341 408
Other currencies 9,376 123 9,826 –
Non-indexed Ch$ 915,975 124,586 1,088,536 31,419
UF. 19,369 13,895 19,970 5,083
Other current financial liabilities 417,863 767,638 412,451 459,826
US Dollars 393,531 652,272 396,148 452,635
Euros 14,970 – 7,404 408
Other currencies – 123 34 –
Non-indexed Ch$ 951 101,348 879 1,700
UF. 8,411 13,895 7,986 5,083
Bank loans 273,173 586,306 5,739 399,132
US Dollars 273,173 586,306 5,683 398,724
Euros – 408
Other currencies – – – –
Non-indexed Ch$ – – – –
UF. – – 56 –
Obligations 138,740 30,898 401,174 34,255
US Dollars 117,429 30,898 387,578 34,255
Euros 14,970 – 7,404 –
Other currencies – – – –
Non-indexed Ch$ – – – –
UF. 6,341 – 6,192 –
Finance lease 5,499 133,102 5,167 16,343
US Dollars 2,887 17,736 2,887 9,560
Euros – –
Other currencies – 123 – –
Non-indexed Ch$ 542 101,348 542 1,700
UF. 2,070 13,895 1,738 5,083
Others 451 17,332 371 10,096
US Dollars 42 17,332 – 10,096
Euros – –
Other currencies – – 34 –
Non-indexed Ch$ 409 – 337 –
UF. – – – –
Other current liabilities 3,033,251 23,289 2,637,403 29,732
US Dollars 2,019,295 51 1,428,033 13
Euros 78,598 – 99,937 –
Other currencies 9,376 – 9,792 –
Non-indexed Ch$ 915,024 23,238 1,087,657 29,719
UF. 10,958 – 11,984 –

F-112

CORPORACION NACIONAL DEL COBRE DE CHILE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

6/30/2019 12/31/2018
Non-current liability by currency 1to3 3to5 5 to 10 More than 1to 3 3to5 5to 10 More than
years years years 10 years years years years 10 years
Thus$ ThUs$ ThUS$ ThUs$ Thus$ Thus$ Thus$ ThUs$
Non-Current liabilities 6,794,757 1,412,807 4,685,624 9,210,375 6,804,312 2,260,258 5,142,419 8,000,535
US Dollars 6,208,671 1,270,176 3,644,182 8,134,467 6,396,888 2,114,245 4,160,204 6,918,087
Euros – (6,502) – 14 – (7,832)
Other currencies 808 – – – 1 – – –
Non-indexed Ch$ 536,207 138,010 302,368 499,063 390,088 141,392 277,356 505,603
UF. 49,071 4,621 745,576 576,845 17,321 4,621 712,691 576,845
Other non-current financial
liabilities 1,785,961 1,274,797 4,401,195 7,172,452 1,710,559 2,118,866 4,847,087 5,997,998
US Dollars 1,632,286 1,270,176 3,626,105 7,172,452 1,702,164 2,114,245 4,142,228 5,997,998
Euros – (6,502) – – – (7,832)
Other currencies 807 – – – –
Non-indexed Ch$ 113,096 – 36,016 – 219 – –
UF. 39,772 4,621 745,576 – 8,176 4,621 712,691 –
Bank loans 911,125 299,484 298,344 563,473 548,454 677,507 298,250 582,867
US Dollars 911,125 299,484 298,344 563,473 548,454 677,507 298,250 582,867
Euros – – – – –
Other currencies – – – – –
Non-indexed Ch$ – – – – –
UF. – – – – – – – –
Obligations 637,263 875,981 3,894,925 6,608,979 1,065,419 1,414,296 4,415,461 5,415,131
US Dollars 637,263 875,981 2,495,029 6,608,979 1,065,419 1,414,296 3,034,864 5,415,131
Euros – 674,942 – – – 678,446
Other currencies – – – – –
Non-indexed Ch$ – – – – – –
UF. – – 724,954 – – – 702,151
Finance Lease 176,209 99,332 71,896 – 32,714 27,063 26,552
US Dollars 22,537 94,711 15,258 – 24,322 22,442 16,012
Euros – – – – – –
Other currencies 807 – – – – –
Non-indexed Ch$ 113,093 – 36,016 – 216 – –
UF. 39,772 4,621 20,622 – 8,176 4,621 10,540
Others 61,364 136,030 – 63,972 – 106,824
US Dollars 61,361 817,474 – 63,969 – 793,102
Euros – (681,444) – – – (686,278)
Other currencies – – – – –
Non-indexed Ch$ 3 – – 3 –
UF. – – – – – – – –
Other liabilities non-current 5,008,796 138,010 284,429 2,037,923 5,093,753 141,392 295,332 2,002,537
US Dollars 4,576,385 18,077 962,015 4,694,724 – 17,976 920,089
Euros – – – 14 – –
Other currencies 1 – – – 1 – – –
Non-indexed Ch$ 423,111 138,010 266,352 499,063 389,869 141,392 277,356 505,603
UF. 9,299 – 576,845 9,145 – 576,845

F-113

34, Sanctions

35.

As of June 30, 2019 and December 31, 2018, neither Codelco Chile nor its Directors and Managers have
been sanctioned by the CMF or any other administrative authorities.

Environmental Expenditures

Each of Codelco’s operations is subject to national, regional and local regulations related to protection of
the environment and natural resources, including standards relating to water, air, noise and disposal and
transportation of dangerous residues, among others. Chile has introduced environmental regulations that
have obligated companies, including Codelco, to carry out programs to reduce, control or eliminate relevant
environmental impacts. Codelco has executed and shall continue to execute a series of environmental
projects to comply with these regulations.

Pursuant to the Letter of Values approved in 2010, Codelco is governed by a series of internal policies and
regulations that frame ¡ts commitment to the environment, including the Sustainable Development Policy
(2003) and the Corporate Security, Occupational Health and Environmental Management Policy (2007).

The environmental management systems of the divisions and the Head Office, structure their efforts in order
to comply with the commitments assumed by the corporation’s environmental policies, incorporating
planning, operating, verifying and reviewing elements. As of June 30, 2019, they have received ISO 14001
certification for the environmental management of Chuquicamata, Radomiro Tomic, Andina, Salvador, El
Teniente, Ventanas, Gabriela Mistral and the Head Office.

In accordance with Supreme Decree D.S. No. 28, the Corporation is carrying out is environmental,
maintenance and operating plans for ¡ts smelting plants.

To comply with the Circular No. 1901 of 2008 of the CMF, the details of the Corporation’s main expenditures
related to the environment during the six-month periods ended June 30, 2019 and 2018, respectively, and
the projected future expenses are stated below.

F-114
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Chuquicamata
Codelco Chile [Talambre dam capaciy extension, 8h stage In Progress 40,261 | Asset P,P8E 39,396 91,026 | 2020
Codelco Chile [Emergency restoraton system dust control crushing plant 2/3 Finished -| Asset P,P8E 6,114 – –
Codelco Chile [Replacement ofcirculaton pot1A and 2A In Progress 4,305 | — Asset P,P8E 221 11,322 | — 2019
Codelco Chile |Constucion installaton surplus management In Progress 561| Asset P,P8E 116 . –
Codelco Chile [Replacement ofwater treatment plant In Progress 2,200] Asset P,P8E 3.294 . .
Codelco Chile [Replacement gas managementsystem In Progress 1,050] — Asset P,P8E 3.294 9300| 2019
Codelco Chile [Acid planttranformaton 3-4 DC/DA In Progress 62676| Asset P,P8E 34,672 136,187 | — 2019
Codelco Chile |Enablementreíning gas treatment system In Progress 12,073 | — Asset P,P8E 737 35.049] 2019
Codelco Chile |Dryer replacementn * 5 fuco In Progress 12,644 | — Asset P,P8E 1,961 23.613] 2019
Codelco Chile [Management feeding and transport powders In Progress -| Asset P,P8E 257 – –
Codelco Chile [Construction Relle Res DonrAsim Montec In Progress 60| Asset P,P8E 123 11,721] — 2019
Codelco Chile |Constucion IX stage Talambre tranque In Progress 3,607 | Asset P,P8E 485 7652 | 2019
Codelco Chile [Constucion 8 Seg Montecristo In Progress 1,147 | — Asset P,P8E 34 15513 | 2019
Codelco Chile [Acid plants In Progress 7,605 | Expenditure | Adm. Expense 8.272 -| 2019
Codelco Chile [Solid waste In Progress 549 | Expenditure | — Adm. Expense 678 1eto] 2019
Codelco Chile [Talings In Progress 4,951 | Expenditure | — Adm. Expense 9,681 -| 2019
Codelco Chile [Water treatment plant In Progress 4,508 | Expenditure | — Adm. Expense 5,996 -| 2019
Codelco Chile [Environmental monitoring In Progress 327 | Expenditure | — Adm. Expense 1,106 4,254 | 2019

Total Chuquicamata 158,614 116,437 347,546

Total Salvador 95,052 33,406 114,820

Total Andina 58,308 70,515 154,434
Subtotal 311,973 220,358 616.800

F-115

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

36. Subsequent events

– On July 12, 2019, it was reported as essential fact that the Board of Directors of Codelco has nominated
Mr. Octavio Araneda Osés, as Executive President of the Corporation, who will assume his position
from September 1, 2019, replacing Mr. Nelson Pizarro Contador, who has submitted his voluntary
resignation to the company, which will be effective as of that same date.

F-116

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

On July 26, 2019, it was reported as an essential fact that the following main executives were
appointed, as of September 1, 2019:

1- Appoint Mr. Mauricio Barraza Gallardo as vice president of operations south center.

2- Appoint Mr. Nicolás Rivera Rodriguez, as general manager Chuquicamata Division.

3- Appoint Mr. Andrés Music Garrido as general manager of El Teniente Division.

On August 6, 2019, it was reported as an essential fact that on the same day, the sale of Codelco’s
participation in the GNL Mejillones S.A. company was completed. (37%) to LNG Ameris IPM SpA, for
an amount of US$193.48 million. This sale process is achieved after an international search process
for buyers of said corporate participation, which had a broad participation by different companies and
investment funds and was developed within the framework of the optimization process of the
Corporation’s assets. , in order to strengthen its financial position against the project portfolio, focusing
on its main activity, copper mining.

It is noted that, given that Codelco has secured the supply of energy in its northern divisions, the
aforementioned had been categorized by the Corporation as an expendable asset.

In addition to the essential fact sent by the Corporation on August 6, 2019 related to the sale of our
stake in GNL Mejillones SA, for an amount of US$193.5 million, it is reported that the accounting profit
before taxes reached approximately US$104 million, and the result after taxes at approximately US$ 36
million. 100% of the value of the transaction was received in cash on August 6, 2019.

On August 8, 2019, it was reported as an essential fact that Codelco made two placements for a total
equivalent to US$180 million, at 10 and 20 year terms, respectively in the international financial capital
market.

In turn, complementing these operations, Codelco signed a bilateral credit agreement with Export
Develoment Canada for a total amount of US$300 million over a 10-year term.

In this way, and through these three financing operations, Codelco efficiently assures the resources to
invest in its structural projects, the first of which Chuquicamata Underground began its commissioning
at the end of last April.

On August 19, 2019, details of the placement of bonds abroad made on August 8, 2019, as
established in the Circular No. 1,072, regarding the financing operation.

On August 29, 2019, it was communicated as an essential fact, that it has proceeded to designate, as
of September 1, 2019, Mr. Rodrigo Barrera Páez as General Manager of the Minister Hales Division.

The administration of the Corporation is not aware of other significant events of a financial nature or of any
other nature that could affect these financial statements, which occurred between July 1, 2019 and the date
of issuance of these interim unaudited consolidated financial statements up to the August 29, 2019.

F-117
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Nelson Pizarro Contador Alejandro Rivera Stambuk
Chief Executive Officer Chief Financial Officer
Javier Tapia Avila Cristóbal Parrao Cartagena
Accounting and Finance Control Manager Accounting Director (1)

Accounting Director

F-118
O

CODELCO

CODELCO – CHILE

Consolidated Financial Statements as of and for the years ended December 31,
2018 and 2017

(Translation into English of the consolidated financial statements originally issued
in Spanish — see Note 1.2)
TABLE OF CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) …….cuucconmomosmossmsssosos 7
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)..
CONSOLIDATED STATEMENTS OF CASH FLOWS – DIRECT METHOD
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ………………

L GENERAL INFORMATION

1. Corporate Information
2. Basis of Presentation of the Consolidated Financial Statements

ll. SIGNIFICANT ACCOUNTING POLICIES

1. Significant Judgments and Key Estimates
2. Significant accounting policies
3. New standards and interpretations adopted by the Corporation
4. New accounting pronouncements

lll… EXPLANATORY NOTES

Cash and cash equivalents
Trade and other receivables……………
Balance and transactions with related parties ..
InventorieS ..oooncoconcncnnancnnnnnorinnnrnninnoos
Income taxes and deferred taxes……..
Current and non-current tax assets and liabilities
Non-current assets or groups of assets for disposition classified as held for sale…
Property, Plant and EquipMent ….oooonoccccononcnnnnnonnncnninanconanconanancnnnaronnnns .54
9. Investments accounted for using the equity
10. Intangible assets other than goodwill .
11. SubsidiarieS …….ococonnnnnsmmm**”.
12. Other non-current non-financial assets
13. Current and non-current financial assets
14. Interest-bearing borrowings……………….
15. Fair Value of financial assets and liabilities .
16. Fair value hierarchy…….

SLADARIN SA

17. Trade and other payables .. .79
18. Other provisions ……. .79
19. Employee benefits .80
20. Equity ………. 34

21. Revenue…….
22. Expenses by nature…
23. Impairment of Assets
24. Other income and expenses by function.
25. Finance COSÉS .onononoconanonnnranannonaninon .90
26. Operating segments……….
27. Foreign exchange differences
28. Statement of cash flOWS ……..ocococinocononos
29. Financial risk management, objectives and policies .
30. Derivatives CONtFactS ….ococonocononoconanonnnos … 102
31. Contingencies and restrictiONS……….cooconnonenonnnnnnnnenanconannn conan co nannornnnaroron corona rnnno ro nro rara no rra nr rn ano ra rnara ninos 105

F-120
32.
33.
34.
35.
36.

Guarantees
Balances in foreign

SanctionS …………..
Environmental Expenditures

Subsequent events

currency

F-121

Deloitte. %

Auditores y Consultores Limitada
Rosario Norte 407

Rut: 80.276.200-3

Las Condes, Santiago

Chile

Fono: (56) 227 297 000

Fax: (56) 223 749 177
deloittechileOdeloitte.com
www.deloitte.cl

INDEPENDENT AUDITORS” REPORT

To the Chairman and Board of Directors of
Corporación Nacional del Cobre de Chile

We have audited the accompanying consolidated statements of financial position of Corporación
Nacional del Cobre de Chile and its subsidiaries (the “Company”) at December 31, 2018 and 2017, and
the related consolidated statements of comprehensive income, changes in equity and cash flows for the
years then ended and the related notes to the consolidated financial statements.

Management’s Responsibility for the Consolidated Financial Information

Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with International Financial Reporting Standards as issued by the
International Accounting Standards Board (“IASB”). This responsibility includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
consolidated financial statements that are free from material misstatement, whether due to fraud or
error.

Auditor”s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our
audits. We performed our audits in accordance with auditing standards generally accepted in Chile.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements are free from material misstatement.

An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in
the consolidated financial statements. The procedures selected depend on the auditor”s judgment,
including the assessment of the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the preparation and fair presentation of the entity’s consolidated financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity”s internal control. Accordingly, we express no
such opinion. An audit also includes assessing the appropriateness of the accounting policies used and
the reasonableness of the significant estimates made by the Company’s Management, as well as
evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.

Deloitte? se refiere a Deloitte Touche Tohmatsu Limited una compañía privada limitada por garantía, de Reino Unido, y a su red de firmas miembro, cada una de las cuales es una
entidad legal separada e independiente. Por favor, vea en www.deloitte.com/c//acercade la descripción detallada de la estructura legal de Deloitte Touche Tohmatsu Limited y sus
firmas miembro.

Deloitte Touche Tohmatsu Limited es una compañía privada limitada por garantía constituida en Inglaterra 8: Gales bajo el número 07271800, y su domicilio registrado: Hill House,
1 Little New Street, London, EC4A 3TR, Reino Unido. F-122
Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of Corporación Nacional del Cobre de Chile and its subsidiaries as of
December 31, 2018 and 2017, and the results of their operations and their cash flows for the years then
ended in accordance with International Financial Reporting Standards as issued by the International
Accounting Standards Board.

Other-matter — Translation

The accompanying consolidated financial statements have been translated into English solely for the
convenience of readers outside of Chile.

arch 28, 2019
Santiago, Chile

F-123
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of December 31, 2018 and 2017
(In thousands of US dollars – TRUS$)

(Translation into English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

12/31/2018 12/31/2017
Notes
Assets
Current Assets
Cash and cash equivalents 1 1,229,125 1,448,835
Other current financial assets 13 231,409 1,327
Other current non-financial assets 6,805 25,638
Trade and other current receivables 2 2,212,209 2,815,352
Accounts receivable from related parties, current 3 92,365 64,344
Inventories 4 2,042,648 1,829,698
Current tax assets 6 13,645 21,623
Total current assets other than assets or groups of assets for
disposition classified as held for sale or held as distributable to 5,828,206 6,206,817
owners
Non-current assets or groups of assets for disposition classified
7 – 4,236
as held for sale
[ Total current assets 5,828,206 6,211,053 ]
Non-current assets
Other non-current financial assets 13 145,751 149,526
Other non-current non-financial assets 12 6,817 11,575
Non-current receivables 2 84,731 91,442
Accounts receivable from related parties, non-current 3 20,530 25,830
Non-current inventories 4 457,070 428,447
Investments accounted for using equity method 9 3,568,293 3,665,601
Intangible assets other than goodwill 10 48,379 219,117
Property, plant and equipment 8 26,754,998 25,275,512
Investment property 981 981
Non-current tax assets 6 143,606 233,772
Deferred tax assets 5 31,443 43,285
Total non-current assets 31,262,599 30,145,088
Total Assets 37,090,805 36,356,141

The accompanying notes are an integral part of these consolidated financial statements.

F-124
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of December 31, 2018 and 2017
(In thousands of US dollars – ThUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

12/31/2018 12/31/2017
Notes
Liabilities and Equity
Liabilities
Current liabilities
Other current financial liabilities 14 872,277 324,388
Trade and other current payables 17 1,546,584 1,915,768
Accounts payable to related parties, current 3 150,916 123,791
Other current provisions 18 384,249 324,631
Current tax liabilities 6 10,777 58,690
Current provisions for employee benefits 19 510,034 516,681
Other current non-financial liabilities 64,575 51,507
[Total current liabilities 3,539,412 3,315,456 |
Non-current liabilities
Other non-current financial liabilities 14 14,674,510 14,648,004
Non-current payables 26,613 44,983
Other non-current provisions 18 1,600,183 1,711,802
Deferred tax liabilities 5 4,586,168 4,314,237
Non-current provisions for employee benefits 19 1,315,520 1,392,659
Other non-current non-financial liabilities 4,530 3,662
Total non-current liabilities 22,207,524 22,115,347
Total liabilities 25,746,936 25,430,803
Equity
Issued capital 20 5,219,423 4,619,423
Accumulated deficit (198,917) (36,672)
Other reserves 20 5,354,159 5,335,092
[ Equity attributable to owners of the parent 10,374,665 9,917,843 |
Non-controlling interests 20 969,204 1,007,495
Total equity 11,343,869 10,925,338
[Total liabilities and equity 37,090,805 36,356,141 |

The accompanying notes are an integral part of these consolidated financial statements.

F-125
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the years ended December 31, 2018 and 2017

(In thousands of US dollars – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish – see

Note 1.2)

Notes 1/1/2018 1/1/2017
N? 12/31/2018 12/31/2017

Revenue 21 14,308,758 14,641,555
Cost of sales (11,194,341) (10,380,403)
[Gross profit 3,114,417 4,261,152
Other Income, by function 24.a 124,826 154,332
Impairment gain and reversal of impairment loss determined in accordance with IFRS 9 158 –
Distribution costs (18,262) (10,403)
Administrative expenses (465,328) (428,140)
Other expenses 24b (2,115,314) (1,557,473)
Other gains 21,395 32,605
[Income from operating activities 661,892 2,452,073
Finance income 51,329 29,836
Finance costs 25 (463,448) (644,610)
Share of profit of associates and joint ventures accounted for using equity method 9 119,114 185,428
Foreign exchange difference 27 178,143 (206,058)
[Income for the years before tax 547,030 1,816,669
Expense – income Taxes 5 (357,283) (1,193,067)
[Net income for the years 189,747 623,602
Net income attributable to owners of parent 155,719 569,175
Net income attributable to non-controlling interests 20.b 34,028 54,427

189,747 623,602

[Net income for the years

The accompanying notes are an integral part of these consolidated financial statements.

F-126
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
CONTINUED
For the years ended December 31, 2018 and 2017
(In thousands of US dollars – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Notes 1/1/2018 1/1/2017
N* 12/31/2018 12/31/2017

[Net income for the years 189,747 623,602
Components of other comprehensive income that will not be reclassified to profit or loss,

before tax:

(Losses) gains on remeasurement of defined benefit plans, before tax (48,626) 25,106
Share of other comprehensive (loss) income of associates and joint ventures accounted for using the (1.617) 193
equity method that will not be reclassified to profit or loss before tax ‘

Other comprehensive (loss) income that will not be reclassified to profit or loss before tax (50,243) 25,229
Components of other comprehensive income that will be reclassified to profit or loss, before

tax

(Losses) gains on exchange difference on translation, before tax (848) 4,592
Gains (losses) on cash flow hedges, before tax 104,160 (2,874)
Share of other comprehensive income (loss) of associates and joint ventures accounted for using 554 (604)
equity method that will be reclassified to profit or loss, before tax

Other comprehensive income that will be reclassified to profit or loss before tax 103,866 1,114
Other comprehensive income, before tax 53,623 26,343
Net income tax effect of components of other comprehensive income which will not be

reclassified to profit or loss:

Income tax effect relating measurement of defined benefit plans in other comprehensive income 5 33,148 (16,937)
Net income (loss) tax of components of other comprehensive income which will be reclassified

to profit or loss:

Income tax effect relating to cash flow hedges of other comprehensive income 5 (67,704) 1,868
Total other comprehensive income 19,067 11,274
Total Comprehensive Income 208,814 13,142
Comprehensive income attributable to:

Comprehensive income attributable to owners of the parent 174,786 580,449
Comprehensive income attributable to non-controlling interests 20.b 34,028 54,427
[Total comprehensive Income 208,814 634,876

The accompanying notes are an integral part of these consolidated financial statements.

F-127
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF CASH FLOWS – DIRECT METHOD
For the years ended December 31, 2018 and 2017

(In thousands of US dollars – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

Notes 1/1/2018 1/1/2017
12/31/2018 12/31/2017
Cash flows provided by operating activities:
Receipts from sales of goods and rendering of services 15,428,893 14,521,538
Other cash receipts from operating activities 28 1,733,555 1,657,104
Payments to suppliers for goods and services (8,870,763) (7,822,093)
Payments to and on behalf of employees (1,920,204) (1,614,446)
Other cash payments from operating activities 28 (2,555,184) (2,223,368)
Dividends received 188,749 227,843
Income taxes paid (67,326) (31,224)
| Cash flows provided by operating activities 3,937,720 4,715,354
Cash flows used in investing activities:
Other payments to acquire equity or debt instruments of other entities (838) –
Other charges for the sale of interests in joint ventures and associates 7 21,842 –
Purchase of property, plant and equipment (3,893,851) (3,411,496)
Interest received 47,259 15,290
Other outflows of cash (127,570) (49,897)
| Cash flows used in investing activities (3,952,658) (3,446,103)
Cash flows used in financing activities:
Total proceeds from borrowings 900,000 3,050,000
Repayment of borrowings (259,011) (3,375,216)
Payments of finance lease liabilities classified as financing activities (27,130) (25,565)
Dividends paid (602,461) (273,332)
Interest paid (634,289) (582,471)
Other cash inflow 500,802 790,149
Cash flows used in financing activities (122,089) (416,435)
Decrease) Increase in cash and cash equivalents before effect of exchange (137,027) 852.816
Effect of exchange rate changes on cash and cash equivalents (82,683) 19,293
(Decrease) increase in cash and cash equivalents (219,710) 872,109
Cash and cash equivalents at beginning of years 1 1,448,835 576,726
Cash and cash equivalents at end of years 1 1,229,125 1,448,835

The accompanying notes are an integral part of these consolidated financial statements.

F-128
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CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

GENERAL INFORMATION
Corporate Information

The Corporation trades its products based on a policy aimed to sell refined copper to manufacturers or
producers of semi-manufactured products.

These products contribute to diverse fields of community development, particularly those intended to
improve areas such as public health, energy efficiency, and sustainable development, among others.

Codelco’s head office is located in Santiago, Chile, at 1270 Huérfanos Street, telephone number (56-2)
26903000.

The Corporation also carries out similar activities in other mining deposits in association with third parties.

In accordance with D.L. No. 1350 Section IV related to the Company’s Exchange and Budget Regulations.

Codelco’s financial activities are conducted following an annual budgeting program that is composed of an
Operations Budget, an Investment Budget and a Debt Amortization Budget.

F-130
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The subsidiaries whose financial statements are included in these consolidated financial statements
correspond to companies located in Chile and abroad, which are detailed in Note 11.2.d.

The associates and joint ventures located in Chile and abroad, are detailed in the Explanatory Notes Section
Ill of Note 9.

Basis of Presentation of the Consolidated Financial Statements

The Corporation’s consolidated statements of financial position as of December 31, 2018 and 2017, and
the consolidated statements of comprehensive income for the years ended December 31, 2018 and 2017,
changes in equity and of cash flows for the years ended December 31, 2018 and 2017, have been prepared
in accordance with International Financial Reporting Standards (*IFRS”) as issued by the International
Accounting Standards Board (“lASB”).

These consolidated financial statements include all information and disclosures required in annual financial
statements.

These consolidated financial statements have been prepared from accounting records maintained by the
Corporation.

The consolidated financial statements of the Corporation are presented in thousands of United States dollar
(“U.S. dollar”).

Responsibility for the Information and Use of Estimates

The Board of Directors of the Corporation has been informed of the information included in these
consolidated financial statements and expressly declared its responsibility for the consistent and reliable
nature of the information included in such financial statements as of and for the year ended December 31,
2018, which financial statements fully comply with IFRS as issued by the lASB. These consolidated financial
statements as of December 31, 2018 and for the year then ended were approved by the Board of Directors
at a meeting held on March 28, 2019.

F-131
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Accounting Principles

These consolidated financial statements reflect the financial position of Codelco and its subsidiaries as of
December 31, 2018 and 2017, and the results of their operations for the years ended December 31, 2018
and 2017, changes in equity and cash flows for years ended December 31, 2018 and 2017, and their related
notes, all prepared in accordance with lAS 1, “Presentation of Financial Statements”, in consideration of
the presentation instructions of the Commission for the Financial Markets, where not in conflict with IFRS.

For the convenience of the reader, these consolidated financial statements and their accompanying notes
have been translated from Spanish into English.

F-132
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

SIGNIFICANT ACCOUNTING POLICIES

Significant Judgments and Key Estimates

In preparing these consolidated financial statements, the use of certain critical accounting estimates and
assumptions that affect the amounts of assets and liabilities recognized as of the date of the financial
statements and the amounts of revenue and expenses recognized during the reporting period is required.
Such preparation also requires the Corporation’s Management to exercise ¡ts judgment in the process of
applying the Corporation’s accounting policies. The areas involving a higher degree of judgment or
complexity, or areas where assumptions and estimates are significant to the consolidated financial
statements are as follows:

Useful economic lives and residual values of property, plant and equipment – The useful lives
and residual values of property, plant and equipment that are used for calculating depreciation are
determined based on technical studies prepared by specialists (internal or external). The technical
studies consider specific factors related to the use of assets.

When there are indicators that could lead to changes in the estimates of the useful lives of such assets,
these changes are made by using technical estimates considering specific factors related to the use of
the assets.

Ore reserves – The measurements of ore reserves are based on estimates of the ore resources that
are legally and economically exploitable, and reflect the technical and environmental considerations of
the Corporation regarding the amount of resources that could be exploited and sold at prices exceeding
the total cost associated with the extraction and processing.

Notwithstanding the above, the Corporation also periodically reviews such estimates, supported by
world-class external experts, who certify the reserves as determined.

F-133
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

c) Impairment of non-financial assets – The Corporation reviews the carrying amount of its assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any
such indicator exists, the recoverable amount of the assets is estimated in order to determine the extent
of the impairment loss. In testing impairment, the assets are grouped into cash generating units
(“CGUs”) to which the assets belong, where applicable. The recoverable amount of these CGUs is
calculated as the present value of the expected future cash flows from such assets, considering a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. If the recoverable amount of the assets is lower than their carrying amount, an
impairment loss is recognized.

The Corporation has assessed and defined that the CGUs are determined at the level of each of its
current operating divisions.

Impairment testing also is performed at the level of associates and joint arrangements.

d) Provisions for decommissioning and site restoration costs – The Corporation is obliged to incur
decommissioning and site restoration costs when such site restoration or decommissioning ¡is required
due to a legal or constructive obligation. Costs are estimated on the basis of a formal closure plan and
are reassessed annually or as of the date such obligations become known. The initial estimate of
decommissioning and site restoration costs is recognized as property, plant and equipment in
accordance with lAS 16, and simultaneously a liability in accordance with IAS 37, is recorded.

For these purposes, a defined list of mine sites, facilities and other equipment are studied under this
process, considering the engineering level profile, the cubic meters of assets that will be subject to
removal and restoration, weighted by a structure of market prices of goods and services, reflecting the
best current knowledge related to carrying out such activities, as well as techniques and more efficient
construction procedures to date. In the process of valuation of these activities, the assumptions of the
exchange rate for tradable goods and services is made, as well as a discount rate, which considers the
time value of money and the risks associated with the liabilities, which is determined based, where
applicable, on the currency in which disbursements are expected to be made.

The liability amounts recognized at the end of each reporting date represent management’s best

estimate of the present value of the future decommissioning and site restoration costs. Changes to
estimated future costs that result from changes in the estimated timing or amount of the outflow of

F-134
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

resources embodying economic benefits required to settle the obligation, or a change in the discount
rate are added to, or deducted from, the cost of the related asset in the current period (as well as the
associated liability). The amount deducted from the cost of the asset shall not exceed its carrying
amount. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognized
immediately in profit or loss.

g) Fair value of derivatives and other financial instruments – Management may use its judgment to

choose an adequate and proper valuation method for financial instruments that are not quoted in an
active market. In the case of derivative financial instruments, assumptions are based on observable
market inputs, adjusted depending on factors specific to the instruments among others.

h) Lawsuits and contingencies – The Corporation assesses the probability of lawsuits and contingency

Revenue recognition – Beginning on January 1, 2018, the Corporation has adopted IFRS 15,
Revenue from Contracts with Customers, which provides new guidance on recognition of revenue. The

F-135
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Corporation determines appropriate revenue recognition for its contracts with customers by analyzing
the type, terms and conditions of each contract or agreement with a customer.

F-136
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Significant accounting policies

Period covered – The accompanying consolidated financial statements of Corporación Nacional del
Cobre de Chile include the following statements:

Consolidated statements of financial position as of December 31, 2018 and 2017.

Consolidated statements of comprehensive income for years ended December 31, 2018 and 2017.
Consolidated statements of changes in equity for years ended December 31, 2018 and 2017.
Consolidated statements of cash flows for years ended December 31, 2018 and 2017.

Basis of preparation – The consolidated financial statements of the Corporation as of December 31,
2018 and 2017, and for the years ended December 31, 2018 and 2017 have been prepared in
accordance with the instructions from the Commission for the Financial Market which fully comply with
IFRS as issued by the lASB.

The consolidated statement of financial position as of December 31, 2017, and the consolidated
statement of income for the year ended December 31, 2017, the consolidated statement of changes in
equity and consolidated statement of cash flows for the year ended December 31, 2017, which are
included for comparative purposes, have been prepared in accordance with IFRS issued by the lASB,
on a basis consistent with the criteria used for the same period ended December 31, 2018, except for
the adoption of the new IFRS standards and interpretations adopted by the Corporation as of and for
the years ended December 31, 2018, which are disclosed in note 11.3.

These consolidated financial statements have been prepared based on the accounting records kept by
the Corporation.

Functional Currency – The functional currency of Codelco is the U.S. dollar, which is the currency of
the primary economic environment in which the Corporation operates and the currency in which it
receives ¡ts revenues.

The presentation currency of Codelco’s consolidated financial statements is the U.S. dollar.

Basis of consolidation – The consolidated financial statements incorporate the financial statements
of the Corporation and its subsidiaries.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Corporation

obtains control, and continue to be consolidated until the date such control ceases. Specifically, income
and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated

F-137
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

statement from the date the Corporation gains control until the date when the Corporation ceases to
control the subsidiary.

The financial statements of the subsidiaries are prepared for the same reporting period as the
Corporation, using consistent accounting policies.

All assets, liabilities, equity, income, expenses and cash flows related to transactions between
consolidated companies are fully eliminated on consolidation. Non-controlling interests in equity and in
the comprehensive income of the consolidated subsidiaries are presented, respectively, under the line
items “Total Equity: Non-controlling interests” in the consolidated statement of financial position and
“Net income attributable to non-controlling interests” and “Comprehensive income attributable to non-
controlling interests” in the consolidated statement of comprehensive income.

F-138
CORPORACION NACIONAL DEL COBRE DE CHILE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The companies included in the consolidation are as follows:

12/31/2018 12/31/2017
Taxpayer ID Number Company Country Currency % Ownership % Owmership
Direct Indirect Total Total

Foreign Chile Copper Limited England GBP 100.00] -] 100.00] 100.00]
Foreign [Codelco do Brasil Mineracao Brazil BRL -] 100.00] 100.00] 100.00]
Foreign [Codelco Group Inc. Unid States | ¡os 100.00] , 100.00 100.00

of America
Foreign [Codelco Intemational Limited Bermuda US$ 100.00] -] 100.00] 100.00]
Foreign ¡Codelco Kupferhandel GmbH Germany EURO 100.00] -] 100.00] 100.00]
Foreign [Codelco Metals Inc. United States [yg y 100.00 100.00 100.00

of America
Foreign [Codelco Services Limited England GBP -] 100.00] 100.00] 100.00]
Foreign ¡Codelco Shanghai Company Limited China RMB 100.00] >] 100.00] 100.00]
Foreign [Codelco Technologies Ltd. Bermuda US$ – 100.00] 100.00] 100.00]
Foreign [Codelco USA Inc United States [yg y 100.00 100.00 100.00

of America
Foreign [Codelco Canada Canada US$ – 100.00] 100.00] 100.00]
Foreign Ecometales Limited Channel US$ y 100.00] 100.00] 100.00]

Islands

Foreign Exploraciones Mineras Andinas Ecuador EMSAEC S.A. Ecuador US$ – 100.00] 100.00] 100.00]
Foreign ¡Cobrex Prospeccao Mineral Brazil BRL -] 51.00] 51.00] 51.00]
78.860.780-6 ¡Compañía Contractual Minera los Andes Chile US$ 99.97| 0.03] 100.00] 100.00]
179.566.720-2 Isapre Chuquicamata Ltda. Chile CLP 98.30] 1.70| 100.00] 100.00]
81.767.200-0 ¡Asociación Garantizadora de Pensiones Chile CLP 96.69] >] 96.69] 96.69]
88.497. 100-4 [Clinica San Lorenzo Limitada Chile CLP 99.90] 0.10] 100.00] 100.00]
76.521.250-2 [San Lorenzo Institución de Salud Previsional Ltda. Chile CLP 7] 100.00] 100.00] 100.00]
89.441. 300-K Isapre Río Blanco Ltda. Chile CLP 99.99] 0.01 100.00] 100.00]
196.817.780-K Ejecutora Hospital del Cobre Calama S.A. Chile US$ 99.99] 0.01 100.00] 100.00]
196.819.040-7 [Complejo Portuario Mejillones S.A. Chile US$ 99.99] 0.01 100.00] 100.00]
76.024.442-2 Ecosea Farming S.A. Chile US$ – -] -] 98.98|
196.991.180-9 [Codelco Tec SpA Chile US$ 99.91 0.09] 100.00] 100.00]
199.569.520-0 Exploraciones Mineras Andinas S.A. Chile US$ 99.90| 0.10] 100.00] 100.00]
199.573.600-4 [Clinica Río Blanco S.A. Chile CLP 99.00] 1.00| 100.00] 100.00]
76.064.682-2 Centro de Especialidades Médicas Río Blanco Ltda. Chile CLP 99.00] 1.00] 100.00] 100.00]
177.773.260-9 Inversiones Copperfield Ltda. Chile US$ 99.99] 0.01 100.00] 100.00]
76.043.396-9 Innovaciones en Cobre S.A. Chile US$ 0.05] 99.95] 100.00] 100.00]
76.148.338-2 ¡Sociedad de Procesamiento de Molibdeno Ltda. Chile US$ 99.95] 0.05] 100.00] 100.00]
176.173.357-5 Inversiones Gacrux SpA Chile US$ 100.00] -| 100.00] 100.00]
76.231.838-5 Inversiones Mineras Nueva Acrux SpA Chile US$ – 67.80] 67.80] 67.80]
76.237.866-3 Inversiones Mineras Los Leones SpA Chile US$ 100.00] -| 100.00] 100.00]
76.173.783-K Inversiones Mineras Becrux SpA Chile US$ – 67.80] 67.80] 67.80]
76.124.156-7 [Centro de Especialidades Médicas San Lorenzo Ltda. Chile US$ >] 100.00] 100.00] 100.00]
76.255.061-K [Central Eléctrica Luz Minera SpA Chile US$ 100.00] -| 100.00] 100.00]
70.905.700-6 Fusat Chile CLP -] -] -] 5
76.334.370-7 Instituto de Salud Previsional Fusat Ltda. Chile CLP 7] >] >] -]
78.394.040-K [Centro de Servicios Médicos Porvenir Ltda… Chile CLP 7] 99.00] 99.00] 99.00]
77.928.390-9 Inmobiliaria e Inversiones Rio Cipreces Ltda. Chile CLP -] 99.90] 99.90] 99.90]
77.270.020-2 Prestaciones de Servicios de la Salud Intersalud Ltda. Chile CLP 7] 99.00] 99.00] 99.00]
76.754.301-8 [Salar de Maricunga SpA Chile CLP 100.00| -] 100.00] 100.00]

On December 21, 2017, according to decree No. 12285 / 2017, by public deed, it was agreed between
the shareholders to merge the Acrux SpA Mining Investment Company (“Absorbed Company”) with
the Investment Company Minera Becrux SpA (“Absorbing Company”), which took effect as of
December 22, 2017, where the Absorbing Company acquired all the assets and liabilities of the

F-139
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Absorbed Company, (which will be dissolved without having to effect its liquidation) in addition to being

responsible for the payment of all taxes owed or which may be owed by the Absorbed Company.

For the purposes of these consolidated financial statements, subsidiaries, associates, acquisitions

and disposals and joint ventures are defined as follows:

these entities; and iii) the ability to use ¡its power to influence the amount of these returns.

The Corporation reassesses whether or not it controls a subsidiary if facts and circumstances

indicate that there are changes to one or more of the elements of control listed above.

The consolidated financial statements include all assets, liabilities, revenues, expenses and cash
flows of Codelco and its subsidiaries, after eliminating all inter-company balances and

transactions.

but is not control or joint control over those policies.

associate, less any impairment losses or other changes to the net assets of the associate.

Appropriate adjustments to the Codelco’s share of the associate’s profit or loss after acquisition
are made in order to account for depreciation of the depreciable assets and related deferred tax

balances based on their fair values at the acquisition date.

has been sold (and, where applicable, the associated cumulative translation adjustment).

If control is lost over a subsidiary, the retained ownership interest in the investment will be

recognized at its fair value.

F-140
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

At the acquisition date of an investment in a subsidiary, associate or joint venture, any excess of
the cost of the investment (consideration transferred) plus the amount of the non-controlling
interest in the acquiree plus the fair value of any previously held equity interest in the acquiree,
where applicable, over Codelco’s share of the net fair value of the identifiable assets and acquired
liabilities is recognized as goodwill. Any excess of Codelco’s share of the net fair value of the
identifiable assets and acquired liabilities over the consideration transferred, after reassessment,
is recognized immediately in profit or loss in the period in which the investment is acquired.

+. Joint Ventures – The entities that qualify as joint ventures are accounted for using the equity
method.

Foreign currency transactions and conversion to reporting currency – Transactions in currencies
other than the Corporation’s functional currency are recognized at the rates of exchange prevailing at
the dates of the transactions. At the end of each reporting period, foreign currency transactions
denominated in foreign currencies are converted at the rates prevailing at that date. Exchange
differences on such transactions are recognized in profit or loss in the period in which they arise and
are included in line item “Foreign exchange differences” in the consolidated statement of
comprehensive income.

At the end of each reporting period, assets and liabilities denominated in Unidades de Fomento (UF
or inflation index-linked units of account) are translated into U.S. dollars at the closing exchange rates
at that date (12/31/2018: US$39.68; 12/31/2017: US$43.59). The expenses and revenues in Chilean
pesos have been expressed in dollars at the observed exchange rate, corresponding to the date of the
accounting recording of each operation.

+ Assets and liabilities are translated using the prevailing exchange rate on the closing date of the
financial statements.

+ Income and expenses for each statement of comprehensive income are translated at average
exchange rates for the period.

+ Non-monetary assets and liabilities as well as equity are translated at historic exchange rates.

+. All resulting exchange differences are recognized in other comprehensive income and
accumulated in equity under the heading “Reserve on exchange differences on translation”.

F-141
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The exchange rates used in each reporting period were as follows:

Relation Closing exchange ratios

12/31/2018 | 12/31/2017

USD /CLP 0.00144 | 0.00163
USD /GBP 1.27000 | 1.35355
USD /BRL 0.25848 | 0.30198
USD /EURO 1.14390 | 1.20236

Offsetting balances and transactions: In general, assets and liabilities, income and expenses, are
not offset in the financial statements, unless required or permitted by an IFRS or when offsetting reflects
the substance of the transaction as well as when it is the intention of the Corporation to settle a
transaction net.

Property, plant and equipment and depreciation – Items of property, plant and equipment are
initially recognized at cost. Subsequent to initial recognition, they are measured at cost, less any
accumulated depreciation and any accumulated impairment losses.

Furthermore, assets acquired under finance lease contracts are included in property, plant and
equipment.

Starting fiscal year 2014, the assets included in property, plant and equipment are depreciated, as a
general rule, using the units of production method, when the activity performed by the asset is directly
attributable to the mine production process. All other assets included in property, plant and equipment
are depreciated using the straight-line method.

F-142
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The assets included in property, plant and equipment and certain intangibles (software) are depreciated
over their economic useful lives, as described below:

Leased assets are depreciated over the lease term or their estimated useful life, whichever is shorter.

Estimated useful lives, residual values and depreciation method are reviewed at the end of each
reporting period, and any change in estimates is recognized prospectively.

Additionally, depreciation method and estimated useful lives of assets, especially plants, facilities and
infrastructure may be revised at the end of each year or during the year according to changes in the
structure of reserves of the Corporation and productive long-term plans updated as of that date.

This review may be made at any time if the conditions of ore reserves change significantly as a result
of new known information, confirmed and officially released by the Corporation.

The ore deposits owned by the Corporation are recorded in the accounting records at US$1.

F-143
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Notwithstanding the above, those reserves and resources acquired as part of acquisition of entities
accounted for as business combinations, are recognized at their fair value.

Intangible assets – The Corporation initially recognizes these assets at acquisition cost. Subsequent
to initial recognition, intangible assets are amortized in a systematic way over their economic useful
life, except for those assets with indefinite useful life, which are not amortized. Indefinitely-lived
intangible assets are tested for impairment at least annually, and whenever there ¡is an indication that
these assets may be impaired. Definitely-lived intangible assets are tested for impairment when an
indicator of impairment has been identified. At the end of each reporting period, these assets are
measured at their cost less any accumulated amortization (when applicable) and any accumulated
impairment losses.

The main intangible assets are described as follows:

Research and Technological Development and Innovation Expenditures: The expenditures for
the development of Technology and Innovation Projects are recognized as intangible assets at their
cost and are considered to have indefinite useful lives.

Research expenses for technology and innovation projects are recognized in profit or loss when
incurred.

Impairment of property, plant and equipment and intangible assets – The carrying amounts of
property, plant and equipment and intangible assets with finite useful lives are reviewed to determine
whether there is an indication that those assets have suffered an impairment loss. If any such indicator
exists, the Corporation estimates the asset’s recoverable amount to determine the extent of the
impairment loss which is then recorded.

For assets with indefinite useful lives, their recoverable amounts are annually estimated at the end of
each reporting period.

When an asset does not generate cash flows that are independent from other assets, Codelco
determines the recoverable amount of the CGU to which the asset belongs.

F-144
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The Corporation has defined each of its divisions as a cash generating unit.

If the recoverable amount of an asset or CGU is estimated to be less than ¡ts carrying amount, an
impairment loss is recognized immediately in profit or loss, reducing the carrying amount to its
recoverable amount. When an impairment loss subsequently reverses, the carrying amount of the
asset or CGU is increased to the revised estimate of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognized for the asset or CGU in prior years.

Expenditures for exploration and evaluation of mineral resources, mine development and
mining operations – The Corporation has defined an accounting policy for each of these expenditures.

Development expenses for deposits under exploitation whose purpose is to maintain production levels
are recognized in profit or loss when incurred.

Finally, costs for defining of new areas or deposit areas in exploitation and of mining operations (PP8.E)

are recognized in property, plant and equipment and are amortized through profit or loss over the
period during which the benefits are obtained.

F-145
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Stripping costs – Costs incurred in removing mine waste materials (overburden) in open pits that are
in production, that provide access to mineral deposits, are recognized in property, plant and equipment,
when the following criteria set out in IFRIC 20 Stripping Costs in the Production Phase of a Surface
Mine are met:

– Itis probable that the future economic benefits associated with the stripping activity will flow to the
entity.

– Itis possible to identify the components of an ore body for which access has been improved as a
result of the stripping activity.

– The costs relating to that stripping activity can be measured reliably.

The amounts recognized in property, plant and equipment are depreciated according to the units of
production extracted from the ore body related to the specific stripping activity which generated this
amount.

Income taxes and deferred taxes – Codelco and ¡its Chilean subsidiaries recognize annually income
taxes based on the net taxable income determined as per the standards established in the Income Tax
Law and Article 2 of D.L. 2398, as well as, the specific tax on mining referred to in Law 20026 of 2005.
Its foreign subsidiaries recognize income taxes according to the tax regulations in each country.

Inventories – Inventories are measured at cost, when such does not exceed net realizable value. Net
realizable value represents the estimated selling price for inventories less all estimated costs of
completion and costs necessary to make the sale (i,e,, marketing, sales and distribution expenses).
Costs of inventories are determined according to the following methods:

F-146
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Dividends – In accordance with Article 6 of D.L. 1350, the Corporation has a mandatory obligation to
distribute its net income as presented in the financial statements. The payment obligation is recognized
on an accrual basis.

Employee benefits – Codelco recognizes a provision for employee benefits when there is a present
obligation (legal or constructive) as a result of services rendered by its employees.

The employment contracts stipulate, subject to compliance with certain conditions, the payment of an
employee termination indemnity when an employment contract ends. In general, this corresponds to
one monthly salary per year of service and considers the components of the final remuneration which
are contractually defined as the basis for the indemnity. This employee benefit has been classified as
a defined benefit plan.

Codelco has also agreed to post-employment medical care benefits for certain employees, which are
paid based on a fixed percentage applied to the last monthly taxable salary of the retirees covered by
this agreement. This employee benefit has been classified as a defined benefit plan.

These plans continue to be unfunded as of December 31, 2018.

In accordance with ¡ts operating optimization programs to reduce costs and increase labor productivity
by incorporating new current technologies and/or better management practices, the Corporation has
established employee retirement programs by amending certain employment contracts or collective
union agreements to include benefits encouraging employees to early retire. Accordingly, these
arrangements are accounted for as termination benefits and required accruals are established based
on the accrued obligation at current value, In case of employee retirement programs which involve
multi-year periods, the accrued obligations are updated using a discount rate determined based on

F-147
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

financial instruments denominated in the same currency and similar maturities that will be used to pay
the obligations.

Provisions for decommissioning and site restoration costs – The Corporation is obliged to incur
decommissioning and site restoration costs Such site restoration or decommissioning is required due
to a legal or constructive obligation. Costs are estimated on the basis of a formal closure plan and cost
estimates are annually reviewed.

The provision for decommissioning and site restoration costs is accreted over time to reflect the
unwinding of the discount with the accretion expense included in finance costs in the statement of
income. The carrying amount of the related asset is depreciated over its useful life.

The effects of the updating of the liability, due to the effect of the discount rate and / or passage of time,
is recorded as a financial expense.

Leases – Leases are classified as finance leases whenever the terms of the lease transfer substantially
all the risks and rewards of ownership to the Corporation. All other leases are classified as operating
leases. Operating lease costs are recognized as an expense on a straight-line basis over the lease
term.

F-148
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

assets and if the arrangement conveys the right to use the asset, even if that right is not explicitly
specified.

All “take-or-pay” contracts and any other service and supply contracts that meet the conditions in IFRIC
4, are reviewed to determine whether they contain a lease.

Revenue from Contracts with Customers – Revenue is recognized in an amount that reflects the
consideration to which the entity expects to be entitled in exchange for transferring goods or services.

– Sale of mineral goods and / or by-products

Contracts with customers for the sale of mineral goods and / or by-products include the performance
obligation for the delivery of the physical goods and the associated transportation service, at the place
agreed with the customers. The Corporation recognizes revenue from the sale of goods at the time
control of the asset is transferred to the customer, according to the shipment or dispatch of the
products, in accordance with the agreed conditions, such revenue being subject to variations related
to the content and / or sale price at the date ofits liquidation. Notwithstanding the foregoing, there are
some contracts where control is transferred substantially to the client based on the receipt of the
product instead of the buyer’s corresponding destination, making the revenue recognition at the time
of said transfer. When services of transport of goods are provided, the Corporation recognizes revenue
when the service obligation is satisfied.

Sales that have discounts associated with volume subject to compliance with goals are recognized net,
estimating the probability that the volume target will be reached.

Sales contracts include a provisional price at the shipment date. The final price is generally based on
the London Metals Exchange (“LME”) price, Revenue from sales of copper is measured using
estimates of the future spread of metal prices on the LME and/or the spot price at the date of shipment,
with subsequent adjustments made upon final pricing recognized as revenue. The terms of sales
contracts with customers contain provisional pricing arrangements whereby the selling price for metal
concentrate is based on prevailing spot prices on a specified future date after shipment to the customer
(the “quotation period”). Consequently, the final price is set at the dates indicated in the contracts.
Adjustments to provisional sale prices occur based on movements in quoted market prices on the LME
up to the date of final pricing. The period between provisional invoicing and final pricing is typically
between one and nine months. Changes in fair value over the quotation period and until final pricing
are estimated by reference to forward market prices for applicable metals.

In terms of hedge accounting established by IFRS 9, the Corporation has opted to continue applying
the hedge accounting requirements of the IAS 39 instead of the requirements of the new standard.
Therefore, the generated no effects both at the level of account balances or at the level of disclosures.

Sales in the Chilean market are recognized in conformity with the regulations that govern domestic
sales as indicated in Articles 7, 8 and 9 of Law No. 16624, modified by Article 15 of Decree Law No.

F-149
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

1349 of 1976, on the determination of sales prices for the internal market which does nat differ from
IFRS 15.

As indicated in the note related to hedging policies in the market of metal derivatives, the Corporation
enters into operations in the market of metal derivatives. Gains and losses from those which are fair
value hedges contracts are recognized as revenues.

– — Rendering of services

Additionally, the Corporation recognizes revenue for rendering services, which are mainly related to
the processing of minerals bought from third parties. Revenue from rendering of services is recognized
when the amounts can be measured reliably and when the services have been provided.

Derivative contracts – Codelco uses derivative financial instruments to reduce the risk of fluctuations
in sales prices of its products and of exchange rates.

Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and
are subsequently measured to their fair value at the end of each reporting period.

The total fair value of hedging derivatives is classified as “non-current financial asset or liability”, ifthe
remaining maturity of the hedged item is greater than 12 months, and as “current financial asset or
liability”, if the remaining maturity of the hedged item ¡is less than 12 months.

The derivative contracts held by the Corporation have been entered into to apply the risk hedging
policies and are accounted for as indicated below:

F-150
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Hedging policies for exchange rate risk: The Corporation enters into exchange rate derivatives
to hedge exchange rate variations between the U.S. dollar and the currencies of transactions the
Corporation undertakes. In accordance with the policies established by the Board of Directors, these
hedge transactions are only entered into when there are recognized assets or liabilities, forecasts
of highly probable transactions or firm commitments. The Corporation does not enter into derivative
transactions for non-hedging purposes.

Hedging policies for metal market prices risk: In accordance with the policies established by the
Board of Directors, the Corporation entered into derivative contracts to reduce the inherent risks in
the fluctuations of metal prices.

Hedging transactions carried out by the Corporation in the metal derivatives market are not
undertaken for speculative purposes.

– Embedded derivatives: The Corporation has established a procedure that allows for evaluation of

the existence of embedded derivatives in financial and non-financial contracts. Where there is an
embedded derivative, and the host contract is not a financial instrument and the characteristics and
risks of the embedded derivative are not closely related to the host contract, the derivative ¡is
required to be recognized separately.

Financial information by segment – The Corporation has defined its Divisions as its operating
segments in accordance with the requirements of IFRS 8, Operating Segments. The mining deposits
in operation, where the Corporation conducts its extractive and processing activities are managed by
the following Divisions: Chuquicamata, Radomiro Tomic, Ministro Hales, Gabriela Mistral, Salvador,
Andina and El Teniente, In addition, the smelting and refining activities are managed at the Ventanas
Division. All these Divisions have a separate operational management, which reports to the Chief
Executive Officer, through the North and South Central Vice-President of Operations, respectively.
Income and expenses of the Head Office are allocated to the defined operating segments.

Presentation of Financial Statements – The Corporation presents (i) its statements of financial
position classified as “current and non-current”, (ii) profit or loss and other comprehensive income in
one statement and the classification of expenses within profit or loss by function, and (iii) its statement
of cash flows using the direct method.

Current and non-current financial assets – The Corporation determines the classification of its
financial assets at the time of initial recognition. The classification depends on the business model in
which the investments are managed and the contractual characteristics of their cash flows.

F-151
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The Corporation’s financial assets are classified into the following categories:

Fair value through profit or loss:

Initial recognition: This category includes those financial assets not qualifying under the categories
of Fair Value through Other Comprehensive Income or Amortized Cost. These instruments are
initially recognized at fair value.

Amortized cost:

Initial recognition: This category includes those instruments with respect to which the objective of
the business model of the Corporation is to hold the financial instrument to collect contractual cash
flows and such cash flows consist of solely payments of principal and interest. This category
includes Trade and other current receivables, and the loans included in other non-current financial
assets.

Codelco did not irrevocably choose to designate any of its investment assets at fair value with effect
on other comprehensive income.

At fair value through other comprehensive income:

Subsequent recognition: Their subsequent valuation is at fair value. Interest income calculated

using the effective interest rate method, foreign exchange gains and losses and impairment are
recognized in income. Other net gains and losses are recognized in other comprehensive income.

F-152
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

On derecognition, the gains and losses accumulated in other comprehensive income are
reclassified to income.

w) Financial liabilities – Financial liabilities are initially recognized at fair value net of transaction costs.

Subsequent to their initial recognition, the valuation of the financial liabilities will depend on their
classification, within which the following categories are distinguished:

Financial liabilities at fair value through profit or loss: This category includes financial liabilities
defined as held for trading.

The Corporation includes is this category certain hedge contracts and the equity and debt instruments
sold in the short-term, which are classified as held for trading.

Changes in fair value associated with own credit risk are recorded in other comprehensive income.

Financial liabilities at amortized cost: This category includes all financial liabilities other than those
measured at fair value through profit or loss.

The Corporation includes in this category bonds, obligations and other current payables.

These financial liabilities are measured using the effective interest rate method, recognizing interest
expense based on the effective rate.

The effective interest rate method is a method of calculating the amortized cost of a financial liability
and of allocating interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments through the expected life of the financial liability, or
where appropriate, a shorter period, to the net carrying amount on initial recognition.

Trade and other current payables are financial liabilities that do not explicitly accrue interest and are
recognized at their nominal value, which approximates their fair value.

Financial liabilities are derecognized when the liabilities are paid or expire.
Impairment of financial assets – The Corporation measures the loss allowance at an amount equal
to lifetime expected credit losses for its trade receivables. For this, it uses the simplified approach as a

requirement under IFRS 9.

The provision matrix is based on an entity’s historical credit loss experience over the expected life of
the trade receivables and is adjusted for forward-looking estimates.

Cash and cash equivalents and statement of cash flows prepared using the direct method – The

statement of cash flows reflects changes in cash and cash equivalents that took place during the period,
determined under the direct method.

F-153
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

aa)

ab)

ac)

For the purposes of preparing the statement of cash flows, the Corporation has defined the following:

– Cash flows: inflows and outflows of cash or cash equivalents, which are defined as highly liquid
investments maturing in less than three months with a low risk of changes in value.

– — Operating activities are the principal revenue-producing activities of the Corporation and other
activities that are not investing or financing activities.

– Investing activities are the acquisition and disposal of long-term assets and other investments
not included in cash equivalents.

– — Financing activities are activities that result in changes in the size and composition of net equity
and borrowings of the Corporation.

Bank overdrafts are classified as external resources in current liabilities.

Law No. 13196 – Law No. 13196 requires the payment of a 10% special export tax on receivables of
the sales proceeds that Codelco receives and transfers to Chile from the export of copper and related
by-products produced by Codelco. The Chilean Central Bank deducts 10% of the amounts that Codelco
transferred to its Chilean bank account. The amount recognized for this concept is presented in the
statement of income within line item other expenses.

Cost of sales – Cost of sales is determined according to the absorption costing method, including the
direct and indirect costs, depreciation, amortization and any other expenses directly attributable to the
production process.

Environment – The Corporation adheres to the principles of sustainable development, which foster the
economic development while safekeeping the environment and the health and safety of its
collaborators. The Corporation recognizes that these principles are central for the well-being of its
collaborators, care for the environment and success in its operations.

Classification of current and non-current balances – In the consolidated statement of financial
position, the balances are classified according to their maturities, that is, as current for those with a
maturity equal to or less than twelve months and as non-current for those with a greater maturity.
Where there are obligations whose maturity is less than twelve months, but whose long-term
refinancing is insured upon a decision by the Corporation whose intention is to refinance, through credit
agreements available unconditionally with long-term maturity, these could be classified as non-current
liabilities.

F-154
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

ad) Non-current assets or groups of assets for disposition classified as held for sale: The
Corporation classifies as non-current assets or groups of assets for disposal, classified as held for sale,
properties, plants and equipment, investments in associates and groups subject to expropriation (group
of assets that are going to be disposed of together with their directly related liabilities), for which, at the
closing date of the financial statements, their sale has been committed to or steps have been initiated
and it is estimated that it will be carried out within the twelve months following said date. These assets
or groups subject to disposal are valued at book value or the estimated sale value minus the costs
necessary for sale, whichever is less, and are no longer amortized from the moment they are classified
as non-current assets held for sale. Non-current assets or groups of assets for disposal classified as
held for sale and the components of the groups subject to disposal classified as held for sale are
presented in the consolidated statement of financial position on a line for each ofthe following concepts:
“Non-current assets or groups of assets for disposition classified as held for sale” and “Non-current
liabilities or groups of liabilities for disposition classified as held for sale.”

New standards and interpretations adopted by the Corporation

The accounting policies adopted in the preparation of the consolidated financial statements are consistent
with those applied in the preparation of the Corporation’s annual consolidated financial statements for the
year ended December 31, 2017, except for the adoption of new standards, interpretations and amendments,
effective from January 1, 2018, which are:

a) IFRS 9, Financial Instruments:

Due to the transition alternatives indicated in IFRS 9, no balances have been adjusted for comparative
periods corresponding to the year 2017.

The initial application date of IFRS 9 is January 1, 2018, and the difference between the recorded amounts
in comparative periods and those recorded at the date of initial application were recorded in Accumulated
Deficit as a gain of ThUS $ 2,282 (see detail below).

Classification of financial assets and liabilities

The adoption of IFRS 9 involved, first, reassessing the classification of financial assets and liabilities, based
on the new definition included in this standard. |n this sense, and in accordance with the business model in
which Codelco manages its investments and the contractual characteristics of the cash flows of such, the
classification of financial assets and liabilities under IFRS 9 and adopted by the Corporation (disclosed in
notes 13 and 14 of section lll of these Consolidated Financial Statements), resulted solely in a
reclassification of the trade and accounts receivable subject to provisional pricing. Such receivables
classification has been changed from amortized cost to fair value through profit and loss. Previously, the
provisional pricing element was separated as an embedded derivative. Under IFRS 9, the receivable ¡is
classified at fair value through profit and loss considering the receivable as a hybrid contract.This
reclassification under IFRS 9 did not result in any adjustments to accumulated deficit at January 1, 2018.

F-155
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Impairment

Regarding the guidance in IFRS 9 related to the application of the expected credit loss model under the
approach described in note 2 of the Significant Accounting Policies, letter x), the application resulted in the
recognition of a loss allowance over the accounts receivable balances at the date of initial application as
indicated below:

Effects of IFRS 9 on Trade and other current receivables as of January 1, 2018 ThUS$
Net trade and other current receivables balance as of January 1, 2018, under accounting 2,815,352
criteria prior to IFRS 9

Transition adjustment to IFRS 9 – allowance for doubtful accounts (2,239)
Net trade and other current receivables balance as of January 1, 2018, adjusted by IFRS 9 2,813,113

Financial Liabilities

Another topic of the adoption of IFRS 9 that had an effect on Codelco ¡s related to the financial liabilities
refinanced during July 2017, which resulted in the continuation of the deferral and subsequent amortization
of certain financial costs relating to the original financing due to the non-substantial modification of
contractual flows under lAS 39. Under IFRS 9, a modified gain/loss is required to be calculated with respect
to such modification which for purposes of the first application of the new standard, resulted in the
recognition of an adjustment to the balances of bond obligations at the date of transition as indicated below:

Effects of IFRS 9 on Other non-current financial liabilities as of January 1, 2018 ThUS$
Other non-current financial liabilities balance as of January 1, 2018, under accounting 14,648,004
criteria prior to IFRS 9

Transition adjustment to IFRS 9 (9,846)
Other non-current financial liabilities balance as of January 1, 2018, adjusted for IFRS 9 14,638,158

Hedge accounting

In terms of hedge accounting established by IFRS 9, the Corporation has opted to continue applying the
hedge accounting requirements of the IAS 39 instead of the requirements of the new standard. Therefore,
the generated no effects both at the level of account balances or at the level of disclosures.

F-156

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Finally, the net effect on initial application of IFRS 9 on Codelco’s accumulated deficit, considering the
amounts previously indicated, was as follows:

Effects of IFRS 9 on accumulated deficit as of January 1, 2018 ThUS$
Accumulated deficit balance as of January 1, 2018, under accounting criteria (36,672)
prior to IFRS 9

Transition adjustments to IFRS 9, net of deferred taxes 2,282
Accumulated deficit balance as of January 1, 2018, adjusted for IFRS 9. (34,390)

b) IFRS 15, Revenue from Contracts with Customers

IFRS 15 establishes a new model for the recognition of income, which highlights the concept of the transfer
to the client of the “control” of assets sold in place of the “risk” transfer concept referred to in IAS 18.
Additionally, it requires more detail in disclosures and makes more in-depth reference to contracts with sale
of multiple elements. The application of IFRS 15 has not materially affected the measurements of Codelco’s
revenue, and the disclosures required by this standard are set forth in notes 21 and 26 of section l1l ofthese
Consolidated Financial Statements.

c) Amendments to IFRS 4, Applying IFRS 9 “Financial Instruments” with IFRS 4 “Insurance Contracts”:

It instructs on aspects related to insurance contracts that will be affected upon entry into application of IFRS
9 – Financial Instruments. The application of these amendments had no impact on the consolidated financial
statements of the Corporation, however, it could affect the accounting for future transactions or agreements.
d) Amendments to IAS 40, Transfers of investment property:

These amendments clarify the requirements for the treatment of investment property transfers. The
application of these amendments had no impact on the consolidated financial statements of the Corporation,
however, it could affect the accounting for future transactions or agreements.

e) IFRIC 22 Foreign currency transactions and advance consideration:

This interpretation addresses the exchange rate to be used in foreign currency transactions, when the
consideration is paid or received before recognizing related revenue, expenses or related assets. The

application of this interpretation had no impact on the consolidated financial statements of the Corporation,
however, it could affect the accounting for future transactions or agreements.

F-157
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

New accounting pronouncements

application is not yet mandatory:

The following new IFRS, amendments and interpretations had been issued by the lASB, but their

New IFRS

Date of mandatory application

Summary

IFRS 16 — Leases

Annual periods beginning on or after
January 1, 2019

Requires lessees to recognize
assets and liabilities for all rights
and obligations originated by
leases unless the lease term is 12
months or less or the underlying
asset has a low value, where such
expedients have been adopted by
an entity. Additional disclosure
requirements are also included.
Additionally, the Standard
establishes new requirements of
information to disclose related to
the risk exposure on the part of
lessors.

IFRS 17, Insurance Contracts

Annual periods beginning on or after
January 1, 2021

Establishes the principles for the
recognition, measurement,
presentation and disclosure of
insurance contracts, reinsurance
contracts and investment contracts
with discretional participating
features and supersedes IFRS 4
Insurance contracts.

Amendments to IFRS

Date of mandatory application

Summary

Amendment to IFRS 10 and
IAS 28: Sale or Contribution of
Assets

Date to be determined by IASB.

F-158

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Features of prepayment with
negative compensation
(amendments to IFRS 9)

Annual periods beginning on or after
January 1, 2019.

It adds paragraphs on the
designation of financial assets and
liabilities, restatement of previous
periods and disclosures for
instruments repayable in advance
and provides additional clarity as to
the accounting effects should
prepayment features result in
negative compensation to the
creditor.

Long-term investments in
Associates and Joint Ventures
(amendments to IAS 28)

Annual periods beginning on or after
January 1, 2019.

It includes, within the scope of
IFRS 9, other financial instruments
in an associate or joint venture to
which the equity method does not
apply, including long-term
investments.

Annual improvements for the
2015-2017 cycle
(amendments to IFRS 3, IFRS
11, lAS 12 and lAS 23)

Annual periods beginning on or after
January 1, 2019.

Amendments to IFRS 3 and IFRS
11: Adds paragraphs on treatment
for acquisitions in previously held
shares in a joint operation.
Amendments to lAS 12: Adds
paragraphs on treatment of taxes
related to dividends payable.
Amendments to lAS 23: Modifies
wording on application of weighted
average rate.

Plan Amendment, Curtailment
or Settlement (Amendments to
lAS 19)

Annual periods beginning on or after
January 1, 2019.

It requires the use of actuarial
assumptions to determine the cost
of service of the current period and
the net interest for the remainder of
the reporting period prior to
determining the effect of the
application of “asset ceiling” after
the amendment, curtailment or
settlement of the plan when the
entity remeasures its liability
(asset) for defined benefits.

F-159

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Definition of a Business
(Amendments to IFRS 3)

Annual reporting period beginning on
or after 1 January 2020

Definition of Material
(Amendments to lAS 1 and IAS
8)

Annual reporting periods beginning
on or after 1 January 2020

Clarifies the definition of ‘material’
and aligns the definition used in the
Conceptual Framework and the
standards.

Modifications Conceptual
Framework for the Report
Revised Financial

Annual periods initiated on or after
the 1st of January 2020

New Interpretations Date of mandatory application Summary
IFRIC. 23: Uncertainty over | Annual periods beginning on or after | It establishes how to determine a
Income Tax Treatments January 1, 2019 tax position when there is

uncertainty about the treatment for
the income tax.

The Administration does not expect significant impacts with respect to standards, amendments and

interpretations indicated above.

With respect to IFRS 16, Management has evaluated the impact of its implementation on Codelco’s
Consolidated Financial Statements and has determined that the effects on the amounts of these financial
statements will not be significant. The changes in the disclosures will be presented in accordance, both in
term and in form, as established by IFRS 16.

F-160

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

lll. EXPLANATORY NOTES
1. Cash and cash equivalents

The detail of cash and cash equivalents as of December 31, 2018 and 2017, is as follows:

ltem 12/31/2018 | 12/31/2017
ThUS$ ThUS$
Cash on hand 25,033 3,300
Bank balances 59,030 124,275
Time deposits 1,131,049 1,306,476
Mutual Funds – Money Market 1,698 651
Repurchase agreements 12,315 14,133
Total cash and cash equivalents 1,229,125 1,448,835

Interest on time deposits is recognized on an accrual basis using the contractual interest rate of each of
these instruments.

The Corporation does not hold any significant amounts of cash and cash equivalents that have a restriction
on use.

2. Trade and other receivables
a) Accruals for open sales invoices
As mentioned in the Summary of Significant Accounting Policies Section, the Corporation adjusts its
revenues and trade receivable balances, based on future copper prices through the recognition of an

accrual for open sales invoices.

When future price of copper is lower than the provisional invoicing price, the accrual is presented in the
statement of financial position as follows:

– For those customers that have due balances with the Corporation the accrual is presented as a
deduction from the line item trade and other current receivables.

– For those customers that do not have due balances with the Corporation the accrual is presented
in the line item trade and other current payables.

When the future copper price is higher than the provisional invoicing price, the accrual is added to the
line item trade and other current receivables.

As of December 31, 2018 and 2017, due balances included a negative ThUS$96,396 and positive
ThUS$244,265, respectively for provisional pricing.

As of December 31, 2018, ThUS$5,025 for the provision for open invoices related to customers with
no outstanding amounts to Codelco, is presented in Trade accounts payable. This balance plus the

F-161
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

balance presented in trade and other receivables, totaling cumulative provisional pricing effect of
MUS$101,421.

Trade and other receivables

The following table sets forth trade and other receivables balances, with their corresponding
allowances for doubtful accounts:

Current Non-Current
Items 12/31/2018 12/31/2017 12/31/2018 12/31/2017
ThUus$ ThUS$ ThUS$ ThUuS$

Trade receivables (1) 1,542,420 2,178,788 820 1,887
Allowance for doubtful accounts (3) (37,811) (28,684) – –
Subtotal trade receivables, net 1,504,609 2,150,104 820 1,887
Other receivables (2) 712,446 674,425 83,911 89,555
Allowance for doubtful accounts (3) (4,846) (9,177) – –
Subtotal other receivables, net 707,600 665,248 83,911 89,555
Total 2,212,209 2,815,352 84,731 91,442

(1) Trade receivables correspond to the sales of copper and its by-products, those that in general
are sold in cash or through banks.

(2) Other receivables mainly consist of the following items:

+ Reimbursement receivables from insurance companies.

+ Settlements from the Chilean Central Bank under Law 13196.

+ Advance payments to suppliers and contractors.

+ Accounts receivable for tolling services (Ventanas Smelter).

+ VAT creditand other refundable taxes of ThUS$201,274 and ThUS$147,589 as of December
31, 2018 and December 31, 2017, respectively.

(3) The Corporation recognizes an allowance for doubtful accounts based on its expected credit
loss model.

F-162
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The reconciliation of changes in the allowance for doubtful accounts in the year ended December 31,
2018 and 2017, ¡is as follows:

ltems 12/31/2018 12/31/2017
Thus$ THus$

Opening balance 37.861 9.035
Initial adjustment NIIF 9 2.239 –
Initial balance adjusted 40.100 9.035
Net Increases 7.215 29.160
Write-offs/applications (4.658) (334)
Total movements 2.557 28.826
Closing balance 42.657 37.861

As of December 31, 2018 and 2017, the balance of past due but not impaired trade receivables, is as

follows:
o 12/31/2018 12/31/2017
Maturity
ThUS$ ThUS$

Less than 90 days 3,473 15,145
Between 90 days and 1 year 4,789 1,615
More than 1 year 10,266 10,389
Total trade receivables past-due but not impaired 18,528 27,149

3. Balance and transactions with related parties
a) Transactions with related persons

In accordance with the Law on New Corporate Governance and lAS 24, the members of Codelco’s
Board are, in terms of transactions with related persons, subject to the provisions of Title XVI of Law
on Corporations, which sets the requirements regarding transactions with related parties in publicly
traded companies and their subsidiaries.

F-163
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The Board of Directors has been informed and approved certain transactions as defined in CCP No.

18. The most significant transactions with related persons and the amounts involved are detailed in the
following table:

F-164
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1/1/2018 1/1/2017
Entity Taxpayer Country] — Nature of the relationship Description of the 12/31/2018 12/31/2017
number transaction Amount Amount
ES ThUS$
Administración de Sistemas y Servicios Herman . ,
76.349.138-2 Chile [Employee’s relative Services 200 –
‘Yerko Valenzuela Rojas E.LR.L
Anglo American Sur S.A. 77.762.940-9 Chile [Associate Supplies 55 3
Arcadis Chile S.A. 89.371.200-3 Chile [Employee’s relative Services 3,511 –
Arriendo de Maquinaria Marcelo Enrique Balocchi Vivg 76.300.049-4 Chile [Employee’s relative Services – 95
Asociación Chilena de Seguridad 70.360.100-6 Chile [Member of Board of directors Services 852 –
B.Bosch S.A. 84.716.400-K Chile [Employee’s relative Supplies – 60
Centro de Capacitación y Recreación Radomiro Tomi 75.985.550-7 Chile [Other related Services 847 177
Codelco Tec SpA 96.991.180-9 Chile [Subsidiary Services 10,000 –
Consultor Jannet Troncoso Carvajal E.I.R.L. 76.174.237-K Chile [Employee’s relative Supplies – 74
Distribuidora Cummins Chile S.A. 96.843.140-4 Chile [Employee’s relative Supplies – 302
Ecometales Limited agencia en Chile. 59.087.530-9 Chile |Subsidiary Services 20,040 462
Exploraciones Mineras Andinas S.A. 99.569.520-0 Chile [Subsidiary Services 358,130 –
Fundación de Salud El Teniente. 70.905.700-6 Chile [Subsidiary Services – 13
Fundación Orquesta Sinfónica Infantil de los Andes. 65.018.784-9 Chile |Founder member donor Services 297 247
Fundación Sewell 65.493.830-K Chile [Founder member donor Services – 421
Geotermica del Norte S.A. 96.971.330-6 Chile |Employee’s relative Services – 3,912
Glasstech S.A. 87.949.500-8 Chile [Employee’s relative Supplies 3 –
Industrial Support Company Ltda 77.276.280-1 Chile |Employee’s relative Services – 218
Industrial y Comercial Artimatemb Ltda. 76.108.720-7 Chile [Employee’s relative Services 28 40
Inoxa S.A. 99.513.620-1 Chile |Employee’s relative Services 468 14
Institución de Salud Previsional Chuquicamata Ltda. 79.566.720-2 Chile |Subsidiary Services 22 15,571
Institución de Salud Previsional Río Blanco Ltda. 89.441.300-K Chile [Subsidiary Services 47,028 –
Isapre Fusat Ltda, 76.334.370-7 Chile [Subsidiary Services – 126,800
Kaefer Buildteck SpA 76.105.206-3 Chile |Employee’s relative Services – 97
Kairos Mining S.A. 76.781.030-K Chile [Other related Services 13,700 –
Komatsu Chile S.A. 96.843.130-7 Chile |Employee’s relative Services and Supplies 138,962 208,437
Linde Gas Chile S.A. 90.100.000-K: Chile |Employee’s relative Supplies 91 –
Nueva Ancor Tecmin S.A. 76.411.929-0 Chile |Employee’s relative Supplies – 83
San Lorenzo Isapre Limitada 76.521.250-2 Chile [Subsidiary Services 25,945 –
Servicios de Ingeniería IMA S.A. 76.523.610-K Chile |Employee’s relative Services 125 –
Sociedad Contractual Minera El Abra. 96.701.340-4 Chile [Associate Supplies – 134
Sociedad de Procesamiento de Moblibdeno Ltda, 76.148.338-2 Chile [Subsidiary purchase of products – 1
Sodimac S.A. 96.792.430-K Chile |Employee’s relative Supplies – 2,132
Sonda S.A. 83.628.100-4 Chile |Employee’s relative Services – 1,446
Sourcing SpA 76.355.804-5 | Chile [Employee’s relative Services – 1,259
Teléfonica Chile S.A. 90.635.000-9 Chile [Employee’s relative Services – 99
Transelec Norte S.A. 99.521.950-6 Chile [Member of Board of directors Services 4,411 –
Ziiblin International GmbH Chile SpA 77.555.640-4 Chile [Employee’s relative Services – 117,637

b) Key Management of the Corporation

In accordance with the policy established by the Board of Directors and its related regulations, the
transactions with the Directors, its Chief Executive Officer, Vice Presidents, Corporate Auditor, the
members of the Divisional Management Committees and Divisional General Managers shall be

approved by the Board of Directors.

During the years ended December 31, 2018 and 2017, the members of the Board of Directors have

received the following amounts as per diems, salaries and fees:

F-165

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

1/1/2018 | 1/1/2017
Name Taxpayer number] Country Nature of the Description of the | 12/31/2018 | 12/31/2017

relationship transaction Amount | Amount

ThUuS$ | ThUuS$
Blas Tomic Errázuriz 5.390.891-8 Chile [Director Directors’s fees 122 118
Dante Contreras Guajardo 9.976.475-9 Chile [Director Directors’s fees 34 95
Gerardo Jofré Miranda 5.672.444-3 Chile [Director Directors’s fees – 38
Ghassan Dayoub Pseli 14.695.762-5 Chile [Director Directors’s fees 97 71
Ghassan Dayoub Pseli 14.695.762-5 Chile Director Payroll 107 72
Hernán de Solminihac Tampier 6.263.304-2 Chile [Director Directors’s fees 63 –
lgnacio Briones Rojas 12.232.813-9 Chile [Director Directors’s fees 63 –
Isidoro Palma Penco 4.754.025-9 Chile [Director Directors’s fees 97 95
Juan Benavides Feliú 5.633.221-9 Chile ¡Chairman ofthe Board Directors’s fees 95 –
Juan Morales Jaramillo 5.078.923-3 Chile [Director Directors’s fees 97 95
Laura Albornoz Pollmann 10.338.467-2 Chile [Director Directors’s fees 34 95
Oscar Landerretche Moreno 8.366.611-0 Chile ¡Chairman ofthe Board Directors’s fees 51 142
Paul Schiodiz Obilinovich 7.170.719-9 Chile [Director Directors’s fees 97 64
Raimundo Espinoza Concha 6.512.182-4 Chile [Director Directors’s fees 97 95
Raimundo Espinoza Concha 6.512.182-4 Chile Director Payroll 64 53

The Ministry of Finance through Supreme Decree No. 100, dated February 5, 2018, established the
compensation for the Corporation’s Directors. The compensation to Board of Director members, is as

follows:

a. The Directors of Codelco will receive a fixed monthly compensation of Ch$3,931,757 (three million
nine hundred and thirty one thousand, seven hundred and fifty seven Chilean pesos) for meeting
attendance. The payment of the monthly compensation is dependent on meetings attended.

b. The Chairman of the Board will receive a fixed monthly compensation of Ch$7,863,513 (seven

million eight hundred and sixty three thousand, five hundred and thirteen Chilean pesos).

c. Each member of the Directors* Committee, whether the one referred to in Article 50 bis) of Law
No. 18046 or another established by the Corporation by-laws, will receive a fixed additional
monthly compensation of Ch$1,310,584 for meeting attendance, regardless of the number of
committees of which they are members. In addition, the Chairman of the Directors’ Committee will

receive a fixed monthly compensation of Ch$2,621,171 for meeting attendance.

d. The compensation established in DS No. 36 is effective for a period of two years, as from March
1, 2018, and will be updated on January 1, 2019, in accordance with the same provisions that

govern the general salary adjustments of officials of the public sector.

On the other hand, the short-term benefits of key management of the Corporation paid during the
periods ended December 31, 2018 and 2017, were ThUS$12,382 and ThUS$10,899,

respectively.

F-166

CORPORACION NACIONAL DEL COBRE DE CHILE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The methodology to determine the remuneration of key management was approved by the Board
of Directors at a meeting held on January 29, 2003.

During the ended December 31, 2018 and 2017, severance indemnities were paid to key
management of the Corporation for ThUS$1,084 and ThUS$471, respectively.

There were no payments to key management for other non-current benefits during the periods
ended December 31, 2018 and 2017.

There are no share based payment plans granted to Directors or key management personnel of
the Corporation.

Transactions with companies in which Codelco has ownership interest
The Corporation undertakes commercial and financial transactions that are necessary for ¡ts activities
with its subsidiaries, associates and joint ventures (“related parties”). The financial transactions
correspond mainly to loans granted (mercantile current accounts).
Commercial transactions with related companies mainly consist of purchases/sales of products or
rendering of services carried out under market conditions and prices, which do not bear any interest or
indexation.
As of the date of these financial statements, the Corporation has not recognized any allowance for
doubtful accounts with respect to receivable balances from ¡ts related companies.
The detail of accounts receivable and payable between the Corporation and its related parties as of
December 31, 2018 and 2017, is as follows:
Accounts receivable from related companies:
7 Nat Fin Indexati Current Non-current
ee Name Country ao ve non 12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017
number relationship currency
ThUS$ LES ThUS$ LES
177.762.940-9 ‘Anglo American Sur S.A. Chile Associate US$ 88,497 63,596 –
76.063.022-5 Inca de Oro S.A. Chile Associate US$ 380 199 – –
76.255.054-7 Planta Recuperadora de Metales SpA Chile Associate US$ 3,099 – 20,306 25,581
196.701.340-4 Sociedad Contractual Minera El Abra Chile Associate US$ 383 549 – –
196.801.450-1 ¡Agua de la Falda S.A Chile Associate US$ 6 224 249
Totals 92,365 64,344 20,530 25,830

F-167

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Accounts payable to related companies:

. Current Non-current
Taxpayer Nature of the Indexation
Name Country a Si 12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017
number relationship currency
THUS$ ThUSs$ THUS$ THUS$

77.762.940-9 ‘Anglo American Sur S.A. Chile Associate US$ 125,913 92,315
196.701.340-4 Sociedad Contractual Minera El Abra Chile Associate US$ 22,940 25,370
Foreign Deutsche Geissdraht GmbH Germany Associate EURO 6,106
76.255.054-7 Planta Recuperadora de Metales SpA Chile Associate US$ 2,063 –
Totals 150,916 123,791

The following table sets forth the transactions carried out between the Corporation and its related
companies and their corresponding effects in profit or loss for the years ended December 31, 2018 and

2017:
1/1/2018 1/1/2017
12/31/2018 12/31/2017
Effects on net Effects on net
Taxpayer a a Index. . .
number Entity Nature of the transaction | Country Currency income (charges) / income (charges) I
Amount credits Amount credits
ES THus$ Thus$ ES

96.801.450-1 | Agua de la Falda S.A. Sales of services Chile CLP 4 4 5 5
96.801.450-1 | Agua de la Falda S.A. Capital contribution Chile CLP 338 –
77.762.940-9 [Anglo American Sur S.A. Dividends received Chile US$ 182,903 187,346
77.762.940-9 [Anglo American Sur S.A. Dividends receivable Chile US$ 84,372 – 59,003 –
77.762.940-9 [Anglo American Sur S.A. Sales of goods Chile US$ 58,411 58,411 76,065 76,065
77.762.940-9 [Anglo American Sur S.A. Sales of services Chile CLP 8,162 8,162 6,598 6,598
77.762.940-9 [Anglo American Sur S.A. Purchase of products Chile US$ 711,384 (711,384)| 714,340 (714,340)
77.762.940-9 [Anglo American Sur S.A. Capital contribution Chile US$ – – – –

Foreign | Deutsche Geissdraht GmbH Dividends received Germany EURO 946 – 1,119
76.063.022-5 [Inca de Oro S.A. Sales of services Chile CLP 214 22 169 –
76.255.054-7 |Planta Recuperadora de Metales SpA Interest loans Chile US$ 1,029 1,029 1,029 1,029
76.255.054-7 |Planta Recuperadora de Metales SpA Services Chile US$ 23,443 (23,443) 26,065 (26,065)
76.255.054-7 |Planta Recuperadora de Metales SpA Sales of goods Chile US$ 940 940 – –
96.701.340-4 [Soc. Contractual Minera El Abra Dividends received Chile US$ 4,900 – 39,200 –
96.701.340-4 |Soc. Contractual Minera El Abra Purchase of products Chile US$ 293,173 (293,173)| 245,954 (245,954)
96.701.340-4 |Soc. Contractual Minera El Abra Sales of goods Chile US$ 24,796 24,79 9,516 9,516
96.701.340-4 [Soc. Contractual Minera El Abra Other sales Chile US$ 1,493 1,493 1,493 1,493
96.701.340-4 [Soc. Contractual Minera El Abra Perceived commissions — [Chile US$ 113 113 9% 9%
96.701.340-4 |Soc. Contractual Minera El Abra Other purchases Chile US$ 992 (992)
76.028.880-2 |Sociedad Contractual Minera Puren Dividends received Chile US$ 178 –

Additional information

The current account receivable from Planta Recuperadora de Metales SpA. corresponds to the loan
agreement granted to build its plant, which was signed on July 7, 2014.

F-168

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

SpA (whose non-controlling shareholder is Mitsui) and Anglo American Sur S,A,, under which the latter
agreed to sell a portion of its annual copper output to said subsidiary.

Inventories

The detail of inventories as of December 31, 2018 and 2017, is as follows:

Current Non-current
Items 12/31/2018 12/31/2017 12/31/2018 12/31/2017
ThUS$ ThUS$ ThUuS$ ThUuS$

Finished products 446,344 348,083 –

Subtotal finished products, net 446,344! 348,083 – –
Products in process 1,137,605 1,105,590 457,070 428,447
Subtotal products in process, net 1,137,605| 1,105,590 457,070 428,447
Material in warehouse and other 555,504 470,108 – –
Obsolescence allowance adjustment (96,805) (94,083)

Subtotal material in warehouse and other, net 458,699 376,025 – –
Total Inventories 2,042,648 1,829,698 457,070 428,447

The amount of inventories of finished goods transferred to cost of sales for the years ended December 31,
2018 and 2017 were ThUS$11,145,242 and ThUS$10,341,613, respectively.

For the years ended December, 2018 and 2017, the Corporation has nat reclassified strategic inventories
to Property, Plant and Equipment.

The reconciliation of changes in the allowance for obsolescence ¡s detailed below:

: 12/31/2018 12/31/2017
Changes in Allowance for Obsolescence ThUS$ ThUs$
Opening Balance (94,083) (90,930)
Period provision (2,722) (3,153)
Closing Balance (96,805) (94,083)

For the years ended December 31, 2018 and 2017, the Corporation recognized write-offs of damaged
inventories for ThUS$4,004 and ThUS$4,126 respectively.

The provision for the net realizable value of inventories was ThUS$31,889 for the year ended December
31, 2018 (ThUS$3,000 at December 31, 2017).

During the years ended December 31, 2018 and 2017, decreases in the provision for net realizable value
were ThUS$28,890 and ThUS$3,744, respectively.

As of December 31, 2018 and 2017, there are no unrealized gains or losses recognized on the
intercompany sales of inventories of finished products.

As of December 31, 2018 and 2017, there are no inventories pledged as security for liabilities.

F-169
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

5. Income taxes and deferred taxes

a) Composition of income tax expense

1/1/2018 1/1/2017
Items 12/31/2018 | 12/31/2017

ThUus$ ThUS$
Currentincome tax (92,270) (72,897)
Effect of Deferred Taxes (249,217) (1,126,918)
Adjustments to current tax from the prior period (19,956) –
Other 4,160 6,748
Total tax expense (357,283) (1,193,067)

b) Deferred tax assets and liabilities:

The following table details deferred tax assets and liabilities:

Deferred tax assets 12/31/2018 12/31/2017
ThUus$ Thus$
Provisions 1,429,060 1,264,736
Financial leasing 13,162 24,983
Customers advance 250,255 1,013,438
Other 4,603 23,690
Total deferred tax assets 1,697,080 2,326,847
ar 12/31/2018 12/31/2017
Deferred tax liabilities Thus$ ThUs$
Tax on mining activity 163,280 183,571
Property, plant and equipment variations 889,841 1,058,609
Post-employment benefit obligations 10,346 21,532
Accelerated depreciation for tax purposes 5,017,532 5,168,062
Fair value of mining properties acquired 108,518 108,518
Hedging derivatives — future contracts 12,282 5,635
Undistributed profits of subsidiaries 50,006 45,177
Other – 6,695
Total deferred tax liabilities 6,251,805 6,597,799
The following tables sets forth the deferred taxes as presented in the statement of financial position:
Deferred taxes 12/31/2018 12/31/2017
ThUus$ ThUus$
Non-current assets 31,443 43,285
Non-current liabilities 4,586,168 4,314,237
Net 4,554,725| 4,270,952|

F-170
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

The effects of deferred taxes on the components of other comprehensive income are as follows:

12/31/2018 | 12/31/2017

Deferred taxes on components of other comprehensive income ThUS$ ThUS$

(Charge) credit cash fiow hedge (67,704) 1,868
Defined Benefit Plans 33,148 (16,937)
Total deferred taxes on components of other comprehensive income (loss) (34,556) (15,069)

The following table sets forth the reconciliation of the effective tax rate:

12/31/2018
Reconciliation of tax rate Taxable Base At the Tax rate

25,0% 40,0% 5% 25,0% 40,0% 5% Total

ThUS$ ThuSs$ THuS$ ThUS$ ThuSs$ ThuSs$ ThUuS$
Tax effect on the income (loss) before taxes 498,216 498.216 498.216 (124.554) (199.286) (24.911) (348.751)
Tax effect on the income (loss) before taxes of subsidiaries 48.814 48.814 48.814 (12.204) (19.526) (2.441) (34.171)
Tax effect consolidated profit (loss) before taxes 547.030 547.030 547.030 (136.758) (218.812) (27.352) (382.922)
Permanent differences:
First category income tax (25% ) (96.902) 24.226 24.226
Specific tax for state-owned entities Art. 2 D.L. 2398 (40% ) (114.392) 45.757 45.757
Specific tax on mining activities 868.189 (43.409) (43.409)
Single Tax Art 21 Inc. N*1 (3.856)
Others 2.921
TOTAL TAX EXPENSE (112.532) — (173.055) (70.761) (357.283)

12/31/2017
Reconciliation of tax rate Taxable Base Atthe Tax rate

25,0% 40,0% 5% 25,0% 40,0% 5% Total

ThUS$ ThuSs$ THuS$ ThUS$ ThuSs$ ThuSs$ ThUuS$
Tax effect on the income (loss) before taxes 1.786.885 1.786.885 1.786.885 (446.721) (714.754) (89.344) (1.250.819)
Tax effect on the income (loss) before taxes of subsidiaries 29.784 29.784 29.784 (7.446) (11.914) (1.489) (20.849)
Tax effect consolidated profit (loss) before taxes 1.816.669 1.816.669 1.816.669 (454,167) (726.668) (90.833) (1.271.568)
Permanent differences:
First category income tax (25% ) (228.408) 57.102 57.102
Specific tax for state-owned entities Art. 2 D.L. 2398 (40% ) (113.268) 45.307 45.307
Specific tax on mining activities 400.028 (20.001) (20.001)
Tax effect of non-usable tax loss (3.807)
TOTAL TAX EXPENSE (897.065) — (681.361) (110.834) (1.193.067)

Pursuant to Article 2 of the Decree Law 2398, Codelco is subject to an additional tax rate of 40% on
income before taxes and dividends received in accordance with the law.

Tax Reform in Chile

On September 29, 2014, Law No. 20780 entitled “Tax Reform which modifies the Income Tax System,
and which introduces various adjustments on the Tax System”, was enacted.

F-171

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

In relation to the specific tax on mining activities the tax rate applicable is a 5% under Law No. 20469.
The Corporation, as a Taxpayer of first category, is liable to the single Tax of 40%, contained in the
first paragraph of Article 21 of the Income Tax Law No. 824, in numbers i), li) and iii) , the disbursements
incurred in said numerals.

6. Current and non-current tax assets and liabilities

12/31/2018 | 12/31/2017

Current Tax Assets ThUSS ThUS$
Taxes to be recovered 13,645 21,623
Total Current Tax Assets 13,645 21,623

12/31/2018 | 12/31/2017

Current Tax Liabilities ThUs$ ThUS$

Provision Specific tax on mining activities – 46,710
PPM Provision 6,910 4,418
Provision Tax 3,867 7,562
Total Current Tax Liabilities 10,777 58,690
ltems 12/31/2018 | 12/31/2017
ThUS$ ThUuS$

Non-Current Tax Assets 143,606 233,772
Total Non-Current Tax Assets 143,606 233,772

F-172
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Non-current assets or groups of assets for disposition classified as held for sale

As of December 31, 2017, the balance of Non-current assets or groups of assets for disposal, classified as
held for sale, of the consolidated current assets, corresponds in its entirety to the shareholding held by the
Corporation at that date of the company Deutsche Giessdraht GmbH. The affiliate Codelco Kupferhandel
GmbH, has a 40% interest in the capital of the company Deutsche Giessdraht GmbH.

On July 31, 2018, the sale of the shares related to the ownership interest held by CK in Deutsche
Giessdraht GmbH was completed. The acquirer entity was Aurubis AG, which was, the major shareholder
of DG before the sale transaction. The gain after taxes for this transaction was Th€ 15,214 (ThUS$
18,172) and is included in the item Other income.

As of December 31, 2018, there are no balances of non-current assets or disposal groups classified as
held for sale.

Property, Plant and Equipment

a) The items of property, plant and equipment as of December 31, 2018 and 2017, are as follows:

Property, Plant and Equipment, gross 12/31/2018 12/31/2017

ThUS$ ThUS$
Construction in progress 8,808,652 7,004,522
Land 173,926 175,039
Buildings 5,403,295 5,375,235
Plant and equipment 15,894,046 15,150,823
Fixtures and fitings 58,807 58,839
Motor vehicles 2,062,920 2,018,740
Land improvements 5,619,800 5,296,402
Mining operations 7,214,915 6,785,364
Mine development 4,117,362 4,183,572
Other assets 1,380,354 1,346,712
Total Property, Plant and Equipment, gross 50,734,077 47,395,248

Property, Plant and Equipment, accumulated depreciation 12/31/2018 12/31/2017

ThUS$ ThUS$
Construction in progress – –
Land 8,964 7,953
Buildings 3,048,902 2,884,706
Plantand equipment 10,125,253 9,490,638
Fixtures and fitings 43,878 40,997
Motor vehicles 1,378,911 1,275,198
Land improvements 3,267,244 3,048,921
Mining operations 4,718,591 4,178,325
Mine development 804,318 688,342
Other assets 573,018 504,656
Total Property, Plant and Equipment, accumulated depreciation 23,969,079 22,119,736

F-173
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

: 12/31/2018 12/31/2017

Property, Plant and Equipment, net ThUS$ ThUS$

Construction in progress 8,808,652 7,004,522
Land 164,962 167,086
Buildings 2,354,393 2,490,529
Plant and equipment 5,768,793 5,660,185
Fixtures and fitings 14,929 17,842
Motor vehicles 684,009 743,542
Land improvements 2,352,556 2,247,481
Mining operations 2,486,324 2,607,039
Mine development 3,313,044 3,495,230
Other assets 807,336 842,056
Total Property, Plant and Equipment, net 26,754,998 25,275,512

F-174
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(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Borrowing costs capitalized for the years ended December 31, 2018 and 2017 were ThUS$311,399
and ThUS$217,031, respectively. The annual capitalization average rate for the years ended
December 31, 2018 and 2017 was 4.42% and 4.04%, respectively.

Expenses on exploration and drilling of deposits recognized in profit or loss and the cash outflows
disbursed for the same concepts are presented in the following table:

1/1/2018 1/11/2017
Expenditure on exploration and drilling reservoirs 12/31/2018 | 12/31/2017
ThUS$ ThUS$
Recognized in profit /(loss) 50,765 46,068
Cash outfows disbursed 62,857 76,010

The detail of “Other assets” under “Property, plant and equipment” is as follows:

Other assets, net 12/31/2018 | 12/31/2017
‘ ThUus$ ThUS$
Leased assets 93,334 91,628
Mining properties from the purchase of Anglo American Sur S.A. shares 402,000 402,000
Maintenances and other major repairs 235,091 254,253
Other assets — Calama Plan 72,225 90,281
Other 4,686 3,894
Total other assets, net 807,336 842,056

Subsequently, US$66.4 million (US$23 million after taxes) from the assets mentioned above were
written off as of June 30, 2018.

The Corporation currently has no ownership restrictions relating to assets belonging to Property,
plant and equipment, except for leased assets whose legal title corresponds to the lessor.

F-176
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

According to the policy indicated in note 2 ¡), referring to property, plant and equipment and intangible
assets, and as indicated in note 23, for the year ended December 31, 2018, the Corporation
recorded an impairment in the value of the Ventanas assets for an amount of ThUS $ 198,898 before
taxes. At 31 December 2017, the property, plant and equipment assets showed no indicators of
impairment or reversals of impairments recognized in previous years, so that no adjustments were
made to the value of the assets at that date. (see note 23).

Investments accounted for using the equity method

The following table sets forth the carrying amount and the share of profit (loss) of the investments accounted
for using the equity method:

Equity Interest Carrying Value Net income (loss)
Associates Taxpayer Funct. Cuurenc. 11112018 41112017
Numbers 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017
% % Thus$ Thus$ Thus$ Thus$
[Agua de la Falda S.A. 96.801.450-1 US$ 42.26% 42.26% 4,953 4,943 (329)| (422)
¡Anglo American Sur S.A. 77.762.940-9 US$ 29.5% 29.5% 2,835,412 2,945,084 99,709 163,775
Deutsche Geissdraht GmbH Foreign EURO 40.0% 40.0% – – 1,159 1,375
Inca de Oro S.A. 73.063.022-5 US$ 33.19% 33.19% 12,913 12,942 (42) (104)|
Minera Purén SCM 76.028.880-2 US$ 35.0% 35.0% 9,902 9,897 8 (16)
Planta Recuperadora de Metales SpA 76.255.054-7 US$ 34.0% 34.0% 10,365 10,916 55 (74)
¡Sociedad Contractual Minera El Abra 96.701.340-4 US$ 49.0% 49.0% 610,339 605,769 10,181 15,343
¡Sociedad GNL Mejillones S.A. 76.775.710-7 US$ 37.0% 37.0% 84,409 76,050 8,373 5,551
[TOTAL 3,568,293 3,665,601 119,114 185,428
a) Associates
Agua de la Falda S.A.

As of December 31, 2018, Codelco holds a 42.26% ownership interest in Agua de la Falda S.A., with
the remaining 57.74% owned by Minera Meridian Limitada.

The corporate purpose of this company is to exploit deposits of gold and other minerals, in the third
region of Chile.

Sociedad Contractual Minera El Abra
Sociedad Contractual Minera El Abra was incorporated in 1994. As of December 31, 2018, Codelco
holds a 49% ownership interest, with the remaining 51% owned by Cyprus El Abra Corporation, a

subsidiary of Freeport-McMoRan Copper 8 Gold Inc.

The company business activities involve the extraction, production and selling copper cathodes.

F-177

Sociedad Contractual Minera Purén

As of December 31, 2018, Codelco holds a 35% ownership interest, with the remaining 65% owned by
Compañía Minera Mantos de Oro.

This company’s corporate purpose is to explore, identify, survey, investigate, develop and exploit
mining deposits in order to extract, produce and process minerals.

Sociedad GNL Mejillones S.A.

The corporate purpose of this company is the production, storage, marketing, transportation and
distribution of all types of fuel, and the acquisition, construction, maintenance and operation of
infrastructure facilities and construction projects necessary for transport, reception, processing and
storage both in Chile and abroad, by itself or in partnership with third parties.

Inca de Oro S.A.

Prior to the association, Codelco owned 100% of the company. This transaction resulted in a gain after
taxes of ThUS$33,668 recognized in the year ended December 31, 2011.

At the Extraordinary meeting of the shareholders held on December 30, 2014, a capital increase of
ThUS$102,010 was agreed upon, reducing Codelco’s ownership interest to 33.19%.

As of December 31, 2015, the Corporation reduced the carrying amounts of mining property and
exploration and evaluation expenditures as a result of an impairment loss recognized.

As of December 31, 2018, Codelco holds a 33.19% ownership interest in this company.

F-178
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Planta Recuperadora de Metales SpA

On December 3, 2012, Planta Recuperadora Metales SpA was incorporated by Codelco, which held a
100% ownership interest of this company.

On July 7, 2014, Codelco reduced its ownership interest in Planta Recuperadora de Metales SpA to
51%, with the remaining 49% ownership interest held by LS-Nikko Copper Inc.

On October 14, 2015, Codelco reduced its ownership interest to 34% interest, with LS-Nikko Copper
Inc, holding the remaining 66%.

As of December 31, 2018, LS-Nikko Copper Inc, is the controlling shareholder of this company based
on the control elements set out in the shareholders’ agreement.

Deutsche Giessdraht GmbH

As of December 31, 2017, the balance of this investment is classified under Non-current assets or
groups of assets for disposition classified as held for sale Note 7, of the consolidated current assets,
and corresponds in its entirety to the participation held by the Corporation at that date through its
affiliate Codelco Kupferhandel GmbH, having a 40% interest in the capital of the company Deutsche
Giessdraht GmbH.

On July 31, 2018 the share sale agreement was finalized representative of the shareholding held by
CK in Deutsche Giessdraht GmbH. The acquiring company of the shares was the Aurubis Company
AG, which was, until before the sale transaction, the majority shareholder of DG.

The result after taxes of this transaction was a net income Th€ 15,214 (ThUS $ 18,172).
Anglo American Sur S.A.

As December 31, 2018, the controlling shareholder of Anglo American Sur S.A. is Inversiones Anglo
American Sur S.A. holding a 50.06% ownership interest, while the non-controlling interest is held by
Inversiones Mineras Becrux SpA., which in turn is a subsidiary controlled by Codelco with a 67.8%
ownership interest. Consequently, Codelco exercises significant influence in Anglo American Sur S.A.
through its indirect ownership interest of 29.5%.

F-179
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Company, which would be dissolved without the need for its liquidation. In addition the Absorbing
Company ¡is responsible for the payment of all taxes owed or which may be owed by the Absorbed
Company.

The following tables provide details of asset and liabilities of the associates as of December 31, 2018
and 2017, and their profit (loss) for the years ended December 31, 2018 and 2017:

Assets and Liabilities 12/31/2018 12/31/2017
TRUS$ TRUS$
Current Assets 1,805,003 1,595,687
Non-current Assets 5,637,321 5,925,176
Current Liabilities 1,008,086 766,986
Non-current Liabilities 1,699,529 1,724,512
1/1/2018 1/1/2017
Net Income 12/31/2018 12/31/2017
TRUS$ TRUS$
Revenue 3,256,402 2,766,212
Cost of sales (2,665,805) (2,359,555)
Profit for the period 590,597 406,657
Movements of Investment in Associates 1/1/2018 1/1/2017
12/31/2018 12/31/2017
TRUS$ TRUS$
Opening balances 3,665,601 3,753,974
Capital contribution 338
Dividends (213,172) (273,560)
Result of the period 119,114 118,151
Foreign exchange differences – (59)
Reverse/ Impairment Anglo American Sur S.A. – 67,277
Other comprehensive income (710) (4,236)
Other (2,878) 4,591
Final balance 3,568,293 3,665,601

F-180
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The following tables provide details of asset and liabilities of the principal associates as of December 31,
2018 and 2017, and their profit (loss) for the periods ended December 31, 2018 and 2017:

Anglo American Sur S.A.
Assets and liabilities 12/31/2018 12/31/2017
ThUS$ ThUS$
Current Assets 1,164,724 1,055,740
Non-current Assets 4,104,271 4,265,685
Current Liabilities 890,874 635,033
Non-current Liabilities 1,226,503 1,209,904

See note 20. Letter b) participation non-controlling note

1/1/2018 1/1/2017
Net Income 12/31/2018 12/31/2017
ThUS$ ThUS$
Revenue 2,543,730 2,152,324
Costof sales (2,158,834) (1,790,407)
Profitfor the period 384,896 361,917

Sociedad Contractual Minera El Abra

as 12/31/2018 12/31/2017
Assets and liabilities ThuS$ ThUS$
Current Assets 576,167 477,857
Non-current Assets 1,013,165! 1,110,167
Current Liabilities 73,458| 80,077
Non-current Liabilities 270,283 271,684
1/1/2018 1/1/2017
Net Income 12/31/2018 12/31/2017
ThUs$ ThUs$
Revenue 596,060 501,073
Costof sales (575,283) (469,761)
Profit (loss) for the period 20,777 31,312

b) Additional information on unrealized profits (losses)

Codelco enters into transactions for the purchase and sale of copper with Sociedad Contractual Minera
El Abra. As of December 31, 2018 and 2017, there were no unrealized profits (losses) recognized in
the carrying amount of inventories of finished products.

Codelco enters into transactions for the purchase and sale of copper with Anglo American Sur S.A. As

of December 31, 2018 and 2017, there were no unrealized profits (losses) recognized in the carrying
amount of inventories of finished products.

F-181
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

For the year ended December 31, 2018, the Corporation has recognized unrealized profits of
ThUS$3,920 (ThUS$3,920 as of December 31, 2017) for the service transaction related to the use of
the LNG terminal of the associate Contractual Minera El Abra.

Investments in associates acquired

The acquisition did not result in obtaining control of the acquired company.

Additional information on impairment of investments accounted for using the equity method

F-182
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The recoverable amount as estimated was less than the carrying amount of the identified assets of the
associate, therefore, the Corporation recognized an impairment loss of ThUS$2,439,495, which was
included within the line item “Share of profit or loss of associates and joint ventures accounted for using
the equity method” in the consolidated statements of comprehensive income for the year ended
December 31, 2015.

The impairment loss was mainly attributable to the drop in copper prices during the year 2015.

As of December 31, 2018, there are no indicators of impairment, therefore, there have been no
adjustments recognized to the carrying amounts of the assets.

F-183
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

e) Share of profit or loss for the year

The share in profit or loss of the associate Anglo American Sur S.A. recognized for the year ended
December 31, 2018 was income of ThUS$113,544 (income of ThUS$106,766 for the year ended
December 31, 2017). In addition, the Corporation has made appropriate adjustments to its share of
profit or loss in the associate for depreciation of the depreciable assets based on the fair values at the
acquisition date, which resulted in an expense of ThUS$13,835 for the year ended December 31, 2018
(an expense of ThUS$10,268 for the year ended December 31, 2017) recognized within line item
“Share of profit or loss of associates and joint ventures accounted using the equity method” in the
consolidated statements of comprehensive income.

10. Intangible assets other than goodwill
As of December 31, 2018 and 2017, the intangible assets other than goodwill are described as follows:

a) This item is composed of the following:

ltem 12/31/2018 12/31/2017
ThUuS$ ThUuS$
Intangible assets with finite useful lives, net 40,421 35,449
Intangible assets with indefinite useful lives 7,958 183,668
Total 48,379 219,117
b) Carrying amount and accumulated amortization:
12/31/2018
Accumulated
Gross ON Net
Item Amortization
TRUS$ TRUS$ ThUS$
Trademarks, patents and licenses 28 – 28
Water rights 7,958 – 7,958
Sofware 2,803 (1,351) 1,452
Other intangible assets 38,950 (9) 38,941
Total 49,739 (1,360) 48,379

F-184
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

12/31/2017
Accumulated
Gross o Net
Item Amortization
ThUS$ TRUS$ TRUS$
Trademarks, patents and licenses 28 – 28
Water rights 7,959 – 7,959
Sofware 5,226 (3,533) 1,693
Technological development and innovation 175,710 – 175,710
Other intangible assets 33,727 – 33,727
Total 222,650 (3,533) 219,117

c) Reconciliation of the carrying amount at beginning and end of the period:

Trademarks, Technological
Movements patents and — | Waterrights | Software | developmentand | Other Total
licenses innovation
Reconciliation of changes in intangible assets other than goodwill
Intangible assets other tran goodwill. Opening balance (1/1/2018) 2 7,959 1,693 175,710| 33,727 219,117
Changes in intangible assets other than goodwill
Increases other than those arising from business combinations, intangible assets other than goodwil – – 586 704 9,261 10,561
‘Amortization, intangible assets other than goodwill – – (603) – (852) (855)
Increases (decrease) in transfers and other changes, intangible assets other than goodwill
Ihcreases (decreases) in transfers and other changes, intangible assets other than goodwil – – – (103,638) – (103,638)
Increases (decreases) due to other changes, intangible assets other than goodwil – 0) (149) – (7) (157)
Increase (decrease) in transfers and other changes, intangible assets other than goodwill – 0) (149)| (103,638) (MÍ (103,795)
Provisions and withdrawals of service, intangible assets other than goodwill
Service retirements / retirements, intangible assets other than goodwil – – (175) (72,776) (3,688) (76,639)
Provisions and withdrawals of service, intangible assets other than goodwill – – (175) (72,776) (3,688) (76,639)
Increase (decrease) in intangible assets other than goodwill – 0) (241) (475,710)| 5214) (170,738)
Intangible assets other than goodwill. Final Balance 12/31/2018 28 7,958 1,452 -| 38,941 48,379
Trademarks, Technological
Movements patents and — | Waterrights | Software | developmentand | Other Total
licenses innovation
Reconciliation of changes in intangible assets other than goodwill
Intangible assets other than goodw il. Opening balance (1/1/2017) 2 7,959 1,905 174,624 12,381 196,897
Changes in intangible assets other than goodwiil
Increases other than those arising from business combinations, intangible assets other than goodwil – – 87 1,086 4 1,177
‘Amortization, intangible assets other than goodwill – – (430) – (852) (782)
Increases (decreases) in transfers and other changes, intangible assets other than goodwill
Increase (decrease) in transfers and other changes, intangible assets other than goodwill – – 22,869 22,869
Increases (decreases) due to other changes, intangible assets other than goodwill – – 132 – (62) 80
Increase (decrease) in transfers and other changes, intangible assets other than goodwill – – 132 | 2817 22,949
Provisions and withdrawals of service, intangible assets other than goodwill –
Retirements from service, intangible assets other than goodwil – – (0) – (1,123) (1,124)
Disposiciones y retiros de servicio, activos intangibles distintos de la plusvalía – – (1 1 (4,123) (1,124)
Increase (decrease) in intangible assets other than goodwill – – (212) 1,086 | 21,346 22,220
Intangible assets other than goodwill. Final Balance 12/31/2017 2 7,959 1,693 175,0] 33,727 219,117

d) Additional Information

As of December 31, 2018, the Corporation does not hold balances for intangible assets corresponding
to technological development and innovation. The Corporation has significant intangible assets for
ThUS$175,710, as of December 31, 2017, related to the “Continuous Mining” Project.

Continuous Mining is a project of the Corporation aimed toward development of an internal

technological breakthrough associated with the exploitation of underground mines, the main
characteristics of the project are: (1) reduction in the exposure of workers to mineral extraction areas;

F-185
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

(2) increasing the pace of mineral extraction; and (3) simultaneous mineral extraction from different
sections.

This project began in 2005, when the first conceptual tests were made, and in 2007 and 2008 it was
applied at the pilot level and from 2009 the basic and detailed engineering and the construction phase
for industrial validation at the West sector of third panel of Andina Division were performed, which was
expected to be carried out through 2018. lt was expected that its subsequent implementation would be
at Chuquicamata Underground and of the new mining projects of Codelco. During the 2018 period,
project studies were carried out and Management has decided not to continue with it.

As of December 31, 2018 and 2017, there are no fully amortized intangible assets that are still in use.
For the years ended December 31, 2018 and 2017, research and technological development and
innovation expenditures recognized in assets were ThUS$6,816 and ThUS$6,884, respectively. On
the other hand, research recognized in expense was ThUS$10,042 and ThUS$13,552 for the years
ended December 31, 2018 and 2017, respectively.

11. Subsidiaries

The following tables set forth a detail of assets, liabilities and profit (loss) of the Corporation’s subsidiaries,
prior to consolidation adjustments:

nr 12/31/2018 12/31/2017
Assets and liabilities ThUS$ ThUS$
Current assets 621,753 596,285
Non Current Assets 3,605,801 3,743,260
Current Liabilities 305,030 307,223
Non Current Liabilities 1,122,471 1,321,709
1/1/2018 1/1/2017
Profit (loss) 12/31/2018 9/30/2017
ThUS$ ThUuS$
Ordinary Income 2,119,617 2,134,080
Ordinary Expenses (2,071,713) (2,017,464)
Profit (loss) of period 47,904 116,616

F-186
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

12. Other non-current non-financial assets

Other non-current non-financial assets as of December 31, 2018 and 2017, are as follows:

Other non-current non-financial assets 12/31/2018 12/31/2017
ThUus$ ThUS$
Advance payment (Law No.13196) (1) 4,433 6,266
Other 2,384 5,309
Total 6,817 11,575

Current and non-current financial assets included in the statement of financial position are as follows:

12/31/2018
At fair value though profit Amortized Cost Derivatives for hedging Total financial
and loss assets
Classification in the statement of financial position Cross currency
Hedging derivatives swap

Thus$ Thus$ ThUs$ Thus$ ThUS$
Cash and cash equivalents 1,698 1,227,427 – – 1,229,125
Trade and other current receivables 789,710 1,422,499 – – 2,212,209
Non – current receivables – 84,731 – – 84,731
Current receivables from related parties – 92,365 – – 92,365
Non – current receivables from related parties – 20,530 – 20,530
Other current financial assets – 187,870 43,539 – 231,409
Other non – current financial assets – 23,089 14,962 107,700 145,751
TOTAL 791,408 3,058,511 58,501 107,700 4,016,120

12/31/2017
At fair value though profit Amortized Cost Derivatives for hedging Total financial
and loss assets
Classification in the statement of financial position Cross currency
Hedging derivatives swap

Thus$ Thus$ Thus$ Thus$ ThUS$
Cash and cash equivalents 651 1,448,184 – – 1,448,835
Trade and other current receivables 244,265 2,571,087 – – 2,815,352
Non – current receivables – 91,442 – – 91,442
Current receivables from related parties – 64,344 – – 64,344
Non – current receivables from related parties – 25,830 – – 25,830
Other current financial assets – 1,327 – – 1,327
Other non – current financial assets – 11,127 855 137,544 149,526
TOTAL 244,916 4,213,341 855 137,544 4,596,656

+ Fair value through profit or loss: As of December 31, 2018, this category mainly includes receivables
from provisional invoicing sales. Section 11.2.r.

+ Amortized cost: lt corresponds to financial assets held within a business model whose objective is to

hold financial assets to collect contractual cash flows that are solely payments of principal and interest
on the principal outstanding. These assets are not quoted in an active market.

F-187
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The effects on profit or loss recognized for these assets are mainly from financial income and exchange
differences from balances denominated in currencies other than the functional currency.

No material impairments were recognized in trade and other receivables.

As of December 31, 2018 and 2017, there were no reclassifications between the different categories of
financial instruments, under the accounting standards at the respective dates.

14. Interest-bearing borrowings
Current and non-current interest-bearing borrowings consists of loans from financial institutions, bond
issuance obligations and finance leases, which are measured at amortized cost using the effective interest

rate method.

The following tables set forth other current/non-current financial liabilities as of December 31, 2018 and
2017:

12/31/2018
Current Non-current
Items Amortized Cost Hedging Amortized Cost Hedging
derivatives Total derivatives Total
ThUus$ Thus$ Thus$ ThUs$ ThUs$ Thus$
Loans from financial institutions 404,871 – 404,871 2,107,078 – 2,107,078
Bonds issued 435,429 – 435,429 12,310,307 – 12,310,307
Financial Lease 21,510 – 21,510 86,329 – 86,329
Hedging derivatives – 10,096 10,096 – 106,824 106,824
Other financial liabilities 371 – 371 63,972 – 63,972
Total 862,181 10,096 872,277 14,567,686 106,824 14,674,510
12/31/2017
Current Non-current
ltems Loans and other Hedging Loans and other Hedging
payables derivatives Total payables derivatives Total
ThUs$ Thus$ Thus$ ThUs$ Thus$ Thus$
Loans from financial institutions 130,727 – 130,727 2,329,657 – 2,329,657
Bonds issued 165,784 – 165,784 12,083,622 – 12,083,622
Financial Lease 16,364 – 16,364 86,347 – 86,347
Hedging derivatives – 10,526 10,526 – 79,552 79,552
Other financial liabilities 987 – 987 68,826 – 68,826
Total 313,862 10,526 324,388 14,568,452 79,552 14,648,004

F-188
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Loans from financial institutions:

The loans obtained by the Corporation aim to finance production operations oriented towards the foreign
market.

On August 23, 2012, the subsidiary Inversiones Gacrux SpA (Gacrux) signed a credit agreement with
Oriente Copper Netherlands BV (a subsidiary of Mitsui 8, Co, Ltd, (“Mitsui”)) for approximately US$1,863
million, renewable monthly until November 26, 2012, after which, if not paid or renegotiated, will
automatically become a loan with a 7.5 year maturity from the date of disbursement, and an annual rate
Libor + 2.5%. This loan has no underlying guarantees given by Codelco.

The proceeds from the loan were used by Codelco’s indirect subsidiary Inversiones Mineras Becrux SpA
to acquire 24.5% ofthe shares of Anglo American Sur S.A., including other acquisition-related expenses.
On October 31, 2012, the credit agreement was amended, the new terms established an annual fixed
interest rate of 3.25% and a 20-year maturity, to be paid in 40 semi-annual installments of principal and
interest, and maintaining the “non-recourse” (no underlying guarantee) condition. Under previous
agreements, Mitsui is entitled to an additional interest equivalent to one-third of the savings obtained by
Gacrux under the renegotiated credit as compared to the conditions from the credit agreement originally
signed. Thus, Mitsui (through its subsidiary) held an option to acquire from Gacrux an additional 15.25%
of the shares of Inversiones Mineras Acrux SpA (“Acrux”), at a fixed price of approximately US$998
million. These funds were fully allocated to a portion of Gacrux’s debt under the Credit Agreement.

On November 26, 2012, Mitsui exercised the call option and acquired the additional ownership interest
in Acrux. The proceeds received were used by Codelco to partially pre-pay the debt with Mitsui.

On November 26, 2016, Codelco signed a credit agreement with Oriente Copper Netherlands BV
renegotiating the payment of principal at the end ofthe contract. The terms established an annual interest
rate of Libor +2.5% with a 5 year maturity to be payable in one installment at maturity with semi-annual
interest payment.

The credit agreements obtained in 2016 and 2017, mentioned above, were paid on May 23, 2018.

As of December 31, 2018, the outstanding balance of the credit agreements is ThUS$631,357.

Bond issued:

These bonds are payable in a single installment on April 1, 2025, at an annual interest rate of 4% and
semi-annual interest payments.

F-189
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

On November 4, 2010, the Corporation issued and placed bonds in the U.S. market under Rule 144-A
and Regulation S, for a nominal amount of ThUS$1,000,000. These bonds are payable in a single
installment on November 4, 2020, atan annual interest rate of 3.75% and semi-annual interest payments.
On August 3, 2017, principal was paid for an amount of ThUS$414,763.

On November 3, 2011, the Corporation issued and placed bonds in the U.S. market under Rule 144-
A and Regulation S, for a nominal amount of ThUS$1,150,000. These bonds are payable in a single
installment on November 4, 2021, atan annual interest rate of 3.875% and semi-annual interest
payments. On August 3, 2017, principal was paid for an amount of ThUS$665,226.

On August 13, 2013, the Corporation issued and placed bonds in the U.S. market, under Rule 144-A
and Regulation S, for a nominal amount of ThUS$750,000, payable in a single installment on August 13,
2023, at an annual interest rate of 4.5% and semi-annual interest payments. On August 22, 2017,
principal was paid for an amount of ThUS$162,502.

On July 9, 2014, the Corporation issued and placed bonds in the international financial markets, under
Rule 144-A and Regulation S, for a nominal amount of EUR$600,000,000, payable in a single installment
on July 9, 2024, at an annual interest rate of 2.25% and semi-annual interest payments.

On November 4, 2014, the Corporation issued and placed bonds in the U.S. market, under Rule 144-A

and Regulation S, for a nominal amount of ThUS$980,000, payable in a single installment on November
4, 2044, at an annual interest rate of 4.875% and semi-annual interest payments.

F-190
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

On September 16, 2015, the Corporation issued and placed bonds in the U.S. market, under Rule 144-
A and Regulation S, for a nominal amount of ThUS$2,000,000, payable in a single installment on
September 16, 2025, at an annual interest rate of 4.5% and semi-annual interest payments. On August
22, 2017, principal was paid for an amount of ThUS$378,655.

On August 1, 2017, the Corporation issued and placed bonds on the North American market, under
standard 144-A and Regulation S, for a total, nominal, amount of ThUS$2,750,000. ThUS$1,500,000,
with an annual coupon rate of interest of 3.625% and semi-annual interest payments, will mature on
August 1, 2027, while ThuS$1,250,000, with an annual coupon of 4.5% and semi-annual interest
payments, which will mature on August 1, 2047.

The effect recognized in profit and loss associated with this refinancing was a charge of US$ 42 million
after tax.

As of December 31, 2018 and 2017, the Corporation is not required to comply with any financial
covenants related to borrowings from financial institutions and bond obligations.

– Financial debt commissions and expenses:

Transaction costs incurred in obtaining financial resources are deducted from the loan proceeds and are
amortized using the effective interest rate.

– Finance leases:

Finance lease contracts mainly corresponds to buildings and machinery.

F-191
26 l-3

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CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The present value of future lease payments for financial lease obligations are detailed in the following table:

12/31/2018 12/31/2017
Financial Leases Gross Interest Present Value Gross Interest Present Value
ThUS$ ThUs$ ThUs$ ThUs$ ThUs$ ThUs$

Less than 90 days 6,902 (1,735) 5,167 6,745 (2,857) 3,888
Between 90 days and 1 year 21,529 (5,186) 16,343 20,877 (8,401) 12,476
Between 1 and 2 years 23,385 (5,943) 17,442 23,807 (8,222) 15,585
Between 2 and 3 years 20,079 (4,807) 15,272 17,114 (5,729) 11,385
Between 3 and 4 years 13,628 (3,699) 9,929 11,733 (3,993) 7,740
Between 4 and 5 years 19,946 (2,812) 17,134 10,426 (3,196) 7,230
More than 5 years 35,126 (8,574) 26,552 57,181 (12,774) 44,407
Total 140,595 (32,756) 107,839 147,883 (45,172) 102,711

The total future lease payments for operating leases and rental expenses recognized in the statements of
comprehensive income are summarized in the following tables:

Future lease payments for operating issues 12/31/2018 1213112017
ThUuS$ ThUS$
Less than one year 82,843 121,172
Between one and five years 164,132 263,495
More than five years 19,376 47,239
TOTAL 266,351 431,906
a os 12/31/2018 12/31/2017
Rental fees recognized in the statement of comprehensive income ThUS$ ThUS$
Rental expenses 191,311 228,104

The table below details changes in CODELCOSs liabilities classified as financing activities in the statement
of cash flow, including both cash and non-cash changes for the ended December 31, 2018:

Changes that do not represent cash flow

Initial Balance at Flows of cash Effective Interest |— Other
Financial Cost Fair Value — [accretion/amortizat
Liabilities forfinancing activities 11112018 From Used Total (Mm Exchange Adjustment | ¡on notcah flow Final Balance at
Difference related 12/31/2018
ThUs$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
[Loans with inandal insitulons 2,460,384 300,000] (333,027)| (33,027) 84,592 – – – 2.511.949
Bond Obligatons 12.249.406 600.000 | (541,341) 58,659 543874 (101,299) – (4,904) 12,745,736
Obiigations for coverage 83,896 (18,980)| —— (18930) 20.070 35,884 (4,788) – 116,132
Paid Dividens – (602.461)| — (602.461) – – – (602,461)
Financial assets for hedge derivaives (137,544) – – – 66,177 (96,333) – (107,700)
Finanoe leases 102,711 (27,130)| (27,130) 2,774 2645 26,839 107,839
[Capital contibuton – | 600.00 – | 600.000 – – – –
¡Other 69813 – (e9200)| (99200) 82.886 – – – 10.844 64,343
[Total liabilios from financing activities 14.828.666 | 1.500.000 | — (1.622.088) (122,089) 734,196 3407 (41.121) (4.904) 37,683 14,835,838
Changes that do not represent cash flow
Initial Balance at Flows of cash . Fair Value — | Effective Interest
Liabiities forfinancing activi a/ti2017 + Used Total a Cost change Adjustment — [accretion/amortizat Final Balance at
cantes foriinancing activites mm se oa (1 Difference ionnotcahflow | — Other 12/31/2017
ThUS$ THUS$ TnUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Loans wih nandalinsttulons 3,154,741] — 300.000] (1,043,246) — (743,246) 74,342 (25,453) – – – 2.460.384
Bond Obligatons 11,758,820 | 2,760,000 | (3094,341)| — (344,341) 521,750 163,314 – – 149,863 12.249.406
Obiigatons for coverage 171,061 15,737 – 15,737 15,553 (89,036) (6,162) (23,257) – 83,896
Paid Dividens – | (273332)| — (273332) – – – – –
Financial assels for hedge derivatves (63,781)| 5291 – 5291 4,765 (71,579) (85497) 23257 – (137,544)
Finance leases 124,491 (25565)| —— (25565) – – – 3,785 102,711
¡Capital contibuton -| 995000 – | 995,000 – –
¡Other 74,253 – (45980)| (45.980) – – – – 41,540 69813
“Total liabilties fromfinancing activities 15.219.585] — 4,066,028 | —(4,482,464)| (416.436) 516.410 (22,754) (41,659) – 195.188 14,820,666.

F-196

15.

16.

(1) The finance costs consider the capitalization of interest, which for the year ended December 31, 2018
and 2017, amounts to TRUS$311,399 and ThUS$217,031, respectively.

Fair Value of financial assets and liabilities

The carrying amount of financial assets is a reasonable approximation to their fair value, therefore, no
additional disclosures are required in accordance with IFRS 7.

Regarding financial liabilities, the following table shows a comparison as of December 31, 2018 between
the carrying amount and the fair value of financial liabilities other than those whose carrying amount is a
reasonable approximation of fair value.

Comparison value book vs fair value Accounting treatment for Carrying amount Fair value
as of December 31, 2018 valuation ThUS$ ThUS$
Financial liabilities:
Bond Obligations Amortized cost 12,745,736 13,131,637

Fair value hierarchy

+» Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

+ Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or
liabilities, either directly (i,e, as prices) or indirectly (i,e, derived from prices).

+ Level 3: Inputs are significant unobservable inputs for the asset or liability.

The following table presents financial assets and liabilities measured at fair value as of December 31, 2018:

12/31/2018

Financial instruments measured at fair value Level 1 Level 2 Level 3 Total

ThUuS$ ThUS$ ThUS$ ThUS$
Financial Assets
Provisional price sales contracts – 789,710 – 789,710
Cross Currency Swap – 107,700 – 107,700
Mutual fund units 1,698 – – 1,698
Metal futures contracts 58,501 – – 58,501
Financial Liabilities
Metal futures contracts 726 62 – 788
Cross Currency Swap – 116,132 – 116,132

There were no transfers between the different levels during the period ended December 31, 2018.

F-197
CORPORACION NACIONAL DEL COBRE DE CHILE

17. Trade and other payables

The detail of trade and other current payables as of December 31, 2018 and 2017, is as follows:

Currents
ltems 12/31/2018 12/31/2017
ThUus$ ThUus$
Trade payables 1,317,623 1,376,270
Dividends payables – 295,842
Payables to employees 21,561 17,177
Withholdings 72,681 88,386
Withholding taxes 60,621 36,020
Other payables 74,098 102,073
Total 1,546,584 1,915,768

18. Other provisions

The detail of other current and non-current provisions as of December 31, 2018 and 2017, is as follows:

Current Non-current
Other Provisions 12/31/2018 12/31/2017 12/31/2018 12/31/2017
ThUS$ ThUs$ ThUS$ ThUS$

Sales-related provisions (1) 2,692 4,177
Operating (2) 233,277 152,075
Law No. 13196 93,309 134,013 – –
Other provisions 51,771 31,166 20,153 18,790
Onerous Contract (3) 3,200 3,200 4,534 7,734
Decommissioning and restoration (4) 1,506,162 1,636,695
Legal proceedings – 69,334 48,583

Total 384,249 324,631 1,600,183 1,711,802

(1) Corresponds to a sales-related accruals, which includes charges for freight, loading, and unloading that
were not invoiced at the end of the period.

(2) Corresponds to a provision for customs duties, freight on purchases, electricity, among others.

(3) Corresponds to a provision recognized for an onerous contract with Copper Partners Investment

Company Ltd, See Note 31 b).

varies between 9 and 54 years.

The Corporation determines and recognized this liability in accordance with the accounting policy
described in Note 2, letter p) on Significant Accounting Policies.

F-198
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Changes in Other provisions, were as follows:

1/1/2018
12/31/2018
Changes Other Provisions, |Decommissioning . .
. Contingencies Total
non-current and restoration
TRUS$ TRUS$ TRUS$ ThUS$

Opening balance 26,524 1,636,695 48,583 1,711,802
Adjust closing provision – (117,174) (117,174)
Financial expenses – 34,754 – 34,754
Pay ment of liabilities – (827) (5,100) (5,927)
Foreign currency translation (3,617) (52,704) (3,574) (59,895)
Provision increase (3,200) – (3,200)
Other increases 4,980 5,418 29,425 39,823
Closing Balance 24,687 1,506,162 69,334 1,600,183

19. Employee benefits
a. Provisions for post-employment benefits and other long term benefits

Both long-term employee benefits are stated in the terms of employment contracts and collective
bargaining agreements as agreed to by the Corporation and its employees.

The defined benefit obligations are denominated in Chilean pesos, therefore the Corporation is exposed
to foreign exchange rate risk.

For the year ended December 31, 2018, there were no significant changes in post-employment benefits
plans.

F-199
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The following actuarial assumptions were used in the actuarial calculation of the defined benefit plans:

Assumptions 12/31/2018 12/31/2017
Retirement plan Health plan Retirement plan Health plan
Annual Discount Rate 4,49% 4.93% 4.86% 5.27%
Voluntary Annual Turnover Rate for Retirement (Men) 3.90% 3.90% 3.90% 3.90%
Voluntary Annual Turnover Rate for Retirement (Women) 3.30% 3.30% 3.30% 3.30%
Salary Increase (real annual average) 4.03% – 4.03% –
Future Rate of Long-Term Infation 3.00% 3.00% 3.00% 3.00%
Infation Health Care – 5.05% – 5.05%
Mortality tables used for projections CB14-RV14 CB14-RV14 CB14-RV14 CB14-RV14
Average duration of future cash flows (years) 7.50 16.90 7.50 17.22
Expected Retirement Age (Men) 60 60 60 60
Expected Retirement Age (Women) 59 59 59 59

The discount rates correspond to the rates in the secondary market of government bonds issued in Chile.
The annual inflation corresponds to the long-term expectation set by the Central Bank of Chile. The
turnover rates were determined using the past three years of historical experience of the Corporation’s
employee departure behavior. The expected rate of salary increases has been estimated using the long-
term behavior of historical salaries paid by the Corporation. The mortality tables used were those issued
by the CMF, which are considered an appropriate representation of the Chilean market given the lack of
comparable statistical series to develop independent studies. The period over which the obligation is
being amortized corresponds to the estimate of the period over which the cash flows will occur.

b. The detail of current and non-current provisions for employment benefits as of December 31, 2018 and
2017, is as follows:

Current Non-current
Accrual for employee benefits 12/31/2018 12/31/2017 12/31/2018 12/31/2017
ThUS$ ThUS$ ThUs$ ThUs$

Employees collective bargaining agreements 204,040 218,167 – –
Employee termination benefit 27,247 31,468 802,260 850,622
Bonus 60,616 62,921 – –
Vacation 183,628 176,489 – –
Medical care programs (1) 460 443 496,323 523,206
Retirement plans (2) 17,620 7,987 8,355 9,494
Other 16,423 19,206 8,582 9,337

Total 510,034 516,681 1,315,520 1,392,659

(1) Corresponds to a provision recognized for the obligations with health care institutions as agreed
with current and former employees.
(2) Correspond to the provision recognized for early retirement benefits provided to employees.

F-200
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The reconciliation of the present value of the post-employment benefit obligation, is as follows:

1/11/2018 1/11/2017
12/31/2018 12/31/2017
Movements – –
Retirement plan Health plan Retirement plan Health plan
ThUS$ ThUS$ ThUS$ ThUs$
Opening balance 882,090 523,649 777,706 538,237
Service cost 72,821 9,962 65,284 936
Financial cost 15,966 11,520 9,332 8,666
Paid contributions (57,166) (39,779) (57,897) (37,678)
Actuarial (gains)/losses 16,576 30,200 7,178 (31,426)
Transfer from other benefits 3,335 – 3,346 –
Subtotal 933,622 535,552 804,949 478,735
(Gains) Losses on foreign exchange rate (104,115) (38,769) 77,141 44,914
Final Total 829,507 496,783 882,090 523,649

The technical revaluation (actuarial gain/loss as defined under IAS 19) of the liability for compensation
benefits for years of service has been made, for the year ended December 31, 2018. Such was charged
to equity, which consists of an actuarial loss of ThUS$16,576, corresponding primarily to a change in
financial assumptions. . Such charge to equity is broken down into a loss of ThUS$15,584 for the
revaluation of financial assumptions and an experience loss of ThUS$992.

For the obligation generated by health benefit plans, an actuarial loss of ThUS$30,200 has been
determined, consisting primarily of an adjustment for financial assumptions which is composed of a loss
for changes in the financial assumptions of ThUS$25,930; and an experience loss of ThUS$4,270.
The balance of the defined benefit liability as of December 31, 2018, comprises a short term portion of
ThUS$27,247 and ThUS$460 for the termination indemnities plan and the medical care plan,
respectively. The expected amount of the defined benefit liability projected at December 31, 2019,
consists of ThUS$881,076 for the termination indemnities plan and ThUS$457,843 for the medical care
plan. The expected monthly average future disbursements related to defined benefit plans are of
ThUS$2,271 for termination indemnities and of TRUS$38 for medical care.

The following table sets forth the sensitivity analysis of the value of the each line item for a change,
respectively, from the medium (used in the estimate recorded) to the low and from the medium to the
high; the second to the last column represents the change between the low and medium and the last
column represents the change between the medium and the high:

F-201
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Severance Benefits for Years of Service Low Medium High Reduction Increase
Financial effect on interest rates 3.490% 4.490% 5.490% 5.46% 4.78%
Financial effect on the real increase in income 3.530% 4.030% 4.530% 2.21% 2.34%
Demographic effect of job rotations 3.340% 3.840% 4.340% 0.78% 0.69%
Demographic effect on mortality tables -25.00% CB14-RV14, Chile 25.00% 0.07% 0.07%

Health Benefits and Other Low Medium High Reduction Increase
Financial effect on interest rates 3.926% 4.926% 5.926% 15.44% -12.06%
Financial effect on health inflation 4.550% 5.050% 5.550% 5.96% 6.65%
Demographic effect, planned retirement age 58/57 60/59 62/61 3.98% 3.90%
Demographic effect on mortality tables -25.00% CB14-RV14, Chile 25.00% 10.22% -7.20%

c. Retirement plans and conflict termination bonus

As of December 31, 2018 and 2017, the termination benefits current balance was ThUS$17,620 and
ThUS$7,987, respectively, while the non-current balance was ThUS$8,355 and ThUS$9,494,
respectively. The non-current portion is associated with the provision related to the term of the collective
bargaining process that Codelco’s management negotiated during the month of December 2012 with the
employee unions of the Chuquicamata Division. The non-current amounts recognized have been
discounted using a discount rate equivalent to that used for calculating employee benefits provisions and
whose outstanding balances are part of the balances as of December 31, 2018 and 2017.

d. Employee benefits expenses

The employee benefit expenses recognized for the years ended December 31, 2018 and 2017, are as
follows:

1/1/2018 1/1/2017

Expense by Nature of Employee Benefits 12/31/2018 12/31/2017

ThUS$ ThUuS$
Benefits – Short term 1,731,593 1,633,536
Benefits – Post employ ment 9,962 936
Benefits – Retirement plans and confiict termination 54,594 20,553
Benefits by years of service 72,821 65,284
Total 1,868,970 1,720,309

F-202
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

20.

Equity

The Corporation’s total equity as of December 31, 2018 is ThUS$11,343,869 (ThUS$10,925,338 as of
December 31, 2017).

Net income shown in the balance sheets, after deducting the amounts referred to in the previous paragraph,
shall belong to the State and becomes part of the Nation’s general income.

Pursuant to the Exempt Finance Decree (Decree No. 197 of December 31, 2015 issued by the Ministry of
Finance), the Corporation was authorized to capitalize US$225 million of the net profit registered in the
financial statements as of December 31, 2014.

Those resources were to be taken from the profits for year 2015 for their capitalization.

Both capital contributions were funded by the Public Treasury through the sale of financial assets.

F-203
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

On January 27, 2017, Law No. 20989 on extraordinary capitalization was enacted. The Law authorizes the
transferring of funds from application of the Copper Reserved Law to the Public Treasury, allowing an
extraordinary capitalization to Codelco of up to US$950 million for year 2017 aiming to reduce Codelco’s
indebtedness in an amount equivalent to the difference between the funds transferred as required by the
Reserved Law and cash flow surpluses obtained by the Corporation.

As of December 31, 2018, the dividends paid were ThUS$602,461 as follows:

As of December 31, 2017, the dividends paid amounted to ThUS $ 273,332, and provisioned dividends
payable ThUS $ 295,842.

The consolidated statement of changes in equity discloses the changes in the Corporation’s equity.

The movement and composition of other equity reserves is presented in the consolidated statement of
changes in equity.

Reclassification adjustments from other comprehensive income to profit or loss resulted in a loss of
ThUS$9,273 and ThUS$1,694 for the years ended December 31, 2018 and 2017, respectively.

F-204
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

a) Other reserves

The detail of other reserves as of December 31, 2018 and 2017, is as follows:

Total other reserves

12/31/2018
Other Reserves 12/81/2017
ES ThUS$
Reserve on exchange differences on translation (6,863) (6,015)
Reserve of cash flow hedges 47,792 11,336
Capitalization fund and reserves 4,962,393 4,962,393
Reserve of remeasurement of defined benefit plans (274,480) (259,002)
Other reserves 625,317 626,380
5,354,159 5,335,092

b) Non-controlling interests

The detail of non-controlling interests, included in equity and profit or loss, as of and for each reporting

year, is as follows:

Non-controlling participation Net equity Gain (loss)
1/1/2018 1/1/2017
Societies 12/31/2018 12/31/2017 12/31/2018 12/31/2017 1213112018 4213112017
% % ThuS$ ThUS$ ThUS$ ThUS$
Inversiones Gacrux SpA 32.20% 32.20% 969,203 1,007,493 34,031 54,423
Others – – 1 2 (3) 4
Total 969,204 1,007,495 34,028 54,427

For the year ended December 31, 2018, Inversiones Gacrux SpA did not distribute any dividends to

non-controlling interests.

comprehensive income and cash flows:

F-205

Assets and liabilities 12/31/2018 12/81/2017
ThUS$ ThUS$
Current Assets 361,568 306,496
Non-current assets 2,839,764 2,959,114
Current liabilities 176,742 158,455
Non-current liabilities 593,078 676,208
1/1/2018 1/11/2017
Results 12/31/2018 12/31/2017
ThUS$ ThUS$
Revenues 836,195 586,640
Expenses (762,557) (496,650)
Profit of the period 73,638 89,990
1/1/2018 1/11/2017
Cash flow 12/31/2018 12/31/2017
ThUS$ ThUS$
Net cash flow from operating activities 142,997 204,342
Net cash flow from (using) investing activities – (38,049)
Net cash flow from (using) financing activities (204,961) (25,512)

21. Revenue

Revenues as of December 31, 2018 and 2017, are as follows:

1/11/2018 1/1/2017
Item 12/31/2018 12/31/2017
ThUs$ ThUS$
Revenue from sales of own copper 11,195,340 11,636,279
Revenue from sales of third-party copper 1,900,899 2,005,974
Revenue from sales of molyodenum 651,305 502,382
Revenue from sales of other products 537,562 498,207
Gain (loss) in futures market 23,652 (1,287)
Total 14,308,758 14,641,555

The Corporation’s revenue is recognized at a point in time.

The breakdown of revenue ¡is presented in explanatory note No.26 Operating Segments.

F-206
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

22.

23.

Expenses by nature

Expenses by nature as of December 31, 2018 and 2017, are as follows:

1/11/2018 1/1/2017
Item 12/31/2018 12/31/2017
ThUS$ ThUS$
Short-term benefits to employees 1,731,593 1,633,536
Depreciation 1,186,480 1,152,803
Amortization 994,660 948,298
Total 3,912,733 3,734,637

Impairment of Assets

As of December 31, 2018, the Corporation made a calculation of the recoverable amount of its cash
generating unit Windows Division, for the purpose of checking the existence of a deterioration in the value
of the assets associated with said division, the carrying amount of which amounted to US$323 million.

The aforementioned calculation of the recoverable amount determined a value of US$124 million, which
compared with the amount in books, implied an acknowledgment of an impairment loss of assets for
ThUS$ 198,898 (before tax), which was recorded in the Other item expenses by function, of the
comprehensive income statement for the year 2018 (note 24b).

The aforementioned loss due to impairment is mainly generated by the fall in the costs of treatment and
refining.

As of December 31, 2017, the Corporation recognized a reversal of a portion of the impairment loss
previously recognized on the Anglo American Sur investment (Explanatory Note 9).

As of December 31, 2018 and 2017 there are no signs of additional deterioration or reversals of impairment
recognized in previous years.

F-207
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

24. Other income and expenses by function
Other income and expenses by function for periods ended December 31, 2018 and 2017, are as follows:

a) Other income by function

11112018 1/11/2017
Item 12/31/2018 12/31/2017
ThUS$ ThUs$
Penalties to suppliers 18,920 10,926
Delegated Administration 5,346 4,458
Miscellaneous sales (net) 25,973 33,243
Insurances recoveries by incidents – 16,757
Profit on sale of shares of Deutsche Giessdraht GmbH (See note 7) 18,279 –
Other income 56,308 88,948
Total 124,826 154,332
b) Other expenses by function
1/1/2018 1/1/2017
Item 12/31/2018 12/31/2017
ThHUS$ THUS$
Law No. 13196 (1,108,209) (1,098,556)
Research expenses (103,649) (110,942)
Bonus for the end of collective bargaining (204,623) (28,577)
Expenses plan (54,594) (20,553)
Write-off of investment projects (See Note 10) (212,587) (74,655)
Write-off of property, plant 8. equipment (7,357) (11,824)
Medical care plan (9,962) (936)
Additional bonuses to contractors – (161)
Impairment of assets (note 22) (198,898) –
Write-off inv entories (4,004) (14,187)
Write-off by onerous contract – (10,279)
Bad debts clients (671) (21,851)
Additional bonus – (3,149)
Contingency expenses (36,359) (23,046)
Other (174,401) (138,757)
Total (2,115,314) (1,557,473)

F-208
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

25. Finance costs

The detail of finance costs for the years ended December 31, 2018 and 2017, is as follows:

1/1/2018 1/1/2018
Item 12/31/2018 | 12/31/2017
TRus$ ThHuS$
Bond interest (265.001) (333.717)
Bank loan interest (69.869) (74.583)
Unwinding of discount on severance indemnity provision (16.497) (12.301)
Unwinding of discount on other non-current provisions (46.959) (34.751)
Other (65.122) (189.258)
Total (463.448) (644.610)

26. Operating segments

The information on each Division and their corresponding mining deposits is as follows:

Chuquicamata

Types of mine sites: Open pit mines

Operating: since 1915

Location: Calama — Region |!

Products: Electro refined and electrolytic (electro-obtained) copper cathodes and copper concentrate

Radomiro Tomic

Types of mine sites: Open pit mines

Operating: since 1997,

Location: Calama — Region |!

Products: Electro refined and electrolytic (electro-obtained) copper cathodes and copper concentrate

Ministro Hales

Type of mine: Open pit mine
Operating: since 2014
Location: Calama — Region |!

F-209
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Products: Calcined copper, copper concentrates

Gabriela Mistral

Type of mine: Open pit mine

Operating: since 2008

Location: Calama — Region |!

Products: Electrolytic (electro-obtained) cathodes

Salvador

Type of mine: Underground mine and open pit mine

Operating: since 1926

Location: Salvador — Region |!

Products: Electro refined and electrolytic (electro-obtained) copper cathodes and copper concentrate

Andina

Type of mines: Underground and open pit mines
Operating: since 1970

Location: Los Andes – Region V

Product: Copper concentrate

El Teniente

Type of mine: Underground mine

Operating: since 1905

Location: Rancagua — Region VI

Products: Fire-refined copper and copper anodes

a) Allocation of Head Office revenue and expenses

Revenue and expenses controlled by the Head Office are allocated to the Divisions based on following
criteria.

Revenue and Cost of Sales of Head Office commercial transactions

+ Allocation to the operating segments is made in proportion to revenues of each Division.

Other income, by function

+ Other income by function, associated and identified with each Division, is directly allocated.

+ Recognition of realized profits and other income by way of subsidiaries are allocated in proportion to
the revenues of each Division.

+ The remaining other income is allocated in proportion to the aggregate of balances of “other income”
and “finance income” of each Division.

F-210
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Distribution costs

+ Expenses associated and identified with each Division are directly allocated.
+ Distribution costs of subsidiaries are allocated in proportion to the revenues of each Division.

Administrative Expenses

+ Administrative expenses associated and identified with each Division are directly allocated,

+ Administrative expenses recorded in cost centers associated with the sales function and
administrative expenses of subsidiaries are allocated in proportion to the revenues of each Division.

+ Administrative expenses recorded in cost centers associated with the supply function are allocated
in proportion to inventory balances in warehouse in each Division.

+ Theremaining administrative expenses are allocated in proportion to operating cash outflows of each
Division.

Other Expenses, by function

+ Other expenses associated and identified with each Division are directly allocated.

+ Expenses for pre-investment studies and other expenses by function of subsidiaries are allocated in
proportion to the revenues of each Division.

Other gains

+ Other gains associated and identified with each Division are directly allocated.
+ Other gains of subsidiaries are allocated in proportion to the revenues of each Division.

Finance Income

+ Finance income associated and identified with each Division is directly allocated.

+ Finance income of subsidiaries is allocated in proportion to the revenues of each Division.

+ The remaining finance income is allocated in relation to the operating cash outflows of each Division.

Finance costs

+ Finance costs associated and identified with each Division are directly allocated.
+ Finance costs of subsidiaries are allocated in proportion to the revenues of each Division.

+ Foreign exchange differences identifiable with each Division are directly allocated.

F-211
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

+ Foreign exchange difference of subsidiaries is allocated in proportion to the revenues of each
Division.

+ The remaining foreign exchange differences are allocated in relation to operating cash outflows of
each Division.

Contribution to the Chilean Treasury under Law No. 13196

Income tax benefit (expenses)

+ Other tax expenses are allocated in proportion to the corporate income tax, specific mining tax and
tax under D.L. 2398 of each Division.

b) Transactions between segments

Conversely, activities such as obtaining financing, investment and payment of relevant financial
obligations are mainly based at the Head Office.

F-212
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CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The assets and liabilities related to each operating segment, including the Corporation’s head office as of
December 31, 2018 and 2017, are detailed in the following tables:

12/31/2018
Category Chuquicamata DES Salvador | Andina | ElTeniente | Ventanas | G. Mistral | M.Hales o an N Cd
ThuSs$ ThUuS$ ThUuS$ ThUS$ ThUuS$ ThuSs$ Thuss ThuSs$ Thuss Thuss
Current assets 1.278.051 715.681 278.481 247.676 696.341 89.148| 239.493| 291.782| 1.991.553 5.828.206
Non-current assets 7.863.667 1.941.213 727.675 4.519.739 6.547.657 155.316 1.136.948 3.278.883 5.091.501 31.262.599
Current liabilities 729.319 192.735 115.908 218.550 441.255 61.363 111.615 117.624 1.551.043 3.539.412
Non-current liabilities 855.735 205.997 196.608 472.713 910.005 53.084 116.005 81.958| 19.315.419 22.207.524
12/31/2017
. Radomiro o . o Subsidiaries and Total
Category Chuquicamata Tomic Salvador Andina El Teniente | Ventanas | G. Mistral mM. Hales | ad office. net | Consolidatod
Thus$ ThUS$ ThUS$ ThuSs$ ThUS$ Thus$ Thuss Thus$ Thuss Thuss
Current assets 1.209.431 747.780 222.573 262.381 796.357 103.143 248.431 336.608 | 2.284.349 6.211.053
Non-current assets 6.493.203 2.011.892 699.810 4.326.237 6.143.112 342.980 1.172.667 3.499.326 5.455.861 30.145.088
Current liabilities 727.862 181.996 140.431 202.925 433.947 62.748 87.669 99.511 1.378.367 3.315.456
Non-current liabilities 939.029 206.376 216.712 475.508 957.596 60.991 124.334 90.884 19.043.917 22.115.347
The revenue segregated per geographical areas are the following:
1/1/2018 1/1/2017
Revenue per geographical areas 12/31/2018 12/31/2017
ThUS$ ThUS$
Total revenue from domestic customers 1,313,064 1,141,762
Total revenue from foreign customers 12,995,694 13,499,793
Total 14,308,758 14,641,555
1/1/2018 1/1/2017
Revenue per geographical areas 12/31/2018 12/31/2017
ThUS$ ThUS$
China 3,867,505 3,231,719
Restof Asia 1,982,163 1,990,528
Europe 3,482,755 1,353,503
America 3,764,467 3,453,366
Other 1,211,868 4,612,439
Total 14,308,758 14,641,555

F-215
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The main customers of the Corporation are listed in the following table:

1/1/2018
Principal Customers Country 12/31/2018

ThUS$
Glencore International Ag. Switzerland 1,039,310
Southwire Company United States 720,172
Nexans France France 531,740
Glencore Chile S.P.A. Chile 516,938
Trafigura Pte Ltd. Singapore 502,875
Wanxiang Sg Pte Ltd. Singapore 430,957
Jiangxi Copper Company Ltd. China 359,495
Lobb Heng Pte. Ltd China 303,718
Concord Resources Limited Japan 303,083
Triway International Limited Hong-Kong 274,615
Total 4,982,903

27. Foreign exchange differences

The detail of foreign exchange differences for the years ended December 31, 2018 and 2017, is as follows:

1/11/2018 1/1/2017
Gain (loss) from foreign exchange differences
does) a nana 12/31/2018 | 12/31/2017
recognized in income

ThUS$ ThUS$
Gain from foreign exchange differences 277,780 74,782
Loss from foreign exchange differences (99,637) (280,840)
Total exchange difference, net 178,143 (206,058)

F-216

28. Statement of cash flows

The following table shows the items that comprise other collections and payments from operating activities
in the Statement of Cash Flows:

1/11/2018 1/1/2017
Other collections from operating activities 12/31/2018 12/31/2017
ThUS$ ThUS$
VAT Refund 1,513,219 1,373,195
Other 220,336 283,909
Total 1,733,555 1,657,104
1/11/2018 1/1/2017
Other payments from operating activities 12/31/2018 12/31/2017
ThUS$ ThUS$
Contribution to the Chilean Treasury (Law No. 13196) (1,136,559) (1,062,496)
Finance hedge and sales (29,843) (5,090)
VAT and other similar taxes paid (1,388,782) (1,155,782)
Total (2,555,184) (2,223,368)

As of December 31, 2018 and 2017, as indicated in the equity note, capital contributions were received
for a total of ThUS $ 600,000 and ThUS $ 995,000, respectively, which are presented in other cash
inflows (outflows) corresponding to the net cash flows from (used in) activities of financing.

29. Financial risk management, objectives and policies

Codelco has committees within its organization to set out strategies allowing to reduce the financial risks to
which it may be exposed.

The risks to which Codelco is exposed and a brief description of the management procedures that are
carried out in each case, are described below:

a. Financial risks
– Exchange rate risk:
According to IFRS 7, exchange rate risk is understood to be the risk that arises from financial
instruments that are denominated in foreign currencies, that is, a currency other than the
Corporation’s functional currency (US dollar).
Codelco’s activities that generate this exposure correspond to funding in UF, accounts payable and

receivable in Chilean pesos, other foreign currencies used in its business operations and obligations
with employees.

F-217
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Taking into consideration the financial assets and liabilities as of December 31, 2018 as the base, a
fluctuation (positive or negative) of 10 Chilean pesos against the U.S. dollar (keeping the other
variables constant), could affect profits before taxes by US$33 million in net income, respectively.
This result is obtained by identifying the main items (including assets and financial liabilities)
denominated in foreign currencies in order to measure the impact on profit or loss that a variation
of +/- 10 Chilean pesos would have in terms of US$, with respect to the closing exchange rate at the
end of the reporting period.

As of December 31, 2018, the balance of time deposits denominated in Chilean pesos was
ThUS$270,021 (ThUS$252,161 as of December 31, 2017).

Interest rate risk:

Itis estimated that, on the basis of net debt balance as of December 31, 2018, a 1% change in interest
rates on the financial liabilities subject to variable interest rates would mean approximately a US$19
million change in finance costs, before tax. This estimation is made by identifying the liabilities
assigned to variable interest, accrued at the end of the financial statements, which may vary with a
change of one percentage point in variable interest rates.

Total fixed and variable interest rate obligations maintained by Codelco as of December 31, 2018
corresponds to amounts of ThUS$13,377,093 and ThUS$1,880,592, respectively.

Market risks
– — Commodity price risk:

As a result of its commercial operations and activities, the Corporation’s income is mainly exposed
to the volatility of copper prices and certain sub-products such as gold and silver.

Copper and molybdenum concentrate sale agreements and copper cathode sale agreements

generally provide for provisional pricing of sales at the time of shipment, with final pricing based
on the monthly average market price for specified future periods. At the reporting date, the

F-218
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

provisionally priced metal sales are marked-to-market, with adjustments (both gains and losses)
being recorded in revenues in the consolidated statement of comprehensive income. Forward
prices at the period-end are used for copper sales, while period-end average prices are used for
molybdenum concentrate sales due to the absence of an assets futures market. (See Note 2.r)
“Income from Activities Ordinary Procedures from Contracts with Customers “of section 11” Main

policies countable “).

For the year ended December 31, 2018, if the future price of copper fluctuates by + / – 5% (with
the other variables constant), the result would vary + / – US$167 million before taxes as a result
of setting the mark to market of sales revenue to provisional prices in effect as of December 31,
2018 (MTMF 564). For the estimate indicated, all of those physical sales contracts were valued
according to the monthly average immediately following the close of the financial statements, and
proceeds to be estimated regarding what the final settlement price will be if there ¡is a difference

of + / – 5% with respect to the future price known to date for this period.

transactions as part of net product sales.

As of December 31, 2018, a variation of U.S. £ 1 in the price per pound of copper, considering
derivatives contracted by the Corporation, involves a change in income or payments for existing
contracts (exposures) of US$1.7 million before taxes. This calculation is obtained from a
simulation curves of future copper prices, which are used to assess the subscribed derivative
instruments by the Corporation; estimations would vary with respect to the exposure related these

instruments if there is an increase of U.S. $0.01 decrease in the price per pound of copper.

The Corporation has not entered into any hedging transactions with the specific purpose of

hedging the price risk caused by fluctuations in prices of production inputs.

Cc. Liquidity risk

for its operations and any other commitments it has.

In this sense, Codelco Chile maintains resources at its disposal sufficient to meet its obligations,

whether in cash, liquid financial instruments or credit facilities.

of its operations and investments established in its development plan.

F-219
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Maturity of financial liabilities as of Less than Between one More than
12/31/2018 one year and five years five years
ThUS$ ThUS$ ThUS$

Loans from financial institutions 404,871 1,225,961 881,117
Bonds 435,429 2,479,715 9,830,592
Finance leases 21,510 59,777 26,552
Derivatives 10,096 – 106,824
Other financial liabilities 371 63,972 –
Total 872,277 3,829,425 10,845,085

d. Credit risk

This risk comprises the possibility that a third party does not fulfill its contractual obligations, thereby
causing a loss for the Corporation.

The indications with respect to the payment conditions to the Corporation are detailed in every sales
contract and the negotiation management is under the charge of the Vice Presidency of Marketing.

In general, the Corporation’s other accounts receivable have a high credit quality according to the
Corporation’s evaluations, based on each debtor’s solvency analysis and payment history.

The maximum exposure to credit risk as of December 31, 2018 ¡is represented by the financial asset
items presented in the Corporation’s Statement of Financial Position.

In explanatory note 2, trade and other receivables presents past due balances that have not been
impaired.

F-220
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The Corporation estimates that unimpaired amounts overdue over 30 days are recoverable based on
clients’ historical payment behavior and their existing credit ratings.

As of December 31, 2018 and 2017, there are no receivable balances that have been renegotiated.
Codelco works with major banks, which have high national and international ratings, and continually
assesses them; therefore, the risk that could affect the availability of the Corporation’s funds and
financial instruments is not significant.

During the years ended December 31, 2018 and 2017, no guarantees have been executed to ensure
the collection of third party debt.

Personnel loans mainly related to mortgage loans, according to programs included in union
agreements, which are paid for through payroll discounts.

30. Derivatives contracts

The Corporation has entered into transactions to hedge cash flows, to minimize the risk of foreign exchange
rate variations and sales price variations, detailed as follows:

a. Hedges

The Corporation has taken measures to protect itself from exchange rate and interest rate variations,
where the positive fair value of such derivative, net of taxes, amounts to ThUS$27,346.

The following table summarizes the financial hedges contracted by the Corporation:

December 31, 2018

Financial

Type of ca Fair value of
¡ ivati , obligation: . o
Hedged item Bank derivative | Maturity_ | Currency | Amount [94 hedging Asset Liability
contract CO lnstruments
instrument
ThUS$ ThUS$ TRUS$ ThUS$ ThUS$
Bond UF Mat 2025 — [Credit Suisse (USA) Swap 4/1/2025 US$ 273.765 208.519 84.365 334.180 | (249.815)
Bond EUR Mat 2024 [Santander (Chile) Swap 7/9/2024 US$ 343.170 409.650 (63.592) 338.339 | (441.931)
Bond EUR Mat 2024 [Deustche Bank (England) Swap 7/9/2024 US$ 343.170 409.680 (63.170) 388.339 | (441.509)
Bond UF Mat 2026 — [Santander (Chile) Swap 8/24/2026 | US$ 396.761 406.212 23.335 458.627 | (435.292)
Total 1.356.866 | 1.434.061 938 1.596.485 | (1.568.547)

F-221
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

December 31, 2017

Type of Financial Fair value of
Hedged item Bank derivative | Maturity Currency | Amount obligation: hedging Asset Liability

contract hedging instruments

instrument
ThUS$ ThUus$ ThUS$ ThUS$ ThUus$
Bond UF Mat 2025 |Credit Suisse (USA) Swap 4/1/2025 US$ 300.784 208.519 101.158 361.056 (259.898)
Bond EUR Mat 2024 |Santander (Chile) Swap 7/9/2024 US$ 360.708 409.650 (38.485) 415.241 (453.726)
Bond EUR Mat. 2024 |Deustche Bank (England) Swap 7/9/2024 US$ 360.708 409.680 (37.989) 415.241 (453.230)
Bond UF Mat 2026 |Santander (Chile) Swap 8/24/2026 US$ 435.919 406.212 36.387 483.784 (447.397)
Total 1.356.866 1.434.061 61.071 1.675.322 | (1.614.251)

As of December 31, 2018, the Corporation does not maintain margin deposits.

The current methodology for valuing currency swaps is to use the bootstrapping technique from the
mid – swap rate to construct the curves (zero) in UF and US$ respectively, from market information.

The notional amounts are detailed below:

Notional amount of contract with final expiration date

More than 90

December 31, 2018 Currency Less than 90 days days Current total 1103 years 3to5 years More than 5 years| Non-current total
ThUS$ ThUS$ Thus$ ThUS$ ThUS$ ThUS$ Thus$
Currency derivative US$ 13,156 44,290 57,446 114,892 114,892 1,525,989 1,755,773

Cash flows hedging contracts and commercial policy adjustment

The Corporation enters into metals hedging activities. Such results increase or decrease the total sales
revenue based on the market prices of the metals. As of December 31, 2018, these operations generated
a gain of ThUS$29,414.

b.1. Commercial flexibility operations of copper contracts

The purpose of these contracts is to adjust the price of shipments to the price defined in the
Corporation’s related policy, defined in accordance with the London Metal Exchange (LME). As of
December 31, 2018, the Corporation performed derivative market transactions of copper that
represent 420,850 metric tons of fine copper. These hedging operations are performed as part of
the Corporation’s commercial policy.

The current contracts as of December 31, 2018, present a positive fair value of such derivatives of
ThUS$53,518 and their final result will only be known at their maturity, offsetting the hedging
transactions with revenue from the sale of the hedged products.

The transactions settled as of period ended December 31, 2018 resulted in a net positive effect on
net income of ThUS$29,351, which is comprised of the amounts received for sales contracts for
ThUS$23,588 and the values paid for purchases contracts for ThUS$5,763.

F-222

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

b.2.

b.3.

Commercial Transactions of Current Gold and Silver Contracts

As of December 31, 2018, the Corporation maintains derivative contracts for the sale of gold for
ThOZT 22.09 and silver for TROZT 327.48.

The contracts outstanding as of December 31, 2018 show a negative fair value of ThUS$671. The
final result will only be known at the expiration of such operations, after offsetting between hedging
and income from the sale of the goods. These hedging operations expire up until April 2019.

The operations completed between January 1 and December 31, 3018, generated a positive effect
on results of ThUS$63, corresponding to values per physical sales contracts for a positive amount
of ThUS$64 and securities for contracts physical purchases for a negative amount of ThUS$1.
Cash flow hedging operations backed by future production

The Corporation does not possess cash flow hedges backed by future production as of December
31, 2018.

F-223
CORPORACION NACIONAL DEL COBRE DE CHILE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

b.4. Quantitative effects for metal hedging activities

The following tables set forth the maturities of metal hedging activities, as referred to in point b

above:
December 31, 2018 Maturity date
ThUS$ 2019 2020 2021 2022 2023 Upcoming Total
Flex Com Cobre (Asset) 43,539 13,969 993 – – 58,501
Flex Com Cobre (Liability) (56) (62) – – – (118)
Flex Com Gold/Silver (671) – – – – (671)
Price setting – – –
Metal options – – – – – –
Total 42,812 13,907 993 – – 57,712
December 31, 2017 Maturity date
ThUS$ 2018 2019 202 2021 2022 Upcoming Total

Flex Com Cobre (Asset) – 855 – – – 855
Flex Com Cobre (Liability) (2,582) (2,598) (474) – – (5,655)
Flex Com Gold/Silver (527) – – – – (527)
Price setting – – –
Metal options – – – –
Total (3,109) (1,743) (474) – – (5,326)
December 31, 2018 Maturity date

ThTM/Ounces 2019 2020 2021 2022 2023 Upcoming Total
Copper Futures [MT] 300.10 110.45 10.30 – 420.85
Gold/Silver Futures [ThOZ] 349.57 – – 349.57
Copper price setting [MT] – – –
Copper Options [MT] – – –
December 31, 2017 Maturity date

ThTM/Ounces 2018 2019 2020 2021 2022 Upcoming Total
Copper Futures [MT] 282.60 71.35 5.10 – 359.05
Gold/Silver Futures [ThOZ] 93.20 – – 93.20
Copper price setting [MT] – – –
Copper Options [MT] – – –

31. Contingencies and restrictions
a) Litigations and contingencies
There are various lawsuits and legal actions initiated by or against the Corporation, which derive from its

operations and the industry in which it operates. In general, these are civil, tax, labor and mining
litigations, all related to the Corporation’s activities.

F-224
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The most significant lawsuits that involve Codelco are related to the following matters:

– Labor proceedings: Labor proceedings brought by the workers of the Andina Division against the
Corporation with regard to occupational diseases (silicosis).

– Mining proceedings and others arising from the Operation: The Corporation has been participating,
and will probably continue to participate, as plaintiff and defendant in given court proceedings
involving its mining operation and activities, through which it seeks to exercise certain actions or set
up certain defenses in relation to given mining concessions that have been established or are in the
process of being established, as well as also with regard to its other activities. These proceedings
currently do not involve any given amount and do not have any essential effect on Codelco’s
development.

– As of December 31, 2018, the total of lawsuits filed against the National Corporation of the Copper
amounts to ThUS$103,378, which represents the estimate made by the legal advisors of the
Corporation subject to consideration under IAS 37. An analysis, case by case, has revealed that
there is a total of 358 causes with an estimated amount of ThUS$103,378, of which, 248 causes that
represent 69.27% of the universe, and that amounts to ThUS$69,334 (judgments reported as
probable and possible loss for the Corporation), which could have a negative result for the
Corporation. There are also 44 causes, which represent a 12.29% for an amount of ThUS$33,444,
over which there is no security that ¡ts failure be contrary to the Corporation. For the remaining 66
cases, for an amount of ThUS$ 600 legal advisors of the Corporation estimate that the probability of
loss is remote.

– Lawsuit under administrative law: On August 2, 2017, a Nullity in Public Law claim was filed in the
25th Civil Court of Santiago against Audit Report No. 900 of 2016, issued by the General
Comptrollership of the Republic on May 10, 2017. At this date, the discussion stage has been
completed and the evidence submitting stage should start soon.

For litigations with a probable unfavorable outcome for the Corporation, the necessary provisions has
been recognized as “provisions for legal proceedings.”

F-225
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

b) Other Commitments

i. On May 31, 2005, Codelco, through its subsidiary Codelco International Ltd. signed an agreement
with Minmetals to form a company, CuPIC, in which both companies have an equal equity interest.
A 15-year copper cathode sales contract to that associated company was agreed upon, as well as
a purchase contract from Minmetals to CupiCfor the same period and for equal monthly shipments
to complete a total of 836,250 metric tons. Each shipment shall be paid for by the buyer at a price
formed by a fixed re-adjustable component plus a variable component, which depends on current

copper prices at the time of shipment.

During the first quarter of 2006 and on the basis ofthe negotiated financial terms, financing contracts
were formalized with the China Development Bank allowing CuPIC to make the US$550 million

advance payment to Codelco in March 2006.

Codelco International Limited.

According to the Sponsor Agreement, dated March 8, 2006, the Codelco International Ltd.

subsidiary gave its participation in CuPIC as a guarantee to the China Development Bank.

Subsequently, on March 14, 2012, CUuPIC paid off its debt to the abovementioned bank. As of
December 31, 2017. Codelco does not hold any indirect guarantee regarding its participation in this

associated company.

On December 17, 2015, the Codelco administration presented a restructuring for the Supply

Contract, which implies the removal of its share in CUPIC.

Limited (a subsidiary of Minmetals).

In order to realize the above mentioned term of the shareholding, Codelco signed a set of

agreements which formalized primarily the following issues:

+ Copper sales contract modifications from Codelco to CUPIC signed in 2006, which establishes
the reduction of half of the outstanding tonnage to deliver to this company and in which Codelco

pays to CUPIC the amount of ThUS$99,330.

+ Reduction of share capital in CuPIC, equivalent to the 50% of the Codelco International shares

in said company and by which CuPIC repays to Codelco the amount of ThUS$99,330.

F-226
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

+ Waiver of Codelco to any dividends associated with the profits generated by CUPIC from January

1, 2016 and the date of signing the agreement.

ThUS$6,599 as of April 7, 2016).

the financial agreement contemplates.

This pledge extends to the right to collect and receive from Acrux dividends which have been agreed
in the corresponding meetings of shareholders of the company and any other distributions paid or

payable to Gacrux respect of the pledged shares.

On December 22, 2017 according to archive No. 12326 / 2017, it was established that, Gacrux,
the Creditor and the Guarantee Agent, the latter representing the Guaranteed Parties, modified , by
virtue of the Merger (see Note 2d), the Contract of Pledge and the Modified Pledge Agreement as
to the pledge on transferable securities and the commercial pledge, as well as the restrictions and
prohibitions established in the Pledge Contract and in the Modified Pledge Contract, making it
subject to , by virtue of the Merger, to two thousand thirteen million two hundred and forty-five
thousand four hundred and seventy-three shares pledge issued by Becrux, owned by Gacrux,

hereinafter the “Pledged Becrux Shares.”

or another form agreed upon by the parties.

interest in subsidiaries.

The Corporation has complied with these conditions as of December 31, 2018 and 2017.

v. On January 20, 2010, the Corporation signed two energy supply contracts with Colbún S.A., which
includes energy and power sales and purchases for a total of 510 MW of power. The contract

F-227
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

provides a discount for that unconsumed energy Codelco’s SIC divisions with respect to the amount
of contracted power. The discount is equivalent to the value of the sale of that energy on the spot

market.

The contracted power for supplying these Divisions is comprised by two contracts:
– Contract No.1 for 176 MW, current until December 2029

– Contract No.2 for 334 MW, current until December 2044. This contract is based on energy
production from Colbún’s Santa María thermal power station, which ¡is currently in operation.
This plant is coal-fired, and therefore the electric energy tariff rate applied for the energy supplied

to Codelco is linked to the price of coal.

Both of these contracts comply with Codelco’s long-term energy and power requirements from the

SIC of approximately 510 MW.

Through these contracts, which operate through take or pay, the Corporation agrees to pay for the
contracted energy and Colbún undertakes to reimburseat market price the energy not consumed

by Codelco.

These contracts have maturity date in 2029 and 2044.

vi. On November 6, 2009, Codelco signed the following long-term electric energy supply contracts with

ELECTROANDINA S.A. (associate until January 2011), which matured in August 2017.

For the electric power supply of the Chuquicamata’s work center, there are three contracts:

Engie for a 15-year term from January 2010, that is maturing in December 2024, for 200
MW capacity, and another contract for a 200 MW capacity which was signed in January

2018 and will be effective as of January 2025 with maturity in December 2035.
CTA effective from 2012 for 80 MW capacity, maturity in 2032.

vii. On August 26, 2011, Codelco signed two energy supply contracts with AESGener. The first one for
the Minister Hales division for a 99 MW capacity and the second contract for the Radomiro Tomic

work center, for a maximum capacity of 145 MW. Both contracts will mature in 2028.

Oficial.

This law requires the Corporation, among other requirements, to provide financial guarantees to the
State to ensure the implementation of closure plans. It also establishes the obligation to make

contributions to a fund which aims to cover the costs of post-closure activities.

F-228
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Corporation, in accordance with the mentioned regulation, provided to SERNAGEOMIN the
Mine Closure Plan (ARO) for all of the Codelco operating divisions in 2014, which were approved
in 2015 in accordance with the provisions of the Act.

As of December 31, 2018, the Corporation has agreed guarantees for an annual amount of U.F.
27,058,918 to comply with the aforementioned Law No. 20.551. The following table details the main
given guarantees:

. . . . Emission
Transmitter Mine site Amount Currency Date Maturity date rate % ThUS$
Banco Estado Radomiro Tomic 2,691,723 UF 11/30/2018 11/11/2019 0.08 106,797
Banco Estado Ministro Hales 911,821 UF 11/29/2018 11/14/2019 0.08 36,178
Banco Chile Ministro Hales 541,257 UF 12/6/2018 11/14/2019 0.10 21,475
Banco Chile Chuquicamata 2,300,000 UF 12/5/2018 11/27/2019 0.10 91,255
Banco Bci Chuquicamata 4,600,000 UF 11/30/2018 11/27/2019 0.15 182,510
Banco ltau Chuquicamata 915,319 UF 27/12/2018 11/27/2019 0.16 36,316
Banco Chile El Teniente 2,632,299 UF 12/5/2018 12/2/2019 0.10 104,439
Banco Santander El Teniente 5,000,000 UF 12/20/2018 12/2/2019 0,15 198,381
Banco Estado Gabriela Mistral 1,513,907 UF 11/29/2018 12/15/2019 0.08 60,066
Banco ltau Gabriela Mistral 278,180 UF 6/6/2018 6/13/2019 0.15 11,037
Banco ltau Salvador 2,674,603 UF 8/8/2018 2/18/2019 0.10 106,118
Banco Estado Andina 2,666,740 UF 10/29/2018 5/3/2019 0.07 105,806
Banco Chile Ventanas 333,069 UF 12/13/2018 9/19/2019 0.07 13,215
Total 27,058,918 1,073,593

On August 24, 2012, Codelco through its subsidiary Inversiones Mineras Nueva Acrux SpA (Nueva
Acrux) (which minority shareholder is Mitsui), signed a contract with Anglo American Sur S.A. Under
this contract, Codelco agreed to sell a portion of its annual copper production to the mentioned
subsidiary, who in turn agrees to purchase such production.

F-229
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

In turn, the subsidiary Nueva Acrux agrees to sell to Mitsui, the products purchased under the
agreement described in the preceding paragraphs.

The contract expiration will occur when the shareholders agreement of Anglo American Sur S.A
ends or other events related to the completion of mining activities of the company take place.

32. Guarantees
The Corporation as a result of its activities has received and given guarantees.

The following tables list the main guarantees given to financial institutions:

F-230
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Direct Guarantees provided to Financial Institutions
Creditor of the Guarantee Type of Guarantee 12/31/2018 12/31/2017
Currency Maturity ThUs$ ThUS$
Urban Regional Manager, Metropolitan Building project UF 3/31/18 – 10
Urban Regional Manager, Metropolitan Building project UF 8/31/18 – 10
Minestry of Public Works Building project US$ 6/27/18 – 209
General Directorate of Maritime Territory and Merchant | Building project CLP 3/1/19 1,783 –
Marine
Minestry of Public Works Building project UF 10/31/18 – 25,339
Minestry of Public Works Building project UF 10/31/18 – 28,399
Minestry of Public Works Building project UF 10/1/19 566 566
Oriente Copper Netherlands B.V. Pledge on shares US$ 11/1/32 877,813 877,813
Sernageomin Environmental UF 11/3/18 – 139,589
Sernageomin Environmental UF 3/18/18 – 13,156
Sernageomin Environmental UF 5/10/18 – 106,936
Sernageomin Environmental UF 5/10/18 – 57,302
Sernageomin Environmental UF 6/1/18 – 104,598
Sernageomin Environmental UF 6/1/18 – 199,215
Sernageomin Environmental UF 6/14/18 – 60,716
Sernageomin Environmental UF 5/26/18 – 118,924
Sernageomin Environmental UF 5/26/18 – 156,804
Sernageomin Environmental UF 5/26/18 – 24,526
Sernageomin Environmental UF 8/31/8 – 119,414
Sernageomin Environmental UF 8/31/8 – 852
Sernageomin Environmental UF 3/18/19 17,920 –
Sernageomin Environmental UF 5/9/19 137,355 –
Sernageomin Environmental UF 6/13/19 73,210 –
Sernageomin Environmental UF 6/13/19 11,980 –
Sernageomin Environmental UF 6/1/19 110,322 –
Sernageomin Environmental UF 6/1/19 273,875 –
Sernageomin Environmental UF 5/25/19 192,789 –
Sernageomin Environmental UF 5/25/19 103,290 –
Sernageomin Environmental UF 5/12/19 39,150 –
Sernageomin Environmental UF 5/12/19 38,215 –
Sernageomin Environmental UF 5/25/19 96,395 –
Total 1,974,663 2,034,381

F-231

Guarantees received from third parties
e 12/31/2018 12/31/2017
Division
ThUS$ ThUS$

Andina 3,891 8,228

Chuquicamata 2,4445 7,614

Casa Matriz 803,719 737,160

Salvador 1,311 7,295

Ministro Hales – 6

El Teniente 4,137 19,064

Ventanas 105 778

Total 815,608 780,145

33. Balances in foreign currency
a) Assets by Type of Currency
Catego 12/31/2018 12/31/2017
go ThUS$ ThUS$

Liquid assets 1,460,534 1,450,162
US Dollars 1,383,897 1,378,521
Euros 25,482 3,472
Other currencies 4,547 4,245
Non-indexed Ch$ 46,129 63,002
UE. 479 922
Cash and cash equivalents 1,229,125 1,448,835
US Dollars 1,152,715 1,378,247
Euros 25,482 3,472
Other currencies 4,547 4,245
Non-indexed Ch$ 46,109 62,779
UE. 272 92
Other current financial assets 231,409 1,327
US Dollars 231,182 274
Euros – –
Other currencies – –
Non-indexed Ch$ 20 223
UE. 207 830
Short and long term receivables 2,409,835 2,996,968
US Dollars 1,789,757 2,473,589
Euros 62,857 59,297
Other currencies 320 1,625
Non-indexed Ch$ 482,180 406,589
UE. 74,721 55,868
Trade and other receivables 2,212,209 2,815,352
US Dollars 1,676,862 2,383,415
Euros 62,580 57,992
Other currencies 320 1,625
Non-indexed Ch$ 398,966 317,819
UE. 73,481 54,501

F-232
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Category 12/31/2018 12/31/2017
ThUS$ ThUS$
Rights receivables, non-current 84,731 91,442
US Dollars – –
Euros 217 1,305
Other currencies – –
Non-indexed Ch$ 83,214 88,770
UE. 1,240 1,367
Due from related companies, current 92,365 64,344
US Dollars 92,365 64,344
Euros – –
Other currencies – –
Non-indexed Ch$ – –
UE. – –
Due from related companies, non-current 20,530 25,830
US Dollars 20,530 25,830
Euros – –
Other currencies – –
Non-indexed Ch$ – –
UE. – –
Rest of assets 33,220,436 31,909,011
US Dollars 32,171,442 31,025,279
Euros 705 26,952
Other currencies 279 367
Non-indexed Ch$ 377,119 119,690
UE. 670,891 736,723
Total assets 37,090,805 36,356,141
US Dollars 35,345,096 34,877,389
Euros 89,044 89,721
Other currencies 5,146 6,237
Non-indexed Ch$ 905,428 589,281
UE. 746,091 793,513

F-233
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

b) Liability by type of currency:

12/31/2018 12/31/2017
Current liability by currency Up to 90 days 90 days to 1 year Up to 90 days 90 days to 1 year
ThuS$ Thus$ ThuS$ ThuS$
Current liabilities 3,049,854 489,558 3,126,371 189,085
US Dollars 1,824,181 452,648 1,821,173 150,417
Euros 107,341 408 119,851 –
Other currencies 9,826 – 9,668 –
Non-indexed Ch$ 1,088,536 31,419 1,155,722 32,964
UE, 19,970 5,083 19,957 5,704
Other current financial liabilities 412,451 459,826 166,557 157,831
US Dollars 396,148 452,635 124,107 150,402
Euros 7,404 408 32,182 –
Other currencies 34 – – –
Non-indexed Ch$ 879 1,700 1,269 1,725
Uv. 7,986 5,083 8,999 5,704
Bank loans 5,739 399,132 26,819 103,908
US Dollars 5,683 398,724 2,223 103,908
Euros – 408 24,400 –
Other currencies – – – –
Non-indexed Ch$ – – – –
Uv. 56 – 196 –
Obligations 401,174 34,255 134,864 30,920
US Dollars 387,578 34,255 120,277 30,920
Euros 7,404 – 7,782 –
Other currencies – – – –
Non-indexed Ch$ – – – –
Uv. 6,192 – 6,805 –
Finance lease 5,167 16,343 3,888 12,476
US Dollars 2,887 9,560 1,347 5,047
Euros – – – –
Other currencies – – – –
Non-indexed Ch$ 542 1,700 543 1,725
Uv. 1,738 5,083 1,998 5,704
Others 371 10,096 986 10,527
US Dollars – 10,096 260 10,527
Euros – – – –
Other currencies 34 – – –
Non-indexed Ch$ 337 – 726 –
UE – – – –
Other current liabilities 2,637,403 29,732 2,959,814 31,254
US Dollars 1,428,033 13 1,697,066 15
Euros 99,937 – 87,669 –
Other currencies 9,792 – 9,668 –
Non-indexed Ch$ 1,087,657 29,719 1,154,453 31,239
UE 11,984 – 10,958 –

F-234

CORPORACION NACIONAL DEL COBRE DE CHILE

12/31/2018 12/31/2017
Non-current liability by currency 1to3 3to5 5to 10 More than 1to3 3to5 5to 10 More than
years years years 10 years years years years 10 years
Thus$ Thus$ Thus$ Thus$ Thus$ Thus$ Thus$ Thus$
Non-Current liabilities 6,804,312 2,260,258 5,142,419 8,000,535 6,200,324 2,773,522 5,534,293 7,607,208
US Dollars 6,396,888 2,114,245 4,160,204 6,918,087 5,755,523 2,619,881 4,461,270 6,501,948
Euros 14 – (7,832) – 89 – (9,682) –
Other currencies 1 – – – 1 – – –
Non-indexed Ch$ 390,088 141,392 277,356 505,603 423,022 148,258 291,395 527,887
UF 17,321 4,621 712,691 576,845 21,689 5,383 791,310 577,373
Other non-current financial liabilities 1,710,559 2,118,866 4,847,087 5,997,998 1,349,908 2,625,264 5,226,237 5,446,595
US Dollars 1,702,164 2,114,245 4,142,228 5,997,998 1,334,855 2,619,881 4,444,609 5,446,595
Euros – – 7,832 – – – (9,682) –
Other currencies – – – –
Non-indexed Ch$ 219 – – 2,996 – –
UF 8,176 4,621 712,691 – 12,057 5,383 791,310 –
Bank loans 548,454 677,507 298,250 582,867 406,167 1,297,133 – 626,357
US Dollars 548,454 677,507 298,250 582,867 406,103 1,297,133 626,357
Euros – – – – – – –
Other currencies
Non-indexed Ch$ –
UF – – – – 64 – – –
Obligations 1,065,419 1,414,296 4,415,461 5,415,131 847,944 1,313,161 5,102,279 4,820,238
US Dollars 1,065,419 1,414,296 3,034,864 5,415,131 847,944 1,313,161 3,613,723 4,820,238
Euros – – 678,446 – – – 711,734 –
Other currencies – –
Non-indexed Ch$ – –
UF – – 702,151 – – 776,822
Finance Lease 32,714 27,063 26,552 26,970 14,970 44,407
US Dollars 24,322 22,442 16,012 11,981 9,587 29,919
Euros – – – – – –
Other currencies – –
Non-indexed Ch$ 216 – – 2,996 – –
UF 8,176 4,621 10,540 11,993 5,383 14,488
Others 63,972 – 106,824 68,827 – 79,551
US Dollars 63,969 793,102 68,827 800,967
Euros – (686,278) – (721,416)
Other currencies – – –
Non-indexed Ch$ 3
UF – – – – – – – –
Other liabiliies non-current 5,093,753 141,392 295,332 2,002,537 4,850,416 148,258 308,056 2,160,613
US Dollars 4,694,724 – 17,976 920,089 4,420,668 – 16,661 1,055,353
Euros 14 – – 89 – –
Other currencies 1 – – – 1 – – –
Non-indexed Ch$ 389,869 141,392 277,356 505,603 420,026 148,258 291,395 527,887
UF 9,145 – – 576,845 9,632 – – 577,373

34, Sanctions

As of December 31, 2018 and December 31, 2017, neither Codelco Chile nor its Directors and Managers
have been sanctioned by the CMF or any other administrative authorities.

35. Environmental Expenditures

F-235

The environmental management systems of the divisions and the Head Office, structure their efforts in order
to comply with the commitments assumed by the corporation’s environmental policies, incorporating
planning, operating, verifying and reviewing elements. As of December 31, 2018, they have received ISO
14001 certification for the environmental management of Chuquicamata, Radomiro Tomic, Andina,
Salvador, El Teniente, Ventanas, Gabriela Mistral and the Head Office.

In accordance with Supreme Decree D.S. No. 28, the Corporation is carrying out is environmental,
maintenance and operating plans for ¡ts smelting plants.

To comply with the Circular No. 1901 of 2008 of the CMF, the details of the Corporation’s main expenditures
related to the environment during the years ended December 31, 2018 and 2017, respectively, and the
projected future expenses are stated below.

F-236
CORPORACION NACIONAL DEL COBRE DE CHILE

Disbursements 12/31/2018 wa/3alzo1 | Future committed
disbursements
Entity Proyect name Asset
Amount | Asset ” Amount | Amount | Estimated
O o a E a le de
Item
Chuquicamata 492,963 339,883 | 479,386
Codelco Chile. |Talambre dam capacity extension, 8h stage In Progress 148,715 | — Asset PP EE 8e7sr | 131,287 | — 2020
Codelco Chile. — [Emergency restoraton system dust control crushing plant 2/3. | — In Progress 345 | — Asset PP EE 6114 – –
Codelco Chile. [Replacement of circulation pot 1A and 2A In Progress 1,370 | — Asset PP EE 21407] 15717| 2019
Codelco Chile. [Constucton installaton surplus management In Progress | Asset PP EE 6,644 – –
Codelco Chile. [Replacement of water treatment plant In Progress | Asset PP EE 24,318 – –
Codelco Chile. [Replacement gas management system In Progress 745 | — Asset PP EE éso] 1040| 2019
Codelco Chile |Acid plant tranformaton 3-4 DC/DA In Progress 200,844 | — Asset PP eE 115588 | 108,863 | — 2019
Codelco Chile. [Enablement refning gas treatment system In Progress 26,973 | — Asset PP eE 10,163] 47122 | 2019
Codelco Chile. [Dyer replacement * 5fuco In Progress 23,204 | — Asset PP eE 1er | 36257 | 2019
Codelco Chile. [Management feeding and transport pow ders In Progress 1,368 | — Asset PP EE 620 – –
Codelco Chile. [Construction Relle Res Dom-Asim Montec In Progress 509 | Asset PP EE 2| te] 20m
Codelco Chile. [Construction X stage Talambre tranque In Progress 6.063 | — Asset PP EE Te] 11259] 2019
Codelco Chile. [Construction 8 Seg Montecristo In Progress 799 | — Asset PP EE o] 16560] 2019
Codelco Chile [Acid plants In Progress 30,980 | Expenditure | Adm. Expense | — 23,014 -| 20m
Codelco Chile [Solid waste In Progress 6,505 | Expenditure | Adm. Expense 1,707 -| 20m
Codelco Chile — [Talings In Progress 28,047 | Expenditure | Adm. Expense 15,474 | 209
Codelco Chile. [Water reaiment plant In Progress 17,501 | Expenditure | Adm. Expense 14,849 -| 20m
Codelco Chile [Environmental monitoring In Progress 3,811 | Expenditure | Adm. Expense 796 -| 20m
Salvador 138,153 110,683 | — 167,627
Codelco Chile. [mproved integration of the gas process In Progress 91,755 | — Asset PP EE 76,785 | 100,552 | — 2019
Codelco Chile. [Concentrator fer plant construcion In Progress 28 | Asset PP EE 10,994 – –
Codelco Chile. [Water capture improvement In Progress 147 | — Asset PP EE 807 – –
Codelco Chile — [Talings In Progress 2,008 | Expenditure | Adm. Expense 2,180 1,006 | — 2019
Codelco Chile — [Acid plants In Progress 29,677 | Expenditure | Adm. Expense 18,401 7562 | — 2019
Codelco Chile [Solid waste In Progress 902 | Expenditure | Adm. Expense 768 304 | 2019
Codelco Chile. [Water reaiment plant In Progress 687 | Expenditure | Adm. Expense 528 486 | 2019
Codelco Chile. [Overhaul hickeners talings sal-proy In Progress 1443 | — Asset PP EE 20] 1rese| 2019
Codelco Chile. [Dangerous substances warehouse In Pogress 82| Asset PP EE – 356 | 2019
Codelco Chile [Bell replacement In Pogress 11,185 | — Asset PP eE | 24555 | 2019
Codelco Chile [Ditoh hazardous waste In Pogress 62| Asset PP EE – 865 | 2019
Codelco Chile. [DRPA Emergeney In Pogress 177 | Asset PP EE | 18023 | 2019
Andina 166,793 208,822 | — 59,220
Codelco Chile — [Drain water treament Finished 171] Asset PP EE 11,236 – –
Codelco Chile [Water Normatve Phase 2 In Progress 4,274 | — Asset PP EE 4,095 – –
Codelco Chile. [Construction site emergency plan In Progress 11,176 | — Asset PP eE 22,127 3500 | 2019
Codelco Chile. [Construction site emergenoy plan Finished 5975 | — Asset PP EE 21,670 – –
Codelco Chile. [mproved water intemal ip E2 In Progress 2,620] — Asset PP EE 2,906 – –
Codelco Chile. — [Construction eany alert plan Finished | Asset PP EE 308 – –
Codelco Chile. [mplementaton in RCA compliance well (Hydraulic Barrer) In Progress 3,010 | — Asset PP EE 868 – –
Codelco Chile [Catchment water drainage hil black In Progress 2,301 | — Asset PP EE 329 627| 2019
Codelco Chile. [Constucton canal outine DL east In Progress 6,136 | — Asset PP EE sa] 2040] 2020
Codelco Chile [Standard fuel supply system In Progress 258 | — Asset PP EE 18 – –
Codelco Chile. [Construction site emergency plan In Progress 7,942 | — Asset PP EE 6 5115| 2019
Codelco Chile. [Oo Sbr Level 640 Msnm Trang In Progress 16,720 | — Asset PP eE 63,195 – –
Codelco Chile — [Solid waste In Progress 2,735 | Expenditre | Adm. Expense 1,884 746 | 2019
Codelco Chile. [Water reaiment plant In Progress 3,927 | Expenditure | Adm. Expense 2,591 920] 2019
Codelco Chile — [Traling In Progress 68,220 | Expenditure | Adm. Expense | — 50,956] 17485] 2019
Codelco Chile |Acid drainage In Progress 30,894 | Expenditure | Adm. Expense 17,462 9474 | 2019
Codelco Chile [Environmental monitoring In Progress 564 | Expenditure | Adm. Expense 824 122 | 2019
Codelco Chile [Sustainabilty and external matters management In Progress 2,880 | Expenditure | Adm. Expense 1,462 791 | 2019
Subtotal 797,909 659,388 | 706,233

F-237

CORPORACION NACIONAL DEL COBRE DE CHILE

F-238

36. Subsequent events

– On January 16, 2019, it is reported as an essential fact that Mr. Patricio Chávez Inostroza ceases to
exercise his functions as Vice President of Corporate Affairs and Sustainability of the Corporation and
assuming his duties on an “acting” basis, is, José Pesce Rosenthal who will also maintain the position of
Vice President of Management of Mining Resources and Development, a role he currently exercises.

– On January 28, 2019, it is reported as an essential fact that Codelco issued bonds in New York for USD
1,300 million at 30 years, with an annual rate of 4.375%. This operation will give greater financial flexibility
for it to invest in its structural projects, the first of which, Chuquicamata Subterránea, will start operations
this year. The issue will allow the Corporation to lighten its profile of debt repayments for the period 2020 –
2025 and extend part of its financial commitments to 30 years, matching the payment dates with the years
in which, in addition to Chuquicamata Subterránea, the New Mine level, Andean Transfer and Inca Rajo
also will be in full production.

With this transaction, Codelco’s net debt is not increased and a new step is taken in a sustainable financing,
according to the guidelines given by the Board of Directors in terms of advancing the realization of structural
projects and maintaining a solid financial position.

In this way, Codelco launched in New York an offer to purchase its bonds issued in dollars with maturities
between 2020 and 2025. The offer of purchase points to two groups of bonds. The first includes those with
expiration in 2020, 2021, and 2022, and was offered for aggregate amount of up to US$1,907 million, which
corresponds to the total maturities of those papers.

These activities were led on this occasion by HSBC Securities (USA) Inc., JP Morgan Securities
LLC, Citigroup Global Markets Inc., and Scotiabank.

The impact on results associated with this refinancing, reached an estimated loss after taxes of US$14
million.

– On February 1, 2019, it is reported as essential fact, the withdrawal from the Corporation of Mr. Ricardo
Montoya Peredo, General Manager of the Gabriela Mistral Division; and, on an “acting” basis, Mr. Gustavo
Cordova Alfaro, who up until this date had served as the Mine Manager of the same Division, assumes his
role.

– On February 8, 2019, itwas reported as an essential fact, according to the provisions in Circular No. 1,072,
details of the financing operation carried out on January 28, 2019.

– On February 8, 2019, it was reported as an essential fact that, on the occasion of climatic phenomenon
that affected the north of the country, Codelco has had to put on hold part of the tasks in divisions
Chuquicamata and Ministro Hales. The restoration of operations will be progressive as long as the climatic
conditions allow, while mitigation measures to minimize the effects of this paralysis are put in place.

F-239
CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of US dollars of the United States of America, except as indicated in other currency or unit)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

It is estimated that, with the existing information up to this moment, this situation will not cause a material
or significant impact on Codelco’s results in 2019.

– On February 28, 2019, an extraordinary capital contribution was received through the Exempt Decree No.
311 of the Ministry of Finance, pursuant to Law No. 20.970, for an amount of TRUS$400 million.

– On March 1, 2019, it was reported as an essential fact that it was proceeded to designate from April 1,
2019, the following principal executives:

1. Mr. Jaime Rivera Machado was appointed as General Manager of the Andina Division.
2. Mr. Andrés Music Garrido was appointed as General Manager of the Ministro Hales Division.
3. Mr. Sergio Herbage Lundín was appointed as General Manager of the Gabriela Mistral Division.

– As of March 1, 2019, the role of Vice-Presidency of Technology was created reporting to the Executive
President., Don Alvaro García González was appointed, starting on March 11, 2019.

The administration of the Corporation is not aware of other significant events of a financial nature or of any
other nature that could affect these financial statements, which occurred between January 1, 2019 and the
date of issuance of these consolidated financial statements up to the March 28, 2019.

Nelson Pizarro Contador Alejandro Rivera Stambuk
Chief Executive Officer Chief Financial Officer
Gonzalo Zamorano Martínez Javier Tapia Avila
Accounting and Finance Control Manager Accountant Director

F-240
THE ISSUER

CODELCO

Corporación Nacional del Cobre de Chile
Huérfanos 1270
Santiago
Republic of Chile

TRUSTEE

The Bank of New York Mellon
240 Greenwich Street, Floor 7 East
New York, New York 10286
United States
COMISIÓN PARA EL
MERCADO FINANCIERO
CHILE

ANEXO 3

SUBSCRIPTION AGREEMENT

COMISIÓN PARA EL. MERCADO FINANCIERO
7
Execution Version

U.S.$200,000,000
CORPORACIÓN NACIONAL DEL COBRE DE CHILE
Regulation S Note Program
SUBSCRIPTION AGREEMENT
July 15, 2019

Daiwa Capital Markets America Inc.
Financial Square, 32 Old Slip
New York, NY 10005

(the “Dealer Manager”)

Ladies and Gentlemen:

Corporación Nacional del Cobre de Chile, a state-owned enterprise organized under the
laws of Chile (the “Issuer”), hereby confirms its agreement with the Dealer Manager with respect
to the establishment of a program (the “Program” for the issuance and sale from time to time by
the Issuer of up to an aggregate principal amount at any one time outstanding of
U.S.$200,000,000 (or the equivalent in foreign currencies) of one or more series of its senior
unsecured notes (the “Notes”). The Notes will be issued pursuant to the Indenture, dated as of
February 5, 2019 (the “Base Indenture”), among the Issuer, The Bank of New York Mellon, as
trustee, paying agent, transfer agent and registrar (the “Trustee”), and The Bank of New York
Mellon SA/NV, Luxembourg Branch, as Luxembourg paying agent (the “Paying Agent”), as
amended or supplemented from time to time, among the Issuer, Trustee and Paying Agent and
the other paying agents and transfer agents named therein (such amendments or supplements,
together with the Base Indenture, the “Indenture”).

The Notes will be sold to the Dealer Manager in a transaction exempt from, or not subject
to, the registration requirements of the U.S. Securities Act of 1933, as amended (the “Securities
Act”).

The Issuer has prepared a base prospectus dated July 15, 2019 (as amended or
supplemented from time to time, the “Base Prospectus”) in accordance with applicable laws and
regulations, setting forth information concerning the Issuer and the Notes. The Issuer hereby
confirms that it has authorized the use of the Base Prospectus and the General Disclosure
Package (as defined below) in connection with the offering and resale of the Notes by the Dealer
Manager in the manner contemplated by this Agreement.

The Notes will have the maturities, interest rates, redemption provisions, if any, and other
terms set forth in the Base Prospectus as it may be amended or supplemented from time to time.
The Notes will be issued, and the terms and conditions thereof established, from time to time by
the Issuer in accordance with the Indenture.
With respect to each issue of Notes, “Applicable Time” means such time on the date of
the applicable Final Terms (as defined below) as is specified therein as the Execution Time, and
“General Disclosure Package” means the Base Prospectus as amended or supplemented at the
Applicable Time, taken together with the final pricing information relating to such issuance of
Notes substantially in the form of Annex A attached hereto (the “Final Terms”).

The Issuer hereby confirms its agreement with the Dealer Manager concerning the
purchase and resale of the Notes, as follows:

1. Purchase and Resale of the Notes.

(a) With respect to each issue of Notes, the Dealer Manager agrees with the
Issuer to purchase the Notes at the aggregate purchase price (the “Purchase Price”) and on the
terms set forth in the Final Terms.

(b) The Issuer understands that the Dealer Manager intends to offer the Notes
pursuant to Regulation S under the Securities Act (“Regulation S”), as soon after the parties
hereto have executed and delivered this Agreement as in the judgment of the Dealer Manager is
advisable and initially on the terms set forth in the General Disclosure Package. The Dealer
Manager represents and warrants to, and agrees with, the Issuer that:

(1) it is a qualified institutional buyer within the meaning of
Rule 144A (a “QIB”) and an accredited investor within the meaning of Rule 501(a) of
Regulation D under the Securities Act (“Regulation D”);

(11) it has not solicited offers for, or offered or sold, and will not solicit
offers for, or offer or sell, the Notes by means of any form of general solicitation or
general advertising within the meaning of Rule 502(c) of Regulation D or in any manner
involving a public offering within the meaning of Section 4(a)(2) of the Securities Act;
and

(tii) it has not solicited offers for, or offered or sold, and will not solicit
offers for, or offer or sell, the Notes as part of their initial offering outside of the U.S.
except in accordance with the selling restrictions set forth in Annex B hereto.

(c) The Dealer Manager acknowledges and agrees that the Issuer and, for
purposes of the opinion to be delivered to the Trustee pursuant to the Indenture, counsel to the
Issuer may rely upon the accuracy of the representations and warranties of the Dealer Manager,
and compliance by the Dealer Manager with its representations and agreements contained in this
Section 1 and Section 5 hereof, and the Dealer Manager hereby consents to such reliance.

(d) The Issuer acknowledges and agrees that (i) the purchase and sale of the
Notes pursuant to this Agreement is an arm’s-length commercial transaction between the Issuer,
on the one hand, and the Dealer Manager, on the other hand, (ii) in connection with the offering
contemplated hereby and the process leading to such transaction, the Dealer Manager is, and has
been, acting solely as a principal and is not the agent or fiduciary of the Issuer directly or
indirectly, (iii) the Dealer Manager has not and will not assume an advisory or fiduciary
responsibility in favor of the Issuer with respect to the offering contemplated hereby or the
process leading thereto (irrespective of whether such Dealer Manager has advised or is currently
advising the Issuer on other matters) and the Dealer Manager has no similar obligation to the
Issuer with respect to the offering of the Notes contemplated hereby except the obligations
expressly set forth in this Agreement, (iv) the Dealer Manager and its affiliates may be engaged
in a broad range of transactions that involve interests that differ from those of the Issuer and (v)
the Dealer Manager has not provided any legal, accounting, regulatory or tax advice with respect
to the offering contemplated hereby, and the Issuer has consulted its own legal, accounting,
regulatory and tax advisors to the extent the Issuer deemed appropriate.

2. Payment and Delivery.

(a) Payment for and delivery of the each issue of Notes will be made at the
time and date as the Dealer Manager and the Issuer agree to in writing. With respect to each
issue of Notes, the time and date of such payment and delivery is referred to herein as the
“Closing Date.” Delivery of the Notes shall be made through the facilities of Euroclear Bank
SA/NV (“Euroclear”) and Clearstream Banking, S.A. (“Clearstream”) and any other relevant
clearing system unless the Dealer Manager shall otherwise instruct.

(b) The Notes to be purchased by the Dealer Manager hereunder will be
represented by one or more definitive global Notes in book-entry form (each, a “Global Note”)
which will be registered in the name of a nominee for a common depositary (“Common
Depositary”) on behalf of Clearstream and Euroclear for credit on the applicable Closing Date to
the accounts of the Dealer Manager at Euroclear and Clearstream. The Issuer will cause the
certificates representing the Notes to be made available to the Dealer Manager for review at least
24 hours prior to the applicable Closing Date. The Issuer will deliver or cause the delivery of the
Global Note relating to each issuance of Notes, duly executed by the Issuer and authenticated by
the Trustee in accordance with the Indenture to the Common Depositary. Against such delivery,
the Dealer Manager shall pay or cause to be paid to the Issuer the Purchase Price, with any
transfer taxes payable in connection with the initial sale of the Notes duly paid by the Issuer.

3. Representations, Warranties and Agreements of the Issuer.
The Issuer represents, warrants and agrees with the Dealer Manager that:

(a) Base Prospectus and General Disclosure Package. (1) The Base Prospectus
and any amendments or supplements thereto, as of their respective dates, did not and will not;
and (ii) with respect to each issue of Notes, the General Disclosure Package and any amendments
or supplements thereto, at the Applicable Time, will not, in each case contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading; provided, however, that the Issuer does not make any representation or warranty
with respect to any statements or omissions made in reliance upon and in conformity with
information furnished to the Issuer in writing by the Dealer Manager expressly for use in the
Base Prospectus or the General Disclosure Package (it being understood and agreed that the only
such information is that described in Section 7(g) hereof).

(b) Additional Written Communications. The Issuer (including its agents and
representatives, other than the Dealer Manager in its capacity as such) has not prepared, made,
used, authorized, approved or referred to nor will prepare, make, use, authorize, approve or refer
to any Written Communication that constitutes an offer to sell or solicitation of an offer to buy
the Notes (each such communication by the Issuer or its agents and representatives (other than a
communication referred to in clauses (i) and (ii) below), an “Issuer Written Communication”)
other than (i) the Base Prospectus, (1i) the General Disclosure Package and (ii) any electronic
road show or other Written Communications, in each case used in accordance with Section 4(c)
hereof. Each Issuer Written Communication, when taken together with the General Disclosure
Package, as of the Applicable Time and at the applicable Closing Date, will not contain any
untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading; provided, however, that the Issuer does not make any representation or warranty
with respect to any statements or omissions made in reliance upon and in conformity with
information furnished to the Issuer in writing by the Dealer Manager expressly for use in an
Issuer Written Communication (it being understood and agreed that the only such information is
that described in Section 7(g) hereof).

(c) Financial Statements. The financial statements and the related notes
thereto included in the General Disclosure Package presents fairly the financial position of the
Issuer and its Consolidated Subsidiaries as of the dates shown and their results of operations and
statements of changes in cash flow and equity for the periods shown, and except as otherwise
disclosed in the General Disclosure Package, such financial statements have been prepared in
conformity with International Financial Reporting Standards as adopted by the International
Accounting Standards Board applied on a consistent basis.

(d) No Material Adverse Change. Since the dates as of which information is
given in the General Disclosure Package, nothing has occurred giving rise to a current or
prospective material adverse change in the condition (financial or otherwise), business or
properties of the Issuer and its Subsidiaries, taken as a whole, whether or not arising from
transactions in the ordinary course of business, except (i) as set forth in or contemplated in the
General Disclosure Package (exclusive of any amendment or supplement thereto) and (ii) where
any such loss or interference would not, individually or in the aggregate, have a material adverse
effect on the condition (financial or otherwise), business or properties of the Issuer and its

Subsidiaries, taken as a whole, the Indenture, the Notes or this Agreement (a “Material Adverse
Effect”).

(e) Organization. The Issuer has been duly created and is validly existing as a
state-owned enterprise under the laws of Chile with corporate power and authority to enter into
the Indenture, the Notes and this Agreement and to own its properties and conduct its business as
described in the General Disclosure Package and is duly qualified to do business in all other
jurisdictions in which its ownership or lease of property or the conduct of its business requires
such qualification, except where the failure to be so qualified or have power or authority would
not, individually or in the aggregate, have a Material Adverse Effect.
(6 Capitalization. The Issuer is wholly owned by the Republic of Chile.
There are no outstanding subscriptions, rights, warrants, calls, commitments of sale or options to
acquire, or instruments convertible into or exchangeable for, any equity or other ownership
interest of the Issuer.

(2) Base Indenture; Supplemental Indentures. (i) The Base Indenture has been
duly authorized, executed and delivered by the Issuer, and constitutes a legal, valid and binding
instrument enforceable against the Issuer in accordance with its terms, subject to fraudulent
transfer, reorganization, moratorium and other similar laws of general applicability relating to or
affecting creditors” rights generally and to general equity principles (collectively, the
“Enforceability Exceptions”); and (ii) with respect to each issue of Notes, any supplements or
amendments related to the Base Indenture, as of the applicable Closing Date, will be duly
authorized, executed and delivered by the Issuer, and will constitute a legal, valid and binding
instrument enforceable against the Issuer in accordance with its terms, subject to the
Enforceability Exceptions.

(h) Notes. The issuance of the Notes has been duly authorized by the Issuer
(including, without limitation, by approval of its board of directors) and, when executed by the
Issuer, authenticated by the Trustee in accordance with the provisions of the Indenture and
delivered and paid for by the Dealer Manager in accordance with the terms of this Agreement
and the Indenture, will constitute valid and binding obligations of the Issuer, entitled to the
benefits provided by the Indenture, and enforceable against the Issuer in accordance with their
terms, subject to the Enforceability Exceptions.

(1) Subscription Agreement. This Agreement has been duly authorized,
executed and delivered by the Issuer.

(6) No Conflicts. The execution, delivery and performance of the Indenture,
the Notes and this Agreement, and the issuance and sale of the Notes and compliance with the
terms and provisions hereof and thereof will not result in a breach or violation of any of the
terms and provisions of, or constitute a default under, or result in the creation of any claim, lien
or encumbrance on any property of the Issuer or any Subsidiary of the Issuer under (1) any
provision of applicable Chilean law; (ii) the Decree Law No. 1,350 of 1976, as amended from
time to time, and the Issuer?s by-laws, as restated in Decree No. 3 of January 13, 2012 and
published in the Official Gazette on July 4, 2012, or the Estatutos of the Issuer; (iii) any statute,
rule, regulation or order of any governmental agency or body or any court (Chilean or foreign)
having jurisdiction over the Issuer or any of its Subsidiaries or any of their properties; or (iv) any
agreement or instrument to which the Issuer is a party or by which the Issuer is bound or to
which any of the properties of the Issuer or any of its Subsidiaries is subject; and the Issuer has
full power and authority to authorize, issue and sell the Notes as contemplated by this
Agreement.

(k) No Consents. No consent, approval, authorization or order of, or filing
with, any governmental agency or body or any court is required for the consummation of the
transactions contemplated by the Indenture, the Notes or this Agreement or in connection with
the issuance and sale of the Notes by the Issuer or the transactions contemplated hereby and
thereby, except for (1) the following authorizations and registrations required by Chilean law,
which have been obtained and remain in full force and effect: (A) authorization granted by the
President of Chile and by Decree of the Minister of Finance, whether general or specific,
pursuant to Article 4 of Decree Law No. 2,349 of 1978 and pursuant to Decree No. 1,009 issued
by the Ministry of Finance, published in the Official Gazette on December 23, 1978, as renewed
by Decree No. 1,656 dated December 5, 2018 and published in the Official Gazette on January
15, 2019; (B) authorization granted by the Minister of Finance to the Issuer to enter into
negotiations relating to the issue of the Notes, pursuant to Decree Law No. 1,350 of 1976, as
amended and pursuant to Ordinary Resolution No. 1070 issued by the Ministry of Finance on
June 3, 2019; and (C) the delivery to the Ministry of Finance and the Ministry of Mining for
approval and possible review of the proposed annual budget and a debt amortization budget
pursuant to Decree Law No. 1,350 of 1976, as amended; (ii) in relation to each issue of Notes,
authorization granted by the Minister of Finance to the Issuer to issue the Notes, each of which
will be obtained in due course; and (iii) such as may be required under the blue sky or securities
laws of any jurisdiction in connection with the purchase and distribution of the Notes by the
Dealer Manager in the manner contemplated herein and in the General Disclosure Package.
Pursuant to Article 52 of the Organic Law of the Central Bank of Chile and Decree Law No.
1,350 of 1976, as amended, the Issuer is exempt from the Central Bank of Chile”s regulations in
connection with the issuance, placement and payments upon the Notes. The Issuer is entitled to
make payments under the Notes with its own available foreign currency obtained from its export
operations and deposited with the Central Bank of Chile.

0) Properties. The Issuer and each of its Subsidiaries have good and
marketable title to all real properties and all other properties and assets owned by them, in each
case free from liens, encumbrances and defects that would materially affect the value thereof or
materially interfere with the use made or to be made thereof by them; and the Issuer and each of
its Subsidiaries hold any leased real or personal property under valid and enforceable leases with
such exceptions as are not material to the Issuer and its Subsidiaries taken as a whole, and that
would not materially interfere with the use made or to be made thereof by them, except where
the failure to have such good and marketable title or valid and enforceable lease would not,
individually in the aggregate, have a Material Adverse Effect.

(m) Concessions and Licenses. The Issuer and each of its Subsidiaries possess
all concessions, licenses, certificates, authorizations, orders or permits issued by appropriate
governmental agencies or bodies necessary to conduct the business now operated by them and
have not received any notice of proceedings relating to the revocation, rescate or modification of
any such license, certificate, authorization, order or permit, that, if determined adversely to the
Issuer or any of its Subsidiaries, would, individually or in the aggregate, have a Material Adverse
Effect.

(n) Labor Disputes. No labor dispute with the employees of the Issuer or any
of its Subsidiaries exists or, to the knowledge of the Issuer, is imminent that would, individually
or in the aggregate, have a Material Adverse Effect.

(o) Intellectual Property. The Issuer and each of its Subsidiaries owns, possess
or can acquire on reasonable terms, adequate trademarks, trade names and other rights to
inventions, know-how, patents, copyrights, confidential information and other intellectual
property (collectively, “intellectual property rights”) necessary to conduct the business now
operated by them, and have not received any notice of infringement of or conflict with asserted
rights of others with respect to any intellectual property rights that, if determined adversely to the
Issuer or any of its Subsidiaries, would, individually or in the aggregate, have a Material Adverse
Effect.

(p) Environmental Laws. The Issuer and its Subsidiaries (1) are not in
violation of any statute, rule, regulation, decision or order of any governmental agency or body
or any court (Chilean or foreign) relating to the use, disposal or release of hazardous or toxic
substances or relating to the protection or restoration of the environment or human exposure to
hazardous or toxic substances (collectively, “Environmental Laws”, (11) do not own or operate
any real property contaminated with any substance that is subject to any Environmental Laws,
(iii) are not liable for any off-site disposal or contamination pursuant to any Environmental
Laws, or (iv) are not subject to any claim relating to any Environmental Laws, which violation,
contamination, liability or claim would, individually or in the aggregate, have a Material Adverse
Effect; and the Issuer is not aware of any pending investigation that would, individually or in the
aggregate, have a Material Adverse Effect.

(q) Legal Proceedings. There are no pending investigations, actions, suits or
proceedings against or affecting the Issuer or any of its Subsidiaries or any of their respective
properties that, if determined adversely to the Issuer or any Subsidiary, would, individually or in
the aggregate, have a Material Adverse Effect, or would materially and adversely affect the
ability of the Issuer to perform its obligations under the Indenture, the Notes or this Agreement,
or which are otherwise material in the context of the issuance and sale of the Notes; and no such
investigations, actions, suits or proceedings are threatened or, to the Issuer”s best knowledge,
contemplated.

(1) Unlawful Payments. Neither the Issuer nor any of its Subsidiaries nor, to
the best knowledge of the Issuer, any current director, officer or employee of, or any person
acting on behalf of, the Issuer or any of its Subsidiaries, has violated or is in violation of, with
respect to the Issuer or any of its Subsidiaries, any provision of any Chilean law concerning
bribery or public corruption, the U.S. Foreign Corrupt Practices Act of 1977 or the UK Bribery
Act 2010, each as may be amended, or has made a material violation of any other similar law of
any other relevant jurisdiction, or the rules or regulations thereunder. The Issuer has instituted
and maintains and will continue to maintain policies and procedures designed to promote and
ensure, and which are reasonably expected to continue to ensure, continued compliance with all
applicable anti-bribery and anti-corruption laws.

(s) Money Laundering Laws. The operations of the Issuer and its Subsidiaries
are and have been conducted at all times in material compliance with applicable money
laundering statutes, the rules and regulations thereunder and any related or similar rules,
regulations or guidelines, issued, administered or enforced by any governmental or regulatory
authorities in Chile or, to the extent, if any, applicable, the financial recordkeeping and reporting
requirements of the U.S. Currency and Foreign Transactions Reporting Act of 1970, as amended
(collectively, the “Money Laundering Laws”), and no action, suit or proceeding by or before any
court or governmental or regulatory authorities or any arbitrator involving the Issuer or any of its
Subsidiaries with respect to Money Laundering Laws is pending or, to the knowledge of the
Issuer, threatened. The Issuer has instituted and maintains policies and procedures reasonably
designed to promote and achieve compliance with all applicable Money Laundering Laws.

(t) Compliance with Sanctions. Neither the Issuer nor any of its Subsidiaries
nor, to the best of the Issuer?s knowledge, any of its or their directors, officers, agents,
employees or affiliates, is an individual or entity that is, or is owned or controlled by a person
that is, (1) currently the subject or target of any sanctions administered or enforced by the U.S.
Government (including, without limitation, the Office of Foreign Assets Control of the U.S.
Department of the Treasury, the U.S. Department of State, or the Bureau of Industry and
Security of the U.S. Department of Commerce), the European Union, Her Majesty”s Treasury of
the United Kingdom or the United Nations Security Council (collectively, “Sanctions” and each
such person, a “Sanctioned Person”) or (ii) is located or resident in a country or territory that is,
or whose government is, the subject of Sanctions (currently, the Crimea Region, Venezuela,
Cuba, Iran, Libya, North Korea and Syria) (each, a “Sanctioned Country”). The Issuer will not,
directly or indirectly, use the proceeds of the offering of the Notes hereunder, or lend, contribute
or otherwise make available such proceeds to any Subsidiary, joint venture partner or other
person or entity to fund or finance any activities or business of or with any Sanctioned Person or
in any Sanctioned Country in a manner that would result in a violation by any person (including
any person participating in the transaction, whether as underwriter, manager, initial purchaser,
advisor, investor or otherwise) of Sanctions.

(u) Taxes. The Issuer and its Subsidiaries have filed all tax and other similar
returns required to be filed through the date hereof and have paid all taxes required to be paid by
them and all other assessments, fines or penalties levied against them to the extent that any of the
foregoing have become due, except (i) for any such tax, assessment, fine or penalty that is being
contested in good faith and as to which appropriate reserves have been established or (ii) where
the failure to file such returns or pay such taxes, assessments, fines or penalties would not,
individually or in the aggregate, have a Material Adverse Effect; and the Issuer has no
knowledge of any tax deficiency that has been, or could reasonably be expected to be, asserted
against the Issuer, any of its Subsidiaries or any of their respective properties or assets, except (1)
for taxes that are being contested in good faith and as to which appropriate reserves have been
established or (ii) for a deficiency that would not, individually or in the aggregate, have a
Material Adverse Effect.

(v) Accounting Controls. The Issuer and its Consolidated Subsidiaries
maintain systems of internal accounting controls sufficient to provide reasonable assurance that
(1) transactions are executed in accordance with management’s general or specific authorization;
(ii) transactions are recorded as necessary to permit preparation of financial statements in
conformity with generally accepted financial reporting standards and to maintain asset
accountability; (111) access to assets is permitted only in accordance with management’s general
or specific authorization; and (iv) the recorded accountability for assets is compared with the
existing assets at reasonable intervals and appropriate action is taken with respect to any
differences.

(w) Integration. Neither the Issuer nor any of its affiliates (as defined in Rule
501(b) of Regulation D) has directly, or through any agent, sold, offered for sale, solicited offers
to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act) that is
or will be integrated with the sale of the Notes, in a manner that would require the registration of
the Notes under the Securities Act.

() General Solicitation and Directed Selling Efforts. None of the Issuer, any
affiliate of the Issuer or any person acting on its or their behalf (other than the Dealer Manager,
or any affiliate of the Dealer Manager, as to which no representation is made) has offered or sold
the Notes by means of any general solicitation or general advertising within the meaning of Rule
502(c) under the Securities Act, or by means of any directed selling efforts within the meaning of
Rule 902 under the Securities Act, and the Issuer, any affiliate of the Issuer and any person
acting on its or their behalf (other than the Dealer Manager, or any affiliate of the Dealer
Manager, as to which no representation is made) have complied with and will implement the
offering restrictions requirements of Regulation S.

(y) Securities Law Exemptions. Assuming the accuracy of the representations
and warranties of the Dealer Manager contained in Section 1 hereof and Section 5 hereof and
compliance by the Dealer Manager with its agreements set forth therein, it is not necessary in
connection with the offer, sale and delivery of the Notes by the Issuer to the Dealer Manager and
by the Dealer Manager to subsequent purchasers thereof in the manner contemplated by this
Agreement and the General Disclosure Package to register the Notes under the Securities Act or
to qualify the Indenture under the U.S. Trust Indenture Act of 1939, as amended.

(z) Investment Company Act. The Issuer is not and, after giving effect to the
offering and sale of the Notes and the application of the proceeds thereof as described in the
General Disclosure Package, will not be an “investment company” as defined in the U.S.
Investment Company Act of 1940, as amended.

(aa) Stamp, Transfer and Withholding Taxes. Except as disclosed in the
General Disclosure Package, there are no transaction, stamp or other issuance or transfer taxes or
duties or other similar fees or withholdings or charges required to be paid in connection with the
execution and delivery of this Agreement, the Indenture, the issuance or sale by the Issuer of the
Notes or the enforcement of the Notes, other than (i) a 0.8% stamp tax on the incurrence of the
indebtedness evidenced by the Notes, which will be paid by the Issuer upon the issuance of the
Notes, (ii) a 4% withholding tax on interest payments, and all other payments deemed to be
interest payments, with respect to the Notes to the extent paid to a person domiciled or residing
outside of Chile (if thin capitalization rules apply, as described in the General Disclosure
Package, such interest payments would be subject to a 35% penalty tax that would be payable by
the Issuer; the withholding tax applicable to the interest payments made by the Issuer can be
credited against such 35% penalty tax) and (iii) an up to 35% withholding tax on all other
payments of fees, compensation or reimbursement of costs to be made by the Issuer.

(bb) Absence of Immunity. The Issuer has validly and irrevocably waived,
pursuant to Section 12 hereof, and will have validly and irrevocably waived pursuant to the
Indenture and the Notes, for itself and its revenues and assets, to the extent permitted by
applicable law, any immunity from suit, jurisdiction, attachment in aid or execution of a
judgment or prior to a judgment, execution of a judgment or any other legal process with respect
to its obligations, respectively, under this Agreement, the Indenture and the Notes to which it
may be entitled or become entitled whether or not claimed, including sovereign immunity,
except that (i) for the attachment and judicial sale of mining concessions and installations and
other goods permanently dedicated to exploration or extraction of minerals relating to such
mining concessions, except with respect to mortgages, the consent of the Issuer will be required
and shall be given in the same judicial proceeding in which the attachment and sale is sought (as
set forth in article 226 of the Mining Code of Chile); and (ii) pursuant to the Chilean
Constitution, the mining concessions corresponding to mining deposits exploited by the Issuer
upon its creation in 1976 cannot be subject to attachment nor to any act of disposition by the
Issuer. Each such waiver is binding under Chilean law and remains in full force and effect.

(cc) Stabilization. The Issuer has not taken, directly or indirectly, any action
designed to or that could reasonably be expected to cause or result in any stabilization or
manipulation of the price of the Notes.

(dd) Forward-Looking Statements. No forward-looking statement (within the
meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) included in
the General Disclosure Package has been made or reaffirmed without a reasonable basis or has
been disclosed other than in good faith.

(ee) Independent Accountants. Deloitte Auditores y Consultores Ltda., who
have audited the full-year 2017 financial statements of the Issuer included in the General
Disclosure Package and conducted a limited review of the interim unaudited financial statements
of the Issuer as of September 30, 2018 and for the nine-month periods ended September 30, 2017
and 2018 included in the General Disclosure Package, are an independent audit firm with respect
to the Issuer.

4. Further Agreements of the Issuer.

The Issuer covenants and agrees with the Dealer Manager that:

(a) Delivery of Copies. The Issuer will deliver to the Dealer Manager
electronic copies of the Base Prospectus, the General Disclosure Package and any Issuer Written
Communication (including all amendments and supplements thereto) as the Dealer Manager may
reasonably request.

(b) Base Prospectus, Amendments or Supplements. Before finalizing the Base
Prospectus and making or distributing any amendment or supplement to the General Disclosure
Package, the Issuer will promptly inform and furnish to the Dealer Manager an electronic copy
of the proposed Base Prospectus or such amendment or supplement for review, and will not
distribute any such proposed Base Prospectus, amendment or supplement to which the Dealer
Manager reasonably objects.

(c) Additional Written Communications. Before making, preparing, using,
authorizing, approving, distributing or referring to any Issuer Written Communication, the Issuer
will furnish to the Dealer Manager a copy of such Written Communication for review and will
not make, prepare, use, authorize, approve or refer to any such written communication to which
the Dealer Manager reasonably objects.

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(d) Notice to the Dealer Manager. The Issuer will advise the Dealer Manager
promptly, and confirm such advice in writing, (1) of the issuance by any governmental or
regulatory authority of any law, regulation, order or notice preventing or suspending the use of
the General Disclosure Package or any Issuer Written Communication or the initiation or
threatening of any proceeding for that purpose; (ii) of the occurrence of any event at any time
prior to the completion of each offering of the Notes as a result of which the General Disclosure
Package or any Issuer Written Communication as then amended or supplemented would include
any untrue statement of a material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances existing when such General Disclosure
Package or any Issuer Written Communication is delivered to a purchaser, not misleading; and
(iii) of the receipt by the Issuer of any notice with respect to any suspension of the qualification
of the Notes for offer and sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose; and the Issuer will use its reasonable efforts to prevent the issuance
of any such order preventing or suspending the use of the General Disclosure Package or any
Issuer Written Communication or suspending any such qualification of the Notes and, if any
such order is issued, will obtain as soon as possible the withdrawal thereof.

(e) General Disclosure Package. If at any time prior to the applicable Closing
Date, (1) any event shall occur or condition shall exist as a result of which the General Disclosure
Package as then amended or supplemented would include any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading or (ii) it is necessary to amend or
supplement any General Disclosure Package to comply with applicable law, the Issuer will
immediately notify the Dealer Manager and forthwith prepare and, subject to Section 4(b)
hereof, furnish to the Dealer Manager such amendments or supplements to any General
Disclosure Package as may be necessary so that the statements in the General Disclosure
Package as so amended or supplemented will not, in light of the circumstances under which they
were made, be misleading or so that any General Disclosure Package will comply with
applicable law.

(£) Use of Proceeds. The Issuer will apply the net proceeds from the sale of
the Notes as described under the caption “Use of Proceeds” in the General Disclosure Package.

(2) Information Updates. For a period of one year following the Closing Date,
the Issuer will furnish to the Dealer Manager copies of such publicly available financial or other
information in respect of the Issuer as may reasonably be requested by the Dealer Manager from
time to time.

(h) Euroclear and Clearstream. The Issuer will assist the Dealer Manager in
arranging for the Notes to be eligible for clearance and settlement through Euroclear and
Clearstream.

(1) No Resales by the Issuer. The Issuer will not, and will use its best efforts
to cause its affiliates (as defined in Rule 144 under the Securities Act) not to, resell any of the
Notes that have been acquired by any of them, except for Notes purchased by the Issuer or any of
its affiliates and resold in a transaction registered under the Securities Act.

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(6) No Integration. Neither the Issuer nor its affiliates will, directly or through
any agent, sell, offer for sale, solicit offers to buy or otherwise negotiate in respect of, any
security (as defined in the Securities Act) that is or will be integrated with the sale of the Notes
in a manner that would require registration of the Notes under the Securities Act.

(k) No General Solicitation or Directed Selling Efforts. Neither the Issuer nor
its affiliates nor any other person acting on its or their behalf (other than the Dealer Manager, as
to which no covenant or agreement is made) will (1) solicit offers for, or offer or sell, the Notes
by means of any form of general solicitation or general advertising within the meaning of Rule
502(c) of Regulation D or in any manner involving a public offering within the meaning of
Section 4(a)(2) of the Securities Act or (ii) engage in any directed selling efforts within the
meaning of Regulation S, and all such persons will comply with the offering restrictions
requirements of Regulation S.

0) No Stabilization. The Issuer will not take, directly or indirectly, any action
designed to or that could reasonably be expected to cause or result in any stabilization or
manipulation of the price of the Notes.

(m) Process Agent. For so long as the Notes remain outstanding, the Issuer
will maintain an authorized agent upon whom process may be served in any legal suit, action or
proceeding based on or arising under this Agreement, and promptly communicate in writing to
the Dealer Manager of any change of such authorized agent.

(n) Offer and Sale of Notes. The Issuer will arrange, if necessary, for the
qualification of the Notes for offering and sale under the securities laws of such jurisdictions as
the Dealer Manager may request and to comply with such laws so as to permit the continuance of
sales and dealings therein in such jurisdictions for as long as may be necessary to complete the
distribution of the Notes; provided that in connection therewith the Issuer shall not be required to
qualify to do business in any jurisdiction where it is not now so qualified or to file a general
consent to service of process in any jurisdiction where it is not now so subject.

(o) Stamp Tax. The Issuer will indemnify and hold harmless the Dealer
Manager against any documentary, stamp or similar issue tax, including any interest and
penalties, on the creation, issue and sale of the Notes and on the execution and delivery of this
Agreement.

5. Certain Representations, Agreements and Acknowledgements of the Dealer
Manager.
(a) The Dealer Manager hereby represents and agrees that it has not and will

not use, authorize the use of, refer to, or participate in the planning for use of, any Written
Communication that constitutes an offer to sell or the solicitation of an offer to buy the Notes
other than (i) the Base Prospectus, (ii) the General Disclosure Package or any Written
Communication prepared pursuant to Section 4(c) hereof (including any electronic road show),
(111) any Written Communication prepared by the Dealer Manager and approved by the Issuer in
advance in writing, (iv) any Bloomberg or other electronic communications providing certain
ratings or proposed terms of the Notes or relating to marketing, administrative or procedural

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matters in connection with the offering of the Notes or (v) any Written Communication relating
to or that contains the terms of the Notes and/or other information that was included in the Base
Prospectus.

(b) The Dealer Manager hereby represents and warrants to and agrees with the
Issuer that:

(1) Neither it, nor any of its affiliates nor any person acting on its or
their behalf has offered or sold, or will offer or sell, any of the Notes within the United
States or to, or for the account or benefit of, a U.S. person;

(11) Neither it, nor any of its affiliates nor any person acting on its or
their behalf has engaged or will engage in any directed selling efforts (within the meaning
of Regulation S) with respect to the Notes;

(iii) It, its affiliates and any persons acting on its or their behalf has
complied and will comply with (x) the offering restrictions requirement of Regulation S,
and (y) all applicable laws and regulations in each jurisdiction in which it acquires,
offers, sells or delivers Notes or has in its possession or distributes the Base Prospectus,
the General Disclosure Package or any such other Written Communication, in all cases at
its own expense;

(iv) All licenses, consents, approvals, authorizations, orders and
clearances of all regulatory authorities required by the Dealer Manager for or in
connection with the underwriting, subscription and/or distribution of the Notes and the
compliance by the Dealer Manager with the terms of any of the foregoing have been
obtained and are in full force and effect;

(v) The commission payable to the Dealer Manager in relation to each
issue of Notes may not be repaid or refunded by it by any means or in any form to the
Issuer or its related parties or its designated persons;

(vi) It has been and will be solely responsible for assessing the identity
and qualifications of the prospective investors in the Notes that purchase Notes from it
and ensuring that the Base Prospectus is delivered to such investors, in each case prior to
the Applicable Time; and

(vii) It shall deliver the General Disclosure Package to the prospective
investors in the Notes on or before the applicable Closing Date.

(c) The Dealer Manager acknowledges that the Notes have not been registered
in Chile with the Registro de Valores (National Securities Registry) maintained by the Comisión
para el Mercado Financiero (Financial Markets Commission) and that no action has been or will
be taken by the Issuer that would permit a public offering of the Notes in Chile, and that,
accordingly, the Notes may not be publicly offered or sold in Chile.

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(d) With respect to each issue of Notes, the Dealer Manager agrees that it
shall subscribe the Notes in the amounts set forth in the Final Terms on the applicable Closing
Date, all on the terms set forth herein.

6. Conditions of the Dealer Manager”s Obligations.

The obligation of the Dealer Manager to purchase Notes on the applicable Closing
Date as provided herein is subject to the performance by the Issuer of its covenants and other
obligations hereunder and to the following additional conditions:

(a) Representations and Warranties. The representations and warranties of the
Issuer contained herein will be true and correct at the Applicable Time and on and as of the
applicable Closing Date; and the statements of the Issuer and its officers made in any certificates
delivered pursuant to this Agreement will be true and correct on and as of the applicable Closing
Date.

(b) No Downgrade. Subsequent to the earlier of (A) the Applicable Time and
(B) the execution and delivery of this Agreement, (1) none of Standard $: Poor”s Rating Services
(“S£P”) or Moody”s Investors Service, Inc. (“Moody”s”) will have downgraded any debt
securities issued by the Issuer and (1i) none of S£P or Moody”s will have announced that it has
under surveillance or review, or has changed its outlook with respect to, its rating of any debt
securities issued by the Issuer (other than an announcement with positive implications of a

possible upgrading).

(c) Officer”s Certificate. The Dealer Manager shall have received on and as of
the applicable Closing Date a certificate of a senior officer of the Issuer who has specific
knowledge of the Issuer”s financial matters and is satisfactory to the Manager (i) confirming that
such officer has carefully reviewed the General Disclosure Package and, to the knowledge of
such officer, the representations set forth in Section 3(a) hereof are true and correct, (ii)
confirming that the other representations and warranties of the Issuer in this Agreement are true
and correct and that the Issuer has complied with all agreements and satisfied all conditions on
its part to be performed or satisfied hereunder at or prior to the applicable Closing Date and (iii)
to the effect set forth in Sections 3(5) and 6(b) hereof.

(d) Euroclear and Clearstream. The Notes will be eligible for clearance and
settlement through Euroclear and Clearstream.

(e) Corporate Proceedings. All corporate proceedings and other legal matters
incident to the authorization, form and validity of each of the Indenture, the Notes and this
Agreement and all other legal matters relating to this Agreement and the transactions
contemplated hereby and thereby will be reasonably satisfactory in all respects to the Dealer
Manager, and the Issuer will have furnished to the Dealer Manager all documents and
information that it may reasonably request to enable it to pass upon such matters, including but
not limited to (i) adoption of resolutions by the Directorio (the Board of Directors) of the Issuer
authorizing the Issuer to incur the indebtedness represented by the Notes; (ii) the authorization
granted by the Minister of Finance for the Issuer to enter into negotiations relating to the issue of

14
the Notes; and (iii) the authorization granted by the Minister of Finance to the Issuer to issue the
Notes.

7. Indemnification and Contribution.

(a) Indemnification of the Dealer Manager. The Issuer agrees to indemnify
and hold harmless the Dealer Manager, its affiliates, directors, officers, employees, agents and
each person, if any, who controls such Dealer Manager within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims,
damages and liabilities (including, without limitation, reasonable and documented legal fees and
other expenses incurred by any such entity or person in connection with any suit, action or
proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that
arise out of, or are based upon, any untrue statement or alleged untrue statement of a material
fact contained in the Base Prospectus, the General Disclosure Package or any Issuer Written
Communication (or any amendment or supplement thereto) or any omission or alleged omission
to state therein a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading, except insofar as such losses,
claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or
alleged untrue statement or omission made in reliance upon and in conformity with any
information furnished to the Issuer in writing by the Dealer Manager expressly for use therein (it
being understood and agreed that the only such information is that described in Section 7(g)
hereof).

(b) Indemnification of the Issuer. The Dealer Manager agrees to indemnify
and hold harmless the Issuer, its directors, officers, employees and each person, if any, who
controls the Issuer within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act to the same extent as the indemnity set forth in Section 7(a) hereof, but only with
respect to any losses, claims, damages or liabilities that arise out of, or are based upon, any
untrue statement or omission or alleged untrue statement or omission made in reliance upon and
in conformity with any information relating to such Dealer Manager furnished to the Issuer in
writing by the Dealer Manager expressly for use in the General Disclosure Package or any Issuer
Written Communication (or any amendment or supplement thereto) (it being understood and
agreed that the only such information is that described in Section 7(g) hereof), and will
reimburse any reasonable and documented legal fees and other expenses incurred by the Issuer in
connection with defending any such loss, claim, damage, liability or action, as such fees and
expenses are incurred.

(c) Notice and Procedures. If any suit, action, proceeding (including any
governmental or regulatory investigation), claim or demand shall be brought or asserted against
any person in respect of which indemnification may be sought pursuant to either Section 7(a) or
Section 7(b) hereof, such person (the “Indemnified Person”) shall promptly notify the person
against whom such indemnification may be sought (the “Indemnifying Person”) in writing;
provided that the failure to notify the Indemnifying Person will not relieve it from any liability
that it may have under this Section 7 except to the extent that it has been materially prejudiced
(through the forfeiture of substantive rights or defenses) by such failure; and provided, further,
that the failure to notify the Indemnifying Person will not relieve it from any liability that it may
have to an Indemnified Person otherwise than under this Section 7. If any such proceeding shall

15
be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying
Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the
Indemnified Person to represent the Indemnified Person and any others entitled to
indemnification pursuant to this Section 7 that the Indemnifying Person may designate in such
proceeding and shall pay the reasonable and documented fees and expenses of such counsel
related to such proceeding, as incurred. In any such proceeding, any Indemnified Person shall
have the right to retain its own counsel, but the fees and expenses of such counsel will be at the
expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified
Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within
a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the
Indemnified Person shall have reasonably concluded that there may be legal defenses available
to it that are different from or in addition to those available to the Indemnifying Person; or (iv)
the named parties in any such proceeding (including any impleaded parties) include both the
Indemnifying Person and the Indemnified Person and representation of both parties by the same
counsel would be inappropriate due to actual or potential differing interests between them. It is
understood and agreed that the Indemnifying Person will not, in connection with any proceeding
or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than
one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such
fees and expenses will be reimbursed as they are incurred. Any such separate firm for the Dealer
Manager, its affiliates, directors and officers and any control persons of such Dealer Manager
will be designated in writing by the Dealer Manager, and any such separate firm for the Issuer
and any control persons of the Issuer will be designated in writing by the Issuer. The
Indemnifying Person will not be liable for any settlement of any proceeding effected without its
written consent, but if settled with such consent or if there be a final judgment for the plaintiff,
the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss
or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if
at any time an Indemnified Person shall have requested that an Indemnifying Person reimburse
the Indemnified Person for fees and expenses of counsel as contemplated by this Section 7(c),
the Indemnifying Person will be liable for any settlement of any proceeding effected without its
written consent if (i) such settlement is entered into more than 30 days after receipt by the
Indemnifying Person of such request and (ii) the Indemnifying Person shall not have reimbursed
the Indemnified Person in accordance with such request prior to the date of such settlement. No
Indemnifying Person shall, without the written consent of the Indemnified Person, effect any
settlement of any pending or threatened proceeding in respect of which any Indemnified Person
is or could have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (x) includes an unconditional release of such
Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person,
from all liability on claims that are the subject matter of such proceeding and (y) does not
include any statement as to or any admission of fault, culpability or a failure to act by or on
behalf of any Indemnified Person.

(d) Contribution. If the indemnification provided for in Section 7(a) and
Section 7(b) hereof is unavailable to an Indemnified Person or insufficient in respect of any
losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under
such Sections, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to
the amount paid or payable by such Indemnified Person as a result of such losses, claims,

16
damages or liabilities (1) in such proportion as is appropriate to reflect the relative benefits
received by the Issuer on the one hand and the Dealer Manager on the other from the offering of
the Notes or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits referred to in clause (1)
but also the relative fault of the Issuer on the one hand and the Dealer Manager on the other in
connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative benefits received
by the Issuer on the one hand and the Dealer Manager on the other will be deemed to be in the
same respective proportions as the net proceeds (before deducting expenses) received by the
Issuer from the sale of the Notes and the total discounts and commissions received by the Dealer
Manager in connection therewith, as provided in this Agreement, bear to the aggregate offering
price of the Notes. The relative fault of the Issuer on the one hand and the Dealer Manager on the
other will be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Issuer or by the Dealer Manager and the parties” relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission.

(e) Limitation on Liability. The Issuer and the Dealer Manager agree that it
would not be just and equitable if contribution pursuant to this Section 7 were determined by pro
rata allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in Section 7(d) hereof. The amount paid or payable by an Indemnified
Person as a result of the losses, claims, damages and liabilities referred to in Section 7(d) hereof
will be deemed to include, subject to the limitations set forth above, any reasonable and
documented legal or other expenses incurred by such Indemnified Person in connection with any
such action or claim. Notwithstanding the provisions of this Section 7, in no event will the
Dealer Manager be required to contribute any amount in excess of the amount by which the total
discounts and commissions received by such Dealer Manager with respect to the offering of the
Notes exceeds the amount of any damages that such Dealer Manager has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) will be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Dealer Manager”s obligations to contribute pursuant to this
Section 7 are several in proportion to their respective purchase obligations hereunder and not
joint.

(5 Non-Exclusive Remedies. The remedies provided for in this Section 7 are
not exclusive and will not limit any rights or remedies that may otherwise be available to any
Indemnified Person at law or in equity.

(2) Dealer Manager Information. For purposes of this Section 7 and this
Agreement generally, it shall be understood and agreed that the only information furnished to the
Issuer in writing by the Dealer Manager expressly for use therein consists of the statements
concerning the Dealer Manager in (i) the single sentence following the second full paragraph
regarding the purchase price, (ii) the second sentence of the sixth paragraph regarding market
making activities, (iii) the seventh paragraph related to stabilization and syndicate covering

17
transactions and (iv) the third sentence of the ninth paragraph regarding hedging activity under
the heading “Plan of Distribution” in the Base Prospectus.

8. Termination.

This Agreement may be terminated in the absolute discretion of the Dealer
Manager, by notice to the Issuer, if after the execution and delivery of this Agreement and on or
prior to the applicable Closing Date (i) trading generally shall have been suspended or materially
limited on the New York Stock Exchange, the NASDAQ Stock Exchange, Bolsa de Comercio de
Santiago (Santiago Stock Exchange) or minimum prices shall have been established on any such
exchange by such exchange or by any regulatory body having jurisdiction over such exchange;
(ii) trading of any securities issued by any of the Issuer shall have been suspended on any
exchange in Santiago; (iii) a material disruption in securities settlement, payment or clearance
services in the United States, the European Union or Chile shall have occurred; (iv) a banking
moratorium shall have been declared in New York either by federal or New York state
authorities, in Chile by the Chilean Central Bank or other competent government regulator or
other competent government regulator; (v) there shall have occurred any outbreak or escalation
of hostilities involving the United States or Chile or any Chilean, U.S. or international calamity
or crisis that in the judgment of the Dealer Manager is so material and adverse as to make it
impracticable or inadvisable to proceed with the offering, sale or delivery of the Notes on the
terms and in the manner contemplated by this Agreement and the General Disclosure Package; or
(vi) there shall have been such a material adverse change in U.S., Chilean, European Union or
international monetary, general economic, political or financial conditions (including, without
limitation, with respect to currency exchange rates and exchange controls) as to make it, in the
judgment of the Dealer Manager, inadvisable to proceed with the payment for and delivery of the
Notes.

9. Defaulting Dealer Manager. Nothing contained herein will relieve a defaulting
Dealer Manager of any liability it may have to the Issuer for damages caused by its default
hereunder.

10. Payment of Expenses.

(a) Whether or not the transactions contemplated by this Agreement are
consummated or this Agreement is terminated, the Issuer will, subject to Section 10(b) hereof,
pay or cause to be paid all fees, expenses and costs incident to the performance of its obligations
hereunder, including, without limitation, (1) the costs incident to the authorization, issuance, sale,
preparation and delivery of the Notes and any stamp, transfer or similar taxes payable in
connection therewith; (ii) the costs incident to the preparation and/or printing of the Base
Prospectus, the General Disclosure Package and any Issuer Written Communication (including
any amendment or supplement thereto) and the distribution thereof; (iii) the reasonable and
documented fees and expenses of U.S. counsel to the Issuer; (iv) the fees and expenses of the
Trustee and any paying agent, registrar or transfer agent for the Notes (including the reasonable
and documented fees and expenses of any counsel thereto); (v) all expenses and application fees
incurred in connection with the approval of the Notes for clearance and settlement through
Euroclear and Clearstream; and (vi) the reasonable and documented out-of-pocket expenses of
the Dealer Manager incurred in connection with the offering of the Notes.

18
(b) Tf (1) the Issuer for any reason fails to tender the Notes for delivery to the
Dealer Manager or (ii) the Dealer Manager declines to purchase the Notes for any reason
permitted under this Agreement (other than under Section 8(1), (iii), (iv), (v) or (vi) hereof or
Section 9 hereof), the Issuer”s and the Dealer Manager”s respective obligations under Section
10(a) hereof shall continue to apply. If this Agreement is terminated pursuant to Section 9
hereof, the Issuer shall not be obligated to reimburse the Dealer Manager any travel expenses
incurred by the Dealer Manager”s representatives in connection with any road show presentation
referred to in Section 10(a)(vi) or the expenses referred to in Section 10(a(vii).

11. Persons Entitled to Benefit of Agreement. This Agreement will inure to the
benefit of and be binding upon the parties hereto and their respective successors and any
controlling persons referred to herein, and the respective affiliates, officers and directors of the
Dealer Manager referred to in Section 7 hereof. Nothing in this Agreement is intended or will be
construed to give any other person any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein. No purchaser of Notes from the
Dealer Manager will be deemed to be a successor merely by reason of such purchase.

12. Submission to Jurisdiction. Each of the parties hereto irrevocably agrees that any
legal suit, action or proceeding arising out of or based upon this Agreement or the transactions
contemplated hereby may be instituted in any U.S. federal or New York state court located in
The Borough of Manhattan, The City of New York and any competent court located in the
domicile of the Issuer or the Dealer Manager, with respect to actions brought against the Issuer
or the Dealer Manager as defendant, and irrevocably waives, to the fullest extent permitted by
law, any objection which it may now or hereafter have to the laying of venue of any such
proceeding, waives any right to any other jurisdiction to which it may be entitled on account of
place of residence, domicile or any other reason and irrevocably submits to the exclusive
jurisdiction of such courts in any such suit, action or proceeding.

The Issuer acknowledges and accepts that the Indenture, the Notes and this Agreement
are private and commercial rather than public or governmental acts. To the extent that the Issuer
may be entitled in any jurisdiction in which judicial proceedings may at any time be commenced
hereunder, to claim for itself or its revenues or assets any immunity, including sovereign
immunity, from suit, jurisdiction, attachment in aid of execution of a judgment or prior to a
judgment, execution of a judgment or any other legal process with respect to its obligations
hereunder, and to the extent that in any such jurisdiction there may be attributed to the Issuer
such an immunity (whether or not claimed), the Issuer hereby irrevocably agrees not to claim and
irrevocably waives such immunity to the maximum extent permitted by law, except that (i) for
the attachment and judicial sale of mining concessions and installations and other goods
permanently dedicated to exploration or extraction of minerals relating to such mining
concessions, except with respect to mortgages, the consent of the Issuer will be required and
shall be given in the same judicial proceeding in which the attachment and sale is sought (as set
forth in article 226 of the Mining Code of Chile); and (ii) pursuant to the Chilean Constitution,
the mining concessions corresponding to mining deposits exploited by the Issuer upon its
creation in 1976 cannot be subject to attachment nor to any act of disposition by the Issuer. Each
such waiver is binding under Chilean law and remains in full force and effect. Notwithstanding
the foregoing, any action based on this Agreement may be instituted by the Dealer Manager in
any competent court in Chile.

19
13. Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Issuer, on the one hand, and the Dealer Manager, on the other
hand, contained in this Agreement or made by or on behalf of the Issuer or the Dealer Manager
pursuant to this Agreement or any certificate delivered pursuant hereto will survive the delivery
of and payment for the Notes and will remain in full force and effect, regardless of any
termination of this Agreement or any investigation made by or on behalf of the Issuer or the
Dealer Manager.

14. Additional Amounts. Tf the compensation (including a Dealer Manager”s
commission) or any other amounts to be received by the Dealer Manager under this Agreement
(including, without limitation, indemnification and contribution payments), as a result of entering
into, or the performance of its obligations under, this Agreement, are subject to any present or
future taxes, assessments, deductions, withholdings or charges of any nature imposed or levied
by or on behalf of Chile or any political subdivision thereof or taxing authority therein (“Chilean
Taxes”), then the Issuer will pay to such Dealer Manager an additional amount so that the net
amount such Dealer Manager receives, after such withholding or deduction of such Chilean
Taxes, shall equal the amounts that would have been received if no such withholding or
deduction had been made; provided, however, that no such additional amounts shall be paid by
the Issuer on account of any tax imposed on such Dealer Manager by reason of any connection
between such Dealer Manager and Chile or any political subdivision thereof or therein other than
entering into this Agreement and receiving payments hereunder, or enforcement of rights under
this Agreement. If any Chilean Taxes are collected by deduction or withholding, the Issuer will
upon request provide to the Dealer Manager copies of documentation evidencing the transmittal
to the proper authorities of the amount of Chilean Taxes deducted or withheld.

15. Judgment Currency. To the fullest extent permitted under applicable law, the
Issuer will indemnify the Dealer Manager against any loss incurred by it as a result of any
judgment or order against the Issuer, being given or made and expressed and paid in a currency
(“Judgment Currency”) other than U.S. dollars and as a result of any variation as between (1) the
rate of exchange at which the U.S. dollar amount is converted into the Judgment Currency for the
purpose of such judgment or order and (ii) the spot rate of exchange in New York, New York at
which such Manager on the date of payment of such judgment or order is able to purchase U.S.
dollars with the amount of the Judgment Currency actually received by such Manager. The
foregoing indemnity will constitute a separate and independent obligation of the Issuer and will
continue in full force and effect notwithstanding any such judgment or order as aforesaid. The
term “spot rate of exchange” will include any premiums and costs of exchange payable in
connection with the purchase of, or conversion into, U.S. dollars.

16. Certain Defined Terms. For purposes of this Agreement, (a) except where
otherwise expressly provided, the term “affiliate” has the meaning set forth in Rule 405 under the
Securities Act; (b) the term “business day” means any day other than a Saturday, a Sunday or a
legal holiday or a day on which banking institutions in The City of New York, New York,
United States, Santiago, Chile or London, United Kingdom, are authorized or required by law,
regulation or executive order to close; (c) the term “Consolidated Subsidiary” means, at any date,
any Subsidiary or other entity the accounts of which would be consolidated with those of the
Issuer in accordance with IFRS in its consolidated financial statements if such statements were
prepared as of such date; (d) the term “Subsidiary” has the meaning set forth in Rule 405 under

20
the Securities Act; and (e) the term “Written Communication” has the meaning set forth in Rule
405 under the Securities Act.

17. Waiver of Jury Trial. Each of the parties hereto irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.

18. Miscellaneous.

(a) Notices. All notices and other communications hereunder will be in
writing and will be deemed to have been duly given if mailed or transmitted and confirmed by
any standard form of telecommunication. Notices to the Dealer Managers will be given to it c/o
Daiwa Capital Markets America Inc., Financial Square, 32 Old Slip, New York, NY 10005,
Facsimile: 212-612-8305, Attention: Shun Nakamura, Head of Investment Banking. Notices to
the Issuer will be given to it at Corporación Nacional del Cobre de Chile, c/o Nicolai Bakovic
Hudig, General Counsel, Huérfanos 1270, Santiago, Chile, Facsimile: +562-2690-3021,
Attention: Legal Department.

(b) Governing Law. This Agreement will be governed by, and construed in
accordance with, the laws of the State of New York.

(c) Counterparts. This Agreement may be signed in counterparts (which may
include counterparts delivered by any standard form of telecommunication), each of which will
be an original and all of which together will constitute one and the same instrument.

(d) Amendments or Waivers. No amendment or waiver of any provision of
this Agreement, nor any consent or approval to any departure therefrom, will in any event be
effective unless the same shall be in writing and signed by the parties hereto.

(e) Headings. The headings herein are included for convenience of reference
only and are not intended to be part of, or to affect the meaning or interpretation of, this
Agreement.

(6 USA Patriot Act. In accordance with the requirements of the USA Patriot
Act (Title HI of Pub. L. 107-56 (signed into law October 26, 2001)), the Dealer Manager may be
required to obtain, verify and record information that identifies its clients, including the Issuer,
which information may include the name and address of their respective clients, as well as other
information that will allow the Dealer Manager to properly identify its clients.

[Signature pages follow]

21
If the foregoing is in accordance with your understanding, please indicate your
acceptance of this Agreement by signing in the space provided below.

Very truly yours,

CORPORACIÓN NACIONAL DEL COBRE DE
CHILE

Name: Alejandro Sanhueza Diaz
Title: Head of Finance

[Signature Page to Subscription Agreement]
CONFIRMED AND ACCEPTED,
as of the date first above written:

DAIWA CAPI L MARKETS AMERICA INC.

Í
By_ ==> Al
Name: SHN NA4mAMUVA
Title: Heap op Day. BAJÓ,

[Signature Page to Subscription Agreement]
Title:

Issuer:

Issuer Rating:
Issue Rating:
Currency:

Format:

Principal Amount:
Status:

Type of Issue
Trade Date:
Applicable Time:
Settlement Date:
Maturity Date:
Coupon Rate:
Coupon Payment Dates:
Benchmark:
[Make-Whole Call:]
Tax Redemption:

Price for the Dealer
Manager:

Price to the Public (Issue
Price):

Re-Ofter Yield:
Re-Offer Spread:
Day Count:
Business Days:

Business Day Convention:

Denominations:
Settlement:
Form of Notes:
ISIN:

Common Code:

Listing:

Corporación Nacional del Cobre de Chile

[e]

Corporación Nacional del Cobre de Chile (“Codelco”)

[e]
[e]
[e]
[e]
[e]
[e]
[e]
[e]
[e]
[e]
[e]
[e]
[e]
[e]
[e]
[e]
[e]

le]

[e]
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[e]

FINAL TERMS

[1% due [+]
Final Terms

ANNEX A
Paying Agent: [e]

Documentation: [e]
Governing Law [e]
Dealer Manager: [e]

Daiwa Disclamer

This term sheet (the “Final Terms”) is provided for informational purposes only to the recipient for its private use and may not
be copied, reproduced or otherwise distributed by any recipient, whether in whole or in part, without the prior written consent
of Daiwa Capital Markets America Inc. (“DCMA”). The Final Terms is not intended nor should it be construed as a
recommendation or an offer to buy or sell or a solicitation of an offer to buy or sell any security or financial instrument (the
“Securities”) or to otherwise participate in any particular trading strategy in any jurisdiction. The Securities and investment
strategies, if any, discussed in the Final Terms may not be suitable for all investors and investors must make their own
independent investment decisions using their own financial advisors, as they believe necessary, based on their specific financial
situations and investment objectives. The reader should not construe any of the material contained herein as legal, regulatory,
tax or accounting advice and the user should not act on any information in this document without consulting its advisers in
these areas concerning any contemplated transactions.

Although the Final Terms, any opinions or strategies suggested are based upon information that DCMA considers reliable and
endeavors to keep current, DCMA has not verified this information and does not represent that any of the underlying
information on which this document was based is accurate, current or complete, and this document should not be relied upon
as such. Any opinions, strategies, beliefs and other statements expressed herein that are not historical facts are derived from
information available to DCMA at the time the Final Terms was prepared and are subject to a number of assumptions, risks and
uncertainties. DCMA has no obligation to update, modify or amend the Final Terms, the information, any strategies or opinions
contained herein, or otherwise notify the recipient if any of the above assumptions, risks, uncertainties, opinions, strategies or
beliefs change, subsequently become inaccurate or are withdrawn. Decisions based on or made as a result of the Final Terms
are the responsibility of the recipient itself. Past performance is not intended to be indicative of future results.

DCMA is registered as a broker-dealer under the U.S. Securities Exchange Act of 1934, as amended. DCMA is not a Registered
Investment Adviser under the Investment Advisers Act of 1940, as amended, and should not be deemed to be providing
investment advice. DCMA, its affiliates and their respective officers, directors and employees, including those involved the
preparation of the Final Terms, may, from time to time, own or hold positions in the investments discussed herein, or act as
advisers or brokers in respect of such information.

The Securities will be offered to non-U.S. persons in offshore transactions outside the United States in accordance with
Regulation S of the Securities Act. The Securities have not been and will not be registered under the U.S. Securities Act of 1933,
as amended (the “Securities Act”), or under the securities laws of any state in the United States, and may not be offered or sold
in the United States absent a registration or an applicable exemption from the registration requirements under the Securities
Act. The Final Terms is not a prospectus or a registration statement.

ANY DISCLAIMER OR OTHER NOTICE THAT MAY APPEAR BELOW IS NOT APPLICABLE TO THIS COMMUNICATION AND SHOULD

BE DISREGARDED. SUCH DISCLAIMER OR OTHER NOTICE WAS AUTOMATICALLY GENERATED AS A RESULT OF THIS
COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.

A-2
ANNEX B

RESTRICTIONS ON OFFERS AND SALES OUTSIDE THE UNITED STATES
In connection with offers and sales of Notes outside the United States:

(a) The Dealer Manager acknowledges that the Notes have not been registered
under the Securities Act and may not be offered or sold within the United States or to, or for the
account or benefit of, U.S. persons except pursuant to an exemption from, or in transactions not
subject to, the registration requirements of the Securities Act.

(b) The Dealer Manager represents, warrants and agrees that:

(1) Such Dealer Manager has offered and sold the Notes, and will offer
and sell the Notes, (A) as part of their distribution at any time and (B) otherwise until 40
days after the later of the commencement of the offering of the Notes and the Closing
Date, only in accordance with Regulation S under the Securities Act (“Regulation S”) or
any other available exemption from registration under the Securities Act.

(ii) None of such Dealer Manager or any of its affiliates or any other
person acting on its or their behalf has engaged or will engage in any directed selling
efforts with respect to the Notes, and all such persons have complied and will comply
with the offering restrictions requirements of Regulation $.

(iii) Such Dealer Manager has not and will not enter into any contractual
arrangement with any distributor with respect to the distribution of the Notes, except with
its affiliates or with the prior written consent of the Issuer.

Terms used in paragraph (a) and this paragraph (b) and not otherwise defined in this Agreement
have the meanings given to them by Regulation S.
COMISIÓN PARA EL
MERCADO FINANCIERO
CHILE

ANEXO 4

FINAL TERM SHEET

COMISIÓN PARA EL MERCADO FINANCIERO
8
GLOBAL MARKETS – PRIVATE 8 CONFIDENTIAL

MTNs € Structured Notes

Codelco HKD 15-year Fixed Rate Notes due November 2034

Terms of the Notes

Issuer

Lead Manager
Settlement Agent
Status

Issuer Ratings

Bond Rating

Product Type

Offering Documentation
Security Identifiers
Principal Amount
Minimum Denomination
Trade Date

Issue Date

Maturity Date

Interest Commencement Date
Settlement Currency
Coupon

Issue Price
Underwriting Fees

Day Count

Business Day Convention
Business Days

Issuer Call Option
Holder Put Option
Accrual Period

Interest Payment Dates

Tax Redemption

Early Redemption
Redemption at Maturity
Covenants

Listing

Clearing System

Form of the Notes

Delivery

Fiscal Agent and Paying Agent
Governing Law

Public offer / public offer period
Tax Treatment / Redemption
Risk Factors

Selling Restrictions

INTERNAL – Page 1 of 2

Corporación Nacional del Cobre de Chile
HSBC Securities (USA) Inc.

HSBC Bank ple

Senior, unsecured

Long-term senior unsecured debt ratings of A3 (Moody’s) / A+ (S£P)
Not applicable

HKD-denominated Fixed Rate Notes
Standalone Reg S-Only Documentation
ISIN [XS2078248015]

HKD 500,000,000

HKD 1,000,000 and integral multiples of HKD 1,000,000 in excess thereof
04 November 2019

07 November 2019

07 November 2034

Issue Date

HKD

2.840% p.a.

100.00%

0.12%

Act/365(F), Adjusted

Modified Following

Hong Kong, London, New York, Santiago
Not applicable (except for Tax Redemption)
Not applicable

Each period beginning on the first day (included) of the interest period to the last day (excluded) of the interest
period.

Annually, subject to adjustment in accordance with Modified Following Business Day Convention, on each 07
November, commencing 07 November 2020 and ending on the Maturity Date.

The notes are redeemable at the option of CODELCO in whole, but not in part, at any time at the principal amount
thereof, plus accrued and unpaid interest and any Additional Amounts due thereon if, as a result of changes in the
laws or regulations affecting Chilean taxation, CODELCO becomes obligated to pay Additional Amounts on interest
payments on the notes in respect of withholding or deduction of Chilean tax at a rate in excess of 4%. See
“Description of Notes—Tax Redemption,” “Taxation—Chilean Taxation” and “Risk Factors— Risks Relating to the
Offering.”

Other than as provided under “Tax Redemption”, the Notes cannot be redeemed at any time at the Issuer’s discretion
Cash, at 100% of the Denomination (Par)

The indenture governing the notes will contain certain covenants, including, but not limited to, covenants with respect
to (i) limitations on liens, (ii) limitations on sale-and-lease-back transactions and (iii) limitations regarding
consolidation, merger, conveyance, sale or lease transactions. See “Description of Notes—Covenants—Limitation
on Liens,” “—Limitation on Sale-and-Lease-Back Transactions” and “—Consolidation, Merger, Conveyance, Sale
or Lease.”

Not applicable

Euroclear/Clearstream

Regulation S global note in registered form

Delivery against payment

The Bank of New York Mellon, London Branch

New York law

Not applicable

Reter to the Offering Documentation for guidance on tax treatment of the Notes
Refer to the Offering Documentation for Risk Factors

Refer to the Offering Documentation for detailed Selling Restrictions
(Xp usec

IMPORTANT NOTICE

The notes will be offered to non-U.S. persons in offshore transactions outside the United States in accordance with Regulation S of
the Securities Act. The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the
“Securities Act”), or under the securities laws of any state in the United States, and may not be offered or sold in the United States
absent a registration or an applicable exemption from the registration requirements under the Securities Act. This document is not a
prospectus or a registration statement.

These confidential materials have been provided solely to you by HSBC Securities (USA) Inc. (*HSBC>”) in connection with an actual
or potential mandate or engagement and may not be used or relied upon by any other person or for any purpose other than as
specifically contemplated by a written agreement with HSBC. Except as provided below, these materials may not be disclosed, in
whole or in part, summarized, referred to or otherwise distributed to any person except as agreed in writing by HSBC.

The information used in preparing these materials was obtained from or through you or your representatives or from public sources.
HSBC assumes no responsibility for independent verification of such information and has relied on such information being complete
and accurate. To the extent such information includes estimates and forecasts of future financial performance (including estimates
of potential cost savings and synergies) prepared by or reviewed or discussed with the managements of your company and/or other
potential transaction participants or obtained from public sources, we have assumed that such estimates and forecasts have been
reasonably prepared on bases reflecting the best currently available estimates and judgments of such managements (or, with respect
to estimates and forecasts obtained from public sources, represent reasonable estimates). HSBC expressly disclaims any and all
liability that may be based on any information contained herein, errors therein or omissions therefrom. The information, analysis and
opinions contained herein constitute our present judgment which is subject to change at any time without notice, and HSBC assumes
no obligation to update, correct or otherwise revise these materials.

These materials have been prepared for informational purposes to assist you in making your own evaluation of a potential transaction
and with the express understanding that they will be used for only such purpose. Nothing on these materials is intended by HSBC to
be construed as legal, accounting or tax advice. These materials are not intended to be used and cannot be used to avoid tax
penalties under the U.S. Internal Revenue Code. For all purposes you should obtain your own independent advice regarding the
legal, accounting and tax effects of the proposals outlined in these materials based on your particular circumstances. HSBC does not
warrant or guarantee the legal, accounting or tax results of these proposals.

You (and each of your employees, representatives, or other agents) may disclose to any and all persons, without limitation of any
kind, the U.S. tax treatment and the U.S. tax structure of any structure described herein and all materials of any kind (including opinions
or other U.S. tax analyses) that are provided to you relating to such U.S. tax treatment and U.S. tax structure.

The provision of this document shall not be regarded as creating any form of adviser/client relationship, and HSBC may only be
regarded by you as acting on your behalf as financial adviser or otherwise following the execution of an engagement letter on mutually
satisfactory terms. This is not a recommendation, offer or solicitation to purchase or sell any security, commodity, currency or other
instrument. These materials are not an agreement by HSBC to underwrite, place or purchase any securities of any entity or to provide
any financing to any entity.

HSBC is a member of the HSBC Group of entities. Any member of the HSBC Group may from time to time underwrite, make a market
or otherwise buy or sell as principal securities or other instruments mentioned herein or, together with their directors, officers and
employees, may have either a long or short position in the securities, commodities, currencies or other instruments mentioned in these
materials or futures or options contracts convertible into securities or other instruments mentioned in these materials. One or more
directors, officers and/or employees of any member of the HSBC Group may be a director of any of the entities mentioned in this
document. Any member of the HSBC Group may have acted as agent or arranger with respect to the loans of any of the entities
mentioned herein, and may have managed or co-managed a public offering of securities or acted as initial purchaser or placement
agent for a private placement of securities of any entity mentioned herein or may, from time to time, perform or seek to perform
investment banking, lending or other services or business for any of the entities mentioned herein.

INTERNAL – Page 2 of 2

Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=45ddbeecb074e818fea6ebc30da632d3VFdwQmVFOVVSWGhOUkVsM1RXcG5OVTVSUFQwPQ==&secuencia=-1&t=1682376108

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