CODELCO: CORPORACION NACIONAL DEL COBRE DE CHILE 2020-01-09 T-12:26

Corporación Nacional del Cobre de Chile

Casa Matriz
Huérfanos 1270

Santiago
CODELCO Región Metropolitana, Santiago

www.codelco.com

PE – 007/2020
Santiago, 9 de enero de 2020

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 004/2020 y PE 005/2020 de
fechas 07 y 08 de enero de 2020, respectivamente.

Saluda atentamente a Ud.,

Presidente Ejecutivo

Casa Matriz | Chuquicamata | Radomiro Tomic | Gabriela Mistral | Ministro Hales | Salvador | Ventanas | Andina | ElTeniente | VP
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1.0

2.0

3.0

3.1

3.2

3.3

3.4

3.4.1
3.4.2
34.3
3.4.4
3.4.5

3.4.6

3.4.7

FORMULARIO HECHO ESENCIAL

COLOCACIÓN DE BONOS EN EL EXTRANJERO

IDENTIFICACIÓN DEL EMISOR

1.1 Razón Social Corporación Nacional del Cobre de Chile

1.2 Nombre fantasía CODELCO-CHILE

1.3 R.U.T. 61.704,000-K

14 N* Inscripción Reg. Valores 785

1.5 Dirección Huérfanos 1270, Comuna de Santiago, Santiago
1.6 Teléfono 22 690 3000

1.7 Actividades y negocios Ver Anexo 1.

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
PÚBLICA Y/O DE LA OFERTA DE ELLOS, SEGÚN CORRESPONDA.

CARACTERÍSTICAS EMISIÓN

Moneda de denominación [ Dólares de los Estados Unidos de América (US$). |

Moneda total emisión [US$ 2.000.000.000 |

Portador / a la orden Bonos registrados a nombre de los tenedores en los
libros de DTC

Serjes 2030 2050

Monto de la serie US$ 1.000.000.000 US$ 1.000.000.000

N* de bonos 1 1

Valor nomina! bono US$ 1.000.000.000 US$ 1.000.000.000

Tipo reajuste N/A N/A

Tasa de interés 3,150% 3,700%

Fecha de emisión 07/01/2019 07/01/2019

Para cada serie llenar la siguiente tabla de desarrollo:

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Bonos 2030:

El capital de los bonos será pagadero en su integridad a su vencimiento, el día 14 de
Enero de 2030.

Los bonos devengarán un interés de 3,150% anual, base de un año de 360 días, el cual
será pagadero en 20 cuotas semestrales los días 14 de enero y 14 de julio de cada año,
a partir del 14 de julio de 2020.

N? Cuota | N* Cuota Fecha Intereses Amortización | Total Cuota | Saldo Capita!
Interés | Amortiz.
1 – 14-jul-2020 15.750.000 – 15.750.000 1.000.000.000
2 – 14-ene-2021 15,750,000 – 15.750.000 | 1.000.000.000
3 – 14jul-2021 15.750.000 – 15.750.000 | 1.000.000.000
4 – 14-ene-2022 15.750.000 – 15.750.000 ¡ 1.000.000.000
5 – 14-jut-2022 15.750.000 – 15.750.000 1.000.000.000
6 – 14-ene-2023 15.750.000 – 15.750.000 ¡| 1.000.000,000
7 – 14-jul-2023 15.750.000 – 15.750.000 | 1.000.000.000
8 – 14-ene-2024 15.750.000 – 15.750.000 | 1.000.000.000
9 – 14-jul-2024 15.750.000 ” 15.750.000 | 1.000.000.000
10 – 14-ene-2025 15.750.000 – 15.750.000 | 1.000.000.000
11 – 14-jul-2025 15.750.000 – 15.750.000 1.000.000.000
42 – 14-ene-2026 15.750.000 – 15.750.000 1.000.000,000
13 . 14-jul-2026 15.750,000 – 15.750.000 1.000.000,000
14 – 14-ene-2027 15.750.000 – 45,750,000 1.000.000,000
15 – 14-jul-2027 15.750.000 – 15.750.000 1.000.000.000
16 – 14-ene-2028 15.750.000 – 15.750.000 1.000.000.000
17 – 14-jut-2028 15.750.000 – 15.750.000 1.000.000.000
18 – 14-ene-2029 15.750.000 – 15.750.000 1.000.000.000
19 – 14-jui-2029 15.750.000 – 15.750.000 1.000.000.000
20 – 14-ene-2030 15.750.000 1.000.000.000 | 1.015.750.000 0
Bonos 2050:

El capital de los bonos será pagadero en su integridad a su vencimiento, el día 30 de
enera de 2050.

Los bonos devengarán un interés de 3,700% anual, base de un año de 360 días, el cual
será pagadero en 61 cuotas semestrales los días 30 de enero y 30 de julio de cada año,
a partir del 30 de enero de 2020.

N* Cuota | N* Cuota Fecha Intereses Amortización | Total Cuota | Saldo Capital
Interés | Amortiz.

1 – 30-ene-2020 12.333.333 – 12.333.333 1,000.000.000

2 – 30-jul-2020 18.500.000 – 18.500.000 1.000.000.000

3 – 30-ene-2021 18.500.000 – 18.500.000 1.000,000.000

4 – 30-jul-2021 18.500.000 – 18.500,000 4.000,000.000

5 – 30-ene-2022 18.500.000 – 18.500.000 1.000.000.000

6 – 30-jul-2022 18.500.000 – 18.500.000 1.000,000.000

7 – 30-ene-2023 18.500.000 – 18.500.000 1.000.000.000

8 – 30-jul-2023 18.500.000 – 18.500.000 1.000.000.000

9 – 30-ene-2024 18.500.000 – 18,500,000 1.000.000.000
10 – 30-jul-2024 18.500.000 – 18.500.000 1.000,000.000
41 – 30-ene-2025 18.500.000 – 18.500.000 1.000.000.000
12 – 30-jul-2025 18.500.000 – 18.500.000 1.000.000.000
13 . 30-ene-2026 18.500.000 – 18.500.000 1.000.000.000
14 – 30-jui-2026 18.500.000 . 18.500.000 1.060.000.000
15 – 30-ene-2027 18.500.000 – 18.500.000 1.000.000.000
16 – 30-jui-2027 18.500.000 – 18.500.000 1.000.000.000
17 – 30-ene-2028 18.500.000 – 18.500.000 1.000,000.000

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18 – 30-jul-2028 18.500.000 – 18.500.000 1.000.000.000
19 – 30-ene-2029 18.500.000 – 18.500.000 1.000.000.000
20 – 30-jul-2029 18.500.000 – 18.500.000 1.000.000.000
21 – 30-ene-2030 18.500.000 – 18.500.000 | 1.000,000.000
22 – 30-jul-2030 18.500.000 – 18.500.000 1.000.000.000
23 – 30-ene-2031 18.500.000 – 18.500.000 1.000.000.000
24 – 30-jul-2031 18.500.000 – 18.500.000 | 1.000.000.000
25 – 30-ene-2032 18:500.000 – 18.500.000 1.000.000.000
26 – 30-jul-2032 18.500.000 – 18.500.000 1.000.000.000
27 – 30-ene-2033 18.500.000 – 18.500.000 1.000.000,000
28 – 30-jul-2033 18.500.000 – 18.500.009 1.000.000.000
29 – 30-ene-2034 18.500.000 – 18.500.000 1.000.D00.000
30 – 30-jul-2034 18.500.000 – 18.500.000 1.000.000.000
31 – 30-ene-2035 | 18.500.000 – 18.500.000 | 1.000.000.000
32 – 30-jut-2035 18.500.000 – 18.500.000 1.000.000.000
33 – 30-ene-2036 18.500.000 – 18.500.000 1.000.000.000
34 – 30-jul-2036 18.500.000 – 18.500.000 1.000.000.000
35 – 30-ene-2037 18.500.000 – 18.500.000 1.000.000.000
36 – 30-jul-2037 18.500.000 – 18.500.000 1.000,000.000
37 – 30-ene-2038 18.500.000 – 18.500.000 1.000.000.000
38 – 30-jul-2038 18.500.000 – 18.500.000 1.000.080.000
39 – 30-ene-2039 18.500.000 – 18.500.000 1.000.000.000
40 – 30-jui-2039 18.500.000 – 18.500.000 1.000.000.000
41 – 30-ene-2040 18.500.000 – 18.500.000 1,000,000.000
42 – 30-jul-2040 18.500.000 – 18.500.000 1.000,000.000
43 – 30-ene-2041 18.500.000 – 18.500.000 1.000.000.000
44 – 30-jul-2041 18.500.000 – 18.500.000 1.000.000.000
45 > 30-ene-2042 18.500.000 – 18.500.000 1.000.000.000
46 – 30-jul-2042 18.500.000 – 48.500.000 1.000.000.000
47 – 30-ene-2043 18.500.000 – 18.500.000 | 1.000.000.000
48 – 30-jut-2043 18.500.000 – 18.500.000 1.000,000.000
49 – 30-ene-2044 18.500.000 – 18.500.000 1.000.000.000
50 – 30-jul-2044 18.500.000 – 18.500.000 1.000.000.000
51 – 30-ene-2045 18.500.000 – 18.500.000 | 1.000.000.000
52 – 30-jut-2045 18.500.000 – 18.500.000 1.000.000.000
53 – 30-ene-2045 18.500.000 – 18.500.000 1.000.000.000
54 – 30-ju!-2046 18.500.000 – 18.500.000 1.000.000.000
55 – 30-ene-2047 18.500.000 – 18.500.000 1.000.000.000
56 – 3D-jui-2047 18.500.000 – 18.500.000 1.000.000.000
57 – 30-ene-2048 18.500.000 – 18.500.000 1.000.000.000
58 – 30-jul-2048 18.500.000 – 18.500.000 1.000.000.000
59 – 30-ene-2049 18.500.000 – 18.500.000 1.000.000.000
60 – 30-jul-2049 18.500.000 – 18.500.000 1,000.000.000
61 – 30-ene-2050 18.500.000 1.000.000.000 | 1.018.500.000 0

3.5 Garantías

3.5.1 Tipo y montos de las garantías

No aplica.
3.6 Amortización Extraordinaria:
3.6.1 Procedimientos y fechas:

No aplica.

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OFERTA:

PAÍS DE COLOCACIÓN

5.1

5.2

Nombre Bonos vendidos a los Compradores

Iniciales

(“Initial

Purchasers”) domiciliados en los Estados Unidos de América.

Normas para obtener autorización de transar

Rule 144 A y Regulation S de la
US Securities Act de 1933 de los
Estados Unidos de América.

INFORMACIÓN QUE PROPORCIONARÁ

6.1

6.2

A futuros tenedores de bonos

Prospecto informativo (“Offering Memorandum”) de fecha 7 de enero de 2020.

Ver Anexo 2.

A futuros representantes de tenedores de bonos

Mismo documento mencionado en el punto 6.1 precedente.

CONTRATO DE EMISION

74

72

Características generales

Contrato de Compraventa (“Purchase
Agreement”) celebrado el día 7 de enero
de 2020 entre (A) Corporación Nacional
del Cobre de Chile, como emisor de los
bonos, y (B) HSBC Securities (USA) Inc.;
J.P. Morgan Securities LLC., BofA
Securities, Inc. y Scotia Capital (USA) Inc.
como Compradores Iniciales (“Initial
Purchasers”). Ver Anexo 3.

El objeto del Purchase Agreement fue la
adquisición, por los Compradores Iniciales
(“Initial Purchasers”), de ta totalidad de los
bonos emitidos por Corporación Nacional
del Cobre de Chile, bajo los términos y
condiciones que se expresan en dicho
contrato.

Derechos y obligaciones de los tenedores de bonos

Los bonos emitidos por Corporación Nacional del Cobre de Chile
constituyen obligaciones directas, no garantizadas y no subordinadas de la
compañía emisora. Los tenedores de bonos pueden declarar exigible
anticipadamente la totalidad del capital más intereses en ciertos casos de

incumplimiento por parte de Corporación Nacional del Cobre de Chile.

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OTROS ANTECEDENTES IMPORTANTES

Los bonos no han sido registrados en los Estados Unidos de América bajo la U.S.
Securities Act de 1933 y, por lo tanto, solamente podrán ser vendidos a ciertos
compradores institucionales calificados de acuerdo a lo dispuesto en la Rule 144 A de
la mencionada ley y/o fuera de los Estados Unidos de América, de acuerdo con lo
señalado en la Regulation S de la misma norma.

DECLARACION DE RESPONSABILIDAD

El suscrito, en su calidad de Presidente Ejecutivo de la Corporación Nacional del Cobre
de Chile (la “Sociedad”), ambos domiciliados en calle Huérfanos 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 7 de enero de 2020.

NOMBRE CARGO FIRMA

C.N.l.
Ñ
Octavio Presidente 8088228-9
Araneda Ejecutivo

|

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ANEXO 1

MEMORIA ANUAL

https://www.codelco.com/memoria2018/site/docs/20190405/20190405152423/memoria_anual codelco_2018.pdf

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ANEXO 2

OFFERING MEMORANDUM

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IMPORTANT NOTICE

THIS OFFERING IS AVAILABLE ONLY TO INVESTORS WHO ARE EITHER (1) QUALIFIED INSTITUTIONAL BUYERS (“QIBs”)
(WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR (2)
NON-U.S. PERSONS (WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT) OUTSIDE THE U.S.

IMPORTANT: You must read the following before continuing. The following applies to the offering memorandum following this page (the
“Offering Memorandum”), and you are advised to read this carefully before reading, accessing or making any other use of the Offering
Memorandum. In accessing the Offering Memorandum, you agree to be bound by the following terms and conditions, including any modifications
to them any time you receive any information from us as a result of such access.

NOTHING IN THIS ELECTRONIC TRANSMISSION CONSTITUTES AN OFFER OF SECURITIES FOR SALE IN ANY JURISDICTION WHERE IT
IS UNLAWFUL TO DO SO. THE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE SECURITIES ACT, OR
THE SECURITIES LAWS OF ANY STATE OF THE U.S. OR OTHER JURISDICTION AND THE SECURITIES MAY NOT BE OFFERED OR
SOLD WITHIN THE U.S. OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (AS DEFINED IN REGULATION S UNDER
THE SECURITIES ACT), EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE LAWS OF OTHER JURISDICTIONS. THE OFFERING
MEMORANDUM AND THE OFFER OF THE SECURITIES 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 (D) A RETAIL CLIENT AS DEFINED IN POINT (11) OF ARTICLE 4(1) OF DIRECTIVE 2014/65/EU (“MIFID II”); OR (1) 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 II; OR
(II) NOT A QUALIFIED INVESTOR AS DEFINED IN REGULATION (EU) 2017/1129 (AS AMENDED, THE “PROSPECTUS
REGULATION”). CONSEQUENTLY, NO KEY INFORMATION DOCUMENT REQUIRED BY REGULATION (EU) NO 1286/2014 (AS
AMENDED, THE “PRIIPS REGULATION”) FOR OFFERING OR SELLING THE SECURITIES OR OTHERWISE MAKING THEM
AVAILABLE TO RETAIN INVESTORS IN THE EEA, HAS BEEN PREPARED AND THEFORE THE OFFERING OR SELLING OF THE
SECURITIES OR OTHERWISE MAKING THEM AVAILABLE TO ANY RETAIL INVESTOR IN THE EEA MAY BE UNLAWFUL UNDER
THE PRIIPS REGULATION. IN ADDITION, IN THE UNITED KINGDOM THE OFFERING MEMORANDUM IS ONLY BEING
DISTRIBUTED TO AND IS ONLY DIRECTED AT: ()) PERSONS WHO ARE OUTSIDE THE UNITED KINGDOM, (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 49Q)(A) TO (D) OF THE ORDER (ALL SUCH PERSONS TOGETHER
BEING REFERRED TO AS “RELEVANT PERSONS”). ANY SECURITIES WILL ONLY BE AVAILABLE TO, AND ANY INVITATION, ORDER
OR AGREEMENT TO SUBSCRIBE, PURCHASE OR OTHERWISE ACQUIRE SUCH SECURITIES WILL BE ENGAGED IN ONLY WITH,
RELEVANT PERSONS. ANY PERSON WHO IS NOT A RELEVANT PERSON SHOULD NOT ACT OR RELY ON THE OFFERING
MEMORANDUM OR ANY OF ITS CONTENTS.

THE FOLLOWING OFFERING MEMORANDUM MAY NOT BE FORWARDED OR DISTRIBUTED TO ANY OTHER PERSON AND MAY
NOT BE REPRODUCED IN ANY MANNER WHATSOEVER. ANY FORWARDING, DISTRIBUTION OR REPRODUCTION OF THIS
DOCUMENT IN WHOLE OR IN PART IS UNAUTHORIZED. FAILURE TO COMPLY WITH THIS NOTICE MAY RESULT IN A VIOLATION
OF THE SECURITIES ACT OR THE APPLICABLE LAWS OF OTHER JURISDICTIONS.

Confirmation of your Representation: In order to be eligible to view this Offering Memorandum or make an investment decision with respect to
the securities, investors must be either (1) QIBs or (2) non-U.S. persons (within the meaning of Regulation S under the Securities Act) outside the
U.S. This Offering Memorandum is being sent at your request and by accepting the e-mail and accessing this Offering Memorandum, you shall be
deemed to have represented to us that (1) you and any customers you represent are either (a) QIBs or (b) non-U.S. persons (within the meaning of
Regulation S under the Securities Act) and (2) you consent to delivery of such Offering Memorandum by electronic transmission.

You are reminded that this Offering Memorandum has been delivered to you on the basis that you are a person into whose possession this Offering
Memorandum may be lawfully delivered in accordance with the laws of the jurisdiction in which you are located and you may not, nor are you
authorized to, deliver this Offering Memorandum to any other person.

The materials relating to the offering do not constitute, and may not be used in connection with, an offer or solicitation in any place where offers or
solicitations are not permitted by law. If a jurisdiction requires that the offering be made by a licensed broker or dealer and the initial purchasers named
in this Offering Memorandum (the “Initial Purchasers”) or any affiliate of the Initial Purchasers is a licensed broker or dealer in that jurisdiction, the
offering shall be deemed to be made by the Initial Purchasers or such affiliate on behalf of the issuer in such jurisdiction.

This Offering Memorandum has been sent to you in an electronic form. You are reminded that documents transmitted via this medium may be altered
or changed during the process of electronic transmission, and consequently neither the Initial Purchasers, nor any person who controls them nor any of
their directors, officers, employees nor any of their agents nor any affiliate of any such person accept any liability or responsibility whatsoever in respect
of any difference between this Offering Memorandum distributed to you in electronic format and the hard copy version available to you on request from
the Initial Purchasers.
OFFERING MEMORANDUM Strictly Confidential

U.S.52,000,000,000

CODELCO

Corporación Nacional del Cobre de Chile
U.S.$1,000,000,000 3.150% Notes due 2030

U.S.$1,000,000,000 3.700% Notes due 2050

The notes due 2030 (the “2030 notes”) will bear interest at the rate 0£3.150% per year and will mature on January 14,
2030, and the notes due 2050 (the “reopened 2050 notes”) will bear interest at the rate of 3.700% per year and will
mature on January 30, 2050. We refer to the 2030 notes and the reopened 2050 notes, collectively, as the “notes” and,
separately, as a “series of notes.” The reopened 2050 notes will have identical terms, be fungible with and be part of
a single series of senior debt securities with the U.S.$900,000,000 aggregate principal amount of the 3.700% Notes
due 2050 issued by us on September 30, 2019 (the “original 2050 notes” and, together with the reopened 2050 notes,
the “2050 notes”) following the termination of certain U.S. selling restrictions. During the periods subject to certain
U.S. selling restrictions, the reopened 2050 notes offered pursuant to Regulation S will have temporary CUSIPs and
ISINs. The outstanding aggregate principal amount of the series of 2050 notes, after issuance of the reopened 2050
notes, will be U.S.$1,900,000,000. The interest on the 2050 notes will be payable semi-annually in arrears on January
30 and July 30 of each year, beginning in the case of the reopened 2050 notes on January 30, 2020. The interest on the
2030 notes will be payable semi-annually in arrears on January 14 and July 14 of each year, beginning on July 14,
2020.

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 that is
three months, in respect of the 2030 notes, and six months, in respect of the reopened 2050 notes, prior to the maturity
date of the 2030 notes and the reopened 2050 notes, respectively, 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. In addition, we may redeem the notes at our
option, in whole or in part, at any time and from time to time, beginning on the date that is three months, in respect of
the 2030 notes, and six months, in respect of the reopened 2050 notes, prior to the maturity date of the 2030 notes and
the reopened 2050 notes, respectively, at a redemption price equal to 100% of the outstanding principal amount of the
notes to be redeemed, 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—Tax Redemption”
and “—Optional Redemption”.

The notes will constitute direct, general, unconditional, unsecured and unsubordinated obligations of Corporación
Nacional del Cobre de Chile (“CODELCO” or the “Company”). 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.”

We intend to apply to list the notes on the Official List of the Luxembourg Stock Exchange and for trading on the
Euro MTF market of the Luxembourg Stock Exchange; however, the notes have not yet been listed. The original 2050
cover page continues to this page

notes are listed on the Official List of the Luxembourg Stock Exchange and for trading on the Euro MTF market.
Currently, there is no public market for the notes.

See “Risk Factors” beginning on page 15 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 offering memorandum. 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 (i) qualified institutional buyers under Rule 144A
under the Securities Act and (ii) 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 offering memorandum 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.

Issue price per 2030 note: 99.787% plus accrued interest, if any, from January 14, 2020.
Issue price per reopened 2050 note: 95.489% plus accrued interest from September 30, 2019.
The notes will be delivered in book-entry form only through the facilities of The Depository Trust Company (“DTC”)
and its direct and indirect participants, including Euroclear Bank S.A./N.V. (“Euroclear”), as operator of the Euroclear
system, and Clearstream Banking, S.A., Luxembourg (“Clearstream”) on or about January 14, 2020.

Joint Book-Running Managers

BofA Securities HSBC J.P. Morgan Scotiabank

The date of this offering memorandum is January 7, 2020.
We have not, and the initial purchasers have not, authorized anyone to provide any information other
than that contained in this offering memorandum. We and the initial purchasers 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 initial purchasers are 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 offering
memorandum is accurate as of any date other than the date on the front of this offering memorandum.

After having made all reasonable inquiries, we confirm that (1) the information contained in this offering
memorandum is true and accurate in all material respects, (11) the opinions and intentions expressed herein are honestly
held and (iii) there are no other facts the omission of which would make this offering memorandum 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 offering memorandum to
“CODELCO,” the “Company,” “we,” “our,” “ours,” “us” or similar terms refer to Corporación Nacional del Cobre
de Chile (CODELCO) together with its subsidiaries.

TABLE OF CONTENTS

Note Regarding Forward-Looking Statements
Enforceability of Civil Liabilities
Presentation of Financial and Statistical Information.
Summary…
Risk Factors.
Use of Proceed:
Capitalization
Exchange Rates
Selected Consolidated Financial Data ..
Selected Operating Data ..ocoocicicicoconononnnononanonncncnononococncnos

Management’s Discussion and Analysis of Financial Condition and Results of Operations .
Business and Properties
Overview of the Copper Market
Regulatory Framework …
Management .ocnccicinnnn.
Related Party Transactions
Foreign Investment and Exchange Controls in Chile .
Description of Notes…
Taxati0M coccion…
Plan of Distribution
Transfer Restrictions….
Validity of the Notes…
Independent Auditors
Glossary of Certain Mining Terms.
General Information
Index to Financial Statements

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 offering memorandum has been prepared by CODELCO solely for use in connection with the proposed
offering of the securities described herein. This offering memorandum 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 initial purchasers reserve the right to reject for any reason any offer to purchase any of the notes.

This offering memorandum may only be used for the purposes of this offering.

The initial purchasers make no representation or warranty, express or implied, as to the accuracy or
completeness of the information contained in this offering memorandum. Nothing contained in this offering
memorandum is, or shall be relied upon as, a promise or representation by the initial purchasers as to the past or future.
CODELCO has furnished the information contained in this offering memorandum.

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 offering memorandum 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 offering memorandum 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 initial purchasers and (ii) at the office of the paying agent.

IN CONNECTION WITH THIS OFFERING, BOFA SECURITIES, INC., HSBC SECURITIES
(USA) INC., J.P. MORGAN SECURITIES LLC, SCOTIA CAPITAL (USA) INC., OR ANY PERSON
ACTING FOR ANY OF THEM, 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 BOFA SECURITIES, INC., HSBC SECURITIES (USA) INC., J.P.
MORGAN SECURITIES LLC, SCOTIA CAPITAL (USA) INC., OR ANY PERSON ACTING FOR ANY OF
THEM, 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 offering memorandum 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 initial purchasers 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 offering memorandum will be determined by the
Issuer and the initial purchasers 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 offering memorandum;

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

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

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 no person has been authorized to give any information or to make any representation concerning us or the
notes, other than as contained in this offering memorandum and, if given or made, any such other information
or representation should not be relied upon as having been authorized by us or the initial purchasers.

This offering memorandum is only being distributed to and is only directed at: (1) 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 offering memorandum 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 15 for a description of certain risks you should consider before
investing in the notes.

tii
NOTE REGARDING FORWARD-LOOKING STATEMENTS

This offering memorandum 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< ”o< ” oc 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 offering memorandum.

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 offering memorandum 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 purchase agreement will provide that CODELCO will appoint the
Chilean consul 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 purchase 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 offering memorandum, 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.
References to “HKD” are to Hong Kong 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 “E” 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 September 30, 2019 and for the nine-month
periods ended September 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 offering
memorandum 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 offering memorandum, 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 £ 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. 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 offering memorandum 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 offering memorandum 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 Law No. 13, 196 (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 “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 offering memorandum and in the Consolidated Financial Statements have
been rounded for ease of presentation. Percentage figures included in this offering memorandum have in some cases
been calculated on the basis of such figures prior to rounding. For this reason, certain percentage amounts in this
offering memorandum 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 offering memorandum may not sum due
to rounding.

The Observed Exchange Rate (as defined herein under “Exchange Rates”) reported by the Central Bank of
Chile (1) as of January 2, 2018 was Ch$614.75 = U.S.$1.00; (ii) as of October 1, 2018 was Ch$660.42 = U.S.$1.00;

vii
(iii) as of January 2, 2019 was Ch$694.77 = U.S.$1.00; and (iv) as of September 30, 2019 was Ch$725.68 = 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 offering memorandum, 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 offering memorandum 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 offering memorandum, “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 offering memorandum, the term “billion” means one thousand million (1,000,000,000).

viii

SUMMARY

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

The following summary is qualified in its entirety by the more detailed information and financial statements
appearing elsewhere in this offering memorandum. Except as otherwise disclosed herein or indicated, financial
information with respect to CODELCO provided in this offering memorandum 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 ofrevenues
(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 September 30, 2019, total assets were U.S.$40.2 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 CODELCOSs 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 nine 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. CODELCOSs top ten customers purchased approximately 41.0% ofits total copper sales volume in 2018.

CODELCOSs copper operations are divided into the following eight divisions:

e 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 CODELCOS*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 nine months of 2019, this division produced 323,896 metric tons of copper with a
cash cost of 101.8 cents per pound and a total cash cost of U.S.$716 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 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 nine months of 2019, this division produced 197,889 metric tons of copper
with a cash cost of 147.4 cents per pound and a total cash cost of U.S.$639 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 CODELCOS*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 nine months of 2019, this division produced 262,091 metric tons of copper with a
cash cost of 125.0 cents per pound and a total cash cost of U.S.$702 million.

e The Mina Ministro Hales Division was created in 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 nine months of 2019,
this division produced 110,588 metric tons of copper with a cash cost of 133.7 cents per pound and a total cash cost
of U.S.$315 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 nine months of 2019, this division produced 125,939 metric tons of copper with a
cash cost of 188.8 cents per pound and a total cash cost of U.S.$506 million.

+ The Gabriela Mistral Division was created in 2013 and operates the Gabriela Mistral mine, which uses SX-EW
technology. The Gabriela Mistral mine produced its first copper cathodes in 2008 after a 26-month construction
period. In 2018, this division produced 107,247 metric tons of copper, or 5.9% of CODELCOS*s total copper output
(including CODELCOSs 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 nine months of 2019, this division produced 72,182 metric tons of copper
with a cash cost of 250.2 cents per pound and a total cash cost of U.S.$398 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 CODELCO*Ss total copper output (including CODELCOS”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 nine
months of 2019, this division produced 27,130 metric tons of copper with a cash cost of 246.6 cents per pound and
a total cash cost of U.S.$146 million. Unless the Inca Pit project (as described below) enters the execution stage,
CODELCOS*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.

e The Ventanas Division was created in connection with the acquisition ofthe Ventanas smelter/refinery complex from
Chile”s state-owned mining company Empresa Nacional de Minería (“ENAMP”) in 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, CODELCOS*s proved and probable reserves represented at least 26 years of future production at current levels.

+ 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. This position is primarily attributable to the quality of its ore bodies, its economies of scale and the
experience of its workforce and management. Currently, CODELCO is in the third quartile of the industry?s cost
curve. 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 nine months of 2019,
CODELCOS*s total costs and expenses decreased by 4.9 cents per pound (2.1%) to 239.7 cents per pound, compared
to 244.6 cents per pound for the same period in 2018, mainly due to depreciation of the Chilean peso against the U.S.
Dollar, cost savings in maintenance expenses and lower labor expenses, partially offset by lower production levels
in connection with weather disruptions in the northern area of Chile, a 14-day strike at the Chuquicamata mine and
upgrades at the Chuquicamata and Salvador smelters that suspended operations temporarily. 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, CODELCOS*s 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
nine months of 2019, CODELCOS*s total costs and expenses decreased to U.S.$5.9 billion, compared to U.S.$6.5
billion for the same period in 2018, due to depreciation of the Chilean peso against the U.S. Dollar and a decline of
sales volume and cost cutting initiatives. 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. For the first nine months of 2019,
CODELCOSs cash cost of production was 143.1 cents per pound, compared to 138.9 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 nine months of 2019, CODELCOS*s total cash cost was U.S.$3.5 billion,
as compared to U.S.$3.6 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.

+. 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
September 30, 2019, Adjusted EBITDA amounted to U.S.$2.6 billion and total debt to capitalization was 60.1%.

+ 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 Oneof the 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 94% complete as of September 30, 2019.

Oo 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 80% complete as of September 30, 2019.

Oo 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 September 30, 2019, the project is approximately 54% complete.

Oo 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 September 30,
2019, 100%, 99%, 97% and 99% 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 September 30, 2019, the feasibility study has been completed, and the initial
work relating to the project has commenced.

Oo Theexpansion 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 September 30, 20109, the feasibility study has been authorized
and is approximately 40% complete.

* 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 Transformation Plan. On November 29, 2019, CODELCO announced a transformation plan with the goal of making
CODELCO a more productive, profitable and sustainable company (the “Transformation Plan”). Among other
objectives, the Transformation Plan seeks to optimize the standards for project selection and to reduce execution
delays, improve operating performance and renew focus on maximizing the value of its mineral resources and
reserves. The Transformation Plan also includes a series of targets to achieve cost savings in capital and operational
expenditures.

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 CODELCO*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 ple (“Anglo American”), Mitsui
$ 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
Desalination Project

On December 19, 2019, CODELCO announced the initiation of a new bidding process for the development,
construction and operation of a desalination plant and complementary infrastructure. The plant would increase the supply
of water to the Chuquicamata, Radomiro Tomic and Ministro Hales operations, allowing CODELCO to gradually
increase its use of seawater in its operations. Between the award and signing of the original contract, CODELCO
identified opportunities for adjustments to the project to meet the goals of CODELCO”s Transformation Plan. The new
bidding process will be extended for up to two years.

New Bilateral Credit Facility

On December 18, 2019, CODELCO entered into a seven-year bilateral credit facility with Banco
Latinoamericano de Comercio Exterior in an aggregate principal amount of U.S.$75 million. The credit facility matures
in 2026. See “Management”s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and
Capital Resources—Bank Debt.”

Appointment of New Executives

On November 29, 2019, CODELCO announced the appointment of Antonio Bonani Rizzolli as acting Vice
President of Mining Resources Management and Development and the appointment of María Francisca Domínguez Meza
as acting General Counsel. All new positions were effective as of November 29, 2019.

New International Bond Issuance

On November 7, 2019, CODELCO issued notes in an aggregate principal amount of HKD 500 million. The
notes will mature on November 7, 2034 and accrue interest at a rate of 2.84% per annum payable on an annual basis.

Liability Management

On October 21, 2019, CODELCO announced the final results of its Offer to Purchase, which was previously
announced on September 23, 2019, of its 3.750% Notes due 2020, 3.875% Notes due 2021, 3.000% Notes due 2022 and
4.500% Notes due 2023. CODELCO purchased for cash a total amount of notes outstanding of U.S.$152 million. See
“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital
Resources—Other Debt.”

Political and Social Unrest in Chile

Since October 18, 2019, Chile has been experiencing political unrest and social strife sparked by an increase in
the subway fare of the Santiago Metro. Initial protests rapidly evolved to reflect anger over living costs and inequality in
general, including demands to reform the pension system and the Constitution and to reduce urban highway tolls. Protests
and riots have spread across several cities and impacted the economy and daily activities of many people and companies.
Events such as looting, arson and destruction of property were less frequent in December than in October and November.
However, these events have already had an impact on Chile”s economy. The Central Bank of Chile”s monthly indicator
of economic activity (IMACEC) showed a 5.4% decline from September 2019 to October 2019.

In response, the Government of Chile is implementing a U.S.$5.5 billion fiscal plan to support employment and
households, provide working capital support to small and medium enterprises, boost public investment and reconstruct
damaged infrastructure. Additionally, the Government of Chile has reached agreements with members of the Chilean
Congress and political parties to address demands motivating the protests. According to the Government of Chile, the
most important agreements relate to: (1) pension reform and the implementation of a broad social agenda, (ii) pro-growth
and progressive tax reform and (iii) mechanisms to eventually draft a new Constitution. For more information, see “Risk
Factors —CODELCO*s growth and profitability depend on political stability and economic activity in Chile and other
emerging markets.”

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.

The Offering

Issue PIICO coccocococococcnononnncnonononncnonono nono nnonononn on ononono coca onononcancncno

Interest

Maturity DAtO cocoooccoccicncnncnononnnnnnonononnconannononncnononono nora ononancananono

Corporación Nacional del Cobre de Chile.

U.S.$1,000,000,000 aggregate principal amount of
3.150% notes due 2030 (the “2030 notes”).

U.S.$1,000,000,000 aggregate principal amount of
3.700% notes due 2050 (the “reopened 2050 notes”
and, together with the 2030 notes, the “notes”). The
reopened 2050 notes will have identical terms, be
fungible with and be part of a single series of senior
debt securities with the $900,000,000 aggregate
principal amount of 3.700% Notes due 2050 issued
on September 30, 2019 (the “original 2050 notes”
and, together with the reopened 2050 notes, the
“2050 notes”) following the termination of certain
U.S. selling restrictions. During the periods subject
to certain U.S. selling restrictions, the reopened 2050
notes offered pursuant to Regulation S will have
temporary CUSIPs and ISINs. The total aggregate
principal amount of 2050 notes outstanding upon
completion of this offering will be
U.S.$1,900,000,000 (of which U.S.$900,000,000
was issued on September 30, 2019).

The issue price of the 2030 notes is 99.787%.

The issue price of the reopened 2050 notes is
95.489%, plus accrued interest from September 30,
2019.

2030 notes: 3.150% per year.
Reopened 2050 notes: 3.700% per year.

The interest on the 2030 notes will be payable
semi-annually in arrears on January 14 and July 14
of each year, beginning on July 14, 2020. The
interest on the 2050 notes will be payable
semi-annually in arrears on January 30 and July 30
of each year, beginning in the case of the reopened
2050 notes on January 30, 2020. Interest on the notes
will be calculated on the basis of a 360-day year of
twelve 30-day months. See “Description of Notes.”

2030 notes: January 14, 2030.

Reopened 2050 notes: January 30, 2050.

Withholding TAX .oocoiccinncononnnnnnnnonononnnannnnonnnonnononono corn cnononccncnonon 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 Redempti0O ..occccicononononononnnncnnnnnocnnnonononncnonononcon on onononconononon The notes of each series 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 of each series in
respect of withholding or deduction of Chilean tax at
a rate in excess 0£ 4%. See “Description of Notes—
Tax Redemption,” “Taxation—Chilean Taxation”
and “Risk Factors—Risks Relating to the Offering.”

Optional Redempti0N ..occcicinicnconononnnnnnnnonononononono nora cnononccncncnos 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 that is three months, in respect of the 2030 notes,
and six months, in respect of the reopened 2050
notes, prior to the maturity date of the 2030 notes and
the reopened 2050 notes, respectively, 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. In addition, we may redeem
the notes at our option, in whole or in part, at any
time and from time to time, beginning on the date that
is three months, in respect of the 2030 notes, and six
months, in respect of the reopened 2050 notes, prior
to the maturity date of the 2030 notes and the
reopened 2050 notes, respectively, at a redemption
price equal to 100% of the outstanding principal
amount of the notes to be redeemed, plus accrued and
unpaid interest to the date of redemption. See
“Description of Notes—Optional Redemption” and
“Risk Factors—Risks Relating to the Offering.”

Form and DenoMinatiOM…cociconnnononnnnnnnnnnnnnnoninnonono nono cnononccncncnos

Payments; TraMSÍ0IS cocccconnccinnoncnnonononnnncnnnnnncnononono coca onononconcnono

Ranking cooccoccccnnnnnnonononnnonncnono nono cnononnoncnononon non cnononon conan ononancananno

Certain Covenants ..

The notes will be issued in book-entry form only in
denominations of U.S.$200,000 and integral
multiples of U.S.$1,000 in excess thereof. Each
series of notes will be represented by one or more
global notes (the “Global Notes”) registered in the
name of a nominee of DTC, as depositary, for the
accounts of its direct and indirect participants,
including Euroclear, as operator of the Euroclear
system, and Clearstream. See “Description of
Notes.”

Payment of interest and principal amount with
respect to interests in Global Notes will be credited
by DTC, Euroclear or Clearstream, as the case may
be, to the account of the holders of such interests with
DTC, Euroclear or Clearstream, as the case may be.
Transfers of interests in notes held through DTC,
Euroclear or Clearstream will be conducted in
accordance with the rules and operating procedures
of the relevant system. There will be a paying agent.

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,
(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.”

Transfer RestrictiODS ….ooooooncinicnnononononnnononononocncnonanono

Further Issues …

LAST cocococccccccnonononononononannnnonononannonnon cn onononnnn rn cnonanannnns

Governing Law; Submission to Jurisdiction …………..

Expected Ratidg8S….ocicccinnonnnninnnococononinnononanononacnonannnos

Use of Proceeds…

Trustee, Paying Agent, Transfer Agent and Registrar

Luxembourg Listing ABC ..ocoocococcinnnncococononncncnonanonos

Risk Factors ..

10

The notes have not been and will not be registered
under the Securities Act and are subject to
restrictions on resales. 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 intend to apply to list the notes on the Official
List of the Luxembourg Stock Exchange and for
trading on the Euro MTF market in accordance with
its rules and regulations. The notes are not yet listed.
The original 2050 notes are listed on the Official List
of the Luxembourg Stock Exchange and for trading
on the Euro MTF market.

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 offered hereby will be assigned a rating by
Moody”s Investors Service, Inc. (“Moody”s”) and by
Standard $ Poor’s rating group (“SéP”).
CODELCO currently has a foreign currency
long-term debt rating by Moody”s of A3 (stable) and
a long-term foreign issuer credit rating by S£P of A+
(negative). 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 SA/NV,

Luxembourg Branch.

Before investing, you should carefully consider the
risks set forth under “Risk Factors” beginning on
page 15 of this offering memorandum.

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 offering memorandum. 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 offering memorandum are presented in accordance with IFRS. The unaudited interim
information as of September 30, 2019 and for the nine-month periods ended September 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 September 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 nine months ended September 30,
2018 and 2019 are not necessarily indicative of the results to be expected for the full year or any other period.

For the nine months ended
For the year ended December 31, September 30,

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

CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME

Revenue $ 11,536,751 S 14,641,555 S 14,308,758 $ 10,771,511 $ 8,808,184

Cost of sales” …. (9,449,668) (10,380,403) (11,194,341) (8,357,160) (7,256,283)
Gross profit 2,087,083 4,261,152 3,114,417 2,414,351 1,551,901
Other income, by function. 138,474 154,332 124,826 95,038 206,981
Impairment loss determined in accordance
with IFRS 9 … N/A N/A 158 (805) 1,176
Distribution costs …… (11,891) (10,403) (18,262) (14,288) (12,647)
Administrative expenses (415,395) (428,140) (465,328) (347,163) (303,025)
Other expenses”… (1,324,149) (1,557,473) (2,115,314) (1,420,134) (1,328,133)
Other gains……. 29,400 32,605 21,395 13,643 17,038
Finance income 23,402 29,836 51,329 37,439 22,504
Finance costs (547,347) (644,610) (463,448) (349,654) (360,104)
Share of profit (loss) of associates and joint
ventures accounted for using equity method .. (177,358) 185,428 119,114 98,409 11,863
Foreign exchange differences………… (232,895) (206,058) 178,143 83,639 114,946
Profit (loss) for the period before tax (430,676) 1,816,669 547,030 610,475 (77,500)
Income tax expense”… 97,096 (1,193,067) (857,283) (392,181) (20,499)
Profit (loss) for the period (333,580) 623,602 189,747 218,294 (97.999)
Profit (loss) attributable to owners of the

parent… a (275,418) 569,175 155,719 189,604 (105,530)
Profit (loss) attributable to non-controlling

interesí (58,162) 54,427 34,028 28,690 7,531
Profit (loss) For the peri coccion. S (333,580) $ 623,602 $ 189,747 $ 218,294 $ (97,999)

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

CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION

Total current assets.. $ 4,690,418 $ 6,211,053 $ 5,828,206 $ 7,001,017
Total property, plant and equipment. 23,977,261 25,275,512 26,754,998 28,673,181
Investments accounted for using

equity method 3,753,974 3,665,601 3,568,293 3,488,854
Non-current receivable: 95,316 91,442 84,731 109,553
All other assetsÚ ccncncicinicnicnio.. 904,161 1,112,533 854,577 949,067
Total assets…. s 33,421,130 $ 36,356,141 $ 37,090,805 s 40,221,672
Total current liabil: 2,462,453 3,315,456 3,539,412 4,256,209
Total non-current liabilities ………….. 21,068,268 22,115,347 22,207,524 24,395,394

11

Total liabilities…………….. s 23,530,721 $ 25,430,803 $ 25,746,936 s 28,651,603

Non-controlling interests mena 978,666 1,007,495 969,204 921,052
Equity attributable to owners of the

8,911,743 9,917,843 10,374,665 10,649,017

Total equity .. s 9,890,409 $ 10,925,338 $ 11,343,869 s 11,570,069

Total liabilities and equity . s 33,421,130 $ 36,356,141 $ 37,090,805 s 40,221,672

As of and for the nine months ended

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

OTHER ITEMS (in thousands of U.S.S, except ratios and copper prices)
Depreciation and amortization of
ASSOÉS cocccoo.o 1,936,152 2,101,101 $ 2,181,140 $ 1,593,895 1,583,361
Interest expense, net (523,945) (614,774) $ (412,119) $ (312,215) (337,600)
Ratio of earnings to fixed charges
(adjusted)%… . 0.5 3.8 3.0 3.1 0.8
Average LME copper price (U.S. £

per pound)”. 220.6 279.7 295.9 301,3 274.0
Adjusted EBITDAS 3,075,187 5,668,314 $ 4,695,792 $ 3,543,590 2,552,680
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 11.3 7.6

0)
0)

6)

(4)
(5)

(6)

(01)
(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 CODELCOSs 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.
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 offering memorandum 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 offering memorandum because such data are used by investors to as (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 liquidity.

12

(9)

(10)

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.

For the nine months ended
For the year ended December 31, September 30,

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

Profit (loss) for the period …….ommcinmmonoorn $ (333,580) $ 623,602 $ 189,747 $ 218,294 s (97,999)
Income tax expense (97,096) 1,193,067 357,283 392,181 20,499

Finance costs… 547,347 644,610 463,448 349,654 360,104

Impairments’” enmaai 156,709 7,378 395,965 138,183 _

Adjusted EBITO Lcccciicccinnoninnoncnnnoos 273,380 2,468,657 1,406,443 1,098,312 282,604

Ratio of earnings to fixed charges

(adjusted)? . 0.5 3.8 3.0 3.1 0.8

Depreciation and amortization of A. 1,936,152 2,101,101 2,181,140 1,593,895 1,583,361

Copper Reserve La WO ccccicinninonicnoss 865,655 1,098,556 1,108,209 851,383 686,715

Adjusted EBITDA ..ooooccinciocoinocioocconinoos. $ 3,075,187 $ 5,668,314 $ 4,695,792 $ 3,543,590 $ 2,552,680

0

Q)

6)

(4)
(5)

Impairments include charges and reversals related to charges of investment projects, research projects and investment in associates and joint
ventures and exclude impairment charges recorded under International Accounting Standard No. 36 related to other long-lived assets. 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 offering memorandum 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 ofa 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 “Risk Factors—
Risks Relating to CODELCO” Relationship with the Government of Chile— CODELCO is subject to special taxes.”

13

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 nine months ended
As of and for the year ended December 31, September 30,

2016 2017 2018 2018 2019
(in thousands of U.S.S, except ratios)

Debt… anno $ 14,913,561 $ 14,709,790 $ 15,257,685 $ 15,018,542 $ 17,453,362
Ratio of debt to Adj 4.8 2.6 3.2 N/A N/A
Finance income … . 23,402 29,836 51,329 37,439 22,504
Adjusted EBITDA coverage ratio!”……….. 5.9 9.2 11.4 11.3 7.6

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

14

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 CODELCOS*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.

CODELCOS*s 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 nine months of 2019, copper prices averaged 274.0 cents per pound, down from 301.3 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. Ifeconomic 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
CODELCOSs 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
economically viable considering the copper price outlook at the time. See notes 23 and 24 of the Audited Annual

15
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
CODELCOSs 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, unexpected 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.

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

16
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, CODELCOS*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. Ifthe 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 PM1o 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 PM10 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 offering memorandum, 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», PM1o 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 offering
memorandum, 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 PM2.5and 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, climate change, 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 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.

17
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. Recently, during the 25th Conference of the Parties to the United Nations
Framework Convention on Climate Change in Madrid, the Chilean government announced an update to its Nationally
Determined Contribution, which includes the reduction of its CO2 emissions per GDP unit by 45% below 2016 levels by
2030.

Any of these new laws or regulations could result in significant additional environmental compliance costs or
delays in expansion projects. As of September 30, 2019, CODELCO had total provisions of U.S.$1.5 billion 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. IfCODELCOSs 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 offering memorandum, 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. 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

18
CODELCOSs current significant legal proceedings, see “Business and Properties—Comptroller General of the Republic”
and “Business and Properties—Legal Proceedings.”

Earthquake damage to CODELCOS*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, (i) 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 CODELCOS*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.

CODELCOSs 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, including
increased governmental supervision and control over the management of CODELCO”s business and its awarding of
contracts, or the discovery of new facts resulting in increased liabilities or costs would not have a material adverse effect
on CODELCOS*s business, financial condition, results of operations or prospects.

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

CODELCO”s ore deposits (its resources and reserves) described in this offering memorandum 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.”

CODELCOSs 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 from banks
and capital markets. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—

19
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.

CODELCOS*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
CODELCOSs 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.

Labor disruptions involving CODELCO*s employees or the employees of its independent contractors could affect
CODELCOS*s 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

20
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 nine-month period ended September 30,
2019. In 2018, CODELCO negotiated 18 collective bargaining agreements. Twelve collective bargaining agreements,
covering a total 07,081 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. Ifthere 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
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

21
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 CODELCOS*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
CODELCOSs 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 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 CODELCOS*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 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

22
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; (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. 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 CODELCO*s directors, amendments to its bylaws, and
revision and approval of its budget, including CODELCO” 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*s 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, CODELCOS”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.

IfCODELCOS”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,
CODELCOSs business would be adversely affected. See “Management’s Discussion and Analysis of Financial Condition
and Results of Operations—Liquidity and Capital Resources.” In addition, ifthe 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.

23
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.

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

Almost all f 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.

Chile has recently experienced political unrest and social strife, including a wave of protests and riots, beginning
on October 18, 2019, sparked by an increase in the subway fare of the Santiago Metro and widened to reflect anger over

24
living costs and inequality. The continuing unrest in Chile and associated civil protests have caused temporary
disruptions in port operations and as a result temporary delays of shipments from CODELCO to its customers. In addition,
indicators of economic activity in Chile are expected to be adversely affected in the fourth quarter of 2019 and, potentially,
in future periods as a result of the unrest. There can be no assurance that future developments in or affecting the Chilean
political 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.

CODELCOS*s 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
September 30, 2019:

Year Inflation (CPI
(in percentages)

2016 . 2.7

2017 2.3

2018.. . 2.6

2019 (though September 30, 2019) 0ococicocccocncicnicnnnns 2.0

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.$1.4
billion (4.9% of the total amount of liabilities on a consolidated basis) as of September 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

25
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 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 offering memorandum
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 0f 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

26
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 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 initial purchasers are 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.

27
USE OF PROCEEDS

The estimated total net proceeds from the offering of the notes are U.S.$1,933,045,542, after deducting
commissions to the initial purchasers, payment of a Chilean stamp tax of U.S.$16,000,000 and payment of legal fees and
all other expenses related to the offering, and excluding accrued interest payable. CODELCO intends to use the net
proceeds from the sale of the notes for general corporate purposes. See “Management’s Discussion and Analysis of
Financial Condition and Results of Operations—Liquidity and Capital Resources” and “Capitalization.”

28
CAPITALIZATION

The following table sets forth the capitalization of CODELCO as of September 30, 2019 (i) on an actual
historical basis, (ii) as adjusted to give effect to an international note issuance in an aggregate principal amount dollar
equivalent of U.S.$64 million issued in November 2019 and a seven-year bilateral credit facility with Banco
Latinoamericano de Comercio Exterior in an aggregate principal amount of U.S.$75 million entered into in December
2019, and (iii) as further adjusted to give effect to the offering of the notes. This table is qualified in its entirety by
reference to, and should be read together with, CODELCO””s Unaudited Interim Consolidated Financial Statements,
including the notes thereto, included elsewhere in this offering memorandum.

As of September 30, 2019

Actual As Adjusted” As Further Adjusted
(in thousands of U.S.$)
Current financial liabilities
Current portion of loans from financial institutions… $ 871,161 $ 871,161 $ 871,161
Current portion of bonds issued… 124,044 124,044 124,044
Total current financial liabiliti8S…….ounnc….. $ 995,205 $ 995,205 s 995,205
Non-current financial liabilities
Bank debt $ 2,370,178 $ 2,445,178 Ss 2,445,178
3.750% Notes due 2020.. 401,364 401,364 401,364
3.875% Notes due 2021.. 236,170 236,170 236,170
3.000% Notes due 2022 ..ocociociocioninnioninninnanconnancnnennnno 520,931 520,931 520,931
4.500% Notes due 2023 355,438 355,438 355,438
2.250% Euro Notes due 20240 647,532 647,532 647,532
4.000% UF Notes due 20250 275,848 275,848 275,848
4.500% Notes due 2025.. 1,054,721 1,054,721 1,054,721
2.500% UF Notes due 2026” 402,757 402,757 402,757
3.63% Notes due 2027. 1,442,319 1,442,319 1,442,319
2.869% Notes due 202: 128,759 128,759 128,759
3.000% Notes due 2029.. 1,087,216 1,087,216 1,087,216
5.625% Notes due 2035.. 492,036 492,036 492,036
2.840% Notes due 2034’* – 64,000 64,000
6.150% Notes due ZO ..ccociociocioninninninnincancanancncnnono 496,515 496,515 496,515
3.580% Notes due 2039% 46,781 46,781 46,781
4.250% Notes due 2042.. 733,343 733,343 733,343
5.630% Notes due 204 ococoiocioninnioninninnincanninecncnncno 933,491 933,491 933,491
4.875% Notes due 2044. 961,328 961,328 961,328
4.50% Notes due 2047. 1,205,730 1,205,730 1,205,730
4.85% Notes due 2048. 594,464 594,464 594,464
4.375% Notes due 204′ 1,181,696 1,181,696 1,181,696
3.700% Notes due 2050.. 889,540 889,540 889,540
Notes offered hereby” – – 2,000,000
Total non-current financial liabilities……………. $ 16,458,157 $ 16,597,157 $ 18,597,157
Non-controlling iMtereSt ..cionnninnininnnaccra $ 921,052 $ 921,052 $ 921,052
Equity
Issued capital… $ 5,619,423 $ 5,619,423 Ss 5,619,423
Other reserves. 5,334,459 5,334,459 5,334,459
Retained Earnin;
Retained eamnings ….. Lo (304,865) (304,865) (304,865)
Profits distributions to the Chilean Treasury – –
Equity attributable to equity owners of the paren $ 10,649,017 $ 10,649,017 $ 10,649,017
Total capitalization cocine Ss 29,023,431 $ 29,162,431 Ss 31,162,431

29
(1

0)
6)
(4)
15)
(6)

(01)
(8)

For more information on the international note issuance issued in November 2019 and the bilateral credit facility with Banco Latinoamericano de
Comercio Exterior entered into in December 2019, see “Summary—Recent Developments” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations—Liquidity and Capital Resources—Other Debt.”

The U.S.$ equivalent of €600 million aggregate principal amount of the 2.25% Euro Notes due 2024 has been translated at an exchange rate of
U.S.$1.00 =€0.9173 at September 30, 2019.

The U.S.$ equivalent of 6.9 million UF aggregate principal amount of the 4.0% UF notes due 2025 has been translated at an exchange rate of
U.S.$1.00 = 0.025963 UF at September 30, 2019.

The U.S.$ equivalent of 10 million UF aggregate principal amount of the 2.5% UF notes due 2026 has been translated at an exchange rate of
U.S.$1.00 = 0.025963 UF at September 30, 2019.

The U.S.$ equivalent of AUD 70 million aggregate principal amount of the 3.580% notes due 2039 has been translated at an exchange rate of
U.S.$1.00 = AUD 1.4813 at September 30, 2019.

Net of deferred financing costs, commissions to the initial purchasers, payment of a Chilean stamp tax and payment of legal fees and all other
expenses related to the offering.

CODELCO has no convertible debt securities, warrants exercisable for debt securities or other similar securities outstanding.

The U.S.$ equivalent of HKD 500 million aggregate principal amount of the 2.840% Notes due 2034 has been translated at an exchange rate of
U.S.$1.00 = HKD 7.8125.

30
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

(ChS 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:

699.98 677.62 686.06 699.98

724.20 700.82 713.70 720.65

. 727.08 707.07 718.02 725.68

October .. . 729.38 709.71 721.03 726.34

Novembes 828.25 735.05 776.53 828.25

December 812.13 744.62 770.39 744.62
2020:

January (through January 3, 2020) …………… 754.16 748.74 751.45 754.16

(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 January 3, 2020 was Ch$754.16 =
U.S.$1.00.

31
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 offering memorandum. 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 offering memorandum are presented in accordance with IFRS. The unaudited interim
information as of September 30, 2019 and for the nine-month periods ended September 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 September 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 nine months ended
September 30, 2018 and 2019 are not necessarily indicative of the results to be expected for the full year or any other
period.

For the nine months ended
For the year ended December 31, September 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 $ 10,771,511 $ 8,808,184
Cost of sales” . (9,449,668) (10,380,403) _ (11,194,341) (8,357,160) (7,256,283)
Gross profit 2,087,083 4,261,152 3,114,417 2,414,351 1,551,901
Other income, by function. 138,474 154,332 124,826 95,038 206,981
Impairment loss determined in accordance
with IFRS 9 N/A N/A 158 (805) 1,176
Distribution costs (11,891) (10,403) (18,262) (14,288) (12,647)
Administrative expe . (415,395) (428,140) (465,328) (347,163) (303,025)
Other expenses cnica (1,324,149) (1,557,473) (2,115,314) (1,420,134) (1,328,133)
Other gains… 29,400 32,605 21,395 13,643 17,038
Finance income 23,402 29,836 51,329 37,439 22,504
Finance costs so (547,347) (644,610) (463,448) (349,654) (360,104)
Share of profit (loss) of associates and joint

ventures accounted for using equity

method (177,358) 185,428 119,114 98,409 11,863
Foreign exchange differences…………..mmm.. (232,895) (206,058) 178,143 83,639 114,946
Profit (loss) for the period before ta: (430,676) 1,816,669 547,030 610,475 (77,500)
Income tax expense0. 97,096 (1,193,067) (357,283) (392,181) (20,499)
Profit (loss) for the period. (333,580) 623,602 189,747 218,294 (97.999)
Profit (loss) attributable to owners of the

parent… ee. (275,418) 569,175 155,719 189,604 (105,530)
Profit (loss) attributable to non-controlling

interest (58,162) 54,427 34,028 28,690 7,531
Profit (loss) for the pOriOd ocn. SS (833,580) $ 623,602 $ 189,747 $ 218,294 $ (97,999)

As of December 31 As of September 30,

2016 2017 2018 2019

CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION (in thousands of U.S.$)
Total current asset: $ 4,690,418 $ 6,211,053 $ 5,828,206 $ 7,001,017
Total property, plant and equipment 23,977,261 25,275,512 26,754,998 28,673,181
Investments accounted for using equity

method”… 3,753,974 3,665,601 3,568,293 3,488,854
Non-current receivables 95,316 91,442 84,731 109,553
All other assets*) ….. 904,161 1,112,533 854,577 949,067
Total assets…. orrnnrnnernnnrnrnranrnnernas $ 33,421,130 $ 36,356,141 $ 37,090,805 $ 40,221,672
Total current liabilitieS ……….ovmoonanann. 2,462,453 3,315,456 3,539,412 4,256,209

32
Total non-current liabilities ……………….w…… 21,068,268 22,115,347 22,207,524 24,395,394

Total liabilities.. $ 23,530,721 $ 25,430,803 $ 25,746,936 $ 28,651,603
Non-controlling interests ÓN e 978,666 1,007,495 969,204 921,052
Equity attributable to owners of 8,911,743 9,917,843 10,374,665 10,649,017

Total equity $ 9,890,409 $ 10,925,338 $ 11,343,869 $ 11,570,069
Total liabilities and equity ……..cicconanannneo. $ 33,421,130 $ 36,356,141 $ 37,090,805 $ 40,221,672

As of and for the nine months ended
As of and for the year ended December 31, September 30,

2016 2017 2018 2018 2019

(in thousands of U.S.S, except ratios and copper prices)

OTHER ITEMS

Depreciation and amortization of

ASSOÉS moccco.. $ 1,936,152 $ 2,101,101 $ 2,181,140 $ 1,593,895 Ss 1,583,361
Interest expense, net $ (523945) $ (614,774) $ (412,119 $ (312,215) $ (337,600)
Ratio of earnings to fixed charges
(adjusted)%… 0.5 3.8 3.0 3.1 0.8
Average LME copper price

(US. E per pod) micas. 220.6 279.7 295.9 301,3 274.0
Adjusted EBITDAS … S 3,075,187 $ 5,668,314 $ 4,695,792 $ 3,544,894 Ss 2,552,680
Ratio of debt to Adjusted
EBITDA” aennrnanos 4.8 2.6 3.2 N/A N/A
Adjusted EBITDA coverags
ratio0% 5.9 9.2 11.4 11.4 7.6

0)
0)

6)

(4)
15)

(6)

(1)
(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 CODELCO 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 offering memorandum
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

33
(9)

(10)

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 offering memorandum 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 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.

For the nine months ended
For the year ended December 31, September 30,

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

Profit (loss) for the period ………………….. S (333,580) S 623,602 s 189,747 $ 218,294 s (97,999)
Income tax expensO cooconccncnonncnrnncncnninnnnoo (97,096) 1,193,067 357,283 392,181 20,499
Finance costs 547,347 644,610 463,448 349,654 360,104
Impairments’ 156,709 7,378 395,965 138,183 _
Adjusted EBITO coccion 273,380 2,468,657 1,406,443 1,098,312 282,604
Ratio of earnings to fixed charges

(adjusted)? 0. 0.5 3.8 3.0 3.1 0.8
Depreciation and amortization of assets 1,936,152 2,101,101 2,181,140 1,593,895 1,583,361
Copper Reserve Law* 865,655 1,098,556 1,108,209 851,383 686,715
Adjusted EBITDA ..oooocoicoiocicncinoniooooos $ 3,075,187 $ 5,668,314 $ 4,695,792 $ 3,543,590 $ 2,552,680

(M)

|)

6)

(4)
(5)

Impairments include charges and reversals related to charges of investment projects, research projects and investment in associates and joint
ventures and exclude impairment charges recorded under International Accounting Standard No. 36 related to other long-lived assets. 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 offering memorandum 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 CODELCOS*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 “Risk
Factors— Risks Relating to CODELCO”s Relationship with the Government of Chile— CODELCO is subject to special taxes.”

34
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 nine months ended

As of and for the year ended December 31, September 30,

2016 2017 2018 2018

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

2019

$ 14,913,561 $ 14,709,790 $ 15,257,685 $ 15,018,542 $ 17,453,362
Ratio of debt to Adjusted EBITDA

4.8 2.6 3.2 N/A N/A
Finance income …. 23,402 29,836 51,329 37,439 22,504
Adjusted EBITDA coverage ratio!”……… 5.9 9.2 11.4 11.4 7.6

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

35
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 nine months ended September 30, 2018 and 2019. For more
information regarding such data, see “Business Properties.”

For the nine months ended

Year ended December 31, September 30,
2016 2017 2018 2018 2019
COPPER MINING OPERATIONS
Ore Mined (in thousands of dry metric
tons):
Mina Ministro Hales 26,494 23,653 19,827 15,181 14,375
Chuquicamata Division 45,642 50,104 56,909 40,998 48,181
Radomiro Tomic Division. 79,971 78,582 77,692 59,428 52,197
Gabriela Mistral Division .. 39,596 40,503 39,430 29,828 28,807
El Teniente Division. 50,826 50,812 52,454 38,293 38,305
Andina Division … . 28,218 31,863 29,264 23,122 22,670
Salvador Divisi0N……coninininninninicnoo 16,392 14,513 12,892 10,493 7,785
287,139 290,029 288,467 217,344 212,319
Mina Ministro Hales 1.19% 1.08% 1.09% 1.09% 0.97%
Chuquicamata Division 0.79 0.77 0.62 0.61 0.68
Radomiro Tomic Division. 0.47 0.51 0.53 0.52 0.49
Gabriela Mistral Division .. 0.43 0.43 0.37 0.37 0.39
El Teniente Division 1.01 0.98 0.96 0.98 0.93
Andina Division … 0.78 0.78 0.75 0.74 0.67
Salvador Division… 0.54 0.56 0.59 0.60 0.62
Weighted Average. 0.71% 0.71% 0.67% 0.67% 0.66%
PLANT COPPER PRODUCTION
(by division in metric tons):
Mina Ministro Hales . 237,020 215,086 195,485 142,184 110,588
Chuquicamata Division. 302,010 330,910 320,744 198,280 262,091
Radomiro Tomic Division 318,255 318,878 332,667 254,163 197,889
Gabriela Mistral Division. 121,712 122,737 107,247 77,315 72,182
El Teniente Division …. 475,340 464,328 465,040 348,350 323,896
Andina Divis 193,341 220,030 195,531 143,798 125,939
Salvador Divisio 59,796 61,942 60,840 36,925 27,130
1,707,474 1,733,911 1,677,554 1,201,015 1,119,715
PLANT COPPER PRODUCTION
(contained copper in metric tons):
ER Cathodes … 93,724 65,579 44,308 24,791 2,834
SX-EW Cathodes 440,587 442,136 410,649 303,118 285,001
Calcined… 166,159 159,113 152,653 117,471 81,610
Anodes — Blister 393,820 381,526 386,393 294,642 206,075
Concentrates …… 613,184 685,557 683,551 460,993 544,195
AN 1,707,474 1,733,911 1,677,554 1,201,015 1,119,715
MOLYBDENUM PRODUCTION
(contained molybdenum in metric tons)……. 30,641 28,674 24,031 18,217 16,036
COPPER SALES
(in metric tons; includes sales of third-party
copper):
Cathodes .. 1,358,519 1,233,012 1,231,172 942,209 742,651
Fire Refined – – – – –
Anodes — Blister 100,337 118,986 135,509 98,318 21,839
Concentrates …. 595,567 610,852 529,292 351,745 548,527
2,054,423 1,962,850 1,895,974 1,392,272 1,313,016

COPPER EXPORTS

36
(in metric tons; includes sales of third-party
copper):

Cathodes ……….

Blister …

PERIOD-END
(in metric OMS )..cccccconconinnononnonnncnonnanannnnos

1,267,012 1,164,459 1,173,010 894,314 707,916
100,325 118,986 133,499 96,314 21,839
543,726 515,214 379,398 266,318 408,529

1,911,063 1,798,659 1,685,906 1,256,946 1,138,284

58,675 54,448 80,233 60,820 45,267

37
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 offering memorandum, 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 offering memorandum 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 274.0 cents per pound in the first nine months of 2019, compared to 301.3 cents per pound in the first
nine months 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. During the nine months ended September 30, 2019,
CODELCOS*s total costs and expenses decreased by 4.9 cents per pound (2.1%) to 239.7 cents per pound, compared
to 244.6 cents per pound for the same period in 2018, mainly due to Chilean peso depreciation against U.S. Dollar and
cost cutting initiatives, partially offset by lower production levels in connection with weather disruptions in the
northern area of Chile, a 14-day strike at the Chuquicamata mine and upgrades at the Chuquicamata and Salvador
smelters that suspended operations temporarily.

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 nine months ended September 30, 2019, CODELCO”s total cash cost was
U.S.$3.5 billion, as compared to U.S.$3.6 billion for the nine months ended September 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.” 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 over 2016 is primarily attributable to higher operational costs, the appreciation of the Chilean peso against the
U.S. dollar and higher interest expenses. For the nine months ended September 30, 2019, 143.1 cents per pound,

38
compared to 138.9 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 September
30, 2019, CODELCO did not have any production hedging commitments and, accordingly, there was no related impact
on pre-tax income for the nine months ended September 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 CODELCOSs 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 CODELCO*s stake in
El Abra.

In 2018, each one-cent change in CODELCOS*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 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.

39
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 offering memorandum:

Nine months ended

Year ended December 31, September 30,
2016 2017 2018 2018 2019
Revenue… 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of sales (81.9) (70.9) (78.2) (77.6) (82.4)
Gross profit. 18.1 29.1 21.8 22.4 17.6
Other income, by functio! 1.2 1.1 0.9 0.9 2.4
Administrative expenses (3.6) (Q.9) (3.3) (3.2) (3.4)
Other expenses …. (11.5) (10.6) (14.8) (13.2) (15.1)
Finance COStS …..cccocos… a (4.7) (4.4) (3.2) (3.2) (4.1)
Profit (loss) for the period before tax (3.7) 12.4 3.8 57 (0.9)
Income tax expense …. 0.8 (8.1) (Q.5) (3.6) (0.2)
Profit (loss) for the perio: Q.9)% 4.3% 1.3% 2.0% (1.0%

40
The following tables set forth, for the periods indicated, certain price, volume and cost data:

Nine months ended

Year ended December 31, September 30,
2016 2017 2018 2018 2019
CODELCO Average Metal Price (per
pound)”
Copper $ 2.14 $ 2.86 $ 2.76 $ 2.83 $ 2.58
Molybdenum. 2. $ 6.38 $ 7.88 $ 11.64 $ 11.59 $ 12.00
CODELCO Sales Volume (in metric tons)
Own copper(2)… 1,860,465 1,846,452 1,838,150 1,348,223 1,277,440
Third-party copper . 401,966 304,026 296,109 218,021 124,804
Total copper…. a 2,262,431 2,150,478 2,134,259 1,566,244 1,402,244
Molybdenum (in oxide and
concentrate)… 20. 29,823 28,918 25,385 19,852 17,226
CODELCO*s Cash Cost of Production (per
pound). 126.1é 135.9 139.1é 138.98 143.14

(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 Nine months Ended September 30, 2018 and 2019

The following table sets forth CODELCO”s summarized results of operations for the nine
September 30, 2018 and 2019:

months ended

Nine months ended September 30, % Change
2018 2019 2018/2019
(in millions of U.S.S)
Revenue.. $ 10,772 $ 8,808 (18.2)%
Cost of sale (8,357) (7,256) (13.2)
Gross profit. . 2,414 1,552 (35.7)
Other income, by function. 95 207 117.8
Administrative expenses (347) (303) (12.7)
Other expenses ….. (1,420) (1,328) (6.5)
Finance costs (350) (360) 3.0
Share of profit (los: accounted for

using equity method…… 98 12 (87.9)
Foreign exchange differences 84 115 37.4
Profit (loss) for the period before tax. 610 (78) (112.7)
Income tax expense . (392) (0) (94.8)
Profit (loss) for the period . 218 (98) (144.9)
Profit (loss) attributable to owners of parent… 190 (106) (155.7)
Profit (loss) attributable to non-controlling interest 29 8 (73.8)

Revenue. The following table sets forth CODELCO”s revenue for the nine months ended September 30,

2018 and 2019:

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

Revenue e. A s 10,772 $ 8,808 (18.2)%
Sales of CODELCO’s own copper 8,392 7,259 (13.5)
Sales of third-party copper.. 1,444 724 (49.9)
Sales of byproducts and other. 935 825 (11.8)

41
Revenue decreased by 18.2% to U.S.$8.8 billion in the first nine months of 2019, compared to
U.S.$10.8 billion for the same period in 2018. This decrease was primarily attributable to a decrease in CODELCO”s
average copper price from U.S.$2.83 per pound in the first nine months of 2018 to U.S.$2.58 per pound in the first
nine months of 2019 and a decrease in the volume of copper sold by 10.5% as a result of lower production levels. Our
own copper sales decreased by 13.6% mainly due to the decrease in CODELCO”s average copper price and 5.3%
lower volume sold. A decline in copper prices in October, November and December 2019 may result in a downward
adjustment in CODELCO”s revenues and trade receivables recognized in September 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. When 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 fourth 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 fourth quarter of 2019. Such adjustments
may be recorded in the consolidated financial statements for year ended December 31, 2019. See “Critical Accounting
Estimates—Provisional Pricing Arrangements” for more information.

Third-party copper sales totaled U.S.$724 million in the first nine months of 2019, compared to
U.S.$1.4 billion for the same period in 2018, attributable to lower average copper prices and a decline of sales volume.
In general, changes in the volume of third-party copper sales 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 11.8% to U.S.$825 million in the first nine months of 2019,
compared to U.S.$935 million for the same period in 2018. This decrease was primarily due to the 13.0% decline in
molybdenum sales volume.

Cost of sales. CODELCO*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 nine months ended September 30, 2018 and 2019:

Nine months ended

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

Cost Of Sales .o.ococoninonicnnonoonioniononos s 8,357 $ 7,256 (13.2)%
Cost of CODELCO”s own copper.. 6,426 6,073 (5.5)
Cost of third-party sales…….. 1,428 717 (49.8)
Cost of byproducts and other 503 466 (7.3)

CODELCOS*s total cost of sales decreased by 13.2% to U.S.$7.3 billion (82.4% of sales) in the first nine
months of 2019, compared to U.S.$8.4 billion (77.6% of sales) for the same period in 2018, primarily due to lower
sales volume, 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.

CODELCOSs cost of sales of its own copper decreased to U.S.$6.1 billion during the first nine months of
2019, compared to U.S.$6.4 billion for the same period in 2018. This decrease is primarily attributable to lower sales
volume 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 49.8% in the first nine months of 2019 to

U.S.$717 million, compared to U.S.$1.4 billion for the same period in 2018. The decrease was caused by lower sales
volume of third-party copper and by a decrease in the average price of copper.

42
The cost of byproducts and other decreased by 7.3% to U.S.$466 million in the first nine months of 2019,
compared to U.S.$503 million for the same period in 2018, primarily due to lower sales volume of molybdenum,
sulfuric acid, gold and silver.

Depreciation and amortization expenses decreased by 0.7% to U.S.$1.6 billion during the nine months of
2019, compared to U.S.$1.6 billion 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.$1.6 billion for the first nine months of 2019, compared to
U.S.$2.4 billion for the same period in 2018. The 35.7% decrease was primarily attributable to the decrease in
revenues mainly due to lower average price received for CODELCO”s product mix and lower sales volume of copper,
molybdenum, sulfuric acid, silver and gold, partially offset by the decrease in the cost of sales mainly due to lower
sales volumes and cost reduction efforts.

Other income, by function. The largest components of other income, by function, are sales of services to
third parties, insurance reimbursements received and gains on sales of assets. Other income, by function increased
117.8% to U.S.$207 million in the first nine months of 2019, compared to U.S.$95 million for the same period in
2018, primarily attributable to miscellaneous sales and sales of assets.

Administrative expenses. Administrative expenses decreased to U.S.$303 million (3.4% of total revenues)
during the first nine months of 2019, compared to U.S.$347 million (3.2% 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.$1,328 million (15.1% of total revenues) during the first
nine months of 2019, compared to U.S.$1,420 million (13.2% of total revenues) for the same period in 2018. This
decrease was primarily attributable to a decline of the amount of special export tax payments due to a lower average
copper price, a decrease of bonuses paid related to collective bargaining processes 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
nine months of 2018, partially offset by the increase in indirect fixed costs.

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

Nine months ended September 30,

2018 2019
(in millions of U.S.S)
Copper Reserve Law arras S 851 $ 687
Bonus for the end of collective bargaining and other employee benefits 191 110
(¡SON 378 532
Total other expenses by fUNCtiON coacciones O 1,420 $ 1,328

CODELCO recorded other expenses of U.S.$851 million and U.S.$687 million in the first nine 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 nine 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 decreased to U.S.$110 million from
U.S.$191 million, due to a smaller number of employees benefitting from collective bargaining negotiations in 2019.

Other expenses increased from U.S.$378 million to U.S.$532 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 2018.

43
Finance costs. Finance costs increased to U.S.$360 million in the first nine months of 2019, compared to
U.S.$350 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 September 2019. The average interest rate was 4.1% as of September
30, 2019. As of September 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.$12 million in the nine months of 2019,
compared to a net profit of U.S.$98 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 gain from
foreign exchange differences of U.S.$115 million in the first nine months of 2019, compared to a gain from foreign
exchange differences of U.S.$84 million in the same period of 2018. The gain recorded in the first nine months of
2019 is primarily attributable to the depreciation of the Chilean peso against the U.S. dollar as of September 30, 2019
as compared to December 31, 2018.

Loss before tax. Loss before tax was U.S.$78 million during the first nine months of 2019, compared to a
profit of U.S.$610 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 depreciation of the Chilean peso against the U.S. dollar.

Income tax expense. During the first nine 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%. CODELCOSs statutory rate of the mining tax for 2018 and 2017 was 5%. CODELCO”s
taxes on income amounted to an expense of U.S.$20 million during the first nine months of 2019 and an expense of
U.S.$392 million during the same period of 2018. The decrease in expense from taxes on income was primarily due
to the losses before tax generated during the first nine months of 2019.

Loss for the period. As a result of the factors described above, CODELCO*s loss after tax was U.S.$98
million during the first nine months of 2019, compared to a profit of U.S.$218 million for the same period of 2018.

44
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.S)

Revenue… 11,537 14,642 14,309 26.9% Q.3)%
Cost of sale (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 expens (415) (428) (465) 3.1 8.6
Other expense (1,324) (1,557) (2,115) 17.6 35.8
Finance costs. . (547) (645) (463) 179 (28.2)

Share of profit (loss) of associates and

joint ventures accounted for under the
equity method (177) 185 119 (204.5) (35.7)
Foreign exchange differences (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)
attributable to owners of
narrar (275) 569 156 (306.9) (72.6)
ss) attributable to

non-controlling interests …ooococininnin.. (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.$)

Revenue. S 11,537 S 14,642 S 14,309 26.9% Q.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

45
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.

Costofsales. The following table sets forth CODELCOSs 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.$)

¡CS $ 9450 $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.

CODELCOS*s 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 CODELCO”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 deposit
recorded in 2016. See note 24a to the 2017-2018 Consolidated Financial Statements and note 23a to the 2016-2017
Consolidated Financial Statements.

46
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.S)
s (866) S (1,099) S (1,108)

Copper Reserve Law 20.

Bonus for the end of collective bargaining and Employee Benefi

(129) (53) (269)

Asset impairments. (0) (0) (199)
Other non-cash charg (43) (89) (Q17)
Other expenses………. a… (287) 617) (622)
Tola ccccccocnoonoonoonoonoonoononnornornornornornarnornarnernornornornornornarccrnaoo $ (1,324) S (1,557) Ss QI5)

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.

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 ofU.S.$119
million in 2018, compared to a profit ofU.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 CODELCOSs stake in Anglo American

47
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 CODELCOS*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 Chiles
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 and amortization and depreciation recorded against other comprehensive income
and/or profit and loss. For the nine-month period ended September 30, 2019, non-cash charges were U.S.$667 million
in amortization and U.S.$916 million in depreciation. Non-cash deferred tax charges of U.S.$12.3 million were
recorded for the nine-month period ended September 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 CODELCO*s 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 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.

48
In accordance with this commitment, in June 2015, the Ministries of Finance and Mining approved the
capitalization ofU.S.$225 million of 2014 profit, but charged to 2015 profits. However, due to CODELCOS*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 nine months of 2019, net cash flows from operating activities
decreased by 42.9% to U.S.$2.4 billion from U.S.$4.3 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 sales volumes. See note 28 to the Unaudited
Interim Consolidated Financial Statements and note 28 to the 2017-2018 Consolidated Financial Statements.

Bank debt. CODELCOS*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 60.1% at September 30, 2019. CODELCOS”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.$17.5
billion as of September 30, 2019. As adjusted to give effect to the U.S.$64 million international notes issued in
November 2019 and the U.S.$75 million bilateral credit facility with Banco Latinoamericano de Comercio Exterior
entered into in December 2019, CODELCOS*s total financial debt as a percentage of its total capital would have been
60.3% and its total outstanding financial debt would have been U.S.$17.6 billion as of September 30, 2019.

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

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…ooonoccncinncnnononononncncnnnnnonos 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. ..oooniccicicicnconnnnnncncnnnnn U.S.$100.0 million LIBOR plus 60.0 basis points April 2012

49
HSBC Bank USA, National Association .. U.S.$250.0 million LIBOR plus 60.0 basis points July 2012
Export Development Canada …cocicinccnnnnc.. U.S.$250.0 million LIBOR plus 50.0 basis points October 2012

As of September 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 September 30, 2019, U.S.$251 million was outstanding under the loan described above with Bank of
Tokyo-Mitsubishi UFJ, Ltd. As of September 30, 2019, U.S.$303 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 September 30, 2019, U.S.$97 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 UFJ,
Ltd. As of September 30, 2019, CODELCO had amortized U.S.$127 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
U.S.$300.0 million LIBOR plus 62.0 basis points September 2013
U.S.$300.0 million LIBOR plus 65.0 basis points October 2013

Mizuho Bank, Ltd. ….
Bank of America N.A.
The Bank of Tokyo—Mitsubishi
UFJ, Ltd
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
8 Trust (Cayman) Ltd. and used the proceeds to prepay the Bank of America N.A. loan for U.S.$300 million in full,
as mentioned above. In May 2017, CODELCO exchanged the short-term loan with Scotiabank $ 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. 0… U.S.$300.0 million LIBOR plus 65.0 basis points

s0
Export Development Cadada…oociccicinncnnninnnnno. 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.

Asof September 30, 2019, U.S.$301 million was outstanding under the loan described above with Scotiabank
$ 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
Mizuho Bank, Ltd. ….oocicin……. U.S.$95.0 million LIBOR plus 62.0 basis points June 2014
Export Development Canada ….. U.S.$300.0 million LIBOR plus 62.0 basis points October 2014

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 September 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€ …ooonoiinin…… U.S.$300.0 million LIBOR plus 72.5 basis points December 2018

As of September 30, 2019, U.S.$302 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… 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
Ttaú ChilO cooooccccicinonocnccnocnnncnnncnnn U.S.$30.0 million LIBOR plus 63.0 basis points June 2019
Banco de Crédito e Inversiones U.S.$50.0 million LIBOR plus 39.5 basis points June 2019
Banco Chil8 ..oociccncnnncinnnninccnnn U.S.$120.0 million LIBOR plus 66.0 basis points June 2019

As of September 30, 2019, U.S.$165 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

51
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 September 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. Moreover, in
September 2019, CODELCO launched a third cash tender offer for its 3.750% notes due 2020 and 3.875% notes due
2021 and a waterfall cash tender offer for its 3.00% notes due 2022 and 4.500% notes due 2023, which was financed
with the proceeds from a concurrent offering of U.S.$1.1 billion aggregate principal amount of its 3.000% notes due
2029 and U.S.$0.9 billion aggregate principal amount of 3.700% notes due 2050. The following table shows amounts
due by CODELCO under notes issued in both international and local markets as of September 30, 2019:

Outstanding
Principal Amount and
Type of Principal Accrued Interest
Issuance Maturity Amount as of September 30,2019 Interest Rate
International November 4, 2020 U.S.$1.00 billion U.S.$408 million 3.75%
International November 4, 2021 U.S.$1.15 billion U.S.$240 million 3.88%
International July 17, 2022 U.S.$1.25 billion U.S.$524 million 3.00%
International August 13, 2023 U.S.$750 million U.S.$358 million 4.50%
International July 9, 2024 €600 million U.S.$651 million 2.25%
International September 16, 2025 U.S.$2.00 billion U.S.$1.10 billion 4.50%
Local April 1, 2025 6.9 million UF U.S.$276 million 4.00%
Local August 24, 2026 10 million UF U.S.$404 million 2.50%
International August 1, 2027 U.S.$1.50 billion U.S.$1.50 billion 3.63%
International August 23, 2029 U.S.$130 million U.S.$129 million 2.87%
International September 30, 2029 U.S.$1.10 billion U.S.$1.10 billion 3.00%
International September 21, 2035 U.S.$500 million U.S.$493 million 5.63%
International October 24, 2036 U.S.$500 million U.S.$510 million 6.15%
International July 22, 2039 AUDS500 million U.S.$47 million 3.58%
International July 17, 2042 U.S.$750 million U.S.$740 million 4.25%
International October 18, 2043 U.S.$950 million U.S.$958 million 5.63%
International November 4, 2044 U.S.$980 million U.S.$981 million 4.88%
International August 1, 2047 U.S.$1.25 billion U.S.$1.20 billion 4.50%
International May 18, 2048 U.S.$600 million U.S.$605 million 4.85%
International February 5, 2049 U.S.$1.30 billion U.S.$1.20 billion 4.38%
International January 1, 2050 U.S.$900 million U.S.$890 million 3.70%

52
The following table sets forth the scheduled maturities of CODELCO”s bank and unsecured note obligations
as Of September 30, 2019:

Bank and Unsecured Note Obligations Outstanding
(in millions of U.S.S)

Average
Annual
Less than 1 More than Interest
Total year 1-2 years 2-3 years 3-5 years 5 years Rate
Loans from financial institutions.. U.S.$ 3,241 U.S.$ 871 U.S.$ 250 U.SS$ 961 U.S.S 0 US$ 1,159 LIBOR+0.61%
Bonds issued.. 14,212 124 401 757 1,003 11,927 4.16%

Total ……. U.S.$ 17,453 U.S.$ 995 U.S.$ 651 U.S.$ 1,718 U.S.S 1,003 U.S.S 13,086

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 (1) 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.$31 million and U.S.$765 million, respectively, as of September 30, 2019. See notes 17 and 18 to the
2017-2018 Consolidated Financial Statements and to the Unaudited Interim Consolidated Financial Statements. In
addition, as of September 30, 2019, CODELCO believes that its net deferred taxes will reverse as follows: deferred
tax expense in the amount of U.S.$25 million in 2019, U.S.$142 million in 2021 and U.S.$4,616 million after 2023
and deferred tax benefit in the amount of U.S.$141 million in 2020 and U.S.$109 million in 2022. 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 “AS8R Mitsui
Bridge Loan Facility”) pursuant to which Oriente Copper Netherlands B.V. (“Oriente Copper”), 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 Oriente Copper 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 Oriente Copper 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 Oriente Copper 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 Oriente Copper renegotiating the following semi-annual payment, which was on the same terms as

53
the first renegotiation done in November 2016. As of September 30, 2019, the aggregate outstanding balance of the
credit agreements is U.S.$620 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
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 94% complete as of
September 30, 2019.

+ Thereallocation ofthe 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 80% complete as of September
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 September 30, 2019, the project is approximately 54%
complete.

+ The upgrade of CODELCOS*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 September 30,
2019, 100%, 99%, 97% and 99% 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 September 30, 20109, 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 September 30, 2019, the feasibility study has been
authorized and is approximately 40% complete.

CODELCO has already begun investing in the aforementioned projects. In 2018, CODELCO invested
U.S.$3.6 billion 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.

54
CODELCO invested U.S.$3.5 billion in 2017 and U.S.$2.7 billion in 2016. For an additional description of
CODELCO'”s principal planned capital expenditures, see “Business and Properties—Copper Production—
Operations.”

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 CODELCOS*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 CODELCOS*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 Results of Operations —Liquidity
and Capital Resources” and “Risk Factors—Risks Relating to CODELCO”s Relationship with the Government of
Chile—CODELCOSs 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.

55
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.”

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.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 waste: 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
Tota cccccninicnnoninnnnnnnnnnonocnn nono nono 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 nine months ended September 30, 2019.

S6
Contributions to the Chilean Treasury
(in millions of U.S.$)

Nine months ended

Year Ended December 31, September 30,
2016 2017 2018 2019
Income tax payments $ 25 s 31 $ 70 $ 60
Copper Reserve Law… 917 1,062 1,137 –
Subtotal . $ 942 s 1,093 $ 1,207 $ 60
Dividends…. . – 273 602 –
DotA cinco 942 $ 1,366 $ 1,809 $ 60

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 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.

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 CODELCOS”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 CODELCO”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 September 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.$664 million and U.S.$819 million,
respectively, which were equivalent to, and sufficient to cover, 100% of CODELCOS*s foreign currency-denominated
bonds outstanding as of September 30, 2019.

As of September 30, 2019, 85% of CODELCO*s financial debt was at a variable interest rate and 15% had a
fixed rate.

57
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 ofthe 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 and low value 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.S)
Property, plant and equipment Paca. $ 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 EMO coccion 11,343,869 – 11,343,869

(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.

58
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 1AS17.. $ 266,351
Less initial recognition exception:
Short-term leases .. (55,360)
Leases with variable payments that do not depend on an index or a rate (69,070)
Low-value leases earn nerarnnnn (220)
Total lease liabilities recognized as of January 1, 2019 ernnrnnanan canon nn ran nanannns 141,701
Plus:
Leases identified in existing contracts as of January 1, 2019 under IFRS 16% ….. me. 414,326
Discounted using the incremental borrowing rate at the date of the initial application (amuary 1,2019 4.67%
Discounted financing lease liabilities recognized as of January 1, 201 D..oooocionininioninnnnncnn 368,890
Lease liabilities related to leases previously classified as financial leases ….ooonononicninninn… AN 107,839
Total lease liabilities recognized on January 1, VD. .ooonincicionicicinnnnnonincncnonncnrnronrocnroococnnnanos 476,729
Consisting of:
Lease liabilities current portion … 115,791
Lease liabilities non-current portion 360,938
Total lease liabilities recognized on January 1, 2019 ernnrnrnnaaranarnnranrnannnnns 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.

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.

59
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. Ifany 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. Ifthe 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.

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

60
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. Ifit 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.

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

61
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 performance obligation has been satisfied.

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 (i) a favorable outcome will be obtained, (ii) 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.

62
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, CODELCO*s total assets were U.S.$37.1 billion and
equity amounted to U.S.$11.3 billion. As of September 30, 2019, total assets were U.S.$40.2 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% ofits total sales from byproducts of its copper production or, for the nine-month period
ended September 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 nine-month periods ended September 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)
Nine months ended

Year ended December 31, September 30,
2016 2017 2018 2018 2019
CODELCO’*s Copper Production. 1,707 1,734 1,678 1,201 1,120
CODELCOS*s Cash Cost of Produ 126.1 135.9 139.1 139.9 143.1
Average LME Price” . 220.6 279.7 295.9 301.3 274.0

(1) Price for Grade A cathode copper.

CODELCOS*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:

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 94% complete as of

63
September 30, 2019.

e Thereallocation ofthe 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 80% complete as of September
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 September 30, 2019, the project is approximately 54%
complete.

+ The upgrade of CODELCOS”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 September 30,
2019, 100%, 99%, 97% and 99% 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 September 30, 20109, 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 September 30, 2019, the feasibility study has been
authorized and is approximately 40% complete.

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.

Transformation Plan. On November 29, 2019, CODELCO announced the Transformation Plan. Among
other objectives, the Transformation Plan seeks to optimize the standards for project selection and to reduce execution
delays, improve operating performance and renew focus on maximizing the value of its mineral resources and reserves.
The Transformation Plan also includes a series of targets to achieve cost savings in capital and operational
expenditures.

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

64
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 (1) 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
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

65
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.

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 CODELCOS”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 nine months of 2019, this division produced 323,896 metric tons of
copper with a cash cost of 101.8 cents per pound and a total cash cost of U.S.$716 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 CODELCO*s total copper
output (including CODELCOS*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 nine months of 2019, this division produced 197,889
metric tons of copper with a cash cost of 147.4 cents per pound and a total cash cost of U.S.$639 million.

+ 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 CODELCOS”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 nine months of 2019, this division produced 262,091
metric tons of copper with a cash cost of 125.0 cents per pound and a total cash cost of U.S.$702 million.

+ The Mina Ministro Hales Division was created in 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 CODELCOSs 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 ofU.S.$517 million in 2018, compared to U.S.$560 million in 2017. During the first nine months
of 2019, this division produced 110,588 metric tons of copper with a cash cost of 133,7 cents per pound and a
total cash cost of U.S.$315 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 CODELCOS*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 nine months of 2019, this division produced 125,939
metric tons of copper with a cash cost of 188.8 cents per pound and a total cash cost of U.S.$506 million.

+ The Gabriela Mistral Division was created in 2013 and operates the Gabriela Mistral mine, which uses SX-EW
technology. The Gabriela Mistral mine produced its first copper cathodes in 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 CODELCOS*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 nine months of 2019, this division produced 72,182

66
metric tons of copper with a cash cost of 250.2 cents per pound and a total cash cost of U.S.$398 million.

e 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 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 nine months of 2019, this division produced 27,130 metric tons of copper with a cash
cost of 246.6 cents per pound and a total cash cost of U.S.$146 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 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 CODELCOS*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 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
o0f2017. 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 nine-month period ended September

30, 2019:
Production of Copper from Chilean Mines (CODELCO and Private Sector)
(in thousands of metric tons)
Year ended December 31, Nine months ended September 30, % Change

2016 2017 2018 2018 2019 2018/2019
El Teniente DivisiON….ooonocininnininnninnncncncno 475 464 465 348 324 (7.0)%
Radomiro Tomic Divis 318 319 333 254 198 (22.1)
Chuquicamata Divisio: 302 331 321 198 262 32.2
Mina Ministro Hales… 237 215 195 142 111 (22.2)
Andina Division .. 193 220 196 144 126 (12.4)
Gabriela Mistral Division Qe 122 123 107 7 nm (6.6)
Salvador DivisiON..ooooconcnnnnccncrneccecnns 60 62 61 37 27 (26.6)

67

El Abra” rs 49 38 44 34 29 (14.7)
Anglo American Sur? 71 70 84 62 61 (1.7)
CODELCO Total ProductioR………….oo..c……… 1,827 1,842 1,806 1,296 1,209 (6.7)
Chilean Private Sector’> …. 3,725 3,661 4,026 2,958 3,037 27

Total Chilean Production. 5,553 5,503 5,832 4,254 4,246 (0.2)

(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) CODELCOSs 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 nine-month period ended September 30, 2019:

Copper Output of CODELCO (excluding El Abra and Anglo American Sur)

(in thousands of metric tons)

Year ended December 31,

Nine months ended
September 30,

2016 2017 2018 2019

Cathodes ……. 534 508 455 288
Blister and anod 394 382 386 206
Calcines . 166 159 153 82
613 686 684 544

1,707 1,734 1,678 1,120

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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.S)

s 3,147
2,941
1,339
656
1,164
221
227
110
481
38
2,460

$ 13,385

Chuquicamata.
El Teniente ..

(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.S)
El Teniente . New mining level (2023) Execution” 5,598
Chuquicamata Chuquicamata Underground (2019) Execution” 5,019
Andina Expansion phase II (N.A.) Feasibility 3,440
Reallocation Plant (2020) Execution” 1,361
Salva occocicicicinniioconoo. Inca Pit (2021) Feasibility 1,262
Tota $ 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.

69
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 140,000 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 September 30, 2019, the El Teniente Division employed 4,045 persons and produced 323,896 metric
tons of copper at a cash cost of 101.8 cents per pound and a total cash cost of U.S.$716 million, as compared to a cash
cost of 106.6 cents per pound and a total cash cost of U.S.$811 million during the first nine 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)

Nine months ended

Year ended December 31, September 30,
2016 2017 2018 2019
Copper Production 475 464 465 324
Cash COSto.cccicic…. 97.2 113.5 106.5 101.8

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 September 30, 2019, the Radomiro Tomic Division employed 1,190 persons and produced 197,889
metric tons of copper at a cash cost of 147.4 and a total cash cost of U.S.$639 million compared to a cash cost of 135.2
cents per pound and a total cash cost of U.S.$749 million during the first nine 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.

70
Copper Production and Cash Cost—Radomiro Tomic Division
(production in thousands of metric tons and cash cost in cents per pound)

Nine months

ended
Year ended December 31, September 30,
2016 2017 2018 2019
Copper Production Radomiro Tomi 318 319 333 198
Cash Cost Radomiro Tomic… 134.8 131.4 134.1 147.4

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 September 30, 2019, the Chuquicamata Division employed 5,110 persons and produced 262,091 metric
tons of copper at a cash cost of 125.0 cents per pound and a total cash cost of U.S.$702 million, compared to a cash
cost of 135.9 cents per pound and a total cash cost of U.S.$580 million during the first nine 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)

Nine months ended

Year ended December 31, September 30,
2016 2017 2018 2019
Copper Production Chuquicamat: 302 331 321 262
Cash Cost Chuquicamata. 118.3 130.9 131.5 125.0

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 September 30, 2019, Mina Ministro Hales employed 767 persons and produced 110,588 metric tons
of fine copper at a cash cost of 133.7 cents per pound and a total cash cost of U.S.$315 million, compared to a cash

71
cost of 118.6 cents per pound and a total cash cost of U.S.$360 million during the first nine 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)

Nine months ended

Year ended December 31, September 30,
2016 2017 2018 2019
Copper Production 237 215 195 111
Cash Cost ………. 115.3 121.8 124.0 133.7

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 September 30, 2019, the Gabriela Mistral Division employed 451 persons and produced 72,182 metric
tons of copper at a cash cost of 250.2 cents per pound and a total cash cost of U.S.$398 million, as compared to a cash
cost of 191.9 cents per pound and a total cash cost of U.S.$327 million during the first nine 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)

Nine months ended

Year ended December 31, September 30,
2016 2017 2018 2019
Copper Production… 122 123 107 Tn
Cash Cost………… 144.2 151.9 191.9 250.2

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 September 30, 2019, the Andina Division employed 1,591 persons and produced 125,939 metric tons of copper
at a cash cost of 188.8 cents per pound and a total cash cost of U.S.$506 million, as compared to a cash cost of 164.8
cents per pound and a total cash cost of U.S.$505 million during the first nine 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.

72
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)

Nine months

Year ended December 31, ended September 30,

2016 2017 2018 2019
Copper Production 193 220 196 126
Cash Cost ………. 146.6 139.6 163.7 188.8

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 September 30, 2019, Salvador employed 1,474 persons and produced 27,130 metric tons of fine copper
at a cash cost of 246.6 cents per pound and a total cash cost of U.S.$146 million, compared to a cash cost of 228.6
cents per pound and a total cash cost of U.S.$184 million during the first nine 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.

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

Nine months ended

Year ended December 31, September 30,
2016 2017 2018 2019
Copper Productio: 60 62 61 27
Cash Cost………… 182.3 198.7 223.5 246.6

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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 2004.

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 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 September 30, 2019, the Ventanas Division employed 836 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 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 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 2004.

o In 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 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 nine months ended September 30, 2019, the production was 58,463 metric tons of fine

copper with a cash cost of 269 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

74
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 nine months of 2019,
the project had not delivered dividends. As of September 30, 2019, the carrying value of SCM El Abra”s
ownership interest was equal to U.S.$596.6 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 A8R 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” 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 Ag¿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 AS%R Mitsui Bridge Loan Facility in connection with the transactions described
above. Following the consummation of this transaction, affiliates of CODELCO and Mitsui owned

75
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 Oriente Copper, an affiliate of
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 nine months ended
September 30, 2019, the production was 302,629 metric tons of fine copper with a cash cost of 140 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 September 30, 2019 in cash dividends to Becrux, and
CODELCO has a 67.8% indirect participation in Becrux. As of September 30, 2019, the carrying value
of equity of Anglo American Sur was equal to U.S.$2.9 billion, of which CODELCO has a 20% indirect
participation. See “Risk Factors.” A substantial amount of our total assets are property, plant and
equipment.

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 nine 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
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

76
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 ofits 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 July 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 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;

O 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;

O Ecosea Farming S.A.: CODELCO, through its subsidiary Innovaciones en Cobre S.A., is a 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

TT
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;

O 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

O 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 September 30, 2019:

Major Mining and Exploration Agreements
(As of September 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
Puntilla Galenosa Pucobre (Chile) 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

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
CQCMRRK 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

78
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 ofresources
and reserves:

Resources and Reserves, CODELCO

GEOLOGICAL

RESOURCES MINERAL
RESOURCES RESERVES

Mining Plan
Life – of – mine

Y

EXPLORATION

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

Chilean Code: CH20.235

di

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. CODELCO”s mineral resources include 134.2 million metric fine tons of copper, and its identified geological
resources include 392.1 million metric tons of copper, for a cut-off grade of 0.2% copper.

79
CODELCOSs 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:

Geological Resources”? Mineral Resources? Ore Reserves
Grade Fine Grade Fine Grade Fine
Tonnage* _copper copper? Tommage? copper copper? Ore*> copper copper*?

Radomiro Tomic………. 7,442 0.41% 30.5 3,972 0.45% 17.8 1,926 0.50% 9.6

Chuquicamata …………. 14,558 0.44% 63.7 1,934 0.69% 13.3 1,303 0.73% 9.5
Ministro

Hales. 2,421 0.79% 19.2 1,233 0.87% 10.7 185 0.91% 17

Gabriela M 1,469 0.34% 4.9 414 0.35% 1.4 336 0.35% 1.2

Salvador 3,484 0.41% 14.3 828 0.59% 4.9 581 0.64% 3.7

22,096 0.61% 135.9 4,139 0.80% 32.9 1,163 0.69% 8.0

16,367 0.57% 93.4 4,381 0.80% 34.9 1,348 0.85% 11.4

8,421 0.36% 30.4 3,201 0.56% 18.1 512 0.50% 2.5

76,290 0.51% 392.1 20,104 0.67% 134.2 7,353 0.65% 47.6

(1) Geological resources cut-off grade 0.2% copper.
(2) Mineral resources with variable cut-off grade.
(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 ….. anna raras 2,1000 392.10 19
Proved and Probable ReserVES cocos 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.

80
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 OreW% Grade Copper Copper”
CODELCO Northern District (CND) .ocicciocincinnnnonnonnonncnnnnnnonnnnnno nono 99 0.51 0.51
Don Felipe
San Andrés NW
Carmen
International Explorati0N ..oocooininioninninnnnnnnnnnccncn nacen rnnnrnrrnrnnrnararraraa 2,339 0.44 10.18
Liberdade (Brazil)
Llurimagua (Ecuador)
A 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, CODELCOS*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, CODELCOSs 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 nine months ended September 30, 2019, CODELCOSs total costs and expenses decreased by 4.9 cents per pound
(2.1%) to 239.7 cents per pound, compared to 244.6 cents per pound for the same period in 2018, mainly due to
Chilean peso depreciation against U.S. Dollar and cost cutting initiatives, partially offset by lower production levels
in connection with weather disruptions in the northern area of Chile, a 14-day strike at the Chuquicamata mine and
upgrades at the Chuquicamata and Salvador smelters that suspended operations temporarily.

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

8l
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 nine months ended September 30, 2019, CODELCO”s cash cost was 143.1 cents per
pound, compared to 138.9 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 nine months ended September 30, 2019, CODELCO’”s total cash cost was
U.S.$3.5 billion, as compared to U.S.$3.6 billion for the nine months ended September 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. CODELCO”s
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
CODELCOS*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 CODELCO*s 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; (111) 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.

82
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 nine months ended September 30, 2019:

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

Nine months ended

Year ended December 31, September 30,
2016 2017 2018 2019
Cathodes ………….. 1,359 1,233 1,231 743
Blisters and Anod 100 119 136 22
Concentrates …….. . 596 611 529 549
Total cccoccionocnnnnnnnnnnnnnronconrnnconrnornerrnnrcnnrnnornnrrancnernass 2,054 1,963 1,896 1,313

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.

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.

83
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” 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. CODELCOS*s sales of copper in 2017 were
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
943 789 869
203 295 248
173 123 107
144 170 201
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
15 10 14
14 7 5
11 7 7
10 12 8
6 6 32
60 63 33
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.

84
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.

In the nine-month period ended September 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 0f2,601 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 September 30, 2019, there were 33,851 employees of regular independent operating contractors and
15,295 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 CODELCO”s
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.

85
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 employees 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 September 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 September

Divisions 2016 2017 2018 2017/2018 2019

Chuquicamata. 6,126 5,679 5,650 (0.5)% 5,225
Radomiro Tomi 1,252 1,238 1,261 1.9% 1,213
Gabriela Mistra S61 548 554 1.1% 519
Mina Ministro Hale: 764 758 790 4.2% 778
Salvado: 1,503 1,666 1,666 0.0% 1,540
Andina. 1,692 1,691 1,720 1.7% 1,635
El Teniente . 4,549 4,526 4,395 Q.9)% 4,191
Headquarters 460 477 483 13% 584
Ventanas.. 952 936 894 (4.5% 847
Shared Services (Vice Presidency of Projec: 872 855 948 10.9% 1,009
Internal Auditing 28 29 35 20.7% 41
Total 18,758 18,403 18,395 0.0% 17,581

(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. As of September 30, 2019, the current total number of “lost time” accidents for 2019 is 84
and the accident frequency is 0.70 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 (11) 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

86
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 offering memorandum, 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. Those described
in this section involve claims of U.S.$10 million or more. 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 SII 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 SII”s claims and rendering the
SIPs resolution null and void. The SII has appealed the decision before the Supreme Court. A final decision is still
pending.

CODELCO has been subject to various proceedings in which workers, former workers and families of
deceased workers allege that working conditions caused the workers to contract silicosis. CODELCO has provisions
related to each of the claims detailed below:

. 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 was issued determining a partial award in favor of 34 former
workers for approximately U.S.$2.0 million, bringing this proceeding to an end.

. In October 2019, CODELCO was served process related to a new claim filed by relatives of 42 former
workers from the Andina Division who initiated a civil proceeding requesting compensation for
approximately U.S.$15.1 million. The proceedings are currently in the initial stages and, as a result,
CODELCO is unable to determine the outcome of this matter. 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 that, in the aggregate, amount to approximately U.S.$45 million.
Subsequent proceedings resulted in a first instance award in September 2019 in favor of the FESUC, requiring
CODELCO to pay approximately U.S.$13,500 and to take measures to protect union rights. CODELCO and the
FESUC have filed appeals. A final ruling is pending.

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. A final ruling is
still pending.

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 and claiming damages
in the amount of 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, in the amount of
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.

87
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, in the amount of
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.

In November 2019, the Supervisors Labor Union of CODELCO*s Gabriela Mistral Division filed a labor suit
claiming anti-labor union practices and discrimination relating to the dismissal of 79 workers. The claim requests
damages in the amount of approximately U.S. $21.3 million. The proceedings are in the initial stages and, as a result,
CODELCO is unable to determine the outcome of this matter. 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 CODELCOSs litigation and contingencies and lawsuits of probable loss, 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 Quarte: 214.5
Third Quarter 216.5
Fourth Quarter 239.4
2017
First QuarteT cooccociconococnnonononnnocnconnononononoconnnnnnnnannnn Dn an en an nan an RR an RR RR RR RR RRA RR GR RR RR ORAR RRA RR RR RR RR RR an ena e anen anar an ninas 264.5
Second Quarter.. 256.8
Third Quarter 288.0
Fourth Quarter… 308.8
2018
First Quarter.. 315.7
Second Quarte: 311.7
Third Quarter 276.9
Fourth Quarter… 280.0
2019
First Quartel conccicinicncnnonononnnocncnnnnnononono cono nnnnnnannnn Don enanoan Ran RR an RR RR ORAR RARO RR RR RR ORO RRR A RR RR RR Rn RR ana aerea anar an anne 281.9
Second Quarter.. 277.3
Third Quarter 263.2
Fourth Quarter 266.8
2020
First Quarter (through January 3, 2020) .0ccoiccicidicicococononnnnnnnncnononannno nano cnnnononnnonnanon on onan narran anna or anan arco 212.7

Source: London Metal Exchange, Monthly Average Settlement.
On January 3, 2020, the closing price for refined copper on the LME was 275.7 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 October 31, 2019:

89
Copper Prices and Inventories on Commodities Exchanges

“000 tons c/lb

1,600 450
=> 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 —CODELCOS*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

—-— Consumption

24,000 1250

23,000
1,000
22,000

750
21,000

20,000

19,000 250

18,000

17,000
-250

16,000
-500
15,000

14,000 -750

13,000 -1,000

Oroz
Troz
ro
Eroz
broz
sroz
9roz
£10z
groz

000z
100z
zoo
s0oz
vooz
so0z
9007
007
800z
s00z
6rOz

Sources: CODELCO, internal data (October, 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 CODELCO”s 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; (ii) 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 CODELCO”s
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 CODELCO”s
profit may be allocated by CODELCO to the creation of capitalization and reserve funds.

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

92
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.
CODELCOS”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. Ifthey 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.
CODELCOS”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.
CODELCOS”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 September 30, 2019, CODELCO has paid U.S.$8.4 million in total
concession fees for 2019.

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

93
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
CODELCOS*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 offering
memorandum, 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 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.

94
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 reliefto 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 offering memorandum, 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 (PM¡o and/or MP5) 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 PM¡o under review and
under development, and a pollution prevention plan for SO» is currently under development. In August 2013, the
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.

95
In addition, the relevant Environmental Assessment Service may impose further requirements on
CODELCOS*s 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 offering memorandum, 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 September 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.

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 offering memorandum, 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.

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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 CODELCOS*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.

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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; (iii) 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; (11) 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; (ii) 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 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.

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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.

On November 29, 2019, CODELCO announced the appointment of Antonio Bonani Rizzolli as acting Vice

President of Mining Resources Management and Development and the appointment of María Francisca Domínguez
Meza as acting General Counsel. All new positions were effective as of November 29, 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 Benavides Feliú
Juan Enrique Morales Jaramillo .
Blas Tomic Errázuriz…
Paul Schiodtz Obilinovich.
Isidoro Palma Penco
Hernán de Solminihac Tampier
Raimundo Espinoza Concha.

Executive Officers
Octavio Araneda OSSES ..ooococinnonononcnnnonncoconnnnnnananornnnnnoracoranoos

Alejandro Rivera Stambuk
Marcelo Alvarez Jara
Roberto Ecclefield Escobar
Gerhard von Borries Harms
Antonio Bonani RizZOlli…..oooninincinicicinnnnnnnnnnnanncocecenorocnnnoos

Renato Fernandez Baeza
José Robles Becerra.
Alvaro García Gonzalez .
Alejandro Sanhueza Diaz ..
María Francisca Domínguez Meza
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 Reyes
Andrés Music Garrido .
Jaime Rivera Machado .ooococinnononinnnnnnnnnncnnnnnnonorancanonacoranoos

(1) Directly appointed by the President of Chile.
(2) Term expires May 2022.

Position

ChairmanV4)
Director Y6
Director 6)
Director 6)
Director Y6
DirectorVO)
Director00)
Director»
Director VO)

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 8 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.

(9) On October 28, 2019, Ignacio Briones Rojas resigned from his position as director. A new director will be appointed by the President of

Chile.

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.

100
Committees of the Board of Directors
Audit, Benefits and Ethics Committee (Comité de Auditoría, Compensaciones y Ética)

CODELCOSs 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
CODELCOSs 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. CODELCO*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 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 Paul Schiodtz (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 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);

(ii) 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);

[6559) 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 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 transaction.

102
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. CODELCOS*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. As a
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, dated as of February 5, 2019 (the “base indenture”),
among CODELCO, 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
“Luxembourg Agent”), as amended and supplemented by the Fourth Supplemental Indenture, dated September 30,
2019, among CODELCO, the trustee and the Luxembourg Agent, the Sixth Supplemental Indenture to be dated as
of January 14, 2020 between CODELCO and the trustee and the Seventh Supplemental Indenture dated as of
January 14, 2020 (together with the base indenture, the “Indenture”) between CODELCO and the trustee.

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 cover page of this offering
memorandum 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 2030 notes accrues from January 14, 2020, and interest on the
2050 notes accrues from September 30, 2019. Interest on the notes will be payable semi-annually in arrears on
January 14 and July 14 of each year, commencing on July 14, 2020, in respect of the 2030 notes, and on January 30
and July 30 of each year, commencing on January 30, 2020, in respect of the reopened 2050 notes, or, if any such
date is not a Business Day (as defined below), on the next succeeding Business Day (each 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) at the close of business on December 30 and June 29, respectively, in respect of the 2030 notes,
and on January 15 and July 15, respectively, in respect of the 2050 notes, preceding such Interest Payment Dates
(each a “Record Date”). Interest on the notes will be calculated on the basis of a 360-day year of twelve 30-day
months. 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 be issued in two series. The reopened 2050 notes will have identical terms, be fungible with
and be part of a single series of senior debt securities with the original 2050 notes following the termination of
certain U.S. selling restrictions. During the periods subject to certain U.S. selling restrictions, the reopened 2050
notes offered pursuant to Regulation S will have temporary CUSIPs and ISINs. The outstanding aggregate principal
amount of the 2050 notes, after issuance of the reopened 2050 notes, will be U.S.$1,900,000,000. The 2030 notes
will mature on January 14, 2030, and the 2050 notes will mature on January 30, 2050. The notes of each series will
not be redeemable prior to maturity except as described below and in the event of certain developments affecting

105
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. 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 of
U.S.$200,000 principal amount at maturity and multiples of U.S.$1,000 in excess thereof. The notes will be
exchangeable, and transfers thereof will be registrable, at the office of the registrar for the notes. 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 of each series are being offered and sold in connection with the initial offering thereof solely to
“qualified institutional buyers,” as that term is defined in Rule 144A under the Securities Act, pursuant to Rule
144A, and 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
qualified institutional buyers pursuant to Rule 144A, 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
Rule 144A Global Note

The notes of each series offered and sold to qualified institutional buyers pursuant to Rule 144A will
initially be issued in the form of one or more registered notes in global form, without interest coupons. The
Rule 144A Global Notes will be deposited on the date of the closing of the sale of the notes with, or on behalf of,
the Depository Trust Company, or DTC, and registered in the name of Cede $ Co., as nominee of DTC, or will
remain in the custody of the trustee pursuant to the FAST Balance Certificate Agreement between DTC and the
trustee. Interests in the Rule 144A Global Note will be available for purchase only by qualified institutional buyers.

Regulation S Global Note

The notes of each series 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

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form, without interest coupons. The Regulation S Global Notes will be deposited upon issuance with, or on behalf
of, a custodian for DTC in the manner described in the preceding paragraph.

Except as set forth below, the Rule 144A Global Note and the Regulation S Global Note, collectively
referred to in this section as the “Global Notes,” may be transferred, in whole and not in part, solely to another
nominee of DTC or to a successor of DTC or its nominee. Beneficial interests in the Global Notes may not be
exchanged for notes in physical, certificated form (referred to as “certificated notes”) except in the limited
circumstances described below.

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 DTC. Those interests
held through Euroclear or Clearstream are subject to the procedures and requirements of such systems.

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. Such
depositaries, in turn, will hold such interests in the Global Notes in customers” securities accounts in the depositaries”
names on the books of DTC.

Exchanges Among the Global Notes

Prior to the 40th day after the later of the commencement of the offering of the notes and the date of the
closing of the sale of the notes (the period through and including the 40th day, the “restricted period”), transfers by
an owner of a beneficial interest in the Regulation S Global Note to a transferee who takes delivery of this interest
through the corresponding Rule 144A Global Note will be made only in accordance with applicable procedures and
upon receipt by the trustee of a written certification from the transferor of the beneficial interest in the form provided
in the indenture to the effect that such transfer is being made to a person whom the transferor reasonably believes is
a qualified institutional buyer within the meaning of Rule 144A in a transaction meeting the requirements of
Rule 144A. Such written certification will no longer be required after the expiration of the restricted period.

Transfers by an owner of a beneficial interest in the Rule 144A Global Note to a transferee who takes
delivery of such interest through the corresponding Regulation S Global Note, whether before or after the expiration
of the restricted period, will be made only upon receipt by the trustee of a certification from the transferor to the
effect that such transfer is being made in accordance with Regulation S under the Securities Act.

Any beneficial interest in one of the Global Notes that is transferred to a person who takes delivery in the
form of an interest in another Global Note will, upon transfer, cease to be an interest in such Global Note and become
an interest in the other Global Note and, accordingly, will thereafter be subject to all transfer restrictions, ifany, and
other procedures applicable to beneficial interests in such other Global Note for as long as it remains such an interest.

Certain Book-Entry Procedures for the Global Notes

The descriptions of the operations and procedures of DTC, Euroclear and Clearstream set forth below are
provided solely as a matter of convenience. These operations and procedures are solely within the control of the
respective settlement systems and are subject to change by them from time to time. Neither CODELCO nor the
initial purchasers take any responsibility for these operations or procedures, and investors are urged to contact the
relevant system or its participants directly to discuss these matters.

DTC has advised CODELCO that it is (1) a limited purpose trust company organized under the laws of the
State of New York, (ii) a “banking organization” within the meaning of the New York Banking Law, (111) a member
of the Federal Reserve System, (iv) a “clearing corporation” within the meaning of the Uniform Commercial Code,
as amended, and (v) a “clearing agency” registered pursuant to Section 17A of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”). DTC was created to hold securities for its participants and facilitates the
clearance and settlement of securities transactions between participants through electronic book-entry changes to
the accounts of its participants, thereby eliminating the need for physical transfer and delivery of certificates. DTC*s
participants include securities brokers and dealers (including the initial purchasers), banks and trust companies,

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clearing corporations and certain other organizations. Indirect access to DTC”s system is also available to other
entities such as banks, brokers, dealers and trust companies, or indirect participants that clear through or maintain a
custodial relationship with a participant, either directly or indirectly. Investors who are not participants may
beneficially own securities held by or on behalf of DTC only through participants or indirect participants.

CODELCO expects that pursuant to procedures established by DTC (i) upon deposit of each Global Note,
DTC will credit the accounts of participants designated by the initial purchasers with an interest in the Global Note
and (ii) ownership of the notes will be shown on, and the transfer of ownership thereof will be effected only through,
records maintained by DTC (with respect to the interests of participants) and the records of participants and the
indirect participants (with respect to the interests of persons other than participants).

The laws of some jurisdictions may require that certain purchasers of securities take physical delivery of
such securities in definitive form. Accordingly, the ability to transfer interests in the notes represented by a Global
Note to such persons may be limited. In addition, because DTC can act only on behalf of its participants, who in
turn act on behalf of persons who hold interests through participants, the ability of a person having an interest in
notes represented by a Global Note to pledge or transfer such interest to persons or entities that do not participate in
DTC’s system, or to otherwise take actions in respect of such interest, may be affected by the lack of a physical
definitive security in respect of such interest.

So long as DTC or its nominee is the registered owner of a Global Note, DTC or such nominee, as the case
may be, will be considered the sole owner or holder of the notes represented by the Global Note for all purposes
under the indenture. Except as provided below, owners of beneficial interests in a Global Note will not be entitled
to have notes represented by such Global Note registered in their names, will not receive or be entitled to receive
physical delivery of certificated notes, and will not be considered the owners or holders thereof under the indenture
for any purpose, including with respect to the giving of any direction, instruction or approval to the trustee
thereunder. Accordingly, each holder owning a beneficial interest in a Global Note must rely on the procedures of
DTC and, if such holder is not a participant or an indirect participant, on the procedures of the participant through
which such holder owns its interest, to exercise any rights of a holder of notes under the indenture or such Global
Note. CODELCO understands that under existing industry practice, in the event that CODELCO requests any action
of holders of notes, or a holder that is an owner of a beneficial interest in a Global Note desires to take any action
that DTC, as the holder of such Global Note, is entitled to take, DTC would authorize the participants to take such
action and the participants would authorize holders owning through such participants to take such action or would
otherwise act upon the instruction of such holders. Neither CODELCO nor the trustee will have any responsibility
or liability for any aspect of the records relating to, or payments made on account of, notes by DTC, or for
maintaining, supervising or reviewing any records of DTC relating to such notes.

Payments with respect to the principal of, premium, if any, and interest on any notes represented by a
Global Note registered in the name of DTC or its nominee on the applicable Record Date will be payable by the
trustee to or at the direction of DTC or its nominee in its capacity as the registered holder of the Global Note
representing such notes under the indenture. Under the terms of the indenture, CODELCO and the trustee may treat
the persons in whose names the notes, including the Global Notes, are registered as the owners thereof for the
purpose of receiving payment thereon and for any and all other purposes whatsoever. Accordingly, neither
CODELCO nor the trustee has or will have any responsibility or liability for the payment of such amounts to owners
of beneficial interests in a Global Note (including principal, premium, if any, and interest). Payments by the
participants and the indirect participants to the owners of beneficial interests in a Global Note will be governed by
standing instructions and customary industry practice and will be the responsibility of the participants or the indirect
participants and DTC.

Transfers between participants in DTC will be effected in accordance with DTC”s procedures, and will be
settled in same-day funds. Transfers between participants in Euroclear or Clearstream will be effected in the
ordinary way in accordance with their respective rules and operating procedures.

Subject to compliance with the transfer restrictions applicable to the notes, cross-market transfers between
the participants in DTC, on the one hand, and Euroclear or Clearstream participants, on the other hand, will be
effected through DTC in accordance with DTC”s rules on behalf of Euroclear or Clearstream, as the case may be,
by its respective depositary. However, such cross-market transactions will require delivery of instructions to

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Euroclear or Clearstream, as the case may be, by the counterparty in such system in accordance with the rules and
procedures and within the established deadlines of such system. Euroclear or Clearstream, as the case may be, will,
if the transaction meets its settlement requirements, deliver instructions to its respective depositary to take action to
effect final settlement on its behalf by delivering or receiving interests in the relevant Global Notes in DTC, and
making or receiving payment in accordance with normal procedures for same-day funds settlement applicable to
DTC. Euroclear participants and Clearstream participants may not deliver instructions directly to the depositaries
for Euroclear or Clearstream.

Because of time zone differences, the securities account of a Euroclear or Clearstream participant
purchasing an interest in a Global Note from a participant in DTC will be credited, and any such crediting will be
reported to the relevant Euroclear or Clearstream participant, during the securities settlement processing day (which
must be a business day for Euroclear and Clearstream) immediately following the settlement date of DTC. Cash
received in Euroclear or Clearstream as a result of sales of interest in a global security by or through a Euroclear or
Clearstream participant to a participant in DTC will be received with value on the settlement date of DTC but will
be available in the relevant Euroclear or Clearstream cash account only as of the business day for Euroclear or
Clearstream following DTC”s settlement date.

Although DTC, Euroclear and Clearstream have agreed to the foregoing procedures to facilitate transfers
of interests in the Global Notes among participants in DTC, Euroclear and Clearstream, they are under no obligation
to perform or to continue to perform such procedures, and such procedures may be discontinued at any time. Neither
CODELCO nor the trustee will have any responsibility for the performance by DTC, Euroclear or Clearstream or
their respective participants or indirect participants of their respective obligations under the rules and procedures
governing their operations.

Certificated Notes

With respect to each series of notes, if (1) CODELCO notifies the trustee in writing that DTC is no longer
willing or able to act as a depositary or DTC ceases to be registered as a clearing agency under the Exchange Act
and a successor depositary is not appointed within 90 days of such notice or cessation; (1i) CODELCO, at its option,
notifies the trustee in writing that it elects to cause the issuance of notes in definitive form under the indenture; or
(iii) upon the occurrence of certain other events as provided in the indenture, then, upon surrender by DTC of the
Global Notes, certificated notes will be issued to each person that DTC identifies as the beneficial owner of the notes
represented by the Global Notes. Upon any such issuance, the trustee is required to register such certificated notes
in the name of such person or persons (or the nominee of any thereof) and cause the same to be delivered thereto.

Neither CODELCO nor the trustee shall be liable for any delay by DTC or any participant or indirect
participant in identifying the beneficial owners of the related notes and CODELCO and the trustee may conclusively
rely on, and shall be protected in relying on, instructions from DTC for all purposes (including with respect to the
registration and delivery, and the respective principal amounts, of the notes to be issued).

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

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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 Subsidiary
will (1) 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 (1) 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, (111) 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 (1) 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 (1) any
Subsidiary which owns, directly or indirectly, any Principal Property and (1i) any Subsidiary which owns, directly
or indirectly, any stock or debt of a Restricted Subsidiary.

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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 to
be advanced by such person on the security of the leased property or assets unless either (i) 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 of each series is defined in the indenture as being any of the
following (each an “Event of Default”): (i) default for 30 days in payment of any interest on the notes; (1i) 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) ifan Event of Default described in clause (v) above shall have occurred, the principal of all such outstanding

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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 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, (iii) 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:

(1) 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

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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 (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), (11), (111), 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.

IfCODELCO 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.

The 2030 notes will be redeemable, in whole or in part, at our option at any time and from time to time,
prior to October 14, 2029 (three months prior to the scheduled maturity of the notes) (the “2030 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 2030 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 25 basis points, plus, in either case, accrued and unpaid interest, if any, to the date of
redemption.

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The 2030 notes will be redeemable, in whole or in part, at our option at any time from time to time,
commencing on the 2030 Par Call Date, at a redemption price equal to 100% of the principal amount of the notes
to be redeemed plus accrued and unpaid interest, if any, to the redemption date.

The reopened 2050 notes will be redeemable, in whole or in part, at our option at any time and from time
to time, prior to July 30, 2049 (six months prior to the scheduled maturity of the notes) (the “2050 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 2050 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 25 basis points, plus, in either case, accrued and unpaid interest, if any, to the date of
redemption.

The reopened 2050 notes will be redeemable, in whole or in part, at our option at any time from time to
time, commencing on the 2050 Par Call Date, at a redemption price equal to 100% of the principal amount of the
notes to be redeemed plus accrued and unpaid interest, if any, to the redemption date.

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. For so long as the notes are listed on the Luxembourg
Stock Exchange and the rules of the Euro MTF market so require, the Company will cause notices of redemption to
be announced through the Luxembourg Stock Exchange. The notice ofredemption 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.

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 2030 Par Call Date with respect to the 2030 notes, or the 2050 Par Call Date with
respect to the reopened 2050 notes.

“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 the Issuer
from time to time to act as the “Independent Investment Banker.”

“Reference Treasury Dealer” means BofA Securities, Inc., HSBC Securities (USA) Inc., J.P. Morgan
Securities LLC and Scotia Capital (USA) Inc., or their respective affiliates or successors which are 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 the Issuer; provided,
however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Issuer 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.

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“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 of each series 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 CODELCO”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.”

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 listed on the Luxembourg Stock Exchange
and the rules of such exchange so require, notices will also be published in a leading newspaper having general
circulation in Luxembourg (which is expected to be Luxemburger Wort) or on the website of the Luxembourg Stock
Exchange (www.bourse.lu). Any such notice will be deemed to have been delivered on the date of first publication.

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 CODELCO”s
succession by another corporation, and the assumption by such party of CODELCO”s obligations; (ii) to add to
CODELCOSs 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.

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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

(ii)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.

Defeasance and Covenant Defeasance

With respect to each series of notes, 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: (i) 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 (1)
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

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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

With respect to each series 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 an outstanding series of notes,
including the notes. CODELCO may consolidate the additional notes to form a single series with an outstanding
series of notes, including the notes; provided, however, that unless such additional notes are issued under a 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 offering
memorandum, 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 (i.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 ifthe 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 incorporated, domiciled,

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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 (1) 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 (1) to (i1i) 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, Chile”s 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 ofa
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 offering memorandum 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.

Qualified Reopening. For U.S. federal income tax purposes, the reopened 2050 notes will be treated as
issued in a “qualified reopening” of the original 2050 notes. For U.S. federal income tax purposes, debt instruments
issued in a qualified reopening are deemed to be part of the same issue as the original debt instruments. Under the
treatment described in this paragraph, the reopened 2050 notes will have the same issue date, the same issue price
and the same adjusted issue price as the original 2050 notes for U.S. federal income tax purposes. Under the qualified
reopening rules, because the original 2050 notes were not issued with “original issue discount” for U.S. federal
income tax purposes, the reopened 2050 notes issued hereby also do not have original issue discount. The remainder
of this discussion assumes that the reopened 2050 notes offered hereby are issued in a qualified reopening.

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 (i) 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.

Pre-Issuance Accrued Interest. A portion of the price paid for a note offered by this offering memorandum
will be allocable to interest that accrued prior to the date the note is purchased (““pre-issuance accrued interest”). To
the extent a portion of a U.S. Holder”s purchase price for a note is allocable to pre-issuance accrued interest, a portion
of the first stated interest payment equal to the amount of such pre-issuance accrued interest may be treated as a
nontaxable return of such pre-issuance accrued interest to the U.S. Holder. If so, the amount treated as a return of
pre-issuance accrued interest will reduce a U.S. Holder”s adjusted tax basis in the note by a corresponding amount.

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The remainder of this discussion assumes that a note will be so treated, and all references to interest in the remainder
of this discussion exclude references to pre-issuance accrued interest.

Amortizable Bond Premium. If a note is acquired for an amount (excluding amounts paid for pre-issuance
accrued interest, discussed above) in excess of the stated principal amount of the note, the note will be treated as
acquired with amortizable bond premium. Any such premium may be amortized as an offset to interest income on
the notes (rather than as a separate deduction) using a constant yield method over the remaining term of the notes.
Because the notes may be redeemed prior to maturity at a premium, special rules apply that may reduce, eliminate
or defer the amount of premium that may be amortized with respect to the notes. A U.S. Holder who elects to
amortize bond premium must reduce its tax basis in the notes by the amount of bond premium amortized in any
year. In the event an election is not made to amortize such premium, then that premium will remain part of the U.S.
holder”s basis in the note and will decrease the gain or increase the loss otherwise recognized on a disposition of the
note. The election as to whether to amortize premium applies to all taxable debt instruments with premium that are
owned or subsequently acquired by the U.S. Holder, and may not be revoked without the consent of the U.S. Internal
Revenue Service.

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,
ifany 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 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, ifany), provided the required information is properly
furnished to the U.S. Internal Revenue Service on a timely basis.

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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 purchase agreement among CODELCO, BofA Securities, Inc.,
HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Scotia Capital (USA) Inc., the initial purchasers
have severally agreed to purchase from the Company the following respective principal amounts of notes listed
opposite their name below at the initial offering prices set forth on the cover page of this offering memorandum,
less commissions:

Principal Amount of Principal Amount of
Initial Purchasers 2030 Notes 2050 Notes
BOofA Securities, IMC. coccconionononinninnrees U.S.$250,000,000 U.S.$250,000,000
HSBC Securities (USA) Inc.. U.S.$250,000,000 U.S.$250,000,000
J.P. Morgan Securities LLC .. . U.S.$250,000,000 U.S.$250,000,000
Scotia Capital (USA) IMC. coococicioioninnionnninincacnaciacnss U.S.$250,000,000 U.S.$250,000,000
Dotal ocninicninicnicnicicnicncnnoncnnnnnoncnn coronan coronarias U.S.51,000,000,000 U.S.51,000,000,000

The purchase agreement provides that the obligations of the several initial purchasers to purchase the notes
offered hereby are subject to certain conditions precedent and that the initial purchasers will purchase all of the notes
offered by this offering memorandum if any of these notes are purchased. The initial purchasers may use any of
their affiliates to offer and sell any of the notes.

After the initial offering, the initial purchasers may change the offering price and other selling terms.

CODELCO has agreed to indemnify the initial purchasers against certain liabilities, including liabilities
under the Securities Act, and to contribute to payments the initial purchasers may be required to make in respect of
any of these liabilities.

The notes have not been registered under the Securities Act. Each initial purchaser has agreed that it will
offer or sell the notes only (i) in the United States to qualified institutional buyers in reliance on Rule 144A under
the Securities Act or (ii) 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.”

Until forty (40) days after the later of the commencement of the offering and the closing date, any offer or
sale of notes within the United States by a broker-dealer (whether or not participating in this offering) may violate
the registration requirements of the Securities Act, unless such offer or sale is made pursuant to Rule 144A under
the Securities Act or another available exemption from the registration requirements thereof. Terms used above
have the meanings given to them by Regulation S and Rule 144A under the Securities Act.

CODELCO has agreed, that for a period of 60 days from the date of the purchase agreement, CODELCO
will not, without prior consent of the initial purchasers, offer, sell or contract to sell, or otherwise dispose of (or enter
into any transaction which is designed to, or might reasonably be expected to, result in the disposition (whether by
actual disposition or effective economic disposition due to cash settlement or otherwise) by CODELCO or any
affiliate of CODELCO or any person in privity with CODELCO or any of its affiliates), directly or indirectly, or
announce the offering of, any U.S. dollar-denominated debt securities issued or guaranteed by CODELCO (other
than the notes).

The notes are a new issue of securities without an established trading market. We intend to apply to list
the notes on the Official List of the Luxembourg Stock Exchange; however, the notes have not yet been listed. The
notes are expected to trade on the Euro MTF market of the Luxembourg Stock Exchange. See “General
Information—Listing.” The initial purchasers may make a market in the notes after completion of the offering, but

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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. Ifan active public trading market for the notes does not develop, the market price and liquidity of the
notes may be adversely affected. Ifthe 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 initial purchasers 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 initial purchasers. Stabilizing transactions involve bids to purchase the notes in the
open market for the purpose of pegging, fixing or maintaining the price ofthe 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 initial purchasers engage in stabilizing or
syndicate covering transactions, they may discontinue them at any time without notice.

The initial purchasers and their affiliates 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 initial
purchasers may, from time to time, continue to engage in transactions with and perform services for us in the ordinary
course of their business. Certain affiliates of Scotia Capital (USA) Inc. are lenders to us under various credit facilities
currently totaling U.S.$768 million. The initial purchasers acted as initial purchasers in the offering of the original
2050 notes.

In addition, in the ordinary course of their business activities, the initial purchasers and their 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
customers. Such investments and securities activities may involve securities and/or instruments of ours or our
affiliates. Certain of the initial purchasers or their affiliates that have a lending relationship with us routinely hedge,
and certain other of those initial purchasers or their affiliates that have a lending relationship with us may hedge,
their credit exposure to us consistent with their customary risk management policies. Typically, such initial
purchasers and their affiliates 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 initial purchasers and their 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 is expected on or about January 14, 2020 which will be the fifth business day following
the date of pricing of the notes (this settlement cycle being referred to as “T+5”). Under Rule 15c6-1 of the Exchange
Act, trades in the secondary market generally are required to settle in two business days, unless the parties to any
such trade expressly agree otherwise. Accordingly, purchasers who wish to trade notes prior to the delivery of the
notes will be required, by virtue of the fact that the notes initially will settle in T+5, to specify an alternate settlement
cycle at the time of any such trade to prevent a failed settlement. Purchasers of the notes who wish to trade notes
prior to their date of delivery hereunder should consult their own advisor.

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.

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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

Each initial purchaser has represented and agreed that:

(iyit 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 offering memorandum (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 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 initial
purchasers are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts
of interest in connection with this offering.

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 Societa e la Borsa
(Italian Securities and Exchange Commission, or the “CONSOB”) pursuant to Italian securities legislation and,

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accordingly, the notes may not be offered, sold or distributed to the public in the Republic of Italy (“Italy”) nor may
copies of this offering memorandum 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

(ii) 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
offering memorandum or any other document relating to the notes in Italy under (i) 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

[6559) 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.

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 offering memorandum has not been registered as a prospectus with the Monetary Authority of
Singapore. Accordingly, this offering memorandum 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”, (ii) 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

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(1) 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;

(1) where no consideration is or will be given for the transfer;
[6559) 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 3090(BX1)(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 offering memorandum 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 offering memorandum nor any other offering or marketing material relating to
the notes constitutes a prospectus as such term is understood pursuant to article 652a or article 1156 of the Swiss
Code of Obligations, and neither this offering memorandum 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 CMF). 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 “PR.C”) (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.

127
Notice to Prospective Investors in the Dubai International Financial Centre

This offering memorandum relates to an Exempt Offer in accordance with the Markets Rules 2012 of the Dubai
Financial Services Authority (“DFSA”). This offering memorandum 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 offering memorandum nor taken steps to verify the information set forth
herein and has no responsibility for this offering memorandum. The notes to which this offering memorandum
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 offering
memorandum, you should consult an authorized financial advisor.

Notice to Prospective Investors in Taiwan

The notes have 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. 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 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.

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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 (i) Qualified Institutional Buyers (“QIBs”) in reliance
upon the exemption from the registration requirement of the Securities Act provided by Rule 144A and (ii) persons
other than U.S. persons as such term is defined in Regulation S under the Securities Act (“Foreign Purchasers”) in
offshore transactions in reliance upon Regulation S.

Each purchaser of the notes that is not a Foreign Purchaser will be deemed to:

(1) represent that it is purchasing the notes for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a QIB and is aware that
the sale to it is being made in reliance on Rule 144A;

(i) acknowledge that 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 within
the United States or to, or for the account or benefit of, U.S. persons except as set forth below;

(iii) agree that if it should resell or otherwise transfer the securities, it will do so only pursuant to an
applicable exemption from, or in a transaction not subject to, the registration requirements of the
Securities Act, in each case in accordance with all applicable securities laws of the states of the
United States or any other applicable jurisdiction;

(iv) agree that it will deliver to each person to whom it transfers notes notice of any restrictions on
transfer of such notes;

(y) agree that it is not an “affiliate” (within the meaning of Rule 144 under the Securities Act) of the
Bank; and

(vi) acknowledge that CODELCO, the trustee, the initial purchasers and others will rely upon the truth
and accuracy of the foregoing acknowledgments, representations and agreements. Ifit is acquiring
any notes for the account of one or more QIBs, it represents that it has sole investment discretion
with respect to each such account and that it has full power to make the foregoing
acknowledgments, representations and agreements on behalf of each such account. If any of the
acknowledgements, representations or agreements itis deemed to have been made by the purchase
of notes is no longer accurate, it will promptly notify CODELCO and the initial purchasers.

Each 144A Global Note will bear the following legend:

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAW. NEITHER THIS
NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD, PLEDGED
OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE
ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING
SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT AND
ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)) AND THAT IT
EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT OR
(B) IT IS A NON-U.S. PERSON OUTSIDE THE UNITED STATES WITHIN THE MEANING OF (OR
AN ACCOUNT SATISFYING THE REQUIREMENTS OF PARAGRAPH (k)(2)() OF RULE 902
UNDER) REGULATION S UNDER THE SECURITIES ACT, (2) AGREES THAT IT WILL NOT,
PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE
NOTES EVIDENCED HEREBY UNDER RULE 144(d) UNDER THE SECURITIES ACT (OR ANY
SUCCESSOR PROVISION), OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER SUCH NOTES
EXCEPT IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF

129
THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND ONLY (A) TO THE
ISSUER OR A SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, (C) SO LONG AS THIS NOTE IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A, TO A PERSON WHOM THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR
OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 1444, (D) IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT OR
(E) PURSUANT TO AN EXEMPTION FROM REGISTRATION (IF APPLICABLE). PRIOR TO THE
REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (E) ABOVE, THE COMPANY
RESERVES THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS,
CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO
DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE
SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. THIS NOTE IS SUBJECT TO
THE RESTRICTIONS ON TRANSFER SET FORTH IN THE INDENTURE REFERRED TO ON THE
REVERSE HEREOF. THIS LEGEND WILL BE REMOVED ONLY AT THE OPTION OF THE
ISSUER.

Each purchaser of notes that is a Foreign Purchaser will be deemed to:

(1) represent that it is purchasing the notes for its own account or an account for which it exercises
sole investment discretion and that it and any such account is a Foreign Purchaser that is outside
the United States and acknowledge that 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 within the United States or to, or for the account or benefit of, U.S. persons except
as set forth below; and

(ii) agree that if it should resell or otherwise transfer the notes prior to the expiration of a restricted
period (defined as 40 days after the later of the commencement of the offering and the closing date
with respect to the notes), it will do so only (a)(1) outside the United States in compliance with
Rule 904 under the Securities Act or (2) to a QIB in compliance with Rule 144A, and (b) in
accordance with all applicable securities laws of the states of the United States or any other
applicable jurisdiction.

Each Regulation S Global Note will bear the following legend:

THIS SECURITY HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR WITH ANY
SECURITIES REGULATORY AGENCY IN ANY JURISDICTION, AND, ACCORDINGLY, 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 EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OR IN A TRANSACTION NOT SUBJECT TO THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THIS SECURITY IS SUBJECT TO
THE RESTRICTIONS ON TRANSFER SET FORTH IN THE INDENTURE REFERRED TO ON THE
REVERSE HEREOF. PRIOR TO THE EXPIRATION OF A RESTRICTED PERIOD ENDING ON
FEBRUARY 23, 2020 OR SUCH LATER DATE AS THE COMPANY MAY NOTIFY TO THE
TRUSTEE, THIS SECURITY, OR ANY BENEFICIAL INTEREST HEREIN, MAY NOT BE RESOLD
OR OTHERWISE TRANSFERRED EXCEPT (A)J(1) OUTSIDE THE UNITED STATES IN
COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT OR (2) TO A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES
ACT IN COMPLIANCE WITH RULE 144A, AND (B) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE STATES OF THE UNITED STATES OR ANY OTHER APPLICABLE
JURISDICTION.

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The transfer or exchange of a beneficial interest in a Regulation S Global Note for a beneficial interest in a
corresponding 144A Global Note prior to the expiration of the restricted period will be made only in accordance
with applicable procedures upon receipt by the trustee ofa duly completed certificate from the transferor to the effect
that such transfer is being made in accordance with Rule 144A under the Securities Act. Such written certification
will no longer be required after the expiration of the restricted period. The transfer or exchange of a beneficial
interests in a Rule 144A Global Note for a corresponding beneficial interest in a Regulation S Global Note, whether
before or after the expiration of the restricted period, will be made only upon receipt by the trustee of a written
certification from the transferor to the effect that such transfer is being made in accordance with Regulation S under
the Securities Act.

For so long as the notes are listed on the Luxembourg Stock Exchange, if the notes are ever issued in
certificated form:

. Certificated Notes will be delivered by the trustee as described in this offering memorandum and
at the offices of the paying agent; and

. holders of notes in certificated form will be able to transfer or exchange their notes at the offices
of the transfer agent.

Any resale or other transfer, or attempted resale of other transfer, made other than in compliance with the
above stated restrictions shall not be recognized by us.

For further discussion of the requirements (including the presentation of transfer certificates) under the
indenture to effect exchanges or transfers of interests in Global Notes, see “Description of Notes—Registration,
Form and Delivery—Certain Book-Entry Procedures for the Global Notes.”

We have prepared this offering memorandum solely for use in connection with the offer and sale of the
notes outside the United States, for the private placement of the notes in the United States and for the listing on the
Luxembourg Stock Exchange. We and the initial purchasers reserve the right to reject any offer to purchase, in
whole or in part, for any reason, or to sell less than the amount of notes offered pursuant to Rule 144A under the
Securities Act. This offering memorandum does not constitute an offer to any person in the United States other than
any QIB under the Securities Act to whom an offer has been made directly by the initial purchasers or an affiliate
of the initial purchasers.

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 offering memorandum 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 initial purchasers shall have any responsibility therefor.

131
VALIDITY OF THE NOTES

The validity of the notes will be passed upon for CODELCO by Cleary Gottlieb Steen $: Hamilton LLP,
New York, New York, United States counsel for CODELCO, and by Carey y Cía. Ltda., Chilean counsel to
CODELCO, and for the initial purchasers by Davis Polk £ Wardwell LLP, United States counsel for the initial
purchasers, and by Philippi, Prietocarrizosa, Ferrero DU £ Uría SpA, Chilean counsel for the initial purchasers.
Cleary Gottlieb Steen ££ Hamilton LLP may rely without independent investigation as to all matters of Chilean law
on Carey y Cía. Ltda., and Davis Polk 8: Wardwell LLP may rely without independent investigation as to all matters
of Chilean law on Philippi, Prietocarrizosa, Ferrero DU 8: Uría SpA.

132
INDEPENDENT AUDITORS

The financial statements of CODELCO and its subsidiaries as of and for the year ended December 31,
2016, included in this offering memorandum, have been audited by EY Servicios Profesionales de Auditoría y
Asesorías SpA, independent auditors, as stated in their report appearing herein.

The Company has appointed Deloitte Auditores y Consultores Ltda. as the Company”s independent auditors
for the fiscal year ending December 31, 2019. The financial statements of CODELCO and its subsidiaries as of and
for the years ended December 31, 2018 and 2017, included in this offering memorandum, have been audited by
Deloitte Auditores y Consultores Ltda., independent auditors, as stated in their report appearing herein (which report
expresses an unmodified opinion and includes an explanatory paragraph referring to the convenience translation of
the financial statements into English).

133
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.

134
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 (1) is at least 99.99% pure, (ii) meets the LME”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.

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.

135
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.

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.

136
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.

137
GENERAL INFORMATION
Authorization

The Ministry of Finance of Chile authorized CODELCO to commence negotiations to issue bonds abroad
through Resolution No. 2,456 dated December 23, 2019. The Ministry of Finance of Chile authorized the issuance
of the notes by Resolution No. 41 dated January 6, 2020.

CODELCOS*s Board of Directors authorized the issuance of the notes in its ordinary session of November
28, 2019 by means of Reserved Agreement No. 43/2019. CODELCO has obtained 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

CODELCO has applied to have the notes accepted into DTC”s book-entry settlement system. The notes
have been accepted for clearance through the clearing systems of Euroclear System and Clearstream Banking, S.A.
The securities codes for the 2030 notes are:

CUSIP Number ISIN Number Common Code
Rule 144A Global Note …. 21987BBB3 US21987BBB36 206681837
Regulation S Global Note. P3143NBH6 USP3143NBH63 206681764

The reopened 2050 notes and the original 2050 notes will share the same CUSIP and ISIN numbers and be
fungible, except that the reopened 2050 notes offered and sold outside the United States in compliance with
Regulation S shall be issued and maintained under temporary CUSIP and ISIN numbers during a 40-day distribution
compliance period commencing on the date of issuance of the reopened 2050 notes. The securities codes for the
reopened 2050 notes are:

Temporary CUSIP Temporary ISIN
Number Number
Regulation S Global Note ……………. P3143NBJ2 USP3143NBJ20
CUSIP Number ISIN Number Common Code
Rule 144A Global Note …. 21987BBA5 US21987BBA52 205887636
Regulation S Global Note. P3143NBF0 USP3143NBF08 205887644

Listing

We intend to apply to list the notes on the Official List of the Luxembourg Stock Exchange and for trading
on the Euro MTF market of the Luxembourg Stock Exchange in accordance with its rules and regulations. The
notes are not yet listed. If any European or national legislation is adopted and is implemented or takes effect in
Luxembourg in a manner that would impose requirements on us that CODELCO, in its discretion determines are
impracticable or unduly burdensome, CODELCO may de-list the notes. In these circumstances, there can be no
assurance that CODELCO would obtain an alternative admission to listing, trading and/or quotation for the notes
by another listing authority, exchange and/or system within or outside the EU. For information regarding the notice
requirements associated with any delisting decision, see “Description of Notes—Notices.”

CODELCO has initially appointed The Bank of New York Mellon SA/NV, Luxembourg Branch to serve
as its Luxembourg listing agent. You can contact the Luxembourg listing agent at the addresses listed on the inside

138
back cover of this offering memorandum. CODELCO will maintain a paying agent so long as the notes are listed
on the Luxembourg Stock Exchange. Any change in the paying agent will be communicated to the Luxembourg
Stock Exchange and through publication in a daily newspaper in Luxembourg.

As long as the notes are listed on the Luxembourg Stock Exchange, you may receive free of charge copies
of the following documents at the offices of the listing agent or the paying agent on any business day:

. this offering memorandum;

. the indenture attaching the forms of the notes;

. CODELCO*s Unaudited Interim Consolidated Financial Statements;
. CODELCOSs statutory documents;

. English translations of the official letter authorizing the incurrence of indebtedness as issued
by the Ministry of Finance; and

. the most recent annual report, including the audited consolidated financial statements, of
CODELCO.

Copies of the indenture may be physically inspected during usual business hours on any weekday
(excluding Saturday, Sundays and public holidays) at the offices of the trustee at 240 Greenwich Street, Floor 7
East, New York, New York 10286.

The notes have been issued in registered, book-entry form through the facilities of DTC, and will be issued
in certificated form only under the limited circumstances described in this offering memorandum.

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.

139
y

CODELCO

CODELCO – CHILE

Unaudited interim consolidated financial statements as of September 30, 2019 and
for the nine-month and three-month periods ended September 30, 2019 and 2018

(Translation into English of the unaudited interim consolidated financial statements
originally issued in Spanish — see Note 1.2)
TABLEOF CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS

(Translation into English ofthe consolidated financial statements originally issued in Spanish – see Note 1.2)

INTERIMCONSOLIDATED STATEMENTS OF FINANCIAL POSITION….
INTERIMCONSOLIDATED STATEMENTS OF FINANCIAL POSITION….
INTERIMCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
INTERIMCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)…
INTERIMCONSOLIDATED STATEMENTS OF CASHFLOWS – DIRECT METHOD.
INTERIMCONSOLIDATED STATEMENTS OF CHANGES INEQUITY.

1. Corporate Information
2. Basis of Presentation ofthe Consolidated Financial Statements..
SIGNIFICANT ACCOUNTING POLICIES

1. Significant Judgments and Key Estimates..
2. Significantaccounting policies……………….
3. Newstandards and interpretations adopted by the Corporation
4, Newaccounting pronouncements…
EXPLANATORY NOTES

Cash and cash equivalents.

Trade and other receivables

Balance and transactions with related parties

InventorieS ..uccocccnnnenconenronencianess

Income taxes and deferred taxes…..

Current and non-currenttax assets and liabilities..

Property, Plant and Equipment

Investments accounted for using the equity method.

Intangible assets other than goodwill
. Subsidiaries
. Other non-current non-financial assets ..
. Current and non-current financial assets….
. Other financial liabilities
. FairValue of financial assets and liabilities
. Fair value hierarchy……….
. Trade and other payables.
. Other provisions…
. Employee benefits
. Equity…
. Revenue…
. Expenses by nature..
. Impairmentof Assets
. Otherincome and expenses by function.
. Finance COStS…………
. Operating segments .
. Foreign exchange differences…
. Statement ofcashflows ……….
. Financialrisk management, objectives and policies .
. Derivatives contracts….
. Contingencies and restrictions
. Guarantees….
. Sanctions ……

0 ]DOARAWNa

Y 0wWNNNNNNNNNNRRRRRRRRARDA
0 ROD JSN ADN Robo JONA Oo”

F-2
34, Environmental Expenditures

ETE TS AAA

F-3
CORPORACION NACIONAL DEL COBRE DE CHILE
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of September 30, 2019 (Unaudited) and December 31, 2018
(In thousands of US dollars – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

9/30/2019 12/31/2018
Notes
Assets
Current Assets

Cash and cash equivalents 1 2,967,242 1,229,125
Other current financial assets 12 13,977 231,409
Other current non-financial assets 58,532 6,805
Trade and other currentreceivables 2 1,876,203 2,212,209
Accounts receivable from related parties, current 3 6,558 92,365
Inventories 4 2,009,870 2,042,648
Currenttax assets 6 68,635 13,645
Total current assets 7,001,017 5,828,206

Non-current assets
Other non-current financial assets 12 126,869 145,751
Other non-current non-financial assets 11 5,670 6,817

Non-currentreceivables 2 109,553 84,731
Accounts receivable from related parties, non-current 3 18,263 20,530
Non-current inventories 4 568,857 457,070
Investments accounted for using equity method 8 3,488,854 3,568,293
Intangible assets other than goodwil 9 46,366 48,379
7

Property, plant and equipment 28,673,181 26,754,998
Investment property 981 981
Non-current tax assets 6 144,406 143,606
Deferred tax assets 5 37,655 31,443
Total non-current assets 33,220,655 31,262,599
Total Assets 40,221,672 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 September 30, 2019 (Unaudited) and December 31, 2018
(In thousands of US dollars – TRUS$)

(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

Notes 9/30/2019 12/31/2018
N2
Liabilities and Equity
Liabilities
Current liabilities
Other current financial liabilities 13 1,128,094 872,277
Trade and other current payables 16 1,388,714 1,546,584
Accounts payable to related parties, current 3 104,884 150,916
Other current provisions 17 1,125,141 384,249
Current tax liabilities 6 9,035 10,777
Current provisions for employee benefits 18 384,896 510,034
Other current non-financial liabilities 115,445 64,575
[ Total current liabilities 4,256,209 3,539,412
Non-current liabilities
Other non-current financial liabilities 13 16,996,939 14,674,510
Non-current payables 17,705 26,613
Other non-current provisions 17 1,579,716 1,600,183
Deferred tax liabilities 5 4,570,990 4,586,168
Non-current provisions for employee benefits 18 1,226,021 1,315,520
Other non-current non-financial liabilities 4,023 4,530
Total non-current liabilities 24,395,394 22,207,524
Total liabilities 28,651,603 25,746,936
Equity
Issued capital 20 5,619,423 5,219,423
Accumulated deficit (304,865) (198,917)
Other reserves 19 5,334,459 5,354,159
| Equity attributable to owners of the parent 10,649,017 10,374,665 |]
Non-controlling interests 19 921,052 969,204
Total equity 11,570,069 11,343,869
[ — Totalliabilities and equity 40,221,672 37,090,805 |

The accompanying notes are an integral part of these interim consolidated financial statements.

F-5
CORPORACION NACIONAL DEL COBRE DE CHILE

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

For the nine month and three month periods ended September 30, 2019 and 2018 (Unaudited)
(In thousands of US dollars – ThUS$)

(Translation into English of the consolidated financial statements originally issued in Spanish — see

Note 1.2)
Notes 1/1/2019 1/1/2018 7/1/2019 7/1/2018
NW 9/30/2019 9/30/2018 9/30/2019 9/30/2018
Revenue 2 8,808,184 10,771,511 2,891,435 3,345,047
Cost of sales (7,256,283) (8,357,160) (2,594,371) (2,779,886)
[Gross profit 1,551,901 2,414,351 297,064 565,161
Other Income, by function 23.2 206,981 95,038 116,268 29,527
Provision established (reverse), net, in accordance with IFRS 9 1,176 (805) 588 (2,120)
Distribution costs (12,647) (14,288) (4,863) (4,542)
Administrative expenses (303,025) (847,163) (99,579) (114,818)
Other expenses 23b (1,328,133) (1,420,134) (342,807) (455,725)
Other gains 17,038 13,643 3,924 5,395
[Income (Loss) from operating activities 133,291 740,642 (29,405) 22,878
Finance income 22,504 37,439 4,836 12,730
Finance costs 24 (360,104) (849,654) (99,965) (112,045)
Share of profit of associates and joint ventures accounted for using equity method 8 11,863 98,409 6,630 24,686
Foreign exchange difference % 114,946 83,639 175,128 (12,006)
[(Loss) Income for the period before tax (77,500) 610,475 57,224 (63,757)
Income tax (expense) benefit 5 (20,499) (392,181) (54,989) 38,137
[Net (Loss) income for the period (97,999) 218,294 2,235 (25,620)
Net (Loss) income attributable to owners of parent (105,530) 189,604 (957) (83,703)
Net income attributable to non-controlling interests 19b 753 28,690 3,192 8,083
[Net (Loss) income for the period (97,999) 218,294 2,235 (25,620)

The accompanying notes are an integral part of these interim consolidated financial statements.
CORPORACION NACIONAL DEL COBRE DE CHILE
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
CONTINUED
For the nine month and three month periods ended September 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 7/1/2019 7/1/2018
Ne 9/30/2019 9/30/2018 9/30/2019 9/30/2018

[Net (Loss) income for the period (97,999) 218,294 2,235 (25,620)
Components of other comprehensive income that will not be reclassified to profit
or loss, before tax:
Losses on remeasurement of defined benefit plans, before tax (10,882) (6,651) (7,021) (1,363)
Share of other comprehensive (loss) income of associates and joint ventures accounted 2,364 69 2,364 (566)
for using the equity method that wil not be reclassified to profit or loss before tax
Other comprehensive loss that will not be reclassified to profit or loss before tax (8,518) (6,582) (4,657) (1,929)
Components of other comprehensive income that will be reclassified to profit or
loss, before tax:
Losses on exchange difference on translation, before tax (1,990) (2,858) (1,867) (3,083)
(Losses) gains on cash flow hedges, before tax (40,540) 108,096 22,528 32,900
Share of other comprehensive income of associates and joint ventures accounted for

, ce . 11 1,122 4 1,790
using equity method that will be reclassified to profit or loss, before tax
per comprehensive (loss) income that will be reclassified to profit or loss before (42,519) 106,360 20,665 31,607
Other comprehensive (loss) income, before tax (51,037) 99,778 16,008 29,678
Income tax effect on component of other comprehensive income which will not be
reclassified profit or loss
Net income tax effect relating to benefit plans in other comprehensive income 5 7,349 4,077 4,784 1,049
Net income (loss) tax of components of other comprehensive income which will be
reclassified to profit or loss
Net (Loss) income tax relating to cash flow hedges of the other comprehensive income 5 26,351 (10,262) (14,643) (21,385)
Total other comprehensive (loss) income (17,337) 33,593 6,149 9,342
Total Comprehensive (loss) Income (115,336) 251,887 8,384 (16,278)
Comprehensive (loss) income attributable to:
Comprehensive (loss) income attributable to owners of the parent (122,867) 223,197 5,192 (24,361)
Comprehensive income attributable to non-controlling interests 19.b 7,531 28,690 3,192 8,083
[Total comprehensive (loss) income (115,336) 251,887 8,384 (16,278)

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 nine month periods ended September 30, 2019 and 2018 (Unaudited)
(In thousands of US dollars – ThUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Notes 1/1/2019 1/1/2018
9/30/2019 9/30/2018
Cash flows provided by operating activities:
Receipts from sales of goods and rendering of services 9.437.523 12.066.502
Other cash receipts from operating activities 27 1.436.936 1.267.861
Payments to suppliers for goods and services (6.070.326) (6.744.495)
Payments to and on behalf of employees (1.423.993) (1.533.918)
Other cash payments from operating activities 27 (976.755) (939.198)
Dividends received 84.372 183.871
Interest received – 35
Income taxes paid (60.209) (48.982)
Cash flows provided by operating activities 2.427.548 4.251.676
Cash flows used in investing activities:
Other payments to acquire equity or debt instruments of other entities (240) –
Other charges for the sale of interests in join ventures and associates 8 193.480 22.097
Purchase of property, plant and equipment (3.067.395) (2.737.861)
Interest received 19.191 31.788
Other cash inflows (outflows) 209.244 (83.844)
Cash flows used in investing activities (2.645.720) (2.767.820)
Cash flows used in financing activities:
Proceeds from borrowings long term 3.779.309 600.000
Proceeds from borrowings short term 465.000 –
Total proceeds from borrowings 4.244.309 600.000
Repayment of borrowings (1.843.960) (209.732)
Payments of finance lease liabilities (110.677) (20.291)
Dividends paid – (602.461)
Interest paid (530.465) (499.996)
Other cash inflows (outflows) 197.995 (64.150)
Cash flows (used) porvide in financing activities 1.957.202 (796.630)
Increase in cash and cash equivalents before effects of exchange difference 1.739.030 687.226
Effect of exchange rate changes on cash and cash equivalents (913) (62.316)
Increase in cash and cash equivalents 1.738.117 624.910
Cash and cash equivalents at beginning of period 1 1.229.125 1.448.835
Cash and cash equivalents at end of period 1 2.967.242 2.073.745

The accompanying notes are an integral part of these interim consolidated financial statements.
CORPORACION NACIONAL DEL COBRE DE CHILE
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the nine month periods ended September 30, 2019 and 2018 (Unaudited)
(In thousands of US dollars – ThUS$)

(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

September 30,2019

Initial balance as of 1/1/2019
Increase (decrease) th
Initial balance restated
in
Netincome
Other ehensive income
ehensive income
Dividends
contributions
Increase (decrease) th
Total ch in equ
Final balance as of 9/30/2019

transfers and other

September 30,2018

Initial balance as of 1/1/2018
in
Netincome
Other ehensive income (loss)
ehensive income
Dividends
contributions
Increase (decrease) th
Total ch in
Final balance as of 9/30/2018

transfers and other

Issued capital

400,000

400,000
619,423

Issued capital

4,619,423

Reserve on
exchange
differences on
translation

1,990)

Reserve on
exchange
difference on
translation

Reserve of

remeasurement
defined beneft

flow hedges plans

Reserve of cash

Reserve of

remeasurement
Reserve of cash
defined benefit

flow hedges
plans

Note 18
(259,

37,834
70

The accompanying notes are an integral part of these interim consolidated financial statements.

Other

miscellaneous
Total other

reserves

reserves

Note 19

Other

miscellaneous
Total other

reserves
Note 19

092

reserves

Accumulated
deficit

105,530

(418)

Accumulated
deficit

34

189,604

306,619

3,
120,230
154

Equiy

atributable to

owners ofthe
parent

10,374,
10,374,

105,530
17,33
122,

400,000
2,781)
274,352
10,649,017

Equity

atributable to

owners ofthe
parent

189,604

33,593
223,197
306,619

3,215

488

Non-contolling
interests

Note 19

Non-controlling
interests
Note 19

007,495
28,690

28,690

Total Equiv

97,999)
17,33

400,000
58,464)
226,200

Total Equiyy

10,927,

218,
33,593

251,887

306,6:

75,181
129,9:
10,797,707

1.

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 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.

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,

F-10
2.

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.

On September 26, 2019, Law No. 21174 was published, which repeals Law No. 13,196 and establishes that
the 10% tax to the tax benefit provided by the Corporation will continue to exist for a period of nine years,
decreasing from year 10 2.5% per year until reaching 0% at the beginning of the thirteenth year. The
validity of this law is as of January 1, 2020.

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
Ilbof Note 9.

Basis of Presentation of the Consolidated Financial Statements

The Corporation’s consolidated statements of financial position as of September 30, 2019 and December
31, 2018 and the unaudited consolidated statements of comprehensive income for the nine month and three
month periods ended September 30, 2019 and 2018, changes in equity and of cash flows for the nine month
periods ended September 30, 2019 and 2018, have been prepared in accordance with International
Accounting Standard (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 dollars (*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 September 30, 2019 and for
the nine-month and three-month periods ended September 30, 2019 and 2018, which financial statements

F-11
fully comply with IFRS as issued by the lASB. These unaudited interim consolidated financial statements
as of September 30, 2019 and for the nine-month and three-month periods ended September 30, 2019 and
2018 were approved by the Board of Directors at a meeting held on November 28, 2019.

Accounting Principles

These unaudited interim consolidated financial statements reflect the financial position of Codelco and its
subsidiaries as of September 30, 2019 and December 31, 2018, and the results of their operations for the
nine month and three month periods ended September 30, 2019 and 2018, changes in equity and cash
flows for the nine month periods ended September 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

F-12
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.

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 indefinitely-lived assets are 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

F-13
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
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 ¡ts 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
indicator that the new carrying amount of the asset may nat be fully recoverable. Ifitis 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, where required. 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)on accrual bases.

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

F-14
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
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

j)

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 includes the following:

– Estimation of the lease term;
– Determination if it is reasonably certain 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, it is 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 lAS 8 “Accounting Policies, Changes in Accounting Estimates and
Errors.”

F-15
2.

Significant accounting policies

a)

Period covered – The accompanying unaudited interim consolidated financial statements of
Corporación Nacional del Cobre de Chile include the following statements:

– Unaudited interim consolidated statement of financial position as of September 30, 2019

– —Audited consolidated statement of financial position as of December 31, 2018.

– Unaudited interim consolidated statements of comprehensive income for the nine month and three
month periods ended September 30, 2019 and 20138.

– Unaudited interim consolidated statements of changes in equity for the nine month periods ended
September 30, 2019 and 2018.

– Unaudited interim consolidated statements of cash flows for the nine month periods ended
September 30, 2019 and 2018.

b) Basis of preparation – The unaudited interim consolidated financial statements of the Corporation as

of September 30, 2019 and for the nine-month and three-month periods ended September 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 nine month and three month periods ended September 30,
2018 (unaudited), the consolidated statement of changes in equity and consolidated statement of cash
flows for the nine-month period ended September 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 September 30, 2019, except for the
adoption of the new IFRS standards and interpretations adopted by the Corporation as of and for the
nine-month and three-month periods ended September 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 its 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. 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 interim consolidated financial statements is the U.S. dollar.

F-16
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
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-17
The companies included in the consolidation are as follows:

9/30/2019 1213112018
Taxpayer ID Number Company Country ne % 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 Ses of US$ 100,00] y 100,00] 100,00]
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. e Ses of US$ 100,00] 100,00) 100,00)
Foreign [Codelco Services Limited England c8p , 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
Foreign [Codelco USA Inc. e Ses of US$ 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: [Compañía Contractual Minera los Andes Chile US$ 99,97] 0.03 100,00] 100,00
79.560,720-2 Isapre Chuquicamata Ltda Chile CLP 08,20] 1,70 100,00] 100,00]
81.767.200 asociación Garantizadora de Pensiones Chile CLP 96,60] , 06,60] 96,50]
88.497.100-4 Clínica San Lorenzo Limitada Chile CLP 99,90] 0.10] 100,00] 100,00
76.521.250 San Lorenzo Institución de Salud Previsional Ltda Chile CLP 100,00 100,00] 100,00
89.441.300-k Isapre Río Blanco Ltda. Chile CLP 99,99] 001 100,00] 100,00]
96.817.780-k Ejecutora Proyecto Hospital del Cobre Calama S.A. Chile US$ 99,99] 001 100,00] 100,00
06.819.040-7 [Complejo Portuario Mejilones S.A. Chile US$ 99,99] 001 100,00] 100,00
96.991.180:9 [Codelco Tec SpA Chile US$ 99,91] 0.09 100,00] 100,00
99.569.520:0 Exploraciones Mineras Andinas S.A. Chile US$ 99,90] 0.10] 100,00] 100,00
99.573.600-4 Cínica 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
77.713.260: Inversiones Copperfeld SpA Chile US$ 99,99] 001 100,00] 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]
76.173.357:5 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: 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 [Cental Eléctrica Luz Minera SpA Chile US$ 100,00 , 100,00] 100,00]
70.905.700:5 Fusat Chile CLP , ,
76.334.370-7 Instituto de Salud Previsional Fusat Ltda. Chile CLP , ] ,
78,394.040-k [Centro de Servicios Médicos Porvenir Ltda. Chile CLP 99,00] 99,00] 99,00]
77.928.390:9 Inmobiliaria e Inversiones Rio Cipreces Ltda. Chile CLP 99,90] 99,90] 99,90]
77.270.0202 Prestaciones de Servicios de la Salud Intersalud Ltda. Chile CLP , 99,00] 99,00] 99,00]
76.754.301-8 Salar de Maricunga SpA Chile CLP 100,00 J 100,00] 100,00

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

F-18
the relevant activities of the subsidiaries unilaterally; ii) exposure or rights to variable returns from
these entities; and ¡ii) 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.

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.

F-19
+ 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 (9/30/2019: US$38.52; 12/31/2018: US$39.68; 9/30/2018: US$41.42). 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
9/30/2019 12/31/2018 9/30/2018
USD /CLP 0.00137 0.00144 0.00151
USD /GBP 1.22820 1.27000 1.30412
USD /BRL 0.24045 0.25848 0.24895
USD /EURO 1.09016 1.14390 1.16171

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.

F-20
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 financial statements.

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

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.

F-21
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.
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:

+ 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;

F-22
e The ability to use or sell the intangible asset;

e That the intangible asset will generate probable future economic benefits;

e 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 intangible 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 ¡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.

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 lAS 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.

F-23
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 (PP€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.

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. lts 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.

F-24
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 lAS 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.

0) 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 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 September 30, 2019.

F-25
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 turnover rate,
among other factors.

In accordance with its 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.

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.

F-26
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 (at
equivalent amounts as permitted under transition to IFRS 16) 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 with 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.

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.

F-27
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 lAS 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 its 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 ofthe 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.

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
to customers.

– — 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 when the performance obligation is satisfied 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 the performance
obligation is satisfied when there is receipt of the product (FOB ship point) instead of the buyer’s

F-28
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, there are no generated effects either 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 in the line item revenue.

– — 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.

F-29
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 ¡s 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.

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.

F-30
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.

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.

F-31
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.
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.

F-32
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.

Xx) Impairment of financial assets – The Corporation measures the loss allowance at an amount equal
to lifetime expected credit losses for 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.

– — 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.

F-33
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.

On September 26, 2019, Law No. 21,174 was published, which repeals Law No. 13,196 and
establishes that the 10% tax to the tax benefit provided by the Corporation will subsist for a period of
nine years, decreasing from year 10 2.5% per year until reaching 0% at the beginning of the thirteenth
year. The validity of this law is as of January 1, 2020.

aa)

ab)

ac)

ad)

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.

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
disposition classified as held for sale” and/or “Non-current liabilities or groups of liabilities for
disposition classified as held for sale.”

F-34
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 amendments, 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 ll, 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.

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.

F-35
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 onerosity according to evaluation of onerous contracts under lAS 37 as an alternative to an
impairment 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
. Adjustment .
prior to adjusted by
IFRS 16 IFRS 16 IFRS 16
ThUss$

ThUus$ ThUus$
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 11,343,869 . 11,343,869

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:
Shortterm 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 of the initial application
4.67%
(January 1, 2019)
Discounted financing lease liabiliies recognized as of January 1, 2019 368,890
Lease liabilities related to leases previously classified as financial leases 107,839
Total lease liabilities recognized on January 1, 2019 476,729
Consisting of:
Lease liabilites current portion 115,791
Lease liabilites non-current portion 360,938
Total lease liabilities recognized on January 1, 2019 476,729

F-36
(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:

¡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 ¡ts tax return.

– Ifuncertain, the entity must reflect the effect of uncertainty in the determination of its accounting tax
position.

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 lAS 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

E-37
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 IAS 12: Add paragraph on treatment of taxes related to dividends payable.
– Amendments to IAS 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.

New accounting pronouncements

a) The following new IFRS, amendments and interpretations had been issued by the lASB, but their
application is not yet mandatory:

New IFRS Date of mandatory application Summary
Establishes the principles for the
IFRS 17, Insurance Contracts | Annual periods beginning on or after | recognition, measurement,
January 1, 2021 presentation and disclosure of

insurance contracts, reinsurance
contracts and investment contracts
with discretional participating
features and supersedes IFRS 4
Insurance contracts.

F-38

Amendments to IFRS

Date of mandatory application

Summary

Amendment to IFRS 10 and
1AS 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.

Modifications
Framework for
Financial Reporting

Conceptual
Revised

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

F-39

Interest Rate Benchmark
Reform (Amendments to IFRS
9, IAS 39 and IFRS 7)

Annual reporting periods beginning
on or after 1 January 2020

The amendments in Interest Rate
Benchmark Reform (Amendments
to IFRS 9, IAS 39 and IFRS 7)
clarify that entities would continue
to apply certain hedge accounting
requirements assuming that the
interest rate benchmark on which
the hedged cash flows and cash
flows from the hedging instrument
are based will not be altered as a
result of interest rate benchmark
reform.

The Administration does not expect significant impacts with respect to standards, amendments and

interpretations indicated above.

EXPLANATORY NOTES

Cash and cash equivalents

The detail of cash and cash equivalents as of September 30, 2019 and December 31, 2018, ¡is as follows:

Item 9/30/2019 | 12/31/2018
Thus$ Thus$

Cash on hand 3,539 25,033
Bank balances 662,686 59,030
Time deposits 2,285,467 1,131,049
Mutual Funds – Money Market 432 1,698
Repurchase agreements 15,118 12,315
Total cash and cash equivalents 2,967,242 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.

F-40

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.

According to the foregoing, as of September 30, 2019 and for provisions for unissued sales invoices,
an offset of ThUS$78,249 is presented in the trade and other current receivables, and a provision of
ThUS$5,906 in the trade accounts payable item of current liabilities associated to customers that do
not present balances owed to Codelco; totaling a negative effect of ThUS$84,155 for open invoices
related to customers.

As of December 31, 2018, an offset 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 item of current liabilities,
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.

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 9/30/2019 12/31/2018 9/30/2019 12/31/2018
ThUS$ Thus$ ThuS$ ThUS$

Trade receivables (1) 1,274,744 1,542,420 517 820
Allowance for doubtful accounts (3) (12,047) (37,811)

Subtotal trade receivables, net 1,262,697 1,504,609 517 820
Other receivables (2) 619,831 712,446 109,036 83,911
Allowance for doubtful accounts (3) (6,325) (4,846) – –
Subtotal other receivables, net 613,506 707,600 109,036 83,911
Total 1,876,203 2,212,209 109,553 84,731

F-41
(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$48,895 are secured with colateral.

+ 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$181,850 and ThUS$201,274 as of
September 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 September
30, 2019 and for the year ended December 31, 2018, were as follows:

6/30/2019 12/31/2018
Items

Thus$ Thus$
Opening balance 42,657 40,100
Net Increases 570 7,215
Write-offs/applications (24,855) (4,658)
Total movements (24,285) 2,557
Closing balance 18,372 42,657

As of September 30, 2019 and December 31, 2018, the balance of past due but not impaired trade
receivables, is as follows:

. 9/30/2019 12/31/2018
Maturity
ThUS$ ThUS$
Less than 90 days 4,305 3,473
Between 90 days and 1 year 4,402 4,789
More than 1 year 8,999 10,266
Total trade receivables past-due but not impaired 17,706 18,528

F-42
3.

Balance and transactions with related parties

a)

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 CMP), 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.

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.

F-43
The most significant transactions with related persons and the amounts involved are detailed in the
following table:

11112019 11112018 71112019 71112018
. Taxpayer a Description of the 913012019 9/30/2018 9/30/2019 9/30/2018
Entity Country | Nature of the relationship .
number transaction Amount Amount Amount Amount
ThuS$ ThuS$ ThuS$ ThUS$

Administración de Sistemas y Services Herman

76.249.1382 | Chile [Employee’s relaive Semices – 200
Yerko Valenzuela Rojas E.LR.L
Anglo American Sur S.A. 77.162.409 | Chile [Associate Supplies 16 5
Arcadis Chile S.A. 89.371.200-3 | Chile [Employee’s relaive Semices – 3511
Asociación Chilena de Seguridad 70.260.100 | Chile [Member of Board ofdirectors Semices – 852
B.Bosch S.A. 84.716.400K | Chie [Employee’s relaive Supplies 3,618
Centro de Capacitación y Recreación Radomiro Tomi. 75.985.550-7 | Chie [Other related Semices 62 847 – –
Ecometales Limited agencia en Chile 59.087.530 | Chile [Subsidiary Semices 43,495 20,040 43,495 20,040
Exploraciones Mineras Andinas S.A. 99.569.520-0 | Chile [Subsidiary Semices – 358,130 –
Fismidih S.A. 89.664.2006 | Chile [Employee’s relaive Supplies 1,265 – 1,258
Fundacion Educacional de Chuquicamata. 72.747.309 | Chile [Founder member donor Semices 134
Fundación Orquesta Sinfónica Infansl de los Andes. | 65.018.784-9 | Chile [Founder member donor Semices 270 297
Glasstech S.A. 87.949.508 | Chile [Employee’s relaive Supplies – 3
Highservice ingeniería y constucción da. 76.378.3960 | Chie. [Employee’s relaive Semices 680
Industial Support Company Ltda 77.276.2804 | Chile [Employee’s relaive Semices 2.691
Industial y Comercial Arimatemb Ltda. 76.108.720-7 | Chile [Employee’s relaive Semices 20 2
Inoxa S.A. 99.513.6201 | Chile [Employee’s relaive Semices – 468
Institución de Salud Previsional Chuquicamata Ltda. | 79.566.720-2 | Chile [Subsidiary Semices 3,257 101 –
Institución de Salud Previsional Río Blanco Ltda. 89.441.300 | Chile [Subsidiayy Semices – 47,028 – 47,028
Kairos Mining S.A. 76.781.030K | Chie [other related Semices – 13,700 – 13,700
Komaisu Chile S.A. 96:843.1307 | Chile [Employee’s relaive Services y Supplies 10,729 116,236 – 113,889
Linde Gas Chile S.A, 90.100.000k | Chie [Employee’s relaive Supplies 124 a 48
Marsol S.A. 91.443.003 | Chile [Employee’s relaive Supplies 9% – 10
San Lorenzo Isapre Limitada 76.521.2502 | Chile [Subsidiary Semices – 25,945
Services de Ingeniería IMA S.A. 76:523.610K | Chie [Employee’s relaive Semices – 15
Soc. de Prod. y Serv. Solava Ltda 78.663..520-9 | Chile [Employee’s relaive Supplies 57
Sociedad Contacwal Minera El Abra. 96.701.340 | Chile [Associate Supplies 73
Sodimac S.A. 96.792.430K | Chie [Employee’s relaive Supplies 1,644 – 1
Sonda S.A 82.628.100-4 | Chile [Employee’s relaive Semices 21
Suez Medioambiente Chile S.A. 77.41.8709 | Chile [Employee’s relaive Supplies 57 –
“Transelec Norte S.A. 99.521.0506 | Chile |Member of Board ofdirectors Services – 4,411

b) Key Management of the Corporation

In accordance with the policy established by the Board of Directors and ¡ts 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 nine month and three month periods ended September 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-44

1/1/2019 1/1/2018 7/1/2019 7/1/2018
Taxpayer Nature of the Description of the 9/30/2019 9/30/2018 9/30/2019 9/30/2018
Name Country . . .
number relationship transaction Amount Amount Amount Amount
Thus$ ES Thus$ Thuss
Blas Tomic Errázuriz 5.390.891-8 Chile [Director Directors’s fees 89 93 29 20
Dante Contreras Guajardo 9.976.475-9 Chile [Director Directors’s fees – 34 – –
¡Ghassan Day oub Pseli 14.695.762-5 Chile [Director Directors’s fees 7 74 23 23
¡Ghassan Day oub Pseli 14.695.762-5 Chile [Director Payroll 102 87 21 2
Hernán de Solminihac Tampier 6.263.304-2 Chile [Director Directors’s fees 7 40 23 24
Ignacio Briones Rojas 12.232.813-9 Chile [Director Directors’s fees 7 40 23 24
Isidoro Palma Penco 4,754.025-9 Chile [Director Directors’s fees 7 74 2 2
Juan Benavides Feliú 5.633.221-9 Chile [Chairman of the board Directors’s fees 106 60 34 35
Juan Morales Jaramillo 5.078.923-3 Chile [Director Directors’s fees 7 74 2 2
Laura Albomoz Pollmann 10.338.467-2 Chile [Director Directors’s fees 34
Oscar Landerretche Moreno 8.366.611-0 Chile [Chairman of the board Directors’s fees – 51 – –
Paul Schiodtz Obilinovich 7.170.7199 Chile [Director Directors’s fees 71 74 2 23
Raimundo Espinoza Concha 6.512.182-4 Chile [Director Directors’s fees 7 74 23 23
Raimundo Espinoza Concha 6.512.182-4 Chile [Director Payroll 27 54 7 26

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.

The compensation established in the legal text 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
nine month periods ended September 30, 2019 and 2018, were ThUS$9,696 and ThUS$10,456,
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-45
During the nine month periods ended September 30, 2019 and 2018, severance indemnities were
paid to key management of the Corporation for ThuS$1,660 and ThUS$1,106, respectively.

There were no payments to key management for other non-current benefits during the nine month
periods ended September 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 its related companies.

The detail of accounts receivable and payable between the Corporation and its related parties as of
September 30, 2019 and December 31, 2018, ¡is as follows:

Accounts receivable from related companies:

a Current Non-current

Taxpayer number Name Countn Nature of the Indexation

axpayl y relationship currency 9/30/2019 | 12/31/2018 | 9/30/2019 | 12/31/2018

Thuss ThUS$ Thuss Thus$
77.762.940-9 Anglo American Sur S.A. Chile [Associate US$ 3,069 88,497 – –
76.063.022-5 Inca de Oro S.A. Chile [Associate US$ 399 380 – –
76.255.054-7 Planta Recuperadora de Metales SpA Chile [Associate US$ 167 3,099 18,034 20,306
[96.701.340-4 Sociedad Contractual Minera El Abra Chile [Associate US$ 2,923 383 – –
[96.801.450-1 ¡Agua de la Falda S.A. Chile [Associate US$ – 6 229 224
Totals 6,558 92,365 18,263 20,530
Accounts payable to related companies:
. Current Non-current
Taxpayer Nature of the Indexation
Name Country a 9130/2019 | 12/31/2018 | 9/30/2019 | 12/31/2018
number relationship currency
ThHUS$ ThuS$ THUS$ TRUS$

77.762.940-9 Anglo American Sur S.A. Chile Associate US$ 78,099 125,913

196.701.340-4 Sociedad Contractual Minera El Abra Chile Associate US$ 24,659 22,940

76.255.054-7 Planta Recuperadora de Metales SpA Chile Associate US$ 2,126 2,063

Totals 104,884 150,916

F-46

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 nine month and three month periods

ended September 30, 2019 and 2018:

2019 112015 TIOS 72018
l3ol2019 l3o/2018, l3o/2019 algor2018.
Taxpayer entiy tur th rancio | County | des [effects on netincome| AS ; Effects on netincome | [Effects on net income
number. A A pa Amount (charges) credits Amount (charges) credits
Thuss Thuss Thuss nUS$ Thuss nUS$ nus nus

96.801.501 [agua dela Falda S.A. [Sales afsenices (3 op 3 3 3 3 1 1 1 1
96.801.450-1 [agua dela Falda S.A [Capial conmibuton [chile US$ 190 –
77.162.940: |ango American Sur SA. [Dividends received [Chi US$ 84372 182.903 123:00
77.162:9409 |anglo American Sur S.A. [Dividends recevable.—— [Chile US$ –
77.162:940:9 |anglo American Sur SA. [sale ol goods. [chile US$ 8932 893 sean ses 1363 1363
77.162:9409 |anglo American Sur S.A. [Sale o senices [chile oLp 4219 4279 3923 3923 –
77.162:940:9 |anglo American Sur SA. [Purchase of produces [Chile US$ 475497 (475497) 512.803 (61203) 125504 (125,504) 150,316 (150,316)
Eseanjera [Deutsche Geissdraht GmbH [Dividends recelved latemania | EURO 968 968
16.063.0225 |nca de OroS.. [Sales o senices [chile oLp 2 u 14 2 3 3 4 4
77.781.080 [Kairos Mining [Services [chile oLp 16.487 (26,487) 16348 (15,348) 5465 (6.465) 1504 (1504)
76,255.054-7 [Planta Recuperadora de Metales SpA [nerestioans [Chi US$ mo ul) mo 1) 260 260 260 260
76,55.054-7 [Planta Recuperadora de Metales SpA [Senices [chile US$ 14477 (24477) 16,748 (26,748) 2866 (2.866) 7079 (1.079)
16255.054-7 [Plana Recuperadora de Metales SpA [Sales al services [chile cLe 4,695 4695 940 940 –
176,255.054-7 [Plata Recuperadora de Metales SpA [Sales ol goods [chile US$ a 3 4077 4077 2 2 –
96.701.340-4 |Soe. Contactual Minera El Abra. [Purchase ofprodues [Chile US$ 172218 (172278) 207,317 (207,317) 64.485 (64.485) 50873 (sog73]|
96.701.340-4 |Soe. Contacuual Minera El Abra. [sales ol goods [Chi US$ 24472 24472 21.666 21,566 12.008 12.028 89m ag
96.701.340-4 |Soc. Contacual Minera El Abra. [Oter sales [chile US$ 1120 1120 1120 1120 374 374 147 17
96.701.340-4 |Soc. Contacual Minera El Abra. [ercelved commissions — [Chile US$ a n 18 7 2 2 2 2

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 September 30, 2019 and December 31, 2018, is as follows:

Current Non-current
Items 9/30/2019 12/31/2018 9/30/2019 12/31/2018
Thus$ ThUS$ ES TRUS$

Finished products 213,251 446,344

Subtotal finished products, net 213,251 446,344 –

Products in process 1,283,015 1,137,605 568,857 457,070
Subtotal products in process, net 1,283,015 1,137,605 568,857 457,070
Material in warehouse and other 624,603 555,504

Obsolescence allowance adjustment (110,999) (96,805)

Subtotal material in warehouse and other, net 513,604 458,699 –

Total Inventories 2,009,870 2,042,648 568,857 457,070

EF-47

The amount of inventories of finished goods transferred to cost of sales for the nine month periods ended
September 30, 2019 and 2018 were ThUS$7,232,018 and ThUS$8,320,972, respectively.

For the nine month periods ended September 30, 2019 and 2018, the Corporation has nat 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 9130/2019 12/81/2018
TRUS$ ThUS$
Opening Balance (96,805) (94,083)
Period provision (14,194) (2,722)
Closing Balance (110,999) (96,805)

For the nine month periods ended September 30, 2019 and 2018, the Corporation recognized write-offs of
damaged inventories for ThUS$7.178 and ThUS2,715, respectively.

The provision for the net realizable value of inventories was ThUS$85,834 for the nine month ended
September 30, 2019 (ThUS$53,965 for the nine month ended September 30, 2018).

During the nine month periods ended September 30, 2019 and 2018, increases in the provision for net
realizable value were ThUS$53,945 and ThUS$50,965, respectively.

As of September 30, 2019 and 2018, there are no unrealized gains or losses recognized on the
intercompany sales of inventories of finished products.

As of September 30, 2019 and 2018, there are no inventories pledged as security for liabilities.
5. Income taxes and deferred taxes

a) Composition of income tax expense

1/1/2019 1/1/2018 7/1/2019 7/1/2018
ltems 9/30/2019 9/30/2018 9/30/2019 9/30/2018
ThuS$ ThuSs$
Current income tax (6,572) (86,212) (2,404) (14,890)
Effect of Deferred Taxes (12,310) (286,710) (52,563) 75,647
Adjustments to current tax from the prior period – (19,956) – (22,878)
Other (1,617) 697 (22) 258
Total tax expense (20,499) (392,181) (54,989) 38,137

F-48
b) Deferred tax assets and liabilities:

The following table details deferred tax assets and liabilities:

Deferred tax assets 9/30/2019 12/31/2018
ThUus$ ThUus$
Provisions 1.325.143 1.429.060
Financial leasing 3.385 13.162
Tax losses 517.213 250.255
Other 7.916 4.603
Total deferred tax assets 1.853.657 1.697.080
Deferred tax liabilities 9/30/2019 12/51/2018
Thus$ Thus$
Tax on mining activity 191,476 163,280
Property, plant and equipment variations 994,931 889,841
Post-employ ment benefit obligations 11,957 10,346
Accelerated depreciation for tax purposes 5,026,253 5,017,532
Fair value of mining properties acquired 108,518 108,518
Hedging derivatives — future contracts 19,991 12,282
Undistributed profits of subsidiaries 33,866 50,006
Total deferred tax liabilities 6,386,992 6,251,805
The following tables sets forth the deferred taxes as presented in the statement of financial position:
Deferred taxes 9/30/2019 12/31/2018
ThuSs$ Thus$
Non-current assets 37,655 31,443
Non-current liabilities 4,570,990 4,586,168
Net 4,533,335 4,554,725

The effects of deferred taxes on the components of other comprehensive income are as follows:

Deferred taxes on components of other comprehensive income 930/2019 | 12/51/2018
TRUS$ ThuS$
(Charge) credit cash flow hedge 26,351 (70,262)
Defined Benefit Plans 7,349 4,077
Total deferred tax effect on components of other comprehensive income (loss) 33,700 (66,185)

F-49

The following table sets forth the reconciliation of the effective tax rate:

9/30/2019
Aia Taxable Base At the Tax rate
Reconciliation of tax rate

25.0% 40.0% 5% 25.0% 40.0% 5% Total

ThuS$ ThUS$ ThuS$ Thus$ Thus$ ThuS$ ThUS$
Tax effect on the income (loss) before taxes (83,550) (83,550) (83,550) 20,888 33,420 4,178 58,486
Tax effect on the income (loss) before taxes of subsidiaries 6,050 6,050 6,050 (1,513) (2,420) (303) (4,236)
Tax effect consolidated profit (loss) before taxes (77,500) (77,500) (77,500) 19,375 31,000 3,875 54,250
Permanent differences:
First category income tax (25% ) 81,633 (20,408) (20,408)
Specific tax for state-owned entities Art. 2 D.L. 2398 (40% ) 46,318 (18,527) (18,527)
Specific tax on mining activities 641,811 (82,091) (32,091)
Single Tax Art. 21 Inc. N*1 (2,106)
Differences imposed previous years (1,617)
TOTAL TAX EXPENSE (1,033) 12,473 (28,216) (20,499)

9/30/2018
Reconciliation of tax rate Taxable Base At the Tax rate
25.0% 40.0% 5% 25.0% 40.0% 5% Total

ThuS$ ThUS$ ThuS$ Thus$ Thus$ ThuS$ ThUuS$
Tax effect on the income (loss) before taxes 566,789 566,789 566,789 (141,697) (226,716) (28,339) (396,752)
Tax effect on the income (loss) before taxes of subsidiaries 43,686 43,686 43,686 (10,922) (17,474) (2,184) (30,580)
Tax effect consolidated profit (loss) before taxes 610,475 610,475 610,475 (152,619) (244,190) (30,523) (427,332)
Permanent differences:
First category income tax (25% ) (99,908) 24,976 24,976
Specific tax for state-owned entities Art. 2 D.L. 2398 (40% ) (130,586) 52,234 52,234
Specific tax on mining activities 850,888 (42,544) (42,544)
Single Tax Art. 21 Inc. N*1 (2,437)
Others 2,922
TOTAL TAX EXPENSE (127,643) — (191,956) (73,067) (392,181)

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 270% 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 250% 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-50

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 ofthe Income Tax Law No. 824, in numbers i), ¡i) 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):

9/30/2019 | 12/31/2018

Current Tax Assets

Thus$ ThuSs$
Taxes to be recovered 68,635 13,645
Total Current Tax Assets 68,635 13,645

9/30/2019 | 12/31/2018
ThUS$ ThUS$

Current Tax Liabilities

Monthly Provisional Pay ment Provision 6,748 6,910
Provision Tax 2,287 3,867
Total Current Tax Liabilities 9,035 10,777

9/30/2019 | 12/31/2018
Items

Thus$ ThUS$

Non-Current Tax Assets 144,406 143,606
Total Non-Current Tax Assets 144,406 143,606

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$735,323.

7. Property, Plant and Equipment

a) The items of property, plant and equipment as of September 30, 2019 and December 31, 2018, are as
follows:

F-51

Property, Plant and Equipment, gross 95012019 121512018
Thus$ Thus$
Construction in progress 7,322,197 8,808,652
Land 173,518 173,926
Buildings 5,649,593 5,403,295
Plant and equipment 17,687,160 15,894,046
Fixtures and fitings 58,771 58,807
Motor vehicles 2,077,145 2,062,920
Land improvements 6,269,982 5,619,800
Mining operations 8,230,000 7,214,915
Mine development 4,404,278 4,117,362
Assets by right of use 662,331 –
Other assets 1,200,869 1,380,354
Total Property, Plant and Equipment, gross 53,735,844 50,734,077
Property, Plant and Equipment, accumulated depreciation 913012019 12/31/2018
Thus$ Thus$
Construction in progress – –
Land 9,722 8,964
Buildings 3,104,540 3,048,902
Plant and equipment 10,428,897 10,125,253
Fixtures and fitings 46,670 43,878
Motor vehicles 1,458,684 1,378,911
Land improvements 3,419,937 3,267,244
Mining operations 5,038,444 4,728,591
Mine development 862,536 804,318
Assets by right of use 218,157 –
Other assets 475,076 573,018
Total Property, Plant and Equipment, accumulated depreciation 25,062,663 23,979,079
Property, Plant and Equipment, net 913012019 12/31/2018
Thus$ Thus$
Construction in progress 7,322,197 8,808,652
Land 163,796 164,962
Buildings 2,545,053 2,354,393
Plant and equipment 7,258,263 5,768,793
Fixtures and fitings 12,101 14,929
Motor vehicles 618,461 684,009
Land improvements 2,850,045 2,352,556
Mining operations 3,191,556 2,486,324
Mine development 3,541,742 3,313,044
Assets by right of use 444,174 –
Other assets 725,793 807,336
Total Property, Plant and Equipment, net 28,673,181 26,754,998

F-52

b)

Movement of Property, plant and equipment:

o o plantana | Fed Motor Ground Mining — [Development| Assets by | Other
Movements Construction in Land Buildings . installations . . e . o Total
equipment vehicles |improvements| operations | ofmines | rightofuse | assets
ThuS$ progress and
Reconciliation of changes in properties, plant and equipment
Properies, plant and equipment at he beginning of the period. Opening Balance 1/1/2019 8808,652| 164,962 2,354,303] — 5,768,798 14,929) — 684000 2,352,556 2486324] 3,313,044 807,336| 26,754,998
Changes in property, plant and equipment
Increase other than those from business, propeny, plant and equipment combinatons 2,602,918 . 317 10,280 366 1,054 19,128 404804 – 85,316 30.016] 3,154,199
Depreciaton, propery, plant and equipment (158) (112898)| — (463,259) esos) (6211) (msa33s) (srere)] (sos (104,810) (19,986)| (1,570,987)
Increases (decreases) in transfers and other changes, properties, plant and equipment
Icreases (decreases) by transfers ftom constructons in process, properies, plant and equipment (8,759,062) 327,566| — 1,951,372 T5| 15,809 546,113) 817,668 – – 359 –
Icreases (decreases) by other changes, properies, plant and equipment (826,289) — (408) — (19,278) 10,466 (260) (163) (13,145) soso] 280sTO] as3o68| (887e3| 3767281
Increase (decrease) by transfers and other changes, properties, plant and equipment (4,085,351)| — (408) — 3osj38e| 1,961,838 (om) 15646 632968] 8TeÑT1| 289579] 463668 (88/42) 376281
Dispositions and withdrawals of service, property, plant and equipment
Retements propeny, plant and equipment (4,022) (6147)| (19389) (104) (195) (274) – – (6149) — (62310)
Dispositions and withdrawals of service, property, plant and equipment (4,022) (5147) (19,389) (194) (135) (274) – – La] (82,310)
Increase (decrease) in properties, plant and equipment (1,486,455)| (1166) 190,660] 1480470 (2,828) — (65,548) ao7aso| 7o5/282| 228,608] 444174 (81543)| 1918,88
Properties, plant and equipment at the end of the period. Closing balance 9130/2019 7,322,197 163,796| 2,545,053| — 7,258,263 12,101 618,461] 2850045 3191556] 3/541,742] 444,174| 725793| 28,673,181
o o plantana | FVed Motor Mining Assets by | Other
Movements Construction in | Land | Buildings | F* installations | “> Ground “9 [Development | Total
equipment vehicles || operations P right ofuse | assets
Thuss progress and improvements ofmines
Reconciliation of changes in properties, plant and equipment
Properies, plant and equipment at he beginning of the period. Opening Balance 1/1/2018 7,004,522| 167.086| 2,400,529] — 5,660,185 17842] 768502 2247481] — 2,607,039] — 3,495,230 842,056 | 25,275,512
Changes in property, plant and equipment
Icreases other than those from business, propery, plant and equipment combinatons 3,582,688 – 138 21,028 376 1,383 484| 375,515 1,125 38,478 — 40217275
Depreciaton, propery, plant and equipment Al (0rm| (s75sm| (657.866) (e:669)] (11a.e72)] (218,328) — (659955) (80153) (70,299) — (2,172,695)
Impairmentlosses recognized in proftor loss for he period (2,179) | (62585)|] (98,57) – (10) (4,786) – – (10,531) (198,898)
Increases (decreases) in transfers and other changes, properties, plant and equipment
Increases (decreases) by tansfers ftom constructons in process, properies, plant and equipment (1,281,365) | 102865] 81290 647 51758 191,986 21,168 99,681 359 –
horeases (decreases) by other changes, properies, plant and equipment (5145) (mus) 11228 38,322 (68) 2,879 135,714| 342.497] — (202,880) 7,536| — (17,789)
Increase (decrease) by transfers and other changes, properties, plant and equipment (1633/910)| (1113) 1uaoss| 851228 s7o| 544637 327,100) 363,665 (103,158) 7,895| — (17,789)
Dispositions and withdrawals of service, property, plant and equipment
Retements propeny, plant and equipment (143,069) – (235) (7.100) (59) (1541) – – (268) — (152,407)
Dispositions and withdrawals of service, property, plant and equipment (143,069) – (235) (7,100) (59) (1,541) – – . (263) — (152,407)
Increase (decrease) in properties, plant and equipment 1,804,130] (2120)| (136,136) 108,608 (es913)| (59,533) 105,075| — (120,715) (182,186) (34,720) 1,479,486
Properties, plant and equipment at the end of the period. Closing balance 12/31/2018 8,808,652] 164,062| 2,354,303| — 5,768,793 14,920] — 684,009] 2,352,556] — 2,86,324| — 3,313,044] 807,336| 26,754,998

F-53

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’s opinion.

Borrowing costs capitalized for the nine month periods ended September 30, 2019 and 2018 were
ThUS$269,215 and ThUS$225,675, respectively. The annual capitalization average rate for the
periods ended September 30, 2019 and 2018 was 4.19% and 4.39%, 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:

1/1/2019 1/1/2018
Expenditure on exploration and drilling reservoirs 9/30/2019 9/30/2018
ThuS$ THuS$
Recognized in profit /(loss) 33,124 29,090
Cash outflows disbursed 31,626 47,607

The detail of “Other assets” under “Property, plant and equipment” is as follows:

Other assets, net 9/30/2019 | 12/31/2018
ThuS$ LES
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 260,422 235,091
Other assets — Calama Plan 58,685 72,225
Other 4,686 4,686
Total other assets, net 725,793 807,336

(1) As of January 1, 2019, the lease agreements under IAS 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 9 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-54
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 September 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 September 30, 2019, the composition by asset class of assets for right of use ¡s:

Assets by right of use 9/80/2019 11/2019
ThuS$ LES
Buildings 19,652 24,069
Plant and equipment 305,469 283,750
Motor vehicles 14,928 140,960
Fixtures and fitings 97,892 12,028
others assets by right of use 6,233 6,939
Total Assets by right of use 444,174 467,746

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 Functional 11/2019 1/1/2018 71/2019 71112018

Numbers Currency aI3o/z019 19/31/2018 9/30/2019 19/31/2018 9/30/2019 130/2018 130/2019 30/2018

% % TMuss TnuS$ THUSs Tnuss mUs$ Russ
Agua de la Falda S.A 96.801.450-1 US$ 42,26% 42,26% 4,940 4,953 (203) (224) qa) (68)
Anglo American Sur S.A. 77.762.409 US$ 29,5% 29,5% 2,854,719 2,835,412 19,308 84,825 8,866 23,688
Inca de Oro S.A. 73.063.0225 US$ 33,19% 33,19% 11,966 D913 (55) (42) (55) (42)
Kairos Mining S.A. 76.781.030.K US$ 40,00% 5,00% 5 – – – – –
Minera Purén SCM 76.028.880-2 US$ 35,0% 350% 9,935 9,902 3 – (15) m
Planta Recuperadora de Metales SpA 76.255.054-7 US$ 34,0% 34,0% 10,593 10,365 228 79 267 (18)
Sociedad Contractual Minera El Abra 96.701340-4 US$ 49,0% 49,0% 596,646 610,339 (13,368) 8,453 (8,170) (584)
Sociedad GNL Mejilones S.A. 76.775.1107 US$ 00% 37,0% 84,409 5,920 5,318 gn 1,709
[TOTAL 3,488,854 3,568,293 11,863 98,409 6,630, 24,686

a) Associates

Agua de la Falda S.A.

F-55

As of September 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 September 30, 2019, Codelco
holds a 49% ownership interest, with the remaining 51% owned by Cyprus El Abra Corporation, a
subsidiary of Freeport-McMoRan Copper €. Gold Inc.

The company business activities involve the extraction, production and selling copper cathodes.

Sociedad Contractual Minera Purén

As of September 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.

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.

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.

The Corporation made, on August 6, 2019, the sale of its 37% stake in the company GNL Mejillones
S.A. to the Ameris Capital AGF Investment fund, for an amount of US$193.5 million.

The sale of the LNG Mejillones stake generated a profit of US$103 million before tax (note 23) and a
result after tax of US $ 36 million.

Inca de Oro S.A.

F-56
On June 1, 2009, Codelco’s Board of Directors authorized the incorporation of a new company aimed
to develop studies allowing the continuity of the 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 September 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 September 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.

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.

F-57
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 September 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, itwas 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 its participation from 5% to 40%.

As of September 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%.

F-58
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 September 30, 2019
and December 31, 2018, and their profit (loss) for the nine-month and three-month periods ended
September 30, 2019 and 2018:

Assets and Liabilities 9130/2019 12/51/2018
ThuS$ ThUS$
Current Assets 1,540,221 1,805,003
Non-current Assets 5,202,700 5,637,321
Current Liabilities 617,361 1,008,086
Nor-current Liabilities 1,546,780 1,699,529
1/1/2019 1/1/2018 7/1/2019 7/1/2018
Net Income 9/30/2019 9/30/2018 9/30/2019 9/30/2018
ThUS$ Thus$ ThuS$ ThUS$
Revenue 2,106,920 2,354,368 621,364 748,895
Cost of sales (2,034,084) (2,001,791) (569,191) (652,733)
Profit for the period 72,836 352,577 52,173 96,162
Movements of Investment in Associates 1/1/2019 1/1/2018
9/30/2019 9/30/2018
LES LES
Opening balances 3,568,293 3,665,601
Contributions 240
Dividends – (123,900)
Result of the period 11,863 98,409
Sales (90,329)
Other comprehensive income (325) (810)
Other (888) 40
Final balance 3,488,854 3,639,340

The following tables provide details of asset and liabilities of the principal associates as of September
30, 2019 and December 31, 2018, and their profit (loss) for the nine-month and three-month periods
ended September 30, 2019 and 2018.

Anglo American Sur S.A.

Assets and liabilities 9/30/2019 1218112018
ThUS$ TRUS$
Current Assets 957,604 1,164,724
Non-current Assets 4,007,496 4,104,271
Current Liabilities 504,800 890,874
Non-current Liabilities 1,208,724 1,226,503

F-59
b)

1/1/2019 1/1/2018 7/1/2019 7/1/2018
Net Income 9/30/2019 9/30/2018 9/30/2019 9/30/2018
ThUS$ ThUus$ THUS$ US$
Revenue 1,733,940 1,829,124 525,502 596,398
Costof sales (1,633,982)| (1,507,693) (484,130) (503,617)
Prolit for the period 99,958 321,431 41,372 92,781

Sociedad Contractual Minera El Abra

Assets and liabilities 9180/2019 1231/2018

ThUS$ ThUS$
Current Assets 536,567 576,167
Non-current Assets 1,057,811 1,013,165
Current Liabilities 104,427 73,458
Non-current Liabilities 272,306 270,283
1/1/2019 1/1/2018 7/1/2019 7/1/2018
Net Income 9/30/2019 9/30/2018 9/30/2019 9/30/2018
ThUS$ ThuS$ TRus$ ThUS$
Revenue 351,930 439,636 131,845 123,343
Cost of sales (379,211) (422,385) (138,314) (124,535)
Profit (loss) for the period (27,281) 17,251 (6,469) (1,192)

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 September 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 September 30, 2019, (as of
December 31, 2018: ThUS$3,920).

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.

F-60
d)

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
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

F-61
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 and. 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 September 30, 2019 and 2018, there are no indicators of impairment or potencial reversal
conditions , therefore, there have been no adjustments recognized to the carrying amounts of the
assets,

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 nine-month
periods ended September 30, 2019 was income of ThUS$29,488 (income of ThUS$94,822 for the
periods ended September 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$10.180 for the nine-month periods
ended September 30, 2019 (an expense of ThUS$9,997 for the nine-month periods ended September
30, 2018) recognized 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.

9. Intangible assets other than goodwill

As of September 30, 2019 and December 31, 2018, the intangible assets other than goodwill are described
as follows:

F-62
a)

b)

This item is composed of the following:

Intangible assets composition 913012019 121812018
ThUS$ ThUS$
Intangible assets with finite useful lives, net 38,408 40,421
Intangible assets with indefinite useful lives 7,958 7,958
Total 46,366 48,379
Carrying amount and accumulated amortization:
9/30/2019
Accumulated

intangible assets Gross Amortization Net

ThUS$ ThUS$ TRUS$
Trademarks, patents and licenses 28 28
Water rights 7,958 7,958
Software 2,679 (1,591) 1,088
Other intangible assets 37,310 (18) 37,292
Total 47,975 (1,609) 46,366

12/31/2018
Accumulated

intangible assets Gross Amortization Net

ThUS$ ThUS$ TRUS$
Trademarks, patents and licenses 28 28
Water rights 7,958 7,958
Software 2,803 (1,351) 1,452
Other intangible assets 38,950 (9) 38,941
Total 49,739 (1,360) 48,379

F-63

c)

Reconciliation of the carrying amount at beginning and end of the period:

Trademarks, Water Technological
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 (1/1/2019) 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 – – 74 – 7 81
‘Amortization, intangible assets other than goodwill – – (418) – (1,656) (2,074)
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 – – (20) – – (20)
Increase (decrease) in transfers and other changes, intangible assets other than goodwill – – (20) – – (20)
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 – – (364) – (1,649) (2,013)
Intangible assets other than goodwill. Final Balance 9/30/2019 28 7,958 1,088 – 37,292 46,366
Trademarks, Water Technological
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) – (352) (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 – (1) (149) – (7) (157)
Increase (decrease) in transfers and other changes, intangible assets other than goodwill – (1) (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 – (1) (241) (175,710) 5,214 (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.

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. It was expected that its subsequent implementation would be

F-64
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 September 30, 2019 and 2018, there are no fully amortized intangible assets that are still in use.
For the nine-month periods ended September 30, 2019 and 2018, research and technological
development and innovation expenditures recognized in assets were ThUS$2,215 and ThUS$2,955
(accrual), respectively. On the other hand, research recognized in expense was ThUS$3,025 and
ThUS$6,278 (cash) for the nine -month periods ended September 30, 2019 and 2018 respectively.

10. 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 9180/2019 1213112018
Thus$ Thus$
Current assets 467,419 621,753
Non Current Assets 3,614,023 3,605,801
Current Liabilities 264,318 305,030
Non Current Liabilities 1,105,554 1,122,471
1/1/2019 1/1/2018 7/1/2019 7/1/2018
Profit (loss) 9/30/2019 9/30/2018 9/30/2019 9/30/2018
Thus$ TRUS$ ThUS$ ThUS$
Ordinary Income 857,593 1,620,134 254,066 498,358
Ordinary Expenses (879,208) (1,568,334) (265, 756) (470,047)
Profit (loss) of period (21,615) 51,800 (11,690) 28,312

F-65
11. Other non-current non-financial assets

Other non-current non-financial assets as of September 30, 2019 and December 31, 2018, are as follows:

Other non-current non-financial assets 9/30/2019 | 12/5112018
ThUS$ | ThUS$
Advance pay ment (Law No.13196) (1) 3,518 4,433
Other 2,152 2,384
Total 5,670 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.

12. Current and non-current financial assets

Current and non-current financial assets included in the statement of financial position are as follows:

9/30/2019
At fair value though . Total financial
Amortized Cost Derivatives for hedging
A . . profit and loss assets
Classification in the statement of financial –
a Hedging Cross currency
position A
derivatives swap
ThUS$ Thuss$ Thus$ ThUS$ ThUS$
Cash and cash equivalents 432 2,966,810 – – 2,967,242
Trade and other current receivables 539,077 1,337,126 – – 1,876,203
Non – current receivables – 109,553 – – 109,553
Current receivables from related parties – 6,558 – – 6,558
Non – current receivables from related parties – 18,263 – 18,263
Other current financial assets – 2,149 11,828 – 13,977
Other non – current financial assets – 9,973 841 116,055 126,869
TOTAL 539,509 4,450,432 12,669 116,055 5,118,665
12/31/2018
At fair value though . Total financial
Amortized Cost Derivatives for hedging
A . . profit and loss assets
Classification in the statement of financial –
a Hedging Cross currency
position A
derivatives swap
ThUS$ Thuss$ 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

F-66
+» Fair value through profit or loss: As of September 30, 2019, this category mainly includes receivables
from provisional invoicing sales. Section 11.2.r.

» Amortized cost: It 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 September 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.

13. 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:

9/30/2019
Current Non-current
Hedging Hedging
Items Amortized Cost derivatives Total Amortized Cost derivatves Total
Thus$ ThUS$ ThUS$ Thus$ ThUS$ ThUS$
Loans from financial institutions 871,161 – 871,161 2,370,178 – 2,370,178
Bonds issued 124,044 – 124,044 14,087,979 – 14,087,979
Lease 127,388 – 127,388 318,663 – 318,663
Hedging derivatives – 5,068 5,068 – 159,684 159,684
Other financial liabilities 433 – 433 60,435 – 60,435
Total 1,123,026 5,068 1,128,094 16,837,255 159,684 16,996,939

F-67

12/31/2018
Current Non-current
Hedgin Hedgin
Items Amortized Cost ds Total Amortized Cost da Total
Thus$ 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
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

– 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 €, 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% of the 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.

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.

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The credit agreements obtained in 2016 and 2017, mentioned above, were paid on May 23, 2018.
As of September 30, 2019, the outstanding balance of the credit agreements is TRUS$619,847.
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.

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, at an 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 ThUS$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) the first tranche on July 17, 2022 in the amount of US$1,250,000 at a 3% annual interest rate. On
August 22, 2017, and February 6, 2019, principal was paid in the amounts of ThUS$412,514 and
ThUS$314,219, respectively, and (ii) the other tranche matures on July 17, 2042 and is in the amount of
ThUS$750,000 at an annual interest rate of 4.25%,

F-69
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,
February 12 and February 26, 2019, principal in the amounts of ThUS$162,502, ThUS$228,674 and
ThUS$270 respectively, was paid.

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 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.

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.

F-70
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 1,527 millions.

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$10 million after
taxes.

On July 22, 2019, the Corporation made a bond issue and placement, Regulation S, for a nominal
amount of AUD $ 70,000,000, whose maturity will be in a single installment on July 22, 2039, with a
coupon of 3.58% annual and interest payment annually.

On August 23, 2019, the Corporation made a bond issue and placement, Regulation S, for a nominal
amount of US$130,000,000, whose maturity will be in a single installment on August 23, 2029, with a
coupon of 2.869% annual and interest payment semiannually.

On September 30, 2019, the Corporation made an issue and placement of bonds in the North American
market, under rule 144-A and Regulation S, for a total nominal amount of ThUS$2,000,000 whose
maturity will be, on the one hand, on September 30, 2029 corresponding to an amount of
ThUS$1,100,000 with a 3% annual coupon. The other portion contemplates a maturity for January 30,
2050, corresponding to an amount of ThUS$900,000 with a coupon of 3.70% per year.

Along with this placement, Codelco launched a purchase offer for an aggregate amount of up to US$639
million for bonds with maturities 2020, 2021, 2022 and 2023, to be carried out in three stages of
settlement dates October 2, 8 and 22. (Note 35).

As of September 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-71
As of September 30, 2019, the details of loans from financial institutions and bond obligations are as follows:

9/30/2019
, a Principal . . Current Non
Taxpayer ID Loans with financial! a . Interest e Paymentof | Nominal Effective current
Number Country entities Institution Maturity Rate Currency | Amount Type of amortization Interest — [Interest Rate| Interest Rate balance balance
ThUS$ | ThuS$
97.018.000-1 [Chile Bilateral Credit — [Scotiabank Chile 12/20/2019 | Floating US$ 300,000,000| Maturity Semi-annual 3.02% 3.19% 302,495
97.018.000-1 [Chile Bilateral Credit — [Scotiabank Chile 3/6/2020 | Floating US$ 100,000,000| Maturity Semi-annual 2.34% 2.34% 100,156
97.018.000-1 [Chile Bilateral Credit — [Scotiabank Chile 3/13/2020 | Floating US$ 65,000,000| Maturity Semi-annual 2.40% 2.40% 65,074
97.036.000-K [Chile Bilateral Credit — [Santander Chile 4/27/2020 | Floating US$ 100,000,000| Maturity Semi-annual 2.95% 2.95% 101,465
97.06.0006. [Chile Bilateral Credit [Banco Crédito e Inversiones 5/29/2020 | Floating US$ 50,000,000| Maturity Semi-annual 2.77% 2.71% 50,448
97.004.000-5 — [Chile Bilateral Credit [Banco de Chile 5/29/2020 | Floating US$ 120,000,000| Maturity Semi-annual 3.03% 3.03% 120,444
97.023.000-9 — [Chile Bilateral Credit — [Banco ltaú 5/29/2020 | Floating US$ 30,000,000| Maturity Semi-annual 3.01% 3.01% 30,292 .
Foreign USA Bilateral Credit — [MUFG Bark Ltd. 9/30/2021 | Floating US$ 250,000,000| Maturity Semi-annual 2.96% 3.05% 1,520| 249,683
Foreign USA Bilateral Credit — [Export Dev Canada 11/3/2021 | Floating US$ 300,000,000| Maturity Semi-annual 3.23% 3.42% 4,039| 299,180
Foreign [Cayman Island | Bilateral Credit [Scotiabank €. Trust (Cayman) Ltd 4/13/2022 | Floating US$ 300,000,000| Maturity Quarterly 2.95% 3.17% 1,811| 298,690
Foreign Japan Bilateral Credit [Japan Bank Intemational Cooperation 5/24/2022 | Floating US$ 224,000,000| Halfyearly principal payments from 2015 to the present. Semi-annual 3.02% 3.22% 33,039 63,805
Foreign USA Bilateral Credit — [Export Dev Canada 7/17/2022 | Floating US$ 300,000,000| Maturity Quarterly 2.83% 2.94% 1,604 | 299,542
Foreign USA Bilateral Credit — [Export Dev Canada 10/25/2028 | Floating US$ 300,000,000| Maturity Quarterly 3.40% 3.52% 1,898 | 298,385
Foreign USA Bilateral Credit — [Export Dev Canada 7/25/2029 | Floating US$ 300,000,000| Maturity Semi-annual 3.42% 3.62% 1,786 | 296,136
Foreign Holland Bilateral Credit [Oriente Copper Netherlands B.V. 11/26/2032 | Fixed US$ 874,959,000| Semi-annual Semi-annual 3.25% 5.42% 55,090 | 564,757
TOTAL 871,161] 2,370,178]

EF-72

Taxpayer . Interest Principal A Nominal Effective Current [ Norrcurrent
Country Maturity Currency Amount Type of amortization | Paymentof interest balance balance
ID Number Rate Interest Rate | Interest Rate
Thus$ Thus$
144-A REG.S Luxembourg 11-04-2020| Fixed US$ 1.000.000.000 At Maturity Semi-annual 3,75% 3,94% 6.242 401.364
144-A REG.S Luxembourg 11-04-2021| Fixed US$ 1.150.000.000 At Maturity Semi-annual 3,88% 4,04% 3.800 236.170
144-A REG.S Luxembourg |07-17-2022| Fixed US$ 1.250.000.000 At Maturity Semi-annual 3,00% 3,17% 3.199 520.931
144-A REG.S Luxembourg [08-13-2023 | Fixed US$ 750.000.000 At Maturity Semi-annual 4,50% 4,75% 2.105 355.438
144-A REG.S Luxembourg |07-09-2024| Fixed EUR 600.000.000 At Maturity Annual 2,25% 2,48% 3.336 647.532
BCODE-B Chile 04-01-2025| Fixed UF. 6.900.000 At Maturity Semi-annual 4,00% 3,24% – 275.848
144-A REG.S Luxembourg [09-16-2025 | Fixed US$ 2.000.000.000 At Maturity Semi-annual 4,50% 4,75% 1.850 1.054.721
BCODE-C Chile 08-24-2026 | Fixed UF. 10.000.000 At Maturity Semi-annual 2,50% 2,48% 944 402.757
144-A REG.S Luxembourg |08-01-2027| Fixed US$ 1.500.000.000 At Maturity Semi-annual 3,63% 4,20% 9.013 1.442.319
REG.S – 08-23-2029 | Fixed US$ 130.000.000 At Maturity Semi-annual 2,87% 2,98% 395 128.759
144-A REG.S Luxembourg [09-30-2029 | Fixed US$ 1.100.000.000 At Maturity Semi-annual 3,00% 3,14% 90 1.087.216
144-A REG.S Luxembourg [09-21-2035 | Fixed US$ 500.000.000 At Maturity Semi-annual 5,63% 5,78% 695 492.036
144-A REG.S Luxembourg [10-24-2036 | Fixed US$ 500.000.000 At Maturity Semi-annual 6,15% 6,22% 13.370 496.515
REG.S Luxembourg [07-22-2039 | Fixed AUD 70.000.000 At Maturity Annual 3,58% 3,58% 330 46.781
144-A REG.S Luxembourg [07-17-2042 | Fixed US$ 750.000.000 At Maturity Semi-annual 4,25% 4,41% 6.496 733.343
144-A REG.S Luxembourg [10-18-2043 | Fixed US$ 950.000.000 At Maturity Semi-annual 5,63% 5,76% 24.091 933.491
144-A REG.S Luxembourg 11-04-2044| Fixed US$ 980.000.000 At Maturity Semi-annual 4,88% 5,01% 19.344 961.328
144-A REG.S Luxembourg |08-01-2047| Fixed US$ 1.250.000.000 At Maturity Semi-annual 4,50% 4,73% 9.324 1.205.730
REG.S Taiwan 05-18-2048 | Fixed US$ 600.000.000 At Maturity Semi-annual 4,85% 4,91% 10.675 594,464
144-A REG.S Luxembourg |02-05-2049| Fixed US$ 1.300.000.000 At Maturity Semi-annual 4,38% 4,97% 8.655 1.181.696
144-A REG.S Luxembourg |01-30-2050| Fixed US$ 900.000.000 At Maturity Semi-annual 3,70% 3,76% 90 889.540
TOTAL 124.044| 14.087.979

Nominal and effective interest rates presented above correspond to annual rates.

F-73

As of December 31, 2018, the details of loans from financial institutions and bond obligations are as follows:

12/31/2018
. Principal . Current
de Country Loans ancial Institution Maturity — | Interest Rate | Currency Amount Type of amortization Pe e, Mini balance | NOTcurrent balance
Thus$ Thus$

97.018.000-1 [Chile Bilateral Credit [Scotiabank Chile 12/20/2019 Floating US$ 300,000,000| Maturity Semi-annual 3,60% 3,74% 300,059 –

Foreign USA Bilateral Credit MUFG Bank Ltd 9/30/2021 Floating US$ 250,000,000| Maturity Semi-annual 3.27% 3.37% 3,768 249,579

Foreign USA Bilateral Credit Export Dev Canada 11/3/2021 Floating US$ 300,000,000| Maturity Semi-annual 3.44% 3.62% 1,604 298,875

Foreign Cayman Island — | Bilateral Credit [Scotiabank 8: Trust (Cayman) Ltd 4113/2022 Floating US$ 300,000,000| Maturity Quarterly 3.09% 3.30% 1,980 298,401

Foreign USA Bilateral Credit Export Dev Canada 7/17/2022 Floating US$ 300,000,000| Maturity Semi-annual 3.38% 3.48% 1,915 299,432

Foreign USA Bilateral Credit Export Dev Canada 10/25/2028 Floating US$ 300,000,000| Maturity Semi-annual 3.96% 4.09% 2,212 298,250

Foreign Japan Bilateral Credit MUFG Bank Ltd 5/24/2029 Floating US$ 96,000,000 | Halfyearly principal payments from 2015 to the present. Semi-annual 3.44% 3.84% 12,016 –

Foreign Japan Bilateral Credit [Japan Bank Intematonal Cooperation 5/24/2022 Floating US$ 224,000,000| Halfyearly principal payments from 2015 to the present. Semi-annual 3.34% 3.54% 32,363 79,674

Foreign Holland Bilateral Credit [Oriente Copper Netherlands B.V. 11/26/2032 Fixed US$ 874,959,000| Semi-annual Semi-annual 3.25% 5.42% 48,490. 582,867

Foreign Germany Credit Line HSBC Trinkaus € Floating Euro 1.25% 125% 408 –

[Other institutions 56
TOTAL 404,871 2,107,078]
Principal a Non-current
Texpayer a . Nominal Effective | Current balance
1D Number Country Maturity InterestRate | Currency Amount Type of amortization Payment of interest Interest Rate |Interest Rate balance
ThUS$ Thus$

144-A REG.S Luxembourg 1/15/2019 Fixed US$ 600,000,000 At Maturity Semi-annual 7,50% 7,18%| 276,061 –
144-A REG.S Luxembourg 4/11/2020 Fixed US$ 1,000,000,000 At Maturity Semi-annual 3,75% | 3,97% 3,456 582,989
144-A REG.S Luxembourg 4/11/2021 Fixed US$ 1,150,000,000 At Maturity Semi-annual 3,88% 4,06% 2,958 482,430
144-A REG.S Luxembourg 7/17/2022 Fixed US$ 1,250,000,000 At Maturity Semi-annual 3,00% 3,17%| 11,538 832,748
144-A REG.S Luxembourg 8/13/2023 Fixed US$ 750,000,000 At Maturity Semi-annual 4,50% 4,75% 10,058 581,548
144-A REG.S Luxembourg 9/07/2024 Fixed EUR 600,000,000 At Maturity Annual 2,25% | 2,48% | 7,404 678,446
BCODE-B Chile 1/4/2025 Fixed UE. 6,900,000 At Maturity Semi-annual 4,00% 3,24% 2,137 285,436
144-A REG.S Luxembourg 9/16/2025 Fixed US$ 2,000,000,000 At Maturity Semi-annual 4,50% 4,71% 21,364 1,596,926
BCODE-C Chile 8/24/2026 Fixed UE. 10,000,000 At Maturity Semi-annual 2,50% 2,48% | 3,455 416,715
144-A REG.S Luxembourg 1/8/2027 Fixed US$ 1,500,000,000 At Maturity Semi-annual 3,63% 4,20% 22,607 1,437,938
144-A REG.S Luxembourg 9/21/2035 Fixed US$ 500,000,000 At Maturity Semi-annual 5,63% 5,78% | 7,925 491,814
144-A REG.S Luxembourg 10/24/2036 Fixed US$ 500,000,000 At Maturity Semi-annual 6,15%| 6,22%| 5,998 496,430
144-A REG.S Luxembourg 7/17/2042 Fixed US$ 750,000,000 At Maturity Semi-annual 4,25% 4,41% 14,638 733,027
144-A REG.S Luxembourg 10/18/2043 Fixed US$ 950,000,000 At Maturity Semi-annual 5,63% 5,76%| 10,864 933,256
144-A REG.S Luxembourg 4/11/2044 Fixed US$ 980,000,000 At Maturity Semi-annual 4,88% 5,01% 7,522 961,050
144-A REG.S Luxembourg 1/8/2047 Fixed US$ 1,250,000,000 At Maturity Semi-annual 4,50% 4,73% 23,387 1,205,156
REG.S Taiwan 5/18/2048 Fixed US$ 600,000,000 AtMaturity Semi-annual 4,85% 4,91% 3,457 594,398
TOTAL 485,429 12,310,307

Nominal and effective interest rates presented above correspond to annual rates.

E-74

The undiscounted amounts that the Corporation will have to disburse to settle the obligations with financial institutions, are as follows:

9/30/2019 Current Non-current

Debtors Name Currency o Nominal | paymens of Interest | — Less than 90 days | Morethan 90 days | Cunenttotal | 1t03years | 3to5years | More han 5years | Non-currentioal
Effective interest rate Rate

Scotiabank Chile US$ 3.19% 3.02% Semi-annual 304,610 – 304,610 – – – –
Scotiabank Chile US$ 2.34% 2.34% Semi-annual – 101,182 101,182 – – – –
Scotiabank Chile US$ 2.40% 2.40% Semi-annual – 65,790 65,790 – – – –
Santander Chile US$ 2.95% 2.95% Semi-annual 1,473 101,473 102,946 – – – –
Banco Crédito e Inversiones US$ 2.77% 2.77% Semi-annual 693 50,693 51,386 – – – –
Banco de Chile US$ 3.03% 3.03% Semi-annual 1,819 121,819 123,638 – – – –
Banco Itaú US$ 3.01% 3.01% Semi-annual 451 30,451 30,902 – – – –
MUFG Bank Ltel US$ 3.05% 2.96% Semi-annual – 7,536 7,536 261,212 – – 261,212
Export Dev Canada US$ 3.42% 3.23% Semi-annual 4,982 4,901 9,883 314,784 – – 314,784
Scotiabank 8. Trust (Cay man) Ltd US$ 3.17% 2.95% Quarterly 4,702 6,744 11,446 315,702 – – 315,702
Japan Bank Intemational Cooperation US$ 3.22% 3.02% Semi-annual 17,490 17,222 34,712 66,454 – – 66,454
Export Dev Canada US$ 2.94% 2.83% Quarterly – 8,634 8,634 17,291 300,000 – 317,291
Export Dev Canada US$ 3.52% 3.40% Quarterly – 10,370 10,370 20,683 20,711 346,607 388,000
Export Dev Canada US$ 3.62% 3.42% Semi-annual – 5,187 5,187 20,804 20,833 351,897 393,534
BONO 144-A REG.S 2020 US$ 3.94% 3.75% Semi-annual 7,541 7,541 15,082 409,727 – – 409,727
BONO 144-A REG.S 2021 US$ 4.04% 3.88% Semi-annual 4,591 4,591 9,182 250,733 – – 250,733
BONO 144-A REG.S 2022 US$ 3.17% 3.00% Semi-annual – 15,698 15,698 554,663 – – 554,663
BONO 144-A REG.S 2023 US$ 4.75% 4.50% Semi-annual – 16,135 16,135 32,270 374,689 – 406,959
BONO 144-A REG.S 2025 US$ 4.75% 4.50% Semi-annual – 48,087 48,087 96,174 96,174 1,116,688 1,309,036
BONO 144-A REG.S 2027 US$ 4.20% 3.63% Semi-annual – 54,375 54,375 108,750 108,750 1,663,125 1,880,625
REG.S 2029 US$ 2.98% 2.87% Semi-annual – 3,730 3,730 7,459 7,459 148,649 163,567
BONO 144-A REG.S 2029 US$ 3.14% 3.00% Semi-annual – 33,000 33,000 49,500 66,000 1,281,500 1,397,000
BONO 144-A REG.S 2035 US$ 5.78% 5.63% Semi-annual – 28,125 28,125 56,250 42,188 823,438 921,876
BONO 144-A REG.S 2036 US$ 6.22% 6.15% Semi-annual 15,375 15,375 30,750 61,500 61,500 884,375 1,007,375
BONO 144-A REG.S 2042 US$ 4.41% 4,25% Semi-annual – 31,875 31,875 63,750 63,750 1,323,750 1,451,250
BONO 144-A REG.S 2043 US$ 5.76% 5.63% Semi-annual 26,719 26,719 53,438 106,875 106,875 1,992,031 2,205,781
BONO 144-A REG.S 2044 US$ 5.01% 4.88% Semi-annual 23,888 23,888 47,776 95,550 95,550 1,959,388 2,150,488
BONO 144-A REG.S 2047 US$ 4.73% 4.50% Semi-annual – 56,250 56,250 112,500 112,500 2,543,750 2,768,750
REG.S 2048 US$ 4.91% 4.85% Semi-annual 14,550 14,550 29,100 58,200 58,200 1,298,400 1,414,800
BONO 144-A REG.S 2049 US$ 4.97% 4.38% Semi-annual – 56,875 56,875 113,750 113,750 2,693,438 2,920,938
BONO 144-A REG.S 2050 US$ 3.76% 3.70% Semi-annual – 33,300 33,300 66,600 66,600 2,048,850 2,182,050
Oriente Copper Netherlands B.V. US$ 5.42% 3.25% Semi-annual 36,147 35,788 71,935 139,656 133,925 504,728 778,309
Total ThUS$ 465,031 1,037,904| 1,502,935| 3,400,837 1,849,454 20,980,614| 26,230,904|
BONO BCODE=B 2025 UE 3.24% 4.00% Semi-annual – 276,000 276,000] 414,000 552,000 7,176,000 8,142,000
BONO BCODE-C 2026 uE. 2.48% 2.50% Semi-annual – 248,457 248,457 496,913 496,913 10,496,913 11,490,740
Total U.F. – 524,457 524,457 910,913 1,048,913 17,672,913 19,632,740
Subtotal ThUSS – 20,202 20,202 35,088 40,404 680,761 756,253
[Bono 144-A REG.S 2024 EUR | 2.48% 2.25% Annual – 13,500,000] 13,500,000] 27,000,000 27,000,000 60,000,000 654,000,000|
Subtotal ThUS$ – 14,717 14,717 29,434 29,434 654,096 712,965
[reG.s 2039 AUD | 3.66% 3.58% Annual – 2,506,000| 2,506,000| 5,012,000 5,012,000 107,590,000 117,614,000|
Subtotal ThUS$ – 2,732 2,732 5,4641 5,464] 117,290 128,217
Total ThUS$ 465,031 1,075,555| 1,540,586 | 3,470,823 1,924,756 22,432,761 27,828,339|

Nominal and effective interest rates presented above correspond to annual rates.

F-75

12/31/2018 Current Non-current

Creditor Name Currency Efecive Interest [ Nominal Interest Payments of Interest Less han 90 More han 90 Current total 1to 3 years 3to5 years | More than 5 years| Non-current total
Rate Rate days days

Scotiabank Chile US$ 3,74% 3,60% Semi-annual 310,893 310,893 – –
Bank of Tokyo Mitsubishi Ltd. US$ 3,37% 3,27% Semi-annual 4,176| 4,108| 8,284] 270,701 270,701
Export Dev Canada US$ 3,62% 3,44% Semi-annual 10,395| 10,395 320,934 – 320,934
Scotiabank 8 Trust (Cayman) Ltd US$ 3,30% 3,09% Quarterly 2,340] 7,099| 9,439] 18,801 304,578 323,379
Export Dev Canada US$ 3,48% 3,38% Semi-annual – 10,279| 10,279 20,586| 310,251 > 330,837
Export Dev Canada US$ 4,09% 3,96% Semi-annual 12,053| 12,053 24,139] 24,106 360,330 408,575
MUFG Bank Ltd US$ 3,84% 3,44% Semi-annual 12,205] 12,205 – – – –
Japan Bank International Cooperation US$ 3,54% 3,34% Semi-annual – 35,496| 35,496 67,793| 16,268 84,061
BONO 144-A REG.S 2019 US$ 7,18% 7,50% Semi-annual 276,852 276,852 – – –
BONO 144-A REG.S 2020 US$ 3,97% 3,75% Semi-annual – 21,946| 21,946 607,183 607,183
BONO 144-A REG.S 2021 US$ 4,06% 3,88% Semi-annual – 18,785| 18,785 522,344 – 522,344
BONO 144-A REG.S 2022 US$ 3,17% 3,00% Semi-annual 12,562 12,562 25,124 50,249] 862,611 912,860
BONO 144-A REG.S 2023 US$ 4,75% 4,50% Semi-annual 13,219 13,219] 26,438 52,875| 640,373 > 693,248
BONO 144-A REG.S 2025 US$ 4,77% 4,50% Semi-annual 36,480] 36,480] 72,960 145,922] 145,922| 1,767,277| 2,059,121]
BONO 144-A REG.S 2027 US$ 4,20% 3,63% Semi-annual 27,188| 27,188| 54,376 108,750 108,750| 1,717,500] 1,935,000]
BONO 144-A REG.S 2035 US$ 5,78% 5,63% Semi-annual 14,063 14,063| 28,126 56,250] 56,250 837,500 950,000
BONO 144-A REG.S 2036 US$ 6,22% 6,15% Semi-annual – 30,750] 30,750 61,500] 61,500 899,750 1,022,750]
BONO 144-A REG.S 2042 US$ 4,41% 4,25% Semi-annual 15,938 15,938| 31,876 63,750] 63,750 1,355,625| 1,483,125|
BONO 144-A REG.S 2043 US$ 5,76% 5,63% Semi-annual – 53,438| 53,438 106,875 106,875| 2,018,750| 2,232,500]
BONO 144-A REG.S 2044 US$ 5,01% 4,88% Semi-annual – 47,775| 47,775] 95,550] 95,550 1,983,275| 2,174,375]
BONO 144-A REG.S 2047 US$ 4,73% 4,50% Semi-annual 28,125| 28,125] 56,250 112,500 112,500] 2,600,000| 2,825,000]
REG.S. 2048 US$ 4,91% 4,85% Semi-annual – 29,100] 29,100 58,200] 58,200 1,312,950] 1,429,350]
Oriente Copper Netherlands B.V. US$ 5,42% 3,25% Semi-annual 72,705| 72,705 141,137| 135,320| 537,640 814,097
Total ThUS$ 430,943| 824,602] 1,255,545] 2,906,039] 3,102,804, 15,390,597| 21,399,440|
BONO BCODE-B 2025 U.F. 3,24%] 4,00% Semi-annual 138,000 138,000) 276,000 552,000) 552,000 7,314,000) 8,418,000]
BONO BCODE-C 2026 U.F. 2,48%] 2,50%] Semi-annual 124,228 124,228 248,457 496,913| 496,913 10,745,370] 11,739,197
Total U.F. 262,228 262,228 524,457 1,048,913 1,048,913| 18,059,370| 20,157,197|
Subtotal ThUS$ 10,404| 10,404] 20,808| 41,617| 41,617| 716,526 799,760
BONO 144-A REG. S 2024 EUR 2,48%] 2,25%] Annual 13,500,000] 13,500,000| 27,000,000] 27,000,000] 613,500,000| 667,500,000,
Total EUR 13,500,000] 13,500,000| 27,000,000] 27,000,000] 613,500,000| 667,500,000,
Subtotal ThUS$ 15,443| 15,443 30,885| 30,885 701,783 763,553
Total ThUS$ 441,347| 850,449] 1,291,796| 2,978,541] 3,175,306 16,808,906| 22,962,753|

Nominal and effective interest rates presented above correspond to annual rates.

F-76

The present value of future lease payments for financial lease obligations are detailed in the following table:

9/30/2019 12/31/2018
Leases Gross Interest Present Value Gross Interest Present Value
ThuS$ Thus$ ThuS$ ThuS$ ThuS$ ThuS$

Less than 90 days 41,292 (4,861) 36,431 6,902 (1,735) 5,167
Between 90 days and 1 year 104,284 (13,327) 90,957 21,529 (5,186) 16,343
Between 1 and 2 years 108,460 (13,199) 95,261 23,385 (5,943) 17,442
Between 2 and 3 years 88,080 (10,891) 77,189 20,079 (4,807) 15,272
Between 3 and 4 years 62,453 (7,330) 55,123 13,628 (3,699) 9,929
Between 4 and 5 years 34,411 (5,149) 29,262 19,946 (2,812) 17,134
More than 5 years 68,110 (6,282) 61,828 35,126 (8,574) 26,552
Total 507,090 (61,039) 446,051 140,595 (82,756) 107,839

The expense related to short-term leases, low-value assets and variable leases not included in the
measurement or amortization of lease liabilities for the nine-month periods ended September 30, 2019 is
presented in the following table:

1/1/2019
Lease expense 9/30/2019
ThUS$
Short-term leases 68,120
Low value leases 58,625
Variable lease pay ments not included in the initial measurement or remeasurement of 949,584
liabilities (ex cluding, where application, changes in indices or rates)
TOTAL 1,076,329

The operating lease payments recognized in the statement of comprehensive income for the nine-month
periods ended September 30, 2018 totaled TRUS$162.380.

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 nine months ended September 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 for 11/2019 From Used Total (mM Exchange accretion/amortiza| 9/30/2019
Thuss RUSS ThUS$ E ThUS$ THUS$ Thuss THUS$ Thuss THUS$

Loans wih financial institutions 2,511,949 765,000 | — (110,374) 654,626 74,764 – – 3,241,339
Bond Obligations 12,745,736 | 3,479,309 | (2375261) 1,104,048 439,462 (63,929) – (23,294) 14,212,023
‘Obligations for coverage 116,132 – (20,435) (20,435) 15,720 34,304 23,424 – (4,409) 164,736
Paid Dividens – – – – – – – –

Financial assets for hedge derivatives (107,700) – – – 19,588 (27,943)| – (116,055)
Leases 107,839 – (110,677) (110,677) 25,028 13,361 – 410,500 446,051.
[Capital contribution – 400,000 – 400,000 – –

[Other 64,343 – (70,360) (70,360) 52,229 – – – 14,656 60,868
[Total liabilities from financing activities 15,438,290 | 4,644,309 | (2,687,107)| 1,957,202 607,203 13,324 (4,519)| (23,294)| 420,747 18,008,962

E-77

Changes that do not represent cash flow

Initial Balance at Flows of cash Financial Cost Adjustment —] Effective Interest ]— Other Final Balance at
Liabilities for 111/2018 From Used Total (m Exchange accretionlamortiza| 19/31/2018
US$ US$ US$ mUS$ US$ THUS$ ThUs$ Thus$ US$ ThUS$
Loans wit financial instiusions 2,460,384 300,000 | (333,027) (83,027) 84,592 – – – – 2,511,949
Bond Obligatons 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) (18,930) 20,070 35,884 (4,788) – 116,132
Paid Dividens – (602,461)| — (602,461) – – – –
Financial assets for hedge derivaives (137,544) – – – – 66,177 (86,383) – (107,700)
Leases 102,711 (27,130) (27,130) 2,774 2,645 – – 26,839 107,839
Capital contribution – 600,000 – 600,000 – – – –
Other 69,813 – (89,200) (89,200) 82,886 – – – 10,844 64,343
Total liabilities from financing activities 14,828,666 | 1,500,000 | (1622/0899) (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 nine-month ended September
30, 2019 and 2018, amounts to ThUS$269,215 and ThUS$225,675 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 September 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 September 30, 2019 valuation ThUus$ ThUS$
Financial liabilities:
Bond Obligations Amortized cost 14,212,023 15,874,966

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-78

The following table presents financial assets and liabilities measured at fair value as of September 30, 2019:

Financial instruments measured at fair 918012019
value Level 1 Level 2 Level 3 Total
Thus$ ThUS$ ThUs$ ThUS$

Financial Assets

Provisional price sales contracts – 539,077 – 539,077
Cross Currency Swap – 116,055 – 116,055
Mutual fund units 432 – – 432
Metal futures contracts 12,669 – – 12,669
Financial Liabilities

Metal futures contracts 3 13 – 16
Cross Currency Swap – 164,736 164,736

There were no transfers between the different levels during the nine-month periods ended September 30,
2019.

16. Trade and other payables

The detail of trade and other current payables as of September 30, 2019 and December 31, 2018, is as
follows:

Current
Items 9/30/2019 12/31/2018
ThuS$ ThuS$
Trade pay ables 1,059,427 1,317,623
Payables to employees 20,707 21,561
Withholdings 191,300 72,681
Withholding taxes 38,974 60,621
Other pay ables 78,306 74,098
Total 1,388,714 1,546,584

17. Other provisions

The detail of other current and non-current provisions as of September 30, 2019 and December 31, 2018,
is as follows:

F-79

Current Non-current
Other Provisions 9/30/2019 | 12/31/2018 | 9/30/2019 | 12/31/2018
ThUS$ TRUS$ THUS$ ES
Sales-related provisions (1) 1,070 2,692
Operating (2) 251,723 233,277
Law No. 13196 779,314 93,309 – –
Other provisions 92,839 51,771 29,015 20,153
Onerous Contract (3) 195 3,200 130 4,534
Decommissioning and restoration (4) – – | 1,511,221 | 1,506,162
Legal proceedings – – 39,350 69,334
Total 1,125,141 384,249 | 1,579,716 | 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
9/30/2019
Changes Other Provisions, | Decommissioning o o
. Contingencies Total
non-current and restoration
ThuS$ ThUS$ ThUS$ Thus$

Opening balance 24,687 1,506,162 69,334 1,600,183
Financial expenses – 27,469 – 27,469
Pay ment of liabilities (363) – (19,683) (20,046)
Foreign currency translation 3,668 (20,083) (910) (17,325)
Provision increase (4,403) – – (4,403)
Other increases (decreases) 5,556 (2,327) (9,391) (6,162)
Closing Balance 29,145 1,511,221 39,350 1,579,716

F-80
18. 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 ¡ts
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 nine-month periods ended September 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:

. 9/30/2019 12/31/2018
Assumptions — —

Retirement plan Health plan Retirement plan Health plan
Annual Discount Rate 4.49% 4.93% 4,49% 4.93%
Voluntary Annual Turnover Rate for Retirement (Men) 4,00% 4,00% 4,00% 4,00%
Voluntary Annual Turnover Rate for Retirement (Women) 3.70% 3.70% 3.70% 3.70%
Salary Increase (real annual average) 4,03% – 4,03% –
Future Rate of Long-Term Infation 3.00% 3.00% 3.00% 3.00%
Inflaion 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 17.14 7.50 16.94
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

F-81
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 September 30, 2019 and
December 31, 2018, is as follows:

Current Non-current
Accrual for employee benefits 9/30/2019 12/31/2018 9/30/2019 12/31/2018
ES Thus$ TRUS$ THUS$

Employees’ collective bargaining agreements 145,801 204,040 – –
Employee termination benefit 22,395 27,247 742,566 802,260
Bonus 42,982 60,616
Vacation 143,687 183,628 – –
Medical care programs (1) 488 460 466,559 496,323
Retirement plans (2) 19,681 17,620 8,266 8,355
Other 9,862 16,423 8,630 8,582

Total 384,896 510,034 1,226,021 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 1/1/2018
9/30/2019 12/31/2018
Movements
Retirement plan | Health plan |Retirement plan| Health plan
ThUS$ LES ThUS$ ThUS$

Opening balance 829,507 496,783 882,090 523,649
Service cost 38,469 16,952 72,821 9,962
Financial cost 11,634 6,967 15,966 11,520
Paid contributions (80,676) (83,992) (57,166) (39,779)
Actuarial (gains)/losses 5,826 4,406 16,576 30,200
Transfer from other benefits – – 3,335
Subtotal 804,760 491,116 933,622 535,552
(Gains) Losses on foreign exchange rate (39,799) (24,069) (104,115) (38,769)
Final Total 764,961 467,047 829,507 496,783

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 nine-month period ended September 30, 2019. Such

F-82
was charged to equity, which consists of an actuarial loss of ThUS$5,826, corresponding primarily to a
change in financial assumptions.

For the obligation generated by health benefit plans, an actuarial loss of ThUS$4,406 has been
determined, consisting of an adjustment for experience loss.

The balance of the defined benefit liability as of September 30, 2019, comprises a short term portion of
ThUS$22,395 and ThUuS$488 for the termination indemnities plan and the medical care plan,
respectively. The expected amount of the defined benefit liability projected at September 30, 2020,
consists of ThUS$884,471 for the termination indemnities plan and ThUS$449,533 for the medical care
plan. The expected monthly average future disbursements related to defined benefit plans are of
ThUS$1,866 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% 5.51% -4.82%
Financial effect on the real increase in income 3.530% 4,030% 4,530% -2.23% 2.36%
Demographic effect of job rotations 3,470% 3.970% 4,470% 0.80% -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% 15.33% -12.00%
Financial effect on health inflation 4,550% 5.050% 5.550% -5.92% 6.58%
Demographic effect, planned retirement age 58/57 60/59 62/61 3.88% -3.79%
Demographic effect on mortality tables -25.00% CB14-RV14, Chile] 25.00% 10.15% -7.05%

. 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 September 30, 2019 and December 31, 2018, the termination benefits current balance was
ThUS$19,681 and ThUS$17,620, respectively, while the non-current balance was ThUS$8,266 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

F-83
benefits provisions and whose outstanding balances are part of the balances as of September 30, 2019
and December 31, 2018.

d. Employee benefits expenses

The employee benefit expenses recognized for the nine-month and three-month periods ended
September 30, 2019 and 2018, are as follows:

Expense by Nature of Employee 1/1/2019 1/1/2018 7/1/2019 7/1/2018

Benefits 9/30/2019 9/30/2018 9/30/2019 9/30/2018

ThUs$ ThUS$ ThUS$ ThUS$
Benefts – Short term 1,182,374 1,315,805 389,726 445,978
Benefits – Post employment 16,952 2,416 7,969 339
Benefits – Termination 55,107 34,981 32,173 17,063
Benefits by years of service 38,469 52,975 11,047 20,576
Total 1,292,902 1,406,177 440,915 483,956

19. Equity

The Corporation’s total equity as of September 30, 2019 is ThUS$11,570,069 (ThUS$11,343,869 as of
December 31, 2018 and ThUS$10,797,707 as of September 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.

F-84
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.

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.

F-85
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.

As of September 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 an paid in the 2018 295,842
Advance dividends as of December 31, 2018 155,719
Advance dividends paid in excess of December 31, 2018 150,900
Total dividends paid as of December 31, 2018 602,461

As of September 30, 2018, the dividends paid amounted to ThUS$602,461, as follows:

ThUS$
Dividends payable as of December 31, 2017 an paid in the 2018 295,842
Advance dividends as of September 30, 2018 189,604
Advance dividends paid in excess as of September 30, 2018 117,015
Total dividends paid as of September 30, 2018 602,461

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 gain of
ThUS$3,058 and a loss of ThUS$4,597 for the nine-month periods ended September 30, 2019 and 2018,
respectively.

F-86
a) Other reserves

The detail of other reserves as of September 30, 2019 and December 31, 2018, is as follows:

Other Reserves 9/30/2019 | 12/31/2018
ThUS$ Thus$
Reserve on exchange differences on translation (8,853) (6,863)
Reserve of cash flow hedges 33,356 47,792
Capitalization fund and reserves 4,962,393 4,962,393
Reserve of remeasurement of defined benefit plans (278,013) (274,480)
Other reserves 625,576 625,317
Total other reserves 5,334,459 5,354,159

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:

Net equity Gain (loss)
Societies Non-controlling participation
9r30/2019 | 12/31/2018 | 9/30/2019 | 12/31/2018 | 1/1/2019 1/1/2018 7/1/2019 7/1/2018
9/30/2019 | 9/30/2018 | 9/30/2019 | 9/30/2018
% % ThUS$ ThUS$ ThUS$ ThUS$ ThUus$ ThUS$
Inversiones Gacrux SpA 32,20% 32,20% 921,051 969,203 7,552 28,688 3,236 8,090
Others – – 1 1 (21) 2 (44) (M)

Total 921,052 969,204 7,531 28,690 3,192 8,083

For the nine-month period ended September 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-87

Assets and liabilities 9/30/2019 12/31/2018

ThUuS$ Thus$
Current Assets 231,677 361,568
Non-current assets 2,859,972 2,839,764
Current liabilities 134,641 176,742
Non-current liabilities 575,398 593,078
1/1/2019 1/1/2018 7/11/2019 7/1/2018
Results 9/30/2019 9/30/2018 9/30/2019 9/30/2018
ThUuS$ Thus$ ThUS$ ThUuS$
Revenues 509,325 622,188 138,649 178,207
Expenses (503,523) (554,706) (134,347) (159,900)
Profit of the period 5,802 67,482 4,302 18,307

1/1/2019 1/1/2018

Cash flow 9/30/2019 9/30/2018
ThUuS$ Thus$
Net cash flow from operating activities 85,789 183,958
Net cash flow from (using) investing activities 44,015 (82,830)
Net cash flow from (using) financing activities (92,266) (153,663)

20. Revenue

Revenues for the nine-month and three-month periods ended September 30, 2019 and 2018, are as follows:

1/1/2019 1/1/2018 7/1/2019 7/1/2018
ltem 9/30/2019 9/30/2018 9/30/2019 9/30/2018
ThUS$ ThUS$ ThUS$ ThUS$
Revenue from sales ofown copper 7,259,288 8,392,315 2,380,076 2,606,399
Revenue from sales of third-party copper 723,580 1,443,780 236,561 423,056
Revenue from sales of molybdenum 456,927 507,167 139,462 159,892
Revenue from sales of other products 359,357 410,491 129,680 146,383
Gain (loss) in futures market 9,032 17,758 5,656 9,317
Total 8,808,184 10,771,511 2,891,435 3,345,047

The Corporation’s revenue is recognized at a point in time.

The breakdown of revenue ¡is presented in explanatory note No.25 Operating Segments.

F-88
21.

22.

Expenses by nature

Expenses by nature for the nine-month and three-month periods ended September 30, 2019 and 2018, are
as follows:

1/1/2019 1/1/2018 7/1/2019 7/1/2018
Item 9/30/2019 9/30/2018 9/30/2019 9/30/2018
ThUuS$ ThUS$ ThUS$ ThUS$
Short-term benefits to employees 1,182,374 1,315,805 389,726 445,978
Depreciation 916,046 881,108 335,354 291,499
‘Amortization 667,315 712,787 242,287 258,969
Total 2,765,735 2,909,700 967,367 996,446

Impairment of Assets
As of September 30, 2019, there are no indicators of impairment 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, in the
comprehensive income statement for the year 2018.

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 September 30, 2019 and December 31, 2018 there are no signs of additional deterioration or reversals
of impairment

F-89
23. Other income and expenses by function

Other income and expenses by function for the nine-month and three-month periods ended September 30,
2019 and 2018, are as follows:

a) Other income by function

1/1/2019 1/1/2018 7/1/2019 7/1/2018
ltem 9/30/2019 9/30/2018 9/30/2019 9/30/2018
ThUS$ ThUS$ Thus$ Thus$
Penalties to suppliers 13,318 13,341 4,209 2,833
Delegated Administration 3,672 4,117 1,125 1,330
Miscellaneous sales (net) 30,664 16,612 4,633 1,570
customer recovery 7,866 – (41) –
Reversal of provisions 810 – 810 –
Gain on sale of shares of related companies (Note 8) 103,151 18,279 103,151 18,279
Other income 47,500 42,689 2,381 5,515
Total 206,981 95,038 116,268 29,527

b) Other expenses by function

1/1/2019 1/1/2018 7/1/2019 7/1/2018
ltem 9/30/2019 9/30/2018 9/30/2019 9/30/2018
Thus$ ThUS$ LES ThUS$
Law No. 13196 (686,715) (851,383) (230,018) (253,053)
Research expenses (57,354) (64,320) (18,307) (7,827)
Bonus for the end of collective bargaining (109,845) (191,009) 931 (123,068)
Expenses plan (55,107) (34,981) (32,173) (17,063)
Write-off of investment projects (3,905) (139,487) – (1,289)
Write-off of property, plant 8. equipment (24,618) (4,114) (376) (1,952)
Medical care plan (16,952) (2,416) (7,969) (339)
Write-off inventories (7,178) (2,715) (6,420) (1,930)
customer bad debt (1,307) – – –
Contingency expenses (7,105) (43,295) (1,384) (12,383)
Fixed indirect costs, low production level (312,234) (44,055) (30,341) (29,278)
Other (45,813) (42,359) (16,750) (7,543)
Total (1,328,133) (1,420,134) (842,807) (455,725)

F-90
24. Finance costs

The detail of finance costs for the nine-month and three-month periods ended September 30, 2019 and
2018, is as follows:

1/1/2019 1/1/2018 7/1/2019 7/1/2018
Item 9/30/2019 9/30/2018 9/30/2019 9/30/2018
ThUuS$ ThUS$ ThUS$ ThUs$

Bond interest (229,041) (202,342) (88,329) (65,403)
Bank loan interest (38,304) (54,500) 7,813 (18,313)
Unwinding of discount on severance indemnity provision (9,940) (12,798) (2,922) (4,008)
Unwinding of discount on other non-current provisions (33,482) (34,384) (11,023) (11,117)
Other (49,337) (45,630) (5,504) (13,204)
Total (360,104) (349,654) (99,965) (112,045)

25. 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 Il

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 Il

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 Il

Products: Calcined copper, copper concentrates

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Gabriela Mistral

Type of mine: Open pit mine

Operating: since 2008

Location: Calama — Region Il

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 assigned 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.

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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.

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+ 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-94
The following tables details the financial information organized by operating segments:

From 1/1/2019

9/30/2019
. . . . . Total Subsidiaries and Total
Chuquicamata R. Tomic Salvador Andina El Teniente Ventanas G. Mistral M. Hales a ;
Segments Segments Head Office, net | Consolidated
ThUS$ ThUS$ Thus$ Thus$ Thus$ ThUus$ ThUs$ ThUs$ Thus$ ThUs$ ThUs$

Revenue from sales of own copper 2,396,592 1,185,920 161,600 675,587 1,667,944 47,771 469,570 654,302 7,259,286 2 7,259,288
Revenue from sales of third-party copper 1,004 – – – 14,552 15,556 708,024 723,580
Revenue from sales of moly bdenum 225,382 4,986 16,108 56,475 147,733 – 450,684 6,243 456,927
Revenue from sales of other products 92,499 18,155 1,219 82,810 141,487 3,520 15,553 355,243 4,114 359,357
Revenue from futures market 5,792 2,947 366 (62) (92) (687) 677 91 9,032 9,032
Revenue between segments 11,078 – 7,324 1,904 1,330 78,032 – 99,668 (99,668)
Revenue 2,732,347 1,193,853 203,553 735,123 1,899,725 281,155 473,767 669,946 8,189,469 618,715 8,808,184
Costof sales of own copper (2,115,967) (877,709) (188,496) (708,175)| — (1,097,380) (42,124) (509,108) (535,749)| — (6,074,708) 1,271 (6,073,437)
Cost of sales of copper third-party copper (1,060) – – – (14,908) (15,968) (701,204) (717,172)
Costof sales of molybdenum (62,182) (10,805) (6,672) (19,580) (34,492) – – (133,731) (18,898) (152,629)
Costof sales of other products (91,025) – (9,888) (468) (50,877) (147,252) (8,393) (6,597) (209,500) (8,545) (813,045)
Costof sales between segments (85,884) 18,179 (12,128) (869) 3,926 (73,313) (1,315) 1,736 (99,668) 99,668 –
Cost of sales (2,306,118) (870,335) (217,184) (729,092)| — (1,178,823) (277,597) (513,816) (540,610)| — (6,633,575) (622,708) (7,256,283)
Gross profit 426,229 323,518 (13,631) 6,031 720,902 3,558 (40,049) 129,336 1,555,894 (3,993) 1,551,901
Other income, by function 11,105 3,926 9,389 18,763 9,482 981 1,539 2,370 57,555 149,426 206,981
Impairment loss determined in accordance with IFRS 9 – – – 1,176 1,176
Distribution costs (4,898) (211) (597) (73) (725) (718) (90) (954) (8,266) (4,381) (12,647)
Administrative expenses (85,792) (22,413) (10,138) (12,247) (89,103) (6,019) (20,703) (19,676) (166,091) (136,934) (803,025)
Other expenses, by function (872,751) (12,236) (75,467) (10,617) (80,909) (2,371) (10,026) (13,075) (577,452) (63,966) (641,418)
Law No. 13.196 (232,929) (107,473) (14,235) (68,814) (159,083) (15,392) (53,335, (85,454) (686,715, (686,715)
Other gains (losses) – – – – – 17,038 17,038
Finance income (1,237) (81) 45 159 841 171 17 (366) (451) 22,955 22,504
Finance costs (44,985) (36,861) (11,698) (47,975) (129,654) (7,723) (11,794) (36,266) (826,956) (83,148) (260,104)
Share in the profit (loss) of associates and joint ventures 212 (ea) (728) (1577) (2,464) 14,327 11.863
accounted by the equity method
Exchange differences 38,142 5,980 2,700 12,818 41,195 3,890 4,707 8,588 118,020 (3,074) 114,946
Income (loss) before taxes (216,904) 154,149 (114,003) (102,683) 361,369 (23,623) (129,734) 34,503 (86,926) (40,574) (77,500)
Income tax expenses 137,721 (109,876) 78,495 69,230 (265,032) 16,200 91,082 (25,462) (7,641) (12,858) (20,499)
Income (loss) (79,183) 44,273 (85,508) (83,453) 96,337 (7,423) (88,652) 9,041 (44,567) (53,432) (97,999)

F-95

From 1/1/2018

9/30/2018
. . . . . Total Subsidiaries and Total
Chuquicamata R. Tomic Salvador Andina El Teniente Ventanas G. Mistral M. Hales a ;
Segments Segments Head Office, net | Consolidated
ThUS$ Thus$ Thus$ Thus$ ThUs$ ThUs$ ThUs$ Thus$ Thus$ ThUs$ Thus$

Revenue from sales of own copper 2,210,444 1,617,491 247,660 839,676 2,110,873 9,090 486,388 876,922 8,398,544 (6,229) 8,392,315
Revenue from sales of third-party copper 102 – – – – 15,037 23,123 38,262 1,405,518 1,443,780
Revenue from sales of moly bdenum 287,067 15,261 16,252 66,483 122,259 – – 507,322 (155) 507,167
Revenue from sales of other products 116,166 – 32,699 3,009 73,067 137,556 – 46,801 409,298 1,193 410,491
Revenue from futures market 6,185 6,502 565 (77) 687 205 1,204 2,487 17,758 – 17,758
Revenue between segments 102,681 – 59,257 820 44 79,445 – – 242,247 (242,247) –
Revenue 2,722,645 1,639,254 356,433 909,911 2,306,930 241,333 487,592 949,333 9,613,431 1,158,080 10,771,511
Costof sales ofown copper (2,139,993)] — (1,043,566) (267,183) (691,635)| — (1,213,880) (8,040) (403,073) (665,316) (6,427,686) 1,525 (6,426,161)
Cost of sales of copper third-party copper (106) – – – – (16,526) (23,124) (39,756) (1,388,735) (1,428,491)
Costof sales of molybdenum (60,986) (12,673) (8,058) (19,086) (40,001) – – (140,804) (14,291) (155,095)
Costof sales of other products (08,368) – (18,290) (478) (54,990) (153,141) – (11,114) (246,381) (1,032) (847,413)
Costof sales between segments (158,503) 38,476 (59,079) 4,632 12,188 (88,933) (849) 9,821 (242,247) 242,247
Cost of sales (2,467,956)| — (1,017,763) (852,610) (706,567)| — (1,296,683) (261,640) (403,922) (689,733)| — (7,196,874) (1,160,286) (8,357,160)
Gross profit 254,689 621,491 3,823 203,344 1,010,247 (20,307) 83,670 259,600 2,416,557 (2,206) 2,414,351
Other income, by function 9,715 1,263 4,496 6,923 12,504 1,531 2,859 737 40,028 55,010 95,038
Impairment loss determined in accordance with IPRS 9 – – – (805) (805)
Distribution costs (2,352) (397) (878) (745) (806) (287) (100) (761) (6,326) (7,962) (14,288)
Administrative expenses (63,522) (22,643) (13,692) (15,727) (53,372) (7,069) (17,841) (22,837) (206,703) (140,460) (847,163)
Other expenses, by function (48,053) (27,737) (52,338) (88,897) (138,037) (8,912) (5,590) (26,558) (296,122) (172,629) (568,751)
Law No. 13.196 (242,610) (158,783) (23,568) (91,730) (201,044) (10,388) (48,274) (74,986) (851,383) – (851,383)
Other gains (losses) – – 13,643 13,643
Finance income 144 216 10 65 1,937 38 12 109 2,531 34,908 37,439
Finance costs (50,600) (34,663) (9,995) (45,312) (117,429) (6,501) (13,336) (34,966) (812,802) (86,852) (349,654)
Share in the profit (loss) of associates and joint ventures
accounted by the equiy method 281 (52) (543) 181 000 98,542 98,409
Exchange differences 48,256 9,166 9,536 20,407 11,205 8,133 928 5,961 113,592 (29,953) 83,639
Income (loss) before taxes (84,052) 387,913 (82,658) (12,215) 525,386 (43,762) 2,328 106,299 799,239 (188,764) 610,475
Income tax expenses 56,092 (259,982) 56,839 5,449 (856,956) 33,759 (1,325) (72,811) (638,935) 146,754 (292,181)
Income (loss) (27,960) 127,931 (25,819) (6,766) 168,430 (10,003) 1,003 33,488 260,304 (42,010) 218,294

F-96

The assets and liabilities related to each operating segment, including the Corporation’s head office as of

September 30, 2019 and December 31, 2018, are detailed in the following tables:

9/30/2019
Category Chuquicamata oo Salvador Andina El Teniente | Ventanas G. Mistral M. Hales DIU a oneted
ThUS$ ThUs$ Thus$ ThUus$ ThUs$ Thus$ ThUs$ Thus$ ThUus$ ThUs$
Current assets 1,044,168 616,733 354,516 169,954| 751,001 69,750 240,339 315,089 3,439,467 7,001,017
Non-current assets 8,890,321 2,039,336 906,777 4,667,332 7,075,887 218,201 1,153,805 3,232,906 5,036,090 33,220,655
Current liabilities 644,715 198,031 150,238 198,811 453,627 81,905 103,010 140,917 2,284,955 4,256,209
Non-current liabilities 860,490 216,223 193,120 468,275 930,887 93,256 135,104 90,138 21,407,901 24,395,394
12/31/2018
. Radomiro . . Subsidiaries and Total
Category Chuquicamata omic Salvador Andina El Teniente | Ventanas G. Mistral M. Hales Head Office, net | Consolidated
ThUS$ ThUs$ Thus$ ThUus$ ThUs$ Thus$ ThUs$ Thus$ ThUus$ ThUs$
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 855,735 205,997 196,608 472,113 910,005 53,084 116,005 81,958 19,315,419 22,207,524
The revenue segregated per geographical areas are the following:
1/1/2019 1/1/2018 7/1/2019 7/1/2018
Revenue per geographical areas 9/30/2019 9/30/2018 9/30/2019 9/30/2018
ThUS$ ThUus$ ThUS$ ThUS$
Total revenue from domestic customers 1,048,456 889,452 290,863 302,658
Total revenue from foreign customers 7,759,728 9,882,059 2,600,572 3,042,389
Total 8,808,184 10,771,511 2,891,435 3,345,047
1/1/2019 1/1/2018 7/1/2019 7/1/2018
Revenue per geographical areas 9/30/2019 9/30/2018 9/30/2019 9/30/2018
ThUS$ ThUus$ ThUS$ ThUS$
China 1,596,852 3,052,342 692,515 901,209
Restof Asia 1,187,325 1,524,010 338,644 480,647
Europe 2,763,921 2,614,971 798,165 1,909,938
¡America 2,705,086 2,756,726 921,772 774,238
Other 555,000 823,462 140,339 (720,985)
Total 8,808,184 10,771,511 2,891,435 3,345,047

During the periods January – September 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-97

26. Foreign exchange differences

The detail of foreign exchange differences for the nine-month and three-month periods ended September
30, 2019 and 2018, ¡is as follows:

1/1/2019 | 1/1/2018 | 7/1/2019 7/1/2018
Gain (loss) from foreign exchange differences recognized in income | 9/30/2019 | 9/30/2018 | 9/30/2019 | 9/30/2018

ThuS$ ThuS$ ThUuS$ ThUuS$

Gain from foreign exchange differences 158,392 | 240,095| 123,003 52,853
Loss from foreign exchange differences (43,446)] (156,456) 52,125 (64,859)
[Total exchange difference, net 114,946 83,639 175,128 (12,006)

27. 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 1/1/2018
Other collections from operating activities 9/30/2019 9/30/2018
Thus$ Thus$
VAT Refund 1,229,424 1,130,154
Other 207,512 137,707
Total 1,436,936 1,267,861
1/1/2019 1/1/2018
Other payments from operating activities 9/30/2019 9/30/2018
Thus$ Thus$
Finance hedge and sales (10,360) (18,864)
VAT and other similar taxes paid (966,395) (920,334)
Total (976,755) (939,198)

During the nine-month periods ended September 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 – September 2018, no capital contributions were received.

28. 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.

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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 September 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$34 million in net income, respectively.
This result is obtained by identifying the main items (including assets and financial liabilities)
denominated in foreign currencies in order to measure the impact on profit or loss that a variation
of +/- 10 Chilean pesos would have in terms of US$, with respect to the closing exchange rate at the
end of the reporting period.

As of September 30, 2019 and December 31, 2018 the balance time deposits denominated in Chilean
pesos amounts to ThUS$105,251 and ThUS$270,021, respectively.

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 September 30, 2019, a 1% change in

interest rates on the financial liabilities subject to variable interest rates would mean approximately a
US$16 million change in finance costs, before tax. This estimation is made by identifying the liabilities

F-99
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 September 30, 2019
correspond to amounts of ThUS$14,509,945 and ThUS$2,943,417, 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 11”
Significant Accounting Polices”).

For the nine-month periods ended September 30, 2019, if the future price of copper fluctuates by
+ / – 5% (with the other variables constant), the result would vary in a profit of US $ 77 million and
aloss of US $ 32 million respectively before taxes as a result of setting the mark to market of sales
revenue to provisional prices in effect as of September 30, 2019 (MTMF 187). 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, its 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 September 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$3,362 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
ifthere is an increase of U.S. $0.01 decrease in the price per pound of copper.

F-100
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.

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 9/30/2019 one year and five years five years
ThUS$ ThUS$ ThUus$

Loans from financial institutions 871,161 1,210,900 1,159,278
Bonds 124,044 2,161,435 11,926,544
Finance leases 127,388 256,835 61,828
Derivatives 5,068 – 159,684
Other financial liabilities 433 60,435 –
Total 1,128,094 3,689,605 13,307,334

Credit risk

This risk comprises the possibility that a third party does not fulfill ts 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 uncollectiability 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.

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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 September 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 September 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 nine-month periods ended September 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.

29. 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 ThUS$28,928.

F-102
The following table summarizes the detail of the financial hedges contracted by the Corporation:

September 30, 2019

Financial .
Type of obligation: Fair value of
Hedged item Bank derivative | Maturity | Currency | Amount ho in z hedging Asset Liability
contract O instruments
instrument
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Bond UF Mat. 2025 Credit Suisse (EE.UU) Swap 4/1/2025 US$ 265,768 208,519 88,336 349,985 (261,599)
Bond EUR Mat 2024 ¡Santander (Chile) Swap 7/9/2024 US$ 327,048 409,650 (80,718) 375,439 (456,157)
Bond EUR Mat, 2024 — [Deustche Bank (Inglaterra) Swap 7/9/2024 US$ 327,048 409,680 (80,360) 375,438 (455,798)
Bond UF Mat. 2026 Santander (Chile) Swap 8/24/2026 US$ 385,171 406,212 27,719 487,988 (460,269)
Bond AUD Mat 2039 _ |Santander (Chile) Swap 8/22/2039 US$ 47,256 49,266 (8,362) 45,904 (49,266)
Total 1,352,291 | 1,483,327 (48,385), 1,634,704 | (1,683,089)
December 31, 2018
Type of Financial Fair value of
; e 5 obligation: . canas
Hedged item Bank derivative Maturity Currency Amount > 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) 388,332 | (441,931)
Bond EUR Mat. 2024 — [Deustche Bank (England) Swap 7/9/2024 US$ 343,170 409,680 (63,170) 388,839 | (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 September 30, 2019, the Corporation maintains cash deposit guarantee balances at

ThUS$4,770.

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 USD respectively, from market information.

The notional amounts are detailed below:

Notional amount of contracts with final maturity
September 30, Less than 90 | More than 90 More than5 | Non-current
Currency Current Total | 1to3years | 3to5 years
2019 days days years Total
Thus$ ThUs$ ThUS$ ThUus$ Thus$ ThUs$ ThUS$
Currency
A ThUs$ 0 59,215 59,215 112,382 118,429 1,557,494 1,788,305

derivatives

. 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 September 30, 2019, these operations
generated a gain of ThUS$10,297.

F-103
b.1. Commercial flexibility operations of copper contracts

b.2.

b.3.

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
September 30, 2019, the Corporation performed derivative market transactions of copper that
represent 330,700 metric tons of fine copper. These hedging operations are performed as part of
the Corporation’s commercial policy.

The current contracts as of September 30, 2019, present a positive fair value of ThuS$12,652 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 September 30, 2019 resulted in a net positive effect
on net income of ThUS$11,322, which is comprised of the amounts received for sales contracts for
ThUS$10,057 and the amounts paid for purchases contracts for ThUS$1,265.

Commercial Transactions of Current Gold and Silver Contracts

As of September 30, 2019, the Corporation does not maintain derivative contracts for the sale of
gold and silver.

The operations completed between January 1 and September 30, 2019, generated a negative effect
on results of ThUS$1,025, corresponding to values per physical sales contracts for a negative
amount of ThUS$1,025.

Cash flow hedging operations backed by future production

The Corporation does not possess cash flow hedges backed by future production as of September
30, 2019.

The following tables set forth the maturities of metal hedging activities, as referred to in point b
above:

September 30, 2019 Maturity date

ThUs$ 2019 2020 2021 2022 2023 Upcoming Total
Flex Com Cobre (Asset) 4,967 7,777 199 – – – 12,943
Flex Com Cobre (Liability) (106) (180) (5) – – – (291)
Flex Com Gold/Silver –
Price setting
Metal options – – – – – –
Total 4,861 7,597 194 – – – 12,652

F-104

December 31, 2018 Maturity date

ThUSs$ 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
September 30, 2019 Maturity date
All figures in thousands of
metric tons ounces 2019 2020 2021 2022 2023 Upcoming Total
Copper Futures [MT] 70.05 223.95 36.70 – – – 330.70

Gold/Silver Futures [ThOZ]
Copper price setting [MT]
Copper Options [MT]

December 31, 2018 Maturity date

All figures in thousands of

metric tons ounces 2018 2019 2020 2021 2022 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]

30. 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 (SII), 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-105
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$252 million corresponding to 345 cases. According
to the estimate made by the legal advisors of the Corporation, 239 cases, which represent 69.28% of
the universe, have associated probable loss results amounting to ThUS$39,350. There are also 56
cases, representing 67.23% for an amount of ThUS$3,365, 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-106
Subsequently, on March 14, 2012, CuPIC 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 ¡AS 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).

Regarding the financing agreement signed on August 23, 2012, between the subsidiary, Gacrux
Inversiones SpA and Mitsui €. 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, itwas established that, Gacrux,
the Creditor and the Guarantee Agent, the latter representing the Guaranteed Parties, modified , by

F-107
vi.

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.”

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.

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 September 30, 2019 and December 31,
2018.

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 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 reimburse at market price the energy not consumed
by Codelco.

These contracts have maturity dates in 2029 and 2044.

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-108
vil.

vili.

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.

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.

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 September 30, 2019, the Corporation has agreed guarantees for an annual amount of U.F.

28,128,740 to comply with the aforementioned Law No. 20.551. The following table details the main
given guarantees:

F-109

Transmitter Mine site Amount |Currency Date Maturity date po ThUus$
Banco Estado Radomiro Tomic | 2,691,723 UF 11-30-2018 | 11-11-2019 0.08 103,677
Banco Estado Ministro Hales 911,821 UF 11-29-2018 | 11-14-2019 0.08 35,121
Banco de Chile Ministro Hales 541,257 UF 12-6-2018 | 11-14-2019 0.10 20,848
Banco de Chile Chuquicamata 2,300,000 UF 12-5-2018 | 11-27-2019 0.10 88,589
Banco Bci Chuquicamata 4,600,000 UF 11-30-2018 | 11-27-2019 0.15 177,179
Banco ltau Chuquicamata 915,319 UF 12-27-2018 | 11-27-2019 0.16 35,255
Banco de Chile Teniente 2,632,299 UF 12-5-2018 12-2-2019 0.10 101,388
Banco Santander Teniente 5,000,000 UF 12-20-2018 | 12-2-2019 0.15 192,585
Banco Estado Gabriela Mistral 1,513,907 UF 11-29-2018 | 12-15-2019 0.08 58,311
Banco ltau Salvador 2,700,000 UF 8-8-2018 2-18-2020 0.10 103,996
Banco Santander Salvador 611,647 UF 2-6-2019 2-18-2020 0.15 23,559
Banco Estado Andina 3,310,724 UF 4-22-2019 5-3-2020 0.07 127,519
Banco Estado Ventana 400,043 UF 9-16-2019 9-18-2020 0.10 15,408
Total 28,128,740 1,083,435

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.

F-110
31. Guarantees

The Corporation as a result of its activities has received and given guarantees.

The following tables list the main guarantees given to financial institution

Direct Guarantees provided to Financial Institutions

– 9/30/2019 12/31/2018
Creditor of the Guarantee Type of Guarantee | T maturity | RUSS muss

Ministy of national goods Project of exploitaion CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
Ministry of national goods Project of exploitation CLP 8/28/2019 8 –
General Directorate of Maritime Territory and Merchant Marine Maritime concession CLP 3/1/2020 1,449 –
General Directorate of Maritime Territory and Merchant Marine Maritime concession CLP 6/30/2020 2 –
General Directorate of Maritime Territory and Merchant Marine Maritime concession CLP 7/15/2020 237 –
Minesty of Public Works Building project UF 12/31/2019 22,778 –
Minesty of Public Works Building project UF 10/1/2019 526 566
Viability management Building project UF 3/1/2020 1 –
Viability management Building project UF 3/1/2020 1 –
Viability management Building project UF 3/1/2020 1 –
Viability management Building project UF 3/1/2020 1 –
Viability management Building project UF 4/22/2020 4 –
Viability management Building project UF 11/15/2019 1 –
Viability management Building project UF 4/8/2024 4 –
Viability management Building project UF 3/10/2020 2 –
Viability management Building project UF 3/10/2020 2 –
Viability management Building project UF 3/10/2020 4 –
Ministry of national goods Project of exploitation UF 6/19/2020 8 –
Ministry of national goods Project of exploitation UF 6/19/2020 8 –
Ministry of national goods Project of exploitation UF 6/19/2020 8 –
Oriente Copper Netherlands B.V. Pledge on shares US$ 11/1/2032 | 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 11/11/2019| 103,677 –
Sernageomin Environmental UF 11/14/2019 35,121 –
Sernageomin Environmental UF 11/14/2019 20,848 –
Sernageomin Environmental UF 11/27/2019 88,589 –
Sernageomin Environmental UF 11/27/2019| 177,179 –
Sernageomin Environmental UF 11/27/2019 35,255 –
Sernageomin Environmental UF 12/2/2019 | 101,388 –
Sernageomin Environmental UF 12/2/2019 | 192,585 –
Sernageomin Environmental UF 12/15/2019 58,311 –
Sernageomin Environmental UF 2/18/2020 | 103,996 –
Sernageomin Environmental UF 2/18/2020 23,559 –
Sernageomin Environmental UF 5/3/2020 127,519 –
Sernageomin Environmental UF 9/18/2020 15,408

Total 1,986,461 | 1,972,879

F-111

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:

Guarantees received from third parties
Division 9/30/2019 12/31/2018
ThUS$ ThUS$
Andina 418 3,891
Chuquicamata 801 2,445
Casa Matriz 891,979 803,719
Salvador 592 1,311
El Teniente 843 4,137
Ventanas 69 105
Total 894,702 815,608

32. Balances in foreign currency

a) Assets by Type of Currency

Category 9/30/2019 12/31/2018
Thus$ Thus$
Liquid assets 2,981,219 1,460,534
US Dollars 2,830,661 1,383,897
Euros 48,511 25,482
Other currencies 4,622 4,547
Non-indexed Ch$ 94,535 46,129
U.F. 2,890 479
Cash and cash equiv alents 2,967,242 1,229,125
US Dollars 2,816,817 1,152,715
Euros 48,511 25,482
Other currencies 4,622 4,547
Non-indexed Ch$ 94,506 46,109
NA 2,786 272
Other current financial assets 13,977 231,409
US Dollars 13,844 231,182
Euros – –
Other currencies – –
Non-index ed Ch$ 29 20
UE. 104 207
Short and long term receivables 2,010,577 2,409,835
US Dollars 1,312,005 1,789,757
Euros 115,889 62,857
Other currencies 308 320
Non-indexed Ch$ 562,451 482,180
U.F. 19,924 74,721
Trade and other receivables 1,876,203 2,212,209
US Dollars 1,287,184 1,676,862
Euros 115,889 62,580
Other currencies 308 320
Non-indexed Ch$ 453,937 398,966
NA 18,885 73,481

F-112

Category 9/30/2019 12/31/2018
ThUus$ ThUuS$
Rights receivables, non-current 109,553 84,731
US Dollars – –
Euros – 277
Other currencies – –
Non-indexed Ch$ 108,514 83,214
U.F. 1,039 1,240
Due from related companies, current 6,558 92,365
US Dollars 6,558 92,365
Euros – –
Other currencies – –
Non-indexed Ch$ – –
UF. – –
Due from related companies, non-current 18,263 20,530
US Dollars 18,263 20,530
Euros – –
Other currencies – –
Non-indexed Ch$ – –
UF. – –
Rest of assets 35,229,876 33,220,436
US Dollars 34,203,809 32,171,442
Euros 184 705
Other currencies 768 279
Non-indexed Ch$ 373,825 377,119
U.F. 651,290 670,891
Total assets 40,221,672 37,090,805
US Dollars 38,346,475 35,345,096
Euros 164,584 89,044
Other currencies 5,698 5,146
Non-indexed Ch$ 1,030,811 905,428
UF. 674,104 746,091

F-113

b) Liability by type of currency:

9/30/2019 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$ ThUus$ ThUS$ ThUS$

Current liabilities 3,911,942 344,267 3,049,854 489,558
US Dollars 2,822,379 251,177 1,824,181 452,648
Euros 78,005 3,336 107,341 408
Other currencies 9,332 403 9,826
Non-indexed Ch$ 987,163 78,745 1,088,536 31,419
U.F. 15,063 10,606 19,970 5,083
Other current financial liabilities 804,732 323,362 412,451 459,826
US Dollars 776,234 251,176 396,148 452,635
Euros – 3,336 7,404 408
Other currencies – 403 34
Non-indexed Ch$ 24,393 58,051 879 1,700
U.F. 4,105 10,396 7,986 5,083
Bank loans 701,021 170,140 5,739 399,132
US Dollars 701,021 170,140 5,683 398,724
Euros – – 408
Other currencies – –
Non-indexed Ch$ – –
U.F. – – 56
Obligations 66,847 57,197 401,174 34,255
US Dollars 66,847 52,587 387,578 34,255
Euros – 3,336 7,404
Other currencies – 330
Non-indexed Ch$ – –
U.F. – 944 6,192
Finance lease 36,431 90,957 5,167 16,343
US Dollars 8,317 23,381 2,887 9,560
Euros – –
Other currencies – 73
Non-indexed Ch$ 24,009 58,051 542 1,700
U.F. 4,105 9,452 1,738 5,083
Others 433 5,068 371 10,096
US Dollars 49 5,068 10,096
Euros – –
Other currencies – – 34
Non-indexed Ch$ 384 – 337
U.F. – –
Other current liabilities 3,107,210 20,905 2,637,403 29,732
US Dollars 2,046,145 1 1,428,033 13
Euros 78,005 – 99,937
Other currencies 9,332 – 9,792
Non-indexed Ch$ 962,770 20,694 1,087,657 29,719
U.F. 10,958 210 11,984

F-114

9/30/2019 12/31/2018
Non-current liability by currency 1to3 3to5 5 to 10 More than 1to3 3to5 5to 10 More than
years years years 10 years years years years 10 years
ThUS$ Thus$ ThUS$ Thus$ ThUs$ ThUus$ ThUS$ Thus$
Non-Current liabilities 7,632,653 1,212,704 4,260,060 11,289,977 6,804,312 2,260,258 5,142,419 8,000,535
US Dollars 7,115,098 386,841 3,959,350 10,196,350 6,396,888 2,114,245 4,160,204 6,918,087
Euros 647,532 (658,866) 14 (7,832)
Other currencies 806 46,781 1
Non-indexed Ch$ 475,638 157,988 255,221 470,001 390,088 141,392 277,356 505,603
U.F. 41,111 20,343 704,355 576,845 17,321 4,621 712,691 576,845
Other non-current financial
liabilities 2,602,250 1,087,355 3,991,678 9,315,656 1,710,559 2,118,866 4,847,087 5,997,998
US Dollars 2,484,062 386,841 3,933,925 9,268,875 1,702,164 2,114,245 4,142,228 5,997,998
Euros 647,532 (658,866) – (7,832)
Other currencies 804 46,781 – –
Non-indexed Ch$ 87,481 32,639 12,264 219
U.F. 29,903 20,343 704,355 8,176 4,621 712,691
Bank loans 1,210,900 594,521 564,757 548,454 677,507 298,250 582,867
US Dollars 1,210,900 594,521 564,757 548,454 677,507 298,250 582,867
Euros –
Other currencies –
Non-indexed Ch$ –
U.F. .
Obligations 1,158,465 1,002,970 3,175,645 8,750,899 1,065,419 1,414,296 4,415,461 5,415,131
US Dollars 1,158,465 355,438 2,497,040 8,704,118 1,065,419 1,414,296 3,034,864 5,415,131
Euros 647,532 – 678,446
Other currencies 46,781 –
Non-indexed Ch$ –
U.F. 678,605 . 702,151
Finance Lease 172,450 84,385 61,828 32,714 27,063 26,552
US Dollars 54,265 31,403 25,824 24,322 22,442 16,012
Euros –
Other currencies 804 – – –
Non-indexed Ch$ 87,478 32,639 12,264 216
U.F. 29,903 20,343 23,740 8,176 4,621 10,540
Others 60,435 159,684 63,972 106,824
US Dollars 60,432 816,540 63,969 793,102
Euros (658,866) – (686,278)
Other currencies –
Non-indexed Ch$ 3 3
U.F. 2,010 .
Other liabilities non-current 5,030,403 125,349 268,382 1,974,321 5,093,753 141,392 295,332 2,002,537
US Dollars 4,631,036 25,425 927,475 4,694,724 17,976 920,089
Euros 14
Other currencies 2 1
Non-indexed Ch$ 388,157 125,349 242,957 470,001 389,869 141,392 277,356 505,603
U.F. 11,208 576,845 9,145 576,845

F-115

33. Sanctions

34,

As of September 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 its commitment to the environment, among which is the Corporate Sustainable
Development Policy (2016).

The environmental management systems of the divisions, structure their efforts in order to comply with the
commitments assumed by the corporation’s environmental policies, incorporating elements of planning,
operating, verifying and reviewing activities. As of September 30, 2019, Codelco is implementing a strategic
change process in all divisions to manage the aspects and risks associated with environmental matters,
under a Corporate management system issued by Head Office, seeking to obtain the ISO 14001: 2015
certification.

In accordance with Supreme Decree D.S. No. 28, the Corporation is carrying out is environmental,
maintenance and operating plans for its 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 nine-month periods ended September 30, 2019 and 2018,
respectively, and the projected future expenses are stated below.

F-116

Disbursements 9/30/2019 9/30/2018 Future committed
Entity Proyect name Proyect Status Amount Assetl Asset] Amount Amount Estimated
ThUS$ | Expense | Expenditure Item | ThUS$ Thuss date

Chuquicamata
Codelco Chile |Talambre dam capaciy extension, 8th sage In Progress 58,947 | Asset P,PEE 39,396 65,157 | — 2020
Codelco Chile [Emergency restorañion system dust control crushing plant 2/3 Finished – Asset P,PRE 6,114 – –
Codelco Chile [Replacementof circulation pot 1A and 2A In Progress 8,306 | Asset AS 221 6,728 | 2019
Codelco Chile [Consructon installation surplus management In Progress 706 | Asset AS 116 – –
Codelco Chile [Replacement ofwater reament plant In Progress 4,792 | — Asset AS 3.294 2,221 –
Codelco Chile [Replacementgas managementsystem In Progress 8,157 | Asset AS 146 1767 | 2019
Codelco Chile [Acid planttanformaton 3-4 DC/DA In Progress 157,740 | — Asset AS 34,672 29,143 | 2020
Codelco Chile [Enablementreíning gas treatment system In Progress 41,519 | — Asset AS 737 17253 | 2020
Codelco Chile [Dryer replacementn * 5 fuco In Progress 31,909 | Asset AS 1,961 4994 | 2019
Codelco Chile [Managementfeeding and ransportpowders Finished – | Asset AS 257 – –
Codelco Chile [Consrucion Rele Res Dom-Asim Montec In Progress 238 | Asset AS 123 8,594 | 2020
Codelco Chile [Construction IX stage Talambre tanque In Progress 8,167 | — Asset AS 485 2.675| 2019
Codelco Chile [Construction 8 Seg Montecristo In Progress 5565 | Asset AS 34 7441 | 2020
Codelco Chile [Acid plants In Progress 30,692 | Expendiure | — Adm. Expense 20,566 -| 2019
Codelco Chile [Solid waste In Progress 769 | Expendiure | — Adm Expense 1,139 2,307 | 2019
Codelco Chile [Taiings In Progress 16,987 | Expendiure | — Adm. Expense 14,734 -| 2019
Codelco Chile [Water treatment plant In Progress 18,030 | Expendiure | — Adm. Expense 10,175 -| 2019
Codelco Chile [Environmental monitoring In Progress 780 | Expendiure | — Adm Expense 1,659 2,341 | 2019
Codelco Chile [Normalzaton drainage system dril hole In Progress 718 | Asset P,PEE – -| 2020

[Total Chuquicamata 394,082 135,830 150,621

Salvador
Codelco Chile [Improved integration of the gas process In Progress 69,547 | Asset P,PEE 16,581 44,465 | 2020
Codelco Chile [Concentator fter plant construcion Finished – | Asset AS 51 – –
Codelco Chile [Water capure improvement Finished – | Asset AS 147 –
Codelco Chile [Taiings In Progress 2,318 | Expendiure | Adm. Expense 1,185 726| 2019
Codelco Chile [Acid plants In Progress 35,804 | Expendiure | Adm. Expense 22,728 1435| 2019
Codelco Chile [Solid waste In Progress 1,124 | Expendiure | Adm. Expense 718 12| 2019
Codelco Chile [Water treatment plant In Progress 589 | Expendiure | — Adm Expense 484 584| 2019
Codelco Chile [Overhaul thickeners talings sal-proy In Progress 2,978 | Asset P,PEE 201 508| 2019
Codelco Chile [Dangerous substances warehouse In Progress 301| Asset AS -| 2019
Codelco Chile [Bell replacement In Progress 19,241 | Asset AS 4869 | 2019
Codelco Chile [Dith hazardous waste In Progress 785 | Asset AS -| 2019
Codelco Chile [DRPA Emergency In Progress 3,819 | — Asset AS – 28,180 | 2020

Total Salvador 136,506 42,094 80,969

Andina
Codelco Chile [Drain water reament Finished – | Asset P,PEE
Codelco Chile [Water Normatve Phase 2 Finished – | Asset AS 421 –
Codelco Chile [Consructon site emergency plan In Progress 3,420 | Asset AS 2,952 251| 2019
Codelco Chile [Construction site emergency plan Finished – | Asset AS 1,026 –
Codelco Chile [Improved water internal ip E2 In Progress 256 | Asset AS 112
Codelco Chile [Consructon early alert plan Finished – | Asset AS –
Codelco Chile [Implementation in RCA compliance wells (Hydraulic Barrier) Finished – | Asset AS 322 –
Codelco Chile [Catehmentwater drainage hil black In Progress 306 | Asset AS 958 -| 2019
Codelco Chile [Consructon canal outine DL east In Progress 4,234 | — Asset AS 1,305 13981] 2021
Codelco Chile [Standard fuel supply system Finished – | Asset AS 65 – –
Codelco Chile [Consructon site emergency plan In Progress 3,860 | — Asset AS 144 3,865 | 2020
Codelco Chile [Oo Sbr Level 640 Msnm Tranq Finished – | Asset AS 9,469 – –
Codelco Chile [Expansion dam In Progress 36.314 | — Asset AS – 73016 | 2020
Codelco Chile [Construction Structure and instruments In Progress 245 | Asset AS 2972 | 2020
Codelco Chile [Water injecion system In Progress 685 | Asset AS 2.681 | 2020
Codelco Chile [construcion of pits containment of spils In Progress 119| Asset AS 793 | 2020
Codelco Chile [Valve and works rating In Progress 618| Asset AS 4,037 | 2020
Codelco Chile [Collecion tower construcion No. 5 In Progress 188 | Asset AS 196 | 2019
Codelco Chile [Solid waste In Progress 2,023 | Expendiure | Adm. Expense 2,092 2019
Codelco Chile [Water treatment plant In Progress 2,833 | Expendiure | — Adm. Expense 2,877 2019
Codelco Chile |Traiing In Progress 47,339 | Expendiure | — Adm. Expense 39,802 2019
Codelco Chile [Acid drainage In Progress 20.290 | Expendiure | — Adm. Expense 22,300 2019
Codelco Chile [Environmental monitoring In Progress 623 | Expendiure | — Adm Expense 365 2019
Codelco Chile |Sustanabiliy and external matters management In Progress 2,049 | Expendiure | — Adm. Expense 1,913 -| 2019

[Total Andina 125,402 86,123 101,762
Subtotal 655,990 264,048 333,352

F-117

Disbursements 9/30/2019 9/30/2018 Future committed
Entity Proyect name Amount Assetl Asset] Amount | Amount | Estimated
Thuss | Expense | Expenditure Item | ThUSS ThuSs$ date
El Teniente
Codelco Chile [Construction of 7th phase of Carén In Progress 43,920 | — Asset P,PLE 3,585 239,076 | 2022
Codelco Chile [Construction of6th phase of Carén Finished -| Asset P,PLE – – –
Codelco Chile [Construction ofslag reamment plant In Progress 76,883 | — Asset P,PLE 10.859 98,654 | 2020
Codelco Chile [Construction ofslag reamment plant Finished -| Asset P,PLE 5615 – –
Codelco Chile |Smeting emissions nework In Progress 25,064 | — Asset P,PLE 8,534 2,710 | 2019
Codelco Chile [Smoke capaciy reduction Finished -| Asset P,PLE 2,070 – –
Codelco Chile [Smoke capaciy reduction In Progress 9,761| Asset P,PLE 1,706 1885 | — 2019
Codelco Chile [Construction ofslag reamment plant In Progress 576| Asset P,PLE 837 1611| 2020
Codelco Chile [Acid plants In Progress 60,964 | Expendiure | Adm. Expense 47,554 – | 2019
Codelco Chile [Solid waste In Progress 2,260 | Expendiure | Adm. Expense 3,022 – | 2019
Codelco Chile [Water treatment plant In Progress 10,000 | Expendiure | — Adm. Expense 12.862 – | 2019
Codelco Chile [Talings In Progress 46,767 | Expendiure | Adm. Expense 45.488 – | 2019
Total El Teniente 276,145 142,131 343,996
Gabriela Mistral
Codelco Chile |Instalation of the rubble dump folder phase VI Finished -| Asset P,PLE – –
Codelco Chile |Installaion of the rubble dump folder phase VII Finished -| Asset P,PLE – – –
Codelco Chile [Replacement three tacked tractors Finished -| Asset P,PLE 187 – –
Codelco Chile [Environmental montoring In Progress 45 | Expenditre | — Adm. Expense 29 – | 2019
Codelco Chile [Solid waste In Progress 1,395 | Expendiure | — Adm. Expense 1,387 1642 | 2019
Codelco Chile [Environmental consutancy In Progress 99 | Expenditure | Adm. Expense 78 2.021| 2019
Codelco Chile [Water treatment plant In Progress – | Expendíure | — Adm. Expense – | 2019
Codelco Chile [Garbage dump extension In Progress 17,966 | — Asset P,PLE 7218| 2019
Codelco Chile [Improved dust collecion system In Progress 389 | Asset P.PLE – – | 2019
Total Gabriela Mistral 19,894 1,681 10,881
Ventanas
Codelco Chile [Construction new warehouse ofconcentate Finished -| Asset P,PLE 688 – –
Codelco Chile [Acid plants In Progress 18,143 | Expendiure | — Adm. Expense 20.497 – | 2019
Codelco Chile [Solid waste In Progress 1,321 | Expendiure | — Adm. Expense 1,557 – | 2019
Codelco Chile [Environmental montoring In Progress 1,097 | Expendiure | — Adm. Expense 1,119 – | 2019
Codelco Chile [Water treatment plant In Progress 4,205 | Expendiure | — Adm. Expense 3.958 – | 2019
Codelco Chile [Disvibuion sysem replacement In Progress 268 | Asset P,PLE – 560| 2019
Codelco Chile [Main chimaey implementation In Progress 236| Asset P,PLE – 714 | 2020
Total Ventanas 25,270 27,819 1,274
Radomiro Tomic
Codelco Chile [Solid waste In Progress 1,395 | Expendiure | — Adm. Expense 846 – | 2019
Codelco Chile [Environmental montoring In Progress 144 | Expenditure | — Adm. Expense 661 291 | 2019
Codelco Chile [Water treatment plant In Progress – | Expendíure | — Adm. Expense 453 489| 2019
Total Radomiro Tomic 1,539 1,960 780
Ministro Hales
Codelco Chile [Solid waste In Progress 1,433 | Expenditure | — Adm. Expense 2.540 753 | 2019
Codelco Chile [Environmental montoring In Progress 349 | Expenditre | — Adm. Expense 510 108| 2019
Codelco Chile [Water treatment plant In Progress 106 | Expenditre | — Adm. Expense 959 290 | 2019
Codelco Chile |Pitdrainage wells mine In Progress 900| Asset P,PLE 1992 | 2020
Codelco Chile [Implementation montoring acuifero pit In Progress 140| Asset P,PLE – 3,410 2020
Total Ministro Hales 2,928 4,009 6,553
Ecometales Limited
Codelco Chile |Smeting powders leaching plant In Progress 547 | Expenditre | — Adm. Expense 452 270 | 2019
Codelco Chile [Smeting powders leaching plant In Progress 7 | Expendiure | — Adm. Expense 6 4| 2019
Total Ecometales Limited 554 458 274
[Subtotal 326,330 178,057 363,758
Total 982,320 442,105 697,110

F-118

35. Subsequent events

On October 8, 2019, it was reported as essential fact that Mr. Nicolai Bakovic Hudig, Legal Counsel of
Codelco, will cease to provide services to the Corporation as of December 1, 2019.

On October 22, 2019, the debt refinancing process ended, under the parameters of the framework of
the placement of bonds announced on September 23 for US$2,000 million.

This refinancing was related to the bonds with maturity 2020, 2021, 2022 and 2023, for an aggregate
amount of US$639 million. This operation was carried out in three stages, with settlement dates
October 2, 8 and 22 respectively, in which a prepaid amount of US$151,8 million was made and its
effect on Codelco’s results was US$1,8 million after taxes.

On October 28, 2019, it was reported as an essential fact that Mr. Ignacio Briones has submitted his
resignation from the position of Director of Codelco, in accordance with the provisions of article 8 letter
b) of Decree Law 1.350.

In accordance with the provisions of the same Decree Law 1.350 in its article 8 the appointment of the
new member of the Board of Directors is in the hands of the President of the Republic.

On November 20, 2019, details of the placement of bonds abroad made on September 23, 2019, in
accordance with the provisions of Circular No. 1,072, regarding the financing operation were reported
to the CMF, thus complementing notes PE 171/2019 and PE172 / 2019 dated September 23 and 24,
2019, respectively.

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 October 1, 2019 and the
date of issuance of these interim unaudited consolidated financial statements up to the November 28, 2019.

F-119
Octavio Araneda Osés Alejandro Rivera Stambuk

Chief Executive Officer Chief Financial Officer
Javier Tapia Avila Cristóbal Parrao Cartagena
Accounting and Finance Control Manager Accounting Director ()

F-120
y

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)
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)..
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)..
CONSOLIDATED STATEMENTS OF CASH FLOWS – DIRECT METHOD

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY.

TABLEOF CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS

(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

GENERAL INFORMATION..
1. Corporate Information ……..
2. Basis of Presentation of the Consolidated Financial Statements
SIGNIFICANT ACCOUNTING POLICIES …
1. Significant Judgments and Key Estimates .
2. Significant accounting policies………..c..aw..
3. New standards and interpretations adopted by the Corporation .
4, New accounting pronouncements….
EXPLANATORY NOTES ..uccccaacoos

1. Cash and cash equivalents
2. Trade and other receivables ……

3. Balance and transactions with related parties
4, InVeNtorieS cacccacnnorososcciiiiecirosicica

5. Income taxes and deferred taxes…
6. Current and non-current tax assets and liabilities..
7. Non-current assets or groups of assets for disposition classified as held for sale .
8. Property, Plant and Equipment
9. Investments accounted for using the equity method .
10. Intangible assets other than goodwill
11. Subsidiari8S a… coca
12. Other non-current non-financial assets ..
13. Current and non-current financial asset
14. Interest-bearing borrowingS ……………….
15. Fair Value of financial assets and liabilitie
16. Fair value hierarchy……………
17. Trade and other payables.
18. Other provisions
19. Employee benefits
20. Equity…….
21, Revenue ..
22. Expenses by nature…
23. Impairment of Assets….
24. Other income and expenses by function
25. Finance costs …..
26. Operating seg ments…
27. Foreign exchange differences.
28. Statement of cash floWS…………
29. Financial risk management, objectives and policies
30. Derivatives contracts
31, Contingencies andrestrictions…..

F-122

32. Guarantees
33. Balances in foreign currency ..
34, SanctiONS …ccccccacarnrsssi
35. Environ mental Expenditures
36. Subsequent events

F-123
m
Deloitte. os

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. E-124
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-125
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-126

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
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-127
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 – ThUS$)

(Translation into English of the consolidated financial statements originally issued in Spanish — see

Note 1.2)
Notes 1/1/2018 1/1/2017
Ne 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 24a 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 24.b (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 (857,283) (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.

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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

. . se (1,617) 123
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-129
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 – ThUS$)
(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 (338)
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)
Pesrease) 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-130
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the years ended 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)

Reserve of
Reserve on exchange remeasuement of Other Equiy
December 31, 2018 diferences on… [Reserve ofcash low| defined benefit [A attibutable to
: Issued capital translation hedges plans Tesenes Total other Accumulated owners ofthe Non-contolling “otl Equiy
reserves deficit parent interests
Note 19 Note 20 Note 20
Initial balance as of 1/1/2018 4,619,423 (6,015)| 11,336 (259,002)| 5,588,773 5,335,092 (86,672)| 9,917,843 1,007,495 10,925,338
Increase (decrease) through changes in accounting policies 2,282 2,282 – 2,282
Initial balance restated 4,619,423 (6,015)| 11,336 (259,002)| 5,588,773 5,335,092 (84,390)| 9,920,125 1,007,495 10,927,620
Changes in equity:
Net income 155,719 155,719 34,028 189,747
Other comprehensive income (loss) (848)| 36,456 (15,478)! (1,063)! 19,067 19,067 – 19,067
Comprehensive income 174,786 34,028 208,814
Dividends (206,619) (206,619) (206,619)
Capital increases 600,000 – – – – 600,000 – 600,000
Increase (decrease) through transfers and other changes – – – – – – (13,627)| (13,627)! (72,319)! (85,946)!
Total changes in equity 600,000 (848) 36,456 (15,478) (1,063) 19,067 (164,527) 454,540 (88,291) 416,249
Final balance as of 12/31/2018 5,219,423 (6,863)| 47,792 (274,480)| 5,587,710 5,354,159 (198,917)| 10,374,665 969,204 11,343,869
Ñ , rncasrenerot | 0 Eau
Psoe on cane Reserve of cash flow al atuibutable to
December 31, 2017 Issued capital o o hedges DA AA Total oer Accumulated omersoftie | Nomcontoling ota Esuiy
reserves deficit parent interests
Note 19 Note 20 Note 20
Initial balance as of 1/1/2017 3,624,423 (10,607) 12,342 (267,171) 5582,828| 5,317,392 (0,072) | 8,911,743 978,666 9,890,409
Changes in equity:
Net income 569,175 569,175 54,427 623,602
Other comprehensive income (loss) 4,592 (1,006) 8,169 (481) 11,274 11,274 – 11,274
Comprehensive income 580,449 54,427 634,876
Dividends (569,175)| (569,175) (569,175)|
Capital Increases 995,000 – – – – 995,000 – 995,000
Increase (decrease) through transfers and other changes – – – 6,426 6,426 (6,600)| (174) (25,598) (25,772)
Total changes in equity 995,000 4,592 (1,006) 8,169 5,945 17,700 (6,600)| 1,006,100 28,829 1,034,929
Final balance as of 12/31/2017 4,619,423 (6,015) 11,336 (259,002)| 5,588,773 5,335,092 (86,672)| 9,917,843 1,007,495 10,925,338

The accompanying notes are an integral part of these consolidated financial statements.

F-131

1.

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-132
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 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
Ilbof 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 (*¡ASB”).

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 IASB. 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-133
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 AS 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-134
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 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 consolidated financial
statements are as follows:

a)

b)

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.

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.

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.

F-135
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 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 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-136
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.

e) 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.

f) 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
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.

i) 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-137
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, it is 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 lAS 8 “Accounting Policies, Changes in Accounting Estimates and
Errors.”

F-138
2.

Significant accounting policies

a)

b)

d)

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 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.

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-139
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-140
The companies included in the consolidation are as follows:

12/31/2018 12/34/2017
Taxpayer ID Number Company Country Currency % Ownership % Ownership
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. United States [yg 100.00] , 100.00] 100.00]

of America
Foreign Codelco International 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 , 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 , 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]
79.566.720-2 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 >] 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]
77.773.260-9 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]
76.173.357-5 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 -] -] -]
76.334.370-7 Instituto de Salud Previsional Fusat Ltda. Chile CLP >] >] >] -|
78.394.040 [Centro de Servicios Médicos Porvenir Ltda… Chile CLP >] 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 >] 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-141

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:

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 ¡ii) 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.

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 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 into 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-142
e)

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.

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:

+ 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-143
9)

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.

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.

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.

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-144
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

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.

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.

F-145
h)

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.

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.

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-146
j)

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 ¡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.

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 lAS 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.

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 (PP€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-147
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.

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 return.

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.

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:

– 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.

F-148
- 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.

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.

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 turnover rate,
among other factors.

In accordance with its 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-149
p)

a)

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.

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.

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.

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.

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

F-150
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.

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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.

– — 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 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:

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t

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.

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.

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.

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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.

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 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.

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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.

y)

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.

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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.

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.

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.

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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 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. In 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 lIl 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.

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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-158

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 IPRS 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 !1l of these
Consolidated Financial Statements.

c) Amendments to IFRS 4, Applying IFRS 9 “Financial Instruments” with IFRS 4 “Insurance Contracts”:
Itinstructs on aspects related to insurance contracts that will be affected upon entry into application of IPRS
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-159
New accounting pronouncements

a)

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
1AS 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.

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Features of prepayment with
negative compensation
(amendments to IFRS 9)

Annual periods beginning on or after
January 1, 2019.

lt 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 IAS 12: Adds
paragraphs on treatment of taxes
related to dividends payable.
Amendments to IAS 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.

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Definition of a Business
(Amendments to IFRS 3)

Annual reporting period beginning on
or after 1 January 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 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

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

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-162

1.

EXPLANATORY NOTES

Cash and cash equivalents

The detail of cash and cash equivalents as of December 31, 2018 and 2017, is as follows:

Item 12/31/2018 | 12/31/2017
ThUS$ ThUuS$
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.

Trade and other receivables

a)

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.

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

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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
ThUS$ ThUS$ ThUS$ ThUS$

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:

» 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$55,484 are secured with collateral.

+ 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.

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3.

The reconciliation of changes in the allowance for doubtful accounts in the year ended December 31,
2018 and 2017, is as follows:

Items 12/31/2018 12/31/2017
Thus$ TRUS$

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:

, 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

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.

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 CMP), 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.

F-165
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.

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:

F-166

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
ThUuS$ Thus$
Administración de Sistemas y Servicios Herman ,
76.349.138-2 Chile |Employee’s relative Services 200
Yerko Valenzuela Rojas E.L.R.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 –
Zúblin 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-167

1/1/2018 | 1/1/2017
Name raxpayer number| Country Nature of the Description of the | 12/31/2018 | 12/31/2017

relationship transaction Amount | Amount

ThuS$ | Thus$
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

Ignacio 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.

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.

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.

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c)

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 its 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:

Taxpayer

Nature of the

Indexation

Current

Non-current

number Name Country relañionship currency 12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017
ThuS$ Thus$ ThUS$ Thus$

77.762.940-9 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

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d)

Accounts payable to related companies:

o Current Non-current
Taxpayer Name Count Nature of the Indexation
number untry relationship currency 12/31/2018 | 12/31/2017 | 12/34/2018 | 12/31/2017
Thus$ THUS$ THus$ ES

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
Taxpayer Index. Effects on net Effects on net
Entity Nature of the transaction | Country income (charges) / income (charges) /
number Currency . o
Amount credits Amount credits
TRUS$ TRUS$ ES THUS$
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 29 169 –
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 96 96
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.

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

F-170

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.

4. 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$ ThUuS$ Thus$ ThUS$

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$ Thuss
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-171
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
Thus$ ThUus$
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
aa 12/31/2018 12/31/2017
Deferred tax liabilities Thuss Thuss
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:
12/31/2018 12/31/2017
Deferred taxes ThuS$ ThuS$
Non-current assets 31,443 43,285|
Non-current liabilities 4,586,168 4,314,237
Net 4,554,725 4,270,952.

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The effects of deferred taxes on the components of other comprehensive income are as follows:

os 12/31/2018 | 12/31/2017
Deferred taxes on components of other comprehensive income ThUS$ Thus$
(Charge) credit cash flow hedge (67,704) 1,868
Defined Benefit Plans 33,148 (16,937)
[Total deferred taxes on components of other comprehensive income (loss) (84,556) (15,069)
The following table sets forth the reconciliation of the effective tax rate:
12/34/2018
Reconciliation of tax rate Taxable Base Atthe Taxrate
25,0% 40,0% 5% 25,0% 40,0% 5% Total
THUS$ THUS$ THUS$ ThuS$ Thus$ Thus$ TRUS$
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 547.080 547.030 547.080 (136.758) (218.812) (27.252) (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$ THUS$ THUS$ ThuS$ Thus$ Thus$ TRUS$
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) (1.271.668)
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-173

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 270% 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 250% 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.

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), ii) 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):

12/31/2018 | 12/31/2017
Current Tax Assets Thus$ ThUS$
Taxes to be recovered 13,645 21,623
Total Current Tax Assets 13,645 21,623
ae 12/31/2018 | 12/31/2017
Current Tax Liabilities Thuss 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
12/31/2018 | 12/31/2017
tem Thuss | ThuS8
Non-Current Tax Assets 143,606 233,772
Total Non-Current Tax Assets 143,606 233,772

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$355,143.

F-174
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 1218112017

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 1218112017

ThUS$ ThUS$
Construction in progress – –
Land 8,964 7,953
Buildings 3,048,902 2,884,706
Plant and 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-175

Property, Plant and Equipment, net o e

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-176

Movement of Property, plant and equipment:

Movements . s ñ, a
Constructionin | Land | Buildings | Plantand [Fixedinstallations and 2 sopieles| —— Ground Mining Other Total
Thuss equipment accessories , operations | Developmentof | assets
progress improvements mines
Reconciliation of changes in properties, plant and equipment
Properties, plant and equipment at the beginning of the period. Opening Balance 1/1/2018 7,004,522| 167,086| 2,490,529| 5,660,185| 17,842| 743,542| 2,247,481| 2,607,039] 3,495,230] 842,056| 25,275,512]
Changes in property, plant and equipment
Increases other than those from business, propeny, plant and equipment combination 3,582,688| +| 138| 21,028| 376| 1,383| 484| 375,575| 1,125| 38,478| 4,021,275|
Depreciation, propeny, plant and equipment 4 (1011) — (167,547) (657,866) (8,669) (113,872) (218,323) (859,955) (80,153)| — (70,299)| — (2,172,695)
Impaimentlosses recognized in profit or loss for the period (2,179) (82,585) (88,677) – (140) (4,786) – -| (10,531) (198,898)
Increases (decreases) in transfers and other changes, properties, plant and equipment
Increases (decreases) by transfers from constructions in process, properties, plant and equipment (1,281,365) 102,865 812,901 647 51,758] 191,986 21,168] 99,681 350] ,
Increases (decreases) by other changes, properties, plant and equipment (251,945 — (1,113) 11,228| 38,322 (68) 2.879 135,714 342,497 (202,839) 7,536] (17,789)
Increase (decrease) by transfers and other changes, properties, plant and equipment (1,633,310) — (1,113) 114,093 851,223 579] 54,637 327,700 363,665 (103,158) 7,895] (17,789)
Dispositions and withdravels of service, property, plant and equipment
Retirements, propeny, plant and equipment (143,069) (235) (7.100) (199) (1,541) – (263) (152,407)
Dispositions and withelravals of service, property, plant and equipment (143,069) . (235) (7,100) (199) (154) . . (288) (452407)
Increase (decrease) in properties, plant and equi 1,804,130] (2,124) (136,138) 108,608] (2,913) (69,533) 105,075 (120,715) (182,186)| — (34,720) 1,479,486
Properties, plant and equipment at the end of the period. Closing balance 12/31/2018 8,808,652| 164,962] — 2,354,393| 5,768,793 14,929] 684,009] 2,352,556] 2,486,324] 3,313,044| —807,336| 26,754,998
Movements Plantand — [Fixed installations and . Mining Other
Thuss Constructionin | LN | Eungings | equipment accessories [Motorvehicles ets operations [Development of | assets Total
progress mines
Reconciliation of changes in properties, plant and equipment
Properties, plant and equipment at the beginning of the year. Opening Balance 1/1/2017 6,266,471| 144,415| 2,407,183| 5,402,658] 13,150| 807,067 | 2,089,866| 2,538,209| 3,407,706 900,536 23,977,261
Changes in property, plant and equipment
Increases other than those from business, property, plant and equipment combinations 3,061,027| 2,814| 2,763| 54,952] 54| 3,207| 20,081| 335,786| 2,984| 27,524] 3,511,192]
Depreciation, property, plant and equipment 4 (1129) (161,592) (632,410) (8,465) (117,366) (225,571) (807,000) (82,627)| — (65,649)| — (2,096,809)
Impaimentlosses recognized in prof or loss for he year , . . > . . , . . –
Increases (decreases) in transfers and other changes, properties, plant and equipment
Increases (decreases) by transfers from constructions in process, properties, plant and equipment (1,406,450)| 15,959 157,749 630,167 7,681] 50,908| 311,076] 58,806] 163,903] 10,201 –
Increases (decreases) by other changes, properties, plant and equipment (824,685) 5,021 86,813 220,085 441 3,014] 52,861 481,238] 3,264] — (25,658) 2,400
Increase (decrease) by transfers and other changes, properties, plant and equipment (2,231,135) — 20,986 244,562 850,252 8,122] 53,922 363,937 540,044 167,167| — (15,457) 2,400
Dispositions and withdranals of sevice, property, plant and equipment
Retirements, propeny, plant and equipment (91,842) (2,387) (45,267) (19) (8,288) (832) (4,898) (118,532)
Dispositions and withdrauals of sevice, property, plant and equipment (91,841) (2387) (15,267) (9) (6288) (682) . (4808)| (118592)
Increase (decrease) in properties, plant and equi 738,051] 22671 83,346 257,527 4,692] (63,525]| 157,615 68,830 87,524| — (58,480) 1,298,251
Properties, plant and at the end of the year. Closing balance 12/31/2017 7,004,522] — 167,086| 2,490,529] 5,660,185] 17,842] 743,542] 2,247,481] 2,607,039] 3,495,230] — 842,056| — 25,275,512

F-177
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’s opinion.

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 1/1/2017
Expenditure on exploration and drilling reservoirs 12/31/2018 | 12/31/2017
Thus$ Thus$
Recognized in profit /(loss) 50,765 46,068
Cash outflows 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

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.

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.

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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 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. 111/2018 111/2017
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 €. Gold Inc.

The company business activities involve the extraction, production and selling copper cathodes.

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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.

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.

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.

On June 1, 2009, Codelco’s Board of Directors authorized the incorporation of a new company aimed
to develop studies allowing the continuity of the 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.

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.

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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.

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.

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%.

On December 21, 2017, according to archive No. 12285 / 2017, by public deed, itwas 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

F-181
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.

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 12312018 1218112017
ThUS$ ThuS$
Current Assets 1,805,003 1,595,687
Non-current Assets 5,637,321 5,925,176
Current Liabilities 1,008,086 766,986
Nor-current Liabilities 1,699,529 1,724,512
1/1/2018 1/1/2017
Net Income 12/31/2018 12/31/2017
ThUS$ ThuS$
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
ThUS$ ThuS$
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 – (596)
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-182
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

ae 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
ThUuS$ ThUuS$
Revenue 596,060| 501,073|
Costof sales (575,283) (469,761)
Profit (loss) for the period 20,777 31,312

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-183
d)

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

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.

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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
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.

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 December 31, 2018, there are no indicators of impairment, therefore, there have been no
adjustments recognized to the carrying amounts of the assets.

F-185
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:

item 12/31/2018 12/31/2017
ThUS$ ThUS$
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
Item Gross Amortization Net
ThUS$ DES ThuS$

Trademarks, patents and licenses 28 28

Water rights 7,958 7,958

Software 2,803 (1,351) 1,452

Other intangible assets 38,950 (9) 38,941

Total 49,739 (1,360) 48,379

F-186

12/31/2017
Accumulated

Gross o Net
Item Amortization

ThuS$ Thus$ ThUS$
Trademarks, patents and licenses 28 – 28
Water rights 7,959 – 7,959
Sofware 5,226 (8,533) 1,693
Technological development and innovation 175,710 – 175,710
Other intangible assets 33,727 – 33,727
Total 222,650 (8,533)| 219,117

c) Reconciliation of the carrying amount at beginning and end of the period:

Trademarks, Technological
Movements patents and — | Water rights | Software | developmentand | Other Total
licenses innovation
Reconciliation of changes in intangible assets other than goodwill
Intangible assets other than goodwill. Opening balance (1/1/2018) 2 7,959 1,693 175,710| 33,727 219,117
Changes in intangible assets other than goodwiil
Increases other than those arising from business combinations, intangible assets other than goodwil 586 704 9,261 10,551
‘Amorization, intangible assets other than goodwill (803) – (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 goodwil – . (103,638) . (103,638)
Increases (decteases) due to other changes, intangible assets other than goodwill W (149) – 0) (157)
Increase (decrease) in transfers and other changes, intangible assets other than goodwill m (149)| (103,638) (MÍ (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 – Mm (241) (175,710) 5214) (170,738)
Intangible assets other than goodwill. Final Balance 12/31/2018 28 7,958 1,452 -| 38941 48,379
Trademarks, Technological
Movements patents and — | Water rights | Software | developmentand | Other Total
licenses innovation
Reconciliation of changes in intangible assets other than goodwill
Intangible assets other tran goodwil. 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
‘Amorization, intangible assets other than goodwill (430) – (852) (182)
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 (decteases) 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 22,817 22,949
Provisions and withdrawals of service, intangible assets other than goodwill –
Retirements from service, intangible assets other than goodwill . 0 (1,123) (1,124)
Disposiciones y retiros de servicio, activos intangibles distintos de la plusvalía . 0 – (1,123) (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 28 7,959 1,693 175,710] 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-187
(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. It 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.

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 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:

a 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-188
12. Other non-current non-financial assets

Other non-current non-financial assets as of December 31, 2018 and 2017, are as follows:

ns 12/31/2018 12/31/2017
Other non-current non-financial assets ThUS$ ThUS$
Advance payment (Law No.13196) (1) 4,433 6,266
Other 2,384 5,309
Total 6,817 11,575

(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:

12/31/2018
Atfalr 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
Atfalr 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: It 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-189
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 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
Thus$ ThUus$ 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
Items Loans and other Hedging Loans and other Hedging
payables derivatives Total payables derivatives Total
ThUuS$ ThUuS$ ThUSs$ Thus$ ThUS$ ThUSs$
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-190
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% of the 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.

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 December 31, 2018, the outstanding balance of the credit agreements is ThuS$631,357.

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-191
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, at an 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 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) TRUS$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,
principal was paid for an amount of ThuS$162,502.

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.

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-192
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 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 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.

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.

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-193
As of December 31, 2018, the details of loans from financial institutions and bond obligations are as follows:

12/31/2018
. Principal Nominal | Effective | Current [ Non-current
Taxpayer ID Loans with a . Interest _ Payment of
Country . . Le Institución Maturity Currency Amount Type of amortization Interest | Interest balance balance
Number financial entities Rate Interest
Rate Rate Russ Thuss
97.018.000-1 [Chile Scotiabank Chile 12/20/2019 3,60% | 3,74% 300,059 –
Bilateral Credit Floating | US$ 300,000,000| Maturiy, Semi-annual
Foreign [USA Bilateral Credit — [Bank of Tokyo Mitsubishi Ltd. 9/30/2021] Floating | US$ 250,000,000| Maturiy, Semizannual | 3.27% | 3.37% 3,768 | 249,579
Foreign [USA Bilateral Credit — [Export Dev Canada 11/3/2021] Floating | US$ 300,000,000| Maturiy, Semizannual | 3.44% | 3.62% 1,604 | 298,875
Foreign [Cayman island | Bilateral Credit — [Scotiabank £ Trust (Cayman) Ltd 4/13/2022] Floaing | US$ 300,000,000| Maturiy, Quarterly 3.09% | 3.30% 1,980 | 298,401
Foreign [USA Bilateral Credit — [Export Dev Canada 7/7/2022] Floating | US$ 300,000,000| Maturiy, Semizannual | 3.38% | 3.48% 1915| 299,432
Foreign [USA Bilateral Credit — [Export Dev Canada 10/25/2019] Floaing | US$ 300,000,000| Maturiy, Semizannual | 3.96% | 4.09% 2,212 | 298,250
Foreign [Japan Bilateral Credit — [Bank of Tokyo-Mitsubishi Ltd 5/24/2029] Floating | US$ 96,000,000| Halfyearly principal payments from 2015 to the present | Semizannual | 3.44% | 3.84% 12,016 –
Foreign [Japan Bilateral Credit — [Japan Bank International Cooperation 5/24/2022] Floating | US$ 224,000,000| Halfyearly principal payments from 2015 to the present | Semizannual | 3.34% | 3.54% 32,363 79,674
Foreign [Holland Credit Oriente Copper Netherlands B.V. 11/26/2032| Fixed 1ES 874,959| Semi-annual Semizannual | 3.25% | 5.42% 48,490 582,867
Foreign [Germany creditline HSBC Trinkaus 8e Floating | Euro 125% | 1.25% 408 –
other institutions 56 –
TOTAL 404,871] 2,107,078
Principal Nominal Effective Current Non-current
Taxpayer Interest
1D Number Country Maturity Rato Currency Amount Type of amortization Pay ment ofinterest | Interest Interest balance balance
Rate Rate ThUs$ ThUus$
144-A REG.S Luxembourg 1/15/2019 Fixed US$ 600,000,000 At Maturity Semi-annual 7.50% 7.78% 276,061 –
144-A REG.S Luxembourg 11/4/2020 Fixed US$ 1,000,000,000 At Maturity Semi-annual 3.75% 3.97% 3,456 582,989
144-A REG.S Luxembourg 11/4/2021 Fixed US$ 1,150,000,000 At Maturity Semi-annual 3.88% 4.06% 2,958 482,430
144-A REG.S Luxembourg 7/17/2022 Fixed US$ 1,250,000,000 At Maturity Semi-annual 3.00% 3.17% 11,538 832,748
144-A REG.S Luxembourg 8/13/2023 Fixed US$ 750,000,000 At Maturity Semi-annual 4.50% 4.75% 10,058 581,548
144-A REG.S Luxembourg 9/07/2024 Fixed EUR 600,000,000 At Maturity Annual 2.25% 2.48% 7,404 678,446
BCODE-B Chile 4/1/2025 Fixed UF. 6,900,000 At Maturity Semi-annual 4.00% 3.24% 2,737 285,436
144-A REG.S Luxembourg 9/16/2025 Fixed US$ 2,000,000,000 At Maturity Semi-annual 4.50% 4.77% 21,364 1,596,926
BCODE-C Chile 8/24/2026 Fixed UF. 10,000,000 At Maturity Semi-annual 2.50% 2.48% 3,455 416,715
144-A REG.S Luxembourg 8/1/2027 Fixed US$ 1,500,000,000 At Maturity Semi-annual 3.63% 4.20% 22,607 1,437,938
144-A REG.S Luxembourg 9/21/2035 Fixed US$ 500,000,000 At Maturity Semi-annual 5.63% 5.78% 7,925 491,814
144-A REG.S Luxembourg 10/24/2036 Fixed US$ 500,000,000 At Maturity Semi-annual 6.15% 6.22% 5,998 496,430
144-A REG.S Luxembourg 7/17/2042 Fixed US$ 750,000,000 At Maturity Semi-annual 4.25% 4.41% 14,638 733,027
144-A REG.S Luxembourg 10/18/2043 Fixed US$ 950,000,000 At Maturity Semi-annual 5.63% 5.76% 10,864 933,256
144-A REG.S Luxembourg 4/11/2044 Fixed US$ 980,000,000 At Maturity Semi-annual 4.88% 5.01% 7,522 961,050
144-A REG.S Luxembourg 1/8/2047 Fixed US$ 1,250,000,000 At Maturity Semi-annual 4.50% 4.73% 23,387 1,205,156
144 – REGS Luxembourg 5/18/2048 Fixed US$ 600,000,000 At Maturity Semi-annual 4.85% 4.91% 3,457 594,398
TOTAL 435,429 12,310,307

Nominal and effective interest rates presented above correspond to annual rates.

F-194
As of December 31, 2017, the details of loans from financial institutions and bond obligations are as follows:

12/31/2017
. : Principal Nominal a Current — | Non-current

TO Country Loans e ancial Institución Maturity — | Interest Rate| Currency mount Type of amortization Po nee e balance | balance

Thus$ Thus$
Foreign USA Bilateral Credit —— [Bank of Tokyo Mitsubishi Lid. 9/30/2021] — Floating US$ 250,000,000| Maturity Quarterly 2.10% 2.16% 1,081] 249,483]
Foreign USA Bilateral Credit [Export Dev Canada 14/3/2021| Floating us$ 300,000,000| Maturity Quarterly 2.00% 2.17% 969] 298,480]
Foreign Cayman Island | Bilateral Credit — [Scotiabank £ Trust (Cayman) Ltd 4/13/2022] — Floating us$ 300,000,000| Maturity Quarterly 2.01% 2.20% 1,323] 297,935]
Foreign USA Bilateral Credit [Export Dev Canada 7/17/2022] — Floating us$ 300,000,000| Maturity Quarterly 2.01% 2.09% 1,142 299,253]
Foreign USA Bilateral Credit [Mizuho Corporate Bank Ltd 6/5/2019 Floating us$ 95,000,000| Maturiyy Quarterly 2.14% 2.35% 180] 94,740]
Foreign USA Bilateral Credit [Export Dev Canada 6/16/2019] — Floating us$ 300,000,000| Maturity Quarterly 1.97% 2.03% 1,346] 299,480]
Foreign Japan Bilateral Credit [Bank of Tokyo Mitsubishi Ltd. 5/24/2019] — Floating us$ 96,000,000] Haltyeary principal payments from 2015 to the present. Semi-annual 2.20% 2.60% 24,081 11,883]
Foreign Japan Bilateral Credit [Japan Bank Intemational Cooperation 5/24/2022| Floating us$ 224,000,000| Halfyeariy principal payments from 2015 to the present. Semi-annual 2.10% 2.29% 32,311 111,478
Foreign Holland Bilateral Credit [Oriente Copper Netherlands B.V 11/26/2032 Fixed us$ 874,959,000| At maturiy with semi-annual interest payments Semi-annual 3.25% 5.37% 43,748 626,357
Foreign Holland Bilateral Credit [Oriente Copper Netherlands B.V 11/26/2021] — Fixed us$ 23,946,863| At maturity with semi-annual interest payments Semi-annual 3.79% 4.02% – 24,044]
Foreign Holland Bilateral Credit. [Oriente Copper Netherlands B.V 5/26/2022 Fixed us$ 16,395,765| At maturiyy with semi-annual interest payments Semi-annual 3.92% 3.98% – 16,460]
Foreign ¡Germany Credit Line HSBC Trinkaus 8. Floating Euro 1.24% 1.24% 17,045] -|
Foreign ¡Germany Credit Line Deutsche Bank Floating Euro 1.22% 1.22% 7,355| -|
[other institutions 196| 64|
TOTAL 130,727 2,329,657

Principal o Non-current

Era Country Maturity Interest Rate Currency Amount Type of amortization Payment of interest A e Current balance balance
Thus$ Thus$

144-A REG.S Luxembourg 1/15/2019! Fixed US$ 600,000,000) Maturity Semi-annual 7.50% 7.78% 9,162] 266,111
144-A REG.S Luxembourg 4/11/2020 Fixed US$ 1,000,000,000| Maturity Semi-annual 3.75% 3.97% 3,456| 581,833
144-A REG.S Luxembourg 4/11/2021 Fixed US$ 1,150,000,000| Maturity Semi-annual 3.88% 4.06% 2,993| 481,661
144-A REG.S Luxembourg 7117/2022 Fixed US$ 1,250,000,000| Maturity Semi-annual 3.00% 3.17% 11,385] 831,500
144-A REG.S Luxembourg 8/13/2023 Fixed US$ 750,000,000| Maturity Semi-annual 4.50% 4.75% 10,058] 580,420
144-A REG.S Luxembourg 7/09/2024 Fixed EUR 600,000,000) Maturity Annual 2.25% 2.48% 7,782] 711,734
BCODE-B Chile 4/01/2025 Fixed LF. 6,900,000 Maturity Semi-annual 4.00% 3.24% 3,797| 316,327
144-A REG.S Luxembourg 9/16/2025 Fixed US$ 2,000,000,000| Maturity Semi-annual 4.50% 4.71% 21,364] 1,593,900
BCODE-C Chile 8/24/2026 Fixed LF. 10,000,000 Maturity Semi-annual 2.50% 2.48% 3,008] 460,495
144-A REG.S Luxembourg 8/01/2027] Fixed US$ 1,500,000,000| Maturity Semi-annual 3.63% 4,14% | 22,485] 1,439,403|
144-A REG.S Luxembourg 9/21/2035 Fixed US$ 500,000,000| Maturity Semi-annual 5.63% 5.78% 7,925| 491,529
144-A REG.S Luxembourg 10/24/2036 Fixed US$ 500,000,000| Maturity Semi-annual 6.15% 6.22% 5,998] 496,323
144-A REG.S Luxembourg 7/17/2042 Fixed US$ 750,000,000| Maturity Semi-annual 4.25% 4.41% 14,638] 732,623
144-A REG.S Luxembourg 10/18/2043 Fixed US$ 950,000,000| Maturity Semi-annual 5.63% 5.76% 10,950] 932,957
144-A REG.S Luxembourg 4/11/2044 Fixed US$ 980,000,000| Maturity Semi-annual 4.88% 5.01% 7,523| 960,696
144-A REG.S Luxembourg 8/01/2047 Fixed US$ 1,250,000,000| Maturity Annual 4.50% 4.72% 23,260] 1,206,110
TOTAL 165,784 12,083,622

Nominal and effective interest rates presented above correspond to annual rates.

F-195
The undiscounted amounts that the Corporation will have to disburse to settle the obligations with financial institutions, are as follows:

12/31/2018 Current Non-current
Creditor Name Currency e eres: no eres Payments of Interest a 9 More tan 9 Currenttotal 110 3 years 3to 5years [More than 5 years| Non-currenttotal
Scotiabank Chile US$ 3.74%] 3.60%] Semi-annual – 310,893| 310,893 -| –
Bank of Tokyo Mitsubishi Ltd. US$ 3.37%) 3.27%] Semi-annual 4,176 4,108 8,284] 270,701 270,701]
Export Dev Canada US$ 3.62%) 3.44%] Semi-annual – 10,395 10,395 320,934 – 320,934.
Scotiabank £. Trust (Cayman) Ltd US$ 3.30%) 3.09%] Quarterly 2,340] 7,099 9,439 18,801; 304,578| 323,379]
Export Dev Canada US$ 3.48%) 3.38%] Semi-annual – 10,279) 10,279) 20,586| 310,251 – 330,837|
Export Dev Canada US$ 4.09%] 3.96%] Semi-annual – 12,053| 12,053| 24,139] 24,106| 360,330| 408,575|
Bank of Tokyo-Mitsubishi Ltd. US$ 3.84%) 3.44%] Semi-annual – 12,205 12,205 – – – –
¡Japan Bank International Cooperation US$ 3.540%)| 3.34%] Semi-annual – 35,496| 35,496| 67,793| 16,268| 84,061
BONO 144-A REG.S 2019 US$ 7.78%) 7.50%] Semi-annual 276,852| – 276,852 – – –
BONO 144-A REG.S 2020 US$ 3.97%) 3.75%] Semi-annual – 21,946| 21,946| 607,183 607,183|
BONO 144-A REG.S 2021 US$ 4.06%] 3.88%] Semi-annual – 18,785| 18,785| 522,344 – 522,344,
BONO 144-A REG.S 2022 US$ 3.17%) 3.00%] Semi-annual 12,562] 12,562! 25,124, 50,249] 862,611 912,860|
BONO 144-A REG.S 2023 US$ 4.75%] 4.50%] Semi-annual 13,219] 13,219) 26,438| 52,875| 640,373 – 693,248|
BONO 144-A REG.S 2025 US$ 4.77%] 4.50%] Semi-annual 36,480) 36,480] 72,960| 145,922] 145,922] 1,767,271| 2,059,121|
BONO 144-A REG.S 2027 US$ 4.20%] 3.63%] Semi-annual 27,188] 27,188| 54,376| 108,750] 108,750] 1,717,500] 1,935,000|
BONO 144-A REG.S 2035 US$ 5.78%) 5.63%] Semi-annual 14,063| 14,063| 28,126| 56,250] 56,250] 837,500| 950,000|
BONO 144-A REG.S 2036 US$ 6.22%) 6.15%] Semi-annual – 30,750| 30,750| 61,500] 61,500] 899,750| 1,022,750|
BONO 144-A REG.S 2042 US$ 4.41%] 4.25%] Semi-annual 15,938| 15,938| 31,876| 63,750] 63,750| 1,355,625] 1,483,125|
BONO 144-A REG.S 2043 US$ 5.76%) 5.63%] Semi-annual – 53,438| 53,438| 106,875] 106,875] 2,018,750| 2,232,500|
BONO 144-A REG.S 2044 US$ 5.01%) 4.88%] Semi-annual – 47,775| 47,775| 95,550] 95,550] 1,983,275] 2,174,375|
BONO 144-A REG.S 2047 US$ 4.73%] 4.50%] Semi-annual 28,125 28,125 56,250| 112,500] 112,500] 2,600,000| 2,825,000|
BONO 144 REG.S 2048 US$ 4.91%] 4.85%] Semi-annual – 29,100| 29,100| 58,200] 58,200| 1,312,950] 1,429,350|
Oriente Copper Netherlands B.V. US$ 5.42%) 3.25%] Semi-annual – 72,705| 72,705| 141,137] 135,320] 537,640] 814,097|
Total RUSS 430,943| 824,602! 1,255,545 2,906,039] 3,102,804| 15,390,597 21,399,440]
BONO BCODE-B 2025 UF 3.24%) 4.00%) Semi-annual 138,000] 138,000] 276,000 552,000) 552,000) 7,314,000] 8,418,000)
BONO BCODE-C 2026 UF 2.48%) 2.50%) Semi-annual 124,228| 124,228| 248,457 496,913 496,913| 10,745,370] 11,739,197|
Total U.F. 262,228| 262,228| 524,457 1,048,913| 1,048,913| 18,059,370] 20,157,197
Subtotal TRUS$ 10,404| 10,404| 20,808 41,617] 41,617] 716,526 799,760
[ BONO 144-A REG. S 2024 EUR [ 2. 48%| 2.25%) Annual 13,500,000] 13,500,000] 27,000,000) 27,000,000] 613,500,000] 667,500,000|
Total EUR 13,500,000] 13,500,000] 27,000,000) 27,000,000] 613,500,000| 667,500,000|
Subtotal ThUS$ 15,443 15,443 30,885 30,885 701,783 763,553
Total TRUSS 441,347 850,449] 1,291,796 2,978,541] 3,175,306] 16,808,906] 22,962,753|

Nominal and effective interest rates presented above correspond to annual rates.

F-196

12/31/2017 Current Non-current

Debtor’s Name Currency Effecive interest Nominal Payments of Interest Less than 90 More han 90 Current total 1to 3 years 3to 5 years More han 5 Non-current total

rate Rate days days years
Bank of Tokyo Mitsubishi Ltd. US$ 2.16%) 2.10%] Quarterly 1,3441 3,989 5,333 10,680| 255,070] – 265,750|
Export Dev Canada US$ 2.17% 2.00%] Quarterly 1,570| 4,561 6,131 12,213| 306,098| – 318,311,
¡Scotiabank £. Trust (Cayman) Ltd US$ 2.20% 2.01%] Quarterly 1,590| 4,553 6,143 12,286| 309,072 – 321,358|
Export Dev Canada US$ 2.09%] 2.01%] Quarterly 1,545| 4,584 6,129 12,273| 310,577 – 322,850|
Mizuho Corporate Bank Ltd US$ 2.35% 2.14%] Quarterly 509] 1,555| 2,064, 96,012 – 96,012|
Export Dev Canada US$ 2.03%] 1.97%) Quarterly 2,988| 3,005 5,993 304,121 – 304,121
Bank of Tokyo-Mitsubishi Lt. US$ 2.60%| 2.20%] Semi-annual 24,669] 24,669) 12,133| – – 12,133|
¡Japan Bank International Cooperation US$ 2.29% 2.10%] Semi-annual – 34,897 34,897 67,753| 49,020] – 116,773
BONO 144-A REG. S 2019 US$ 7.78%) 7.50%] Semi-annual 10,007| 10,007 20,014| 276,852 – 276,852]
BONO 144-A REG. S 2020 US$ 3.97% 3.75%] Semi-annual – 21,946| 21,946 629,130| – – 629,130|
BONO 144-A REG. S 2021 US$ 4.06% 3.88%] Semi-annual – 18,785| 18,785 37,570| 503,559) – 541,129]
BONO 144-A REG. S 2022 US$ 3.17% 3.00%] Semi-annual 12,562] 12,562! 25,124| 50,249| 887,735 – 937,984,
BONO 144-A REG. S 2023 US$ 4.75%) 4.50%] Semi-annual 13,219] 13,219) 26,438] 52,875| 52,875] 613,935 719,685|
BONO 144-A REG. S 2025 US$ 4.77%) 4.50%] Semi-annual 36,480] 72,961, 109,441] 145,922] 145,922 1,840,238| 2,132,082|
BONO 144-A REG. S 2027 US$ 4.14%| 3.63%] Semi-annual 27,188] 27,188| 54,376 108,750| 108,750 1,771,875| 1,989,375|
BONO 144-A REG. S 2035 US$ 5.78% 5.63%] Semi-annual 14,063| 14,063| 28,126 56,250| 56,250] 865,625 978,125|
BONO 144-A REG. S 2036 US$ 6.22%] 6.15%] Semi-annual – 30,750] 30,750 61,500| 61,500] 930,500 1,053,500|
BONO 144-A REG. S 2042 US$ 4.41%| 4.25%] Semi-annual 15,938| 15,938| 31,876 63,750| 63,750] 1,387,500| 1,5515,000|
BONO 144-A REG. S 2043 US$ 5.76%) 5.63%] Semi-annual 53,438| 53,438| 106,875| 106,875] 2,072,188 2,285,938|
BONO 144-A REG. S 2044 US$ 5.01% 4.88%] Semi-annual – 47,775] 47,775 95,550| 95,550] 2,031,050 2,222,150]
BONO 144-A REG. S 2047 US$ 4.72%) 4.50%] Semi-annual 28,125] 28,125 56,250) 112,500| 112,500 2,656,250 2,881,250|
Oriente Copper Netherlands B.V. US$ 5.42%] 3.25%] Semi-annual – 74,147 74,147 144,020| 138,203 604,579 886,802!
Oriente Copper Netherlands B.V. US$ 4.20%| 3.92%] Semi-annual 691 691 1,384 17,430] – 18,814]
Oriente Copper Netherlands B.V. US$ 3.92% 3.98%] Semi-annual – 1,010] 1,010 2,022 24,956| – 26,978|
Total ThUS$ 167,128] 524,418| 691,546 2,472,670| 3,605,692! 14,773,740] 20,852,102
BONO BCODE-B 2025 UF. 3.24% 4.00% Semi-annual 138,000] 138,000] 276,000 552,000] 552,000] 7,590,000 8,694,000]
BONO BCODE-C 2026 UF. 2.48% 2.50%] Semi-annual 248,457 124,228] 372,685 496,913]| 496,913 10,993,827 11,987,654]
Total U.F. 386,457 262,228 648,685 1,048,913| 1,048,913| 18,583,827 20,681,654]
Subtotal ThUSS 16,846| 11,431] 28,277 45,724| 45,724] 810,105 901,553|
BONO 144-A REG. S 2024 EUR 2.48%) 2.25%] Annual 13,500,000] 13,500,000] 27,000,000] 27,000,000] 627,000,000| 681,000,000|
Total EUR 13,500,000] 13,500,000] 27,000,000] 27,000,000] 627,000,000| 681,000,000|
Subtotal ThUS$ – 16,232 16,232 32,464| 32,464] 753,879 818,806]
Total ThUS$ 183,974] 552,081] 736,055| 2,550,858| 3,683,880| 16,337,724] 22,572,461)

Nominal and effective interest rates presented above correspond to annual rates.

F-197

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 (82,756) 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:

o 12/31/2018 12/31/2017
Future lease payments for operating issues ThUS$ 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
o mos 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 — [aceretionlamortizat
Liabilities forfinancing activities 1/1/2018 From Used Total (1 Exchange Adjustment | ¡on notcah flow Final Balance at
Difference related 19/31/2018
THus$ ThUS$ ThUS$ ThUS$ THus$ ThUS$ ThUS$ THUSS ThUS$ ThUS$
[Loans with inancial insttuñons 2,460,384 300,000 | (333027)| (33,027) 84,592 – – 2,511,949
[Bond Obligations 12,249,406 600,000 | (541,341) 58,659 543,874 (101,299)| – (4,904) 12,745,736
Obligatons for coverage 83,896 (18,930) (18,930) 20,070 35,884 (4,788) – 116,132
Paid Dividens – (602,461) — (602,461) – – – (602,461)
[Financial assets for hedge derivañves (137,544) – – – 66,177 (86,333) – (107,700)
Finance leases 102,711 (27,130) (27:30) 2,774 2,645 26,839 107,839
[Capital contribution – 600,000 – 600,000 – – – –
[Other 69,813 – (69,200) (89200) 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 14,835,838
Changes that do not represent cash flow
Initial Balance at Flows of cash Financial Cost Fair Value — | Effective Interest
Exchange | Adjustment [aceretionlamortizat Final Balance at
Liabilities fortinancing activities 111/2017 From Used Total M Difference on motcahilow | Other ao
ThuS$ THUSs ThUS$ ThUS$ ThUS$ ThuS$ ThUS$ Thuss ThuS$ ThUS$

[Loans wi financial insituions 3,154,741 300,000 | (1,043,246)| — (743,246) 74,342 (25.453) – 2,460,384
[Bond Obligañons 11,758,820 | 2,750.000| (3.094,341) — (344,341) 521,750 163,314 – – 149,863 12,249,406
‘Obligatons for coverage 171,061 15,737 – 15,737 15553 (89,036) (6,162) (23,257) – 83,896
Paid Dividens – – | (273382)| — (273,332) – – – – –
Financial assets for hedge derivaives (63,781) 5291 – 5291 4,765 (11,579) (85,497) 23,257 – (137,544)
[Finance leases 124,491 (25,565) (25,565) – – – 3,785 102,711
[Capital contibution – 995,000 – 995,000 – –
[Other 74,253 – (45,980)| (45,980) – – – 41,540 69,813
[Total iabilities from financing activities 15,219,585 | 4,066,028 | —(4,482,464)| — (416.436) 616,410 (22,754) (41,659) 195,188 14,828,666

F-198

15.

16.

(1) The finance costs consider the capitalization of interest, which for the year ended December 31, 2018
and 2017, amounts to ThUS$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 ThUus$ ThUS$
Financial liabilities:
Bond Obligations Amortized cost 12,745,736 13,131,637

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.

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

ThUS$ 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-199
17. Trade and other payables

The detail of trade and other current payables as of December 31, 2018 and 2017, is as follows:

Currents
Items 12/31/2018 12/31/2017
ThUS$ ThUS$
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$ ThUus$ ThUus$ 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).

(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.

F-200
Changes in Other provisions, were as follows:

1/1/2018
12/31/2018
Changes Other Provisions, |Decommissioning o
. Contingencies Total
non-current and restoration
LES LES ThUS$ 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

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 ¡ts
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 year ended December 31, 2018, there were no significant changes in post-employment benefits
plans.

F-201

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 Inflation 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.

2017, is as follows:

The detail of current and non-current provisions for employment benefits as of December 31, 2018 and

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-202

The reconciliation of the present value of the post-employment benefit obligation, is as follows:

1/1/2018 1/1/2017
12/31/2018 12/31/2017
Movements —
Retirement plan Health plan Retirement plan Health plan
ThUSs$ Thus$ ThUs$ Thus$
Opening balance 882,090 523,649 777,706 538,237
Semice 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 ThUuS$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 ThUS$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-203

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 ofjob 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

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 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$ THUS$
Benefits – Short term 1,731,593 1,633,536
Benefits – Post employ ment 9,962 936
Benefits – Retirement plans and conflict termination 54,594 20,553
Benefits by years of service 72,821 65,284
Total 1,868,970 1,720,309

F-204
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).

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.

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.

F-205
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.

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.

As of December 31, 2018, the dividends paid were ThUS$602,461 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 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-206
a) Other reserves

The detail of other reserves as of December 31, 2018 and 2017, is as follows:

Total other reserves

12/31/2018 12/31/2017
Other Reserves
ThUS$ ThUus$
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 beneft 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 12/31/2018 12/31/2017
% % 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.

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-207

Assets and liabilities 12/81/2018 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 1/1/2017
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 1/1/2017
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:

1/1/2018 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-208
22.

23.

Expenses by nature

Expenses by nature as of December 31, 2018 and 2017, are as follows:

1/1/2018 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 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 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-209
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

1/1/2018 1/1/2017
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
11/2018 11/2017
Item 12/31/2018 12/31/2017
Thus$ LIVES
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 €. 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 inventories (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-210
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
Thus$ Thus$
Bond interest (265.001) (833.717)
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 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 Il

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 Il

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 Il

F-211
Products: Calcined copper, copper concentrates

Gabriela Mistral

Type of mine: Open pit mine

Operating: since 2008

Location: Calama — Region Il

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-212
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-213
+ 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 (expenses)

+ 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-214
The following tables details the financial information organized by operating segments:

From 1/1/2018

12/31/2018
Total Subsidiaries and Total
Chuquicamata | R. Tomic Salvador Andina — | ElTeniente | Ventanas | G. Mistral M. Hales . .
Segments Segments | Head Office, net | Consolidated
VES ThUS$ VES ThUs$ ThUS$ ThUS$ Thus$ ThUS$ ThUS$ ThUS$ ThUS$

Revenue from sales of own copper 3.100.186 2.058.291 365.850 1.102.898 | 2.778.189 13.497 641.681 1.125.496 | 11.186.088 9.252 11.195.340
Revenue from sales of third-pany copper 177 E – . – 14.597 – 23.123 37.897 1.863.002 1.900.889
Revenue from sales of moly bdenum 359.996 15.751 20.356 88.841 164.388 E – . 649.332 1.973 651.305
Revenue from sales of other products 142.143 E 42.781 3.483 91.443 196.436 – 59.416 535.702 1.860 537.562
Revenue from futures market 8.474 10.322 687 (106) 1.210 64 2.316 685 23.652 E 23.652
Revenue between segments 122.767 – 73.379 1.487 94 105.787 – – 303.514 (303.514) –
Revenue 3.733.743 | 2.084.364 503.053 | 1.196.603 | 3.035.324 330.381 643.997 | 1.208.720 | 12.736.185 1.572.573 14.308.758
Costof sales of own copper (2.880.603)| — (1.343.886) (397.189) (931.698)] — (1.637.057) (3.889) (540.134) (896.470)| — (8.630.926) (15.076) (8.646.002)
Costof sales of copper third-party copper (192) E – . – (16.345) – (23.123) (39.660) (1.841.680) (1.881.340)
Cost of sales of moly bdenum (79.793) (8.902) (9.530) (25.980) (51.627) E – . (175.832) (18.048) (193.880)
Costof sales of other products (140.063) E (27.477) (738) (74.274) (214.792) – (14.166) (471.510) (1.609) (473.119)
Cost of sales beween segments (198.829) 52.328 (79.004) 4,217 17.831 (117.771) (1.228) 18.942 (803.514) 303.514 E
Cost of sales (3.299.480)| (1.300.460) (613.200) (054.199)| — (1.745.127) (852.797) (541.362) (814.817)| — (9.621.442) (1.572.899) (11.194.341)
Gross profit 434.263 783.904 (10.147) 242.404 1.290.197 (22.416) 102.635 293.903 | 3.114.743 (326) 3.114.417
Other income, by funcion 10.994 5.769 4.497 14.348 18.018 1.819 3.108 4.577 63.130 61.696 124.826
Impairment loss determined in accordance with IFRS 9 – – – – – – – – – 158 158
Distribution costs (3.010) (570) (1.049) (944) (1.140) (597) (139) (1.043) (8.492) (9.770) (18.262)
Administrative expenses (60.412) (32.429) (17.676) (22.649) (66.815) (9.796) (22.361) (82.077) (264.215) (201.113) (465.328)
Other expenses, by function (97.154) (85.056) (125.943) (92.589) (171.207) (210.008) (12.023) (87.058) (781.038) (226.067) (1.007.105)
Law No. 13.196 (814.516) (201.452) (34.027 (118.451) (265.868) (15.137) (63.789) (94.969)| — (1.108.209) E (1.108.209)
Other gains (losses) – E – . – E – . – 21.395 21.395
Finance income 189 244 126 115 2.174 84 18 160 3.110 48.219 51.329
Finance costs (62.271) (46.437) (14.073) (61.517) (155.965) (8.625) (17.075) (46.664) (412.627) (60.821) (463.448)
Share in the profit (loss) of associates and joint ventures 174 (a15) (aso) (2253) Ñ – (2.020) 122134 19.114
accounted by the equity method
Exchange difterences 88.760 14.668 15.552 33.218 45.160 10.859 5.344 11.678 225,239 (47.096) 178.143
Income (loss) before taxes 2.983 488.641 (183.215) (63.351) 692.301 (253.817) (4.282) 98.507 828.621 (281.591) 547.030
Income tax expenses 2.070 (329.166) 128.918 1.928 (476.388) 181.869 2.890 (68.015) (555.894) 198.611 (857.283)
Income (loss) 913 159.475 (54.297) (4.603) 215.913 (71.948) (1.392) 30.492 272.727 (82.980) 189.747

F-215

From 1/1/2017

12/31/2017
, . o . o Total Subsidiaries and Total
Chuquicamata | R. Tomic Salvador Andina El Teniente | Ventanas G. Mistral M. Hales . o
Segments Segments | Head Office, net | Consolidated
ThUS$ ThUS$ ThUS$ Thuss ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ Thuss ThUS$

Revenue from sales of own copper 2.823.439 2.009.715 502.181 1.326.314 2.850.926 12.206 798.407 1.344.509 | — 11.667.697 (31.418) 11.636.279
Revenue from sales of third-party copper (1.165) – (104) – – 32.392 – 237.708 268.831 1.737.143 2.005.974
Revenue from sales of molybdenum 276.868 40.654 16.005 65.908 101.571 – – 501.006 1.376 502.382
Revenue from sales of other products 128.696 – 44.254 7.500 69.083 196.513 52.161 498.207 498.207
Revenue from futures market (124) 40 29 35 571 (1.772) 42 (111) (1.290) 3 (1.287)
Revenue beween segments 117.638 – 82.308 801 194 102.564 – – 303.505 (803.505) –
Revenue 3.345.352 2.050.409 644.673 1.400.558 3.022.345 341.903 798.449 1.634.267 | _ 13.237.956 1.403.599 14.641.555
Costof sales of own copper (2.063.065)|— (1.290.391) (440.523) (e37.786)|— (1.562.246) (9.193) (546.845) (970.282)| — (7.820.331) 27.456 (7.792.875)
Costof sales of copper third-party copper – – – – (32.961) – (237.770) (270.731) (1.728.913) (1.999.644)
Costof sales of moly bdenum (84.777) (28.807) (0.656) (24.030) (40.445) – – – (187.715) (1.345) (189.060)
Costof sales of other products (72.475) – (22.953) (814) (84.159) (206.512) – (11.900) (898.813) (11) (398.824)
Costof sales between segments (283.468) 80.943 (58.990) 16.388 11.131 (125.547) – 56.038 (803.505) 303.505 –
Cost of sales (2.503.785)| (1.238.255) (632.122) (946.242)[ (1.675.719) (874.213) (546.845)| (1.163.914)| (8.981.095) (1.399.308) (10.380.403)
Gross profit 841.567 812.154 112.551 454,316 1.346.626 (82.310) 251.604 470.353 4.256.861 4,291 4.261.152
Other income, by function 17.249 22.136 18.044 14.861 28.357 1.361 4.174 5.645 111.827 42.505 154.332
Distribution costs (1.614) (186) (610) (299) (561) (560) – (960) (4.790) (5.613) (10.403)
Administrative expenses (46.703) (26.316) (16.763) (24.352) (63.480) (10.201) (25.947) (20.419) (234.181) (193.959) (428.140)
Other expenses, by function (96.986) (18.370) (49.178) (77.191) (50.258) (11.176) (5.583) (6.546) (815.288) (143.629) (458.917)
Law No. 13.196 (269.112) (196.289) (51.423) (124.627) (255.957, (15.459) (76.530) (109.159)| — (1.098.556) – (1.098.556)
Other gains (losses) – – – – – – – 32.605 32.605
Finance income 1.083 549 381 139 2.518 313 393 305 5.681 24,155 29.836
Finance costs (116.215) (53.270) (16.894) (105.146) (215.611) (10.012) (13.626) (56.324) (587.098) (57.512) (644.610)
Share in the profit loss) of associates and joint ventures
accounted by the equiy method 529 – 427 (585) 413 – – 704 184.644 185.428
Exchange differences (64.137) (60.635) (19.278) (19.500) (68.197) (9.067) (8.686) (7.838) (257.338) 51.280 (206.058)
Income (loss) before taxes 265.661 479.773 (22.743) 117.616 723.850 (87.111) 125.799 275.057 1.877.902 (61.233) 1.816.669
Income tax expenses (189.709) (820.426) 18.324 (91.965) (485.743) 57.108 (81.170) (194.326)| (1.287.907) 94.840 (1.193.067)
Income (loss) 75.952 159.347 (4.419) 25.651 238.107 (80.003) 44.629 80.371 589.995 33.607 623.602

F-216
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:

F-217

12/31/2018
a Radomiro a s 4 Subsidiaries and Total
Category Chuquicamata Tomic Salvador Andina El Teniente Ventanas G. Mistral M. Hales Head Office, net | Consolidated
ThuSs$ ThUus$ ThUuS$ ThUS$ ThUus$ ThuSs$ Thus$ Thus$ Thus$ Thus$
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 – – . Subsidiaries and Total
Category Chuquicamata Tomic Salvador Andina El Teniente | Ventanas | G. Mistral M. Hales Head Office, net | Consolidated
Thus$ ThUus$ Thus$ Thus$ ThUus$ Thus$ Thus$ Thus$ Thuss$ Thus$
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
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:

Gain (loss) from foreign exchange differences 1/1/2018 4/1/2017
an naa 12/31/2018 | 12/31/2017
recognized in income
ThUs$ ThUus$
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-218

28. Statement of cash flows

29.

The following table shows the items that comprise other collections and payments from operating activities
in the Statement of Cash Flows:

1/1/2018 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
1/1/2018 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.

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.

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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 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:

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.

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.

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

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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.

In order to protect cash flow and adjust, where necessary, its 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 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.

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.

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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:

Maturity of financial liabilities as of Less than | Beweenone | Morethan
1213112018 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

Credit risk

This risk comprises the possibility that a third party does not fulfill ts 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.

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.

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.

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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.

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 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 nda fair value of
Hedged ¡tem Bank derivative | Maturity | Currency | Amount | *Pligation: | ¿oing Asset — | Liability
contract . O
instrument
Thuss$ Thuss ThUuss ThUus$ Thuss
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 (53.592) 338.339 (441.931)
Bond EUR Mat 2024 [Deustche Bank (England) Swap 7/9/2024 US$ 343.170 409.680 (53.170) 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)

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December 31, 2017

Type of Financial Fair value of
Hedged item Bank derivative Maturity Currency | Amount obligation: hedging Asset Liability
contract o din nstruments
instrument
ThUs$ ThUs$ Thus$ ThUs$ ThUSss$
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 (88.485) 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
Less than 90 days Current total 1to3 years 3to5 years More than 5 years| Non-currenttotal
December 31, 2018 Currency days
Thus$ ThUs$ ThUus$ ThUus$ ThUS$ ThUs$
ThUSs$
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 ofthe 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.

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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 TRUS$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.

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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.

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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 (SII), 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).

– 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.

– Asof 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$33,444,
over which there is no security that its failure be contrary to the Corporation. For the remaining 66
cases, for an amount of TRUS$ 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.”

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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 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 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.

Subsequently, on March 14, 2012, CuPIC 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.

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+ 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 ¡AS 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).

Regarding the financing agreement signed on August 23, 2012, between the subsidiary, Gacrux
Inversiones SpA and Mitsui €. 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, itwas 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.”

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.

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 December 31, 2018 and 2017.

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-229
vi.

vil.

vili.

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.

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.

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.

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.

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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 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:

Transmitter Mine site Amount Currency Date Maturity date EA 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.

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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.

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:

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Direct Guarantees provided to Financial Institutions
Creditor of the Guarantee Type of Guarantee 12/31/2018 12/31/2017
Currency Maturity ThUuS$ ThUus$
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

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-233

Guarantees received from third parties
e 12/31/2018 12/31/2017
Division
ThUS$ ThUS$
Andina 3,891 8,228
Chuquicamata 2,445 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-234

Category 12/31/2018 12/31/2017
ThUus$ 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-235

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$ ThUus$ 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
UE 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$ – –

UE 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$ – –

UE 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
UE 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-236

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 liabilites 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

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.

F-237

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 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 its 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-238

Future committed

Disbursements 12/31/2018 12/31/2017
disbursements
Entity Proyect name Asset /
Amount Asset ” Amount | Amount | Estimated
ProyectStatus | muss | Expense | EPenditure | muss | muss date
Item
Chuquicamata 492,963 339,883 479,386
Codelco Chile Talambre dam capacity extension, 8th stage In Progress 148,715 Asset P.PeE 86,757 131,287 2020
Codelco Chile [Emergency restoration sy stem dust conto! crushing plant 2/3 | — In Progress 345 | — Asset P.PLE 6,114 – –
Codelco Chile Replacement of circulation pot 1A and 2A In Progress 1,370 Asset P.PeE 21,447 15,717 2019
Codelco Chile. [Constuction installañon surplus management In Progress | Asset P.PLE 6,644 –
Codelco Chile Replacement of water treatment plant In Progress – Asset P.PeE 24,318 – –
Codelco Chile Replacement gas management sy stem In Progress 745 Asset P.PeE 849 10,440 2019
Codelco Chile Acid plant tranformation 3-4 DC/DA In Progress 200,844 Asset P.PeE 115,588 198,863 2019
Codelco Chile Enablement refining gas treatment sy stem In Progress 26,973 Asset P.PeE 10,163 47,122 2019
Codelco Chile Dry er replacement n ? 5 fuco In Progress 23,204 Asset P.PeE 11,373 36,257 2019
Codelco Chile [Management feeding and transport powders In Progress 1363 | — Asset P.PRE 620 – –
Codelco Chile Construction Relle Res Dom-Asim Montec In Progress 599 Asset P.PeE 2 11,781 2019
Codelco Chile Construction IX stage Talambre tranque In Progress 6,063 Asset P.PeE 78 11,259 2019
Codelco Chile Construction 8 Seg Montecristo In Progress 799 Asset P.PeE 70 16,660 2019
Codelco Chile Acid plants In Progress 30,989 | Expenditure | Adm. Expense 23,014 – 2019
Codelco Chile Solid waste In Progress 6,595 | Expenditure | Adm. Expense 1,707 – 2019
Codelco Chile — [Talings In Progress 23,047 | Expenditre | Adm. Expense 15,474 | 2019
Codelco Chile. — [Water reament plant In Progress 17,501 | Expendiure | Adm. Expense 14,849 | 2019
Codelco Chile — [Environmental monitoring In Progress 3,811 | Expenditure | Adm. Expense 796 | 2019
Salvador 138,153 110,683 | — 167,627
Codelco Chile Improved integration of the gas process In Progress 91,755 Asset P.PeE 76,785 100,552 2019
Codelco Chile Concentrator filter plant construction In Progress 28 Asset P.PeE 10,994 –
Codelco Chile. [Water capture improvement In Progress 147 | — Asset P.PLE 807 – –
Codelco Chile Tailings 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 7,562 2019
Codelco Chile Solid waste In Progress 902 | Expenditure | Adm. Expense 768 334 2019
Codelco Chile. — [Water reament plant In Progress 687 | Expendiure | Adm. Expense 528 486 | 2019
Codelco Chile ‘Overhaul thickeners tailings sal-proy In Progress 1,443 Asset P.PeE 220 17,888 2019
Codelco Chile Dangerous substances warehouse In Pogress 82 Asset P.PeE – 356 2019
Codelco Chile Bell replacement In Pogress 11,185 Asset P.PeE – 24,555 2019
Codelco Chile Ditch hazardous waste In Pogress 62 Asset P.PeE – 865 2019
Codelco Chile DRPA Emergency In Pogress 177 Asset P.PeE – 14,023 2019
Andina 166,793 208,822 | 59,220
Codelco Chile Drain water treatment Finished 171 Asset P.PeE 11,236 –
Codelco Chile Water Normative Phase 2 In Progress 1,274 Asset P.PeE 4,095 – –
Codelco Chile Construction site emergency plan In Progress 11,176 Asset P.PeE 22,127 3,500 2019
Codelco Chile Construction site emergency plan Finished 5,975 Asset P.PeE 27,670 –
Codelco Chile Improved water internal tip E2 In Progress 2,620 Asset P.PeE 2,906 –
Codelco Chile Construction early alert plan Finished – Asset P.PeE 303 –
Codelco Chile Implementation in RCA compliance wells (Hy draulic Barrier) In Progress 3,010 Asset P.PeE 868 – –
Codelco Chile ¡Catchment water drainage hill black In Progress 2,301 Asset P.PeE 329 627 2019
Codelco Chile Construction canal outine DL east In Progress 6,136 Asset P.PeE 843 20,490 2020
Codelco Chile — [Standard fuel supply system In Progress 258| — Asset P.PLE 18 – –
Codelco Chile Construction site emergency plan In Progress 7,942 Asset P.PeE 63 5,115 2019
Codelco Chile Oo Sbr Level 640 Msnm Trang In Progress 16,720 Asset P.PeE 63,195 – –
Codelco Chile Solid waste In Progress 2,735 | Expenditure | Adm. Expense 1,884 746 2019
Codelco Chile. — [Water reament plant In Progress 3,927 | Expenditure | Adm. Expense 2,591 920] 2019
Codelco Chile Trailing In Progress 68,220 | Expenditure | Adm. Expense 50,956 17,435 2019
Codelco Chile Acid drainage In Progress 30,894 | Expenditure | Adm. Expense 17,462 9,474 2019
Codelco Chile — [Environmental monitoring In Progress 554 | Expenditre | Adm. Expense 824 12| 2019
Codelco Chile [Sustanabiliy and external maters management In Progress 2,880 | Expenditure | Adm. Expense 1,452 7 | 2019
Subtotal 797,909 659,388 706,233

F-239

Disbursements 12/31/2018 121zaszo17 | Futurecommitted
disbursements
Entity Proyect name Asset /
Amount Asset/ o Amount Amount Estimated
Thuss Expense | PXPenditure | yss Thuss date
Htem
El Teniente 407,794 250,563 496,088
Codelco Chile Construction of 7th phase of Carén In Progress 27,866 Asset P,PeE 2,436 280,642 2022
Codelco Chile Construction of 6th phase of Carén Finished – Asset P,PeE 7,550 – –
Codelco Chile Construction of slag treatment plant In Progress 108,854 Asset P,PeE 42,919 108,225 2019
Codelco Chile Construction of slag treatment plant In Progress 19,749 Asset P,PeE 23,214 – –
Codelco Chile Smelting emissions network. In Progress 51,273 Asset P,PeE 60,058 27,997 2019
Codelco Chile Smoke capacity reduction In Progress 5,579 Asset P,PeE 2,744 24,555 2019
Codelco Chile Smoke capacity reduction In Progress 38,749 Asset P,PeE 6,693 6,862 2019
Codelco Chile Construction of slag treatment plant In Progress 1,650 Asset P,PeE 455 2,223 2019
Codelco Chile Acid plants In Progress 66,294 | Expenditure Adm. Expense 53,294 14,069 2019
Codelco Chile Solid waste In Progress 4,460 | Expenditure Adm. Expense 3,933 951 2019
Codelco Chile Water treatment plant In Progress 16,688 | Expenditure Adm. Expense 10,962 4,332 2019
Codelco Chile Tailings In Progress 66,632 | Expenditure Adm. Expense 36,305 16,232 2019
Gabriela Mistral 12,126 8,425 47,405
Codelco Chile — [Installaton of the rubble dump folder phase VI Finished Asset P.PRE 6,446 –
Codelco Chile [Installation of the rubble dump folder phase VI Finished Asset P.PRE 262 –
Codelco Chile Replacement three tracked tractors In Progress Asset P,PeE 154 5,753 –
Codelco Chile [Environmental monitoring In Progress 6 | Expenditure | Adm. Expense 46 1 2019
Codelco Chile Solid waste In Progress 2,420 | Expenditure Adm. Expense 1,441 617 2019
Codelco Chile [Environmental consultancy In Progress 2,087 | Expenditure | Adm. Expense 38 30 2019
Codelco Chile [Water treatment plant In Progress 106 | Expenditure | Adm. Expense 38 30 2019
Codelco Chile Garbage dump extension In Progress 7,446 Asset P,PeE – 40,553 2020
Codelco Chile Improved dust collection sy stem In Progress 61 Asset P,PeE – 411 2020
Ventanas 43,492 40,080 9,783
Codelco Chile [Capturing of second gases Finished – Asset P.PRE 723 –
Codelco Chile Removal of visible fumes raf Finished Asset P,PeE 3,612 –
Codelco Chile Fugitive gas treatment Finished Asset P,PeE 3,432 –
Codelco Chile Second gas collection CT Finished Asset P,PeE 3,589 –
Codelco Chile Fugitive gas treatment CT Finished – Asset P,PeE 2,270 –
Codelco Chile Construction new warehouse of concentrate In Progress 2,072 Asset P,PeE 518 – –
Codelco Chile Acid plants In Progress 30,514 | Expenditure Adm. Expense 19,483 6,530 2019
Codelco Chile Solid waste In Progress 1,908 | Expenditure Adm. Expense 1,883 715 2019
Codelco Chile [Environmental monitoring In Progress 1,586 | Expenditure | Adm. Expense 1,088 358 2019
Codelco Chile [Water treatment plant In Progress 5,340 | Expenditure | Adm. Expense 3,482 2,180 2019
Codelco Chile [Distribution system replacement In Progress 2,072 Asset P.PRE – –
Radomiro Tomic 2,806 1,867 770
Codelco Chile Solid waste In Progress 1,132 | Expenditure Adm. Expense 823 276 2019
Codelco Chile [Environmental monitoring In Progress 725 | Expenditure | Adm. Expense 296 245 2019
Codelco Chile [Water treatment plant In Progress 949 | Expenditure | Adm. Expense 748 249 2019
Ministro Hales 1,529 2,187 12,809
Codelco Chile Solid waste In Progress 664 | Expenditure Adm. Expense 1,377 1,956 2019
Codelco Chile [Environmental monitoring In Progress 664 | Expenditure | Adm. Expense 572 237 2019
Codelco Chile [Water treatment plant In Progress 180 | Expenditure | Adm. Expense 238 366 2019
Codelco Chile Pit drainage wells mine In Progress 10 Asset P,PeE – 6,693 2019
Codelco Chile — [Implementation monitoring acuifero pit In Progress 1 Asset P.PRE – 3,557 2019
Ecometales Limited 621 731 828
Codelco Chile |Smeling powders leaching plant In Progress 613 | Expenditure | Adm. Expense 515 817 2019
Codelco Chile |Smeling powders leaching plant In Progress 8 | Expenditure | Adm. Expense 216 1 2019
Subtotal 468,368 303,853 557,683
Total 1,266,277 963,241 | 1,263,916

F-240

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-241
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 ThUS$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-242
O

CODELCO

CODELCO – CHILE

Consolidated Financial Statements as of December 31, 2016

(Translation to English of the Consolidated Financial Statements originally
issued in Spanish — see Note 1.2)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOM
CONSOLIDATED STATEMENTS OF CASH FLOWS – DIRECT METHOD.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY…
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

TABLE OF CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

GENERAL INFORMATION…
1. Corporate Information …..
2. Basis of Presentation of the Consolidated Financial Statements.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES…………..w….
1. Significant Accounting Judgments, Estimates and Assumptions
2. Significant accounting policiesS…………caammm
3, New standards and interpretations adopted by the Corporation ..
4, New accounting pronouncements
EXPLANATORY NOTES
1. Cash and cash equivalents.
2. Trade and other receivables …
3. Balance and related party disclosures .
4, InvVentori8S accccccaccorsossasiniiicicicrissns
5. Deferred taxes and inco me taxes ..
6. Current tax assets and liabilities …
7. Property, Plant and Equipment ……
8. Investments accounted for using the equity method…
9. Intangible assets other than goodwill
10. Subsidiaries
11. Other non-current non-financial asset
12. Current and non-current financial assets
13. Interest-bearing borrowings……
14. Fair Value of financial assets an
15. Fair value hierarchy……………. F-318
16. Trade and other payables..
17. Other provisions …..
18. Employee benefits.
19. Net equity
20. Operating inco me
21, Expenses by nature
22. Impairment of Assets…..

23. Other revenues and expenses by function
24. Finance COSÉS accua.
25. Operating seg ments…

F-244
26. Foreign exchange differences
27. Statement of cash flowS …………
28. Financial risk management, objectives and policies…
29. Derivatives contracts ……
30. Contingencies and restrictions
31, Guarantees enmcccccoossssss
32. Balances in foreign currency
33. Sancti0NS ….cccacccrrooaas
34. Subsequent events…..
35. Environ mental Expenditures

F-245
Pr Ene Tel: +54 13) 207 LON
sia, Presllente ARCO
fiezco 5435, piso 4,

Buliding a better
working world

samtigo
q

Independent Auditor’s Report
(Translation of the original report issued in Spanish)

To the Shareholders and Board of Directors of
Corporación Nacional del Cobre de CÁlle

We have audited the accompanying consolidated financial statements of Corporación Nacional
del Cobre de Chile and ¡ts subsidianes, which comprise the consolidated statements of
financial position as of December 31, 2016 and 2015 and the related consolidated s:atements
of comprehensive income, changes in shareholders’ equity, and cash flows for the years then
ended, and the related notes to the consolidated financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with International Financial Reporting Standards, this
responsibility includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of consalidated financial statements that are free from
material misstatement, whether due to fraud or error,

Auditor’s Respansibility

Our responsibility is to express an opinisn an these consolidated financial statements based on
our audits. We conducted our audit in accordance with auditing standards generally accepted
in Chile. Those standards reguire that we plan and perform th= audit to obtain reasonable
assurance about whether the consolidated financial statements are free from material
misstatement.

An audit involves 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, whet1er due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparaticn and fair
presentation of the consolidated financial statements in order to design audit procedJres 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. Án audit
also includes evaluating the appropriateness of accounting palicies used and the
reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of ths consolidated financial statements.

We believe that the audit evidence we bave obtained is sufficiant and appropriate to provide a
basis for our audit opinion.

F-246
A
EY

Buliding a better
workina Worid

Opinion

In our opinion, the consolidated financial statements referred 10 above present fairly. in all
material respecte, the financial position of Corporación Nacional del Cobre de Chile and its
subsidiarjes as of December 31, 2016 and 2015, and the results of ¡ts operations, and ¡ts cash
flows fofthe years then ended, in accordance with International Financial Reporting Standards.

EY Audit SpA

Santiago, March 30, 2017

F-247
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of December 31, 2016 and 2015

(In thousands of US dollars – TRUS$)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

12/31/2016 12/31/2015
Notes
Assets
Current Assets

Cash and cash equivalents 1 576,726 1,747,718
Other financial assets 12 9,861 10,202
Other non-financial assets 28,638 34,611
Trade and other receivables 2 2,254,731 1,876,863
Accounts receivable due from related companies 3 13,669 21,057
Inventory 4 1,800,270 2,097,026

Tax assets 6 12,009 270,412
Total current assets 4,695,904 6,057,888

Non-current assets

Inventories 4 337,411 185,470
Other financial assets 12 70,585 36,291
Other non-financial assets 11 14,317 27,908

Tax assets 233,886 –
Receivables 2 95,316 85,069
Accounts receivable due from related companies 3 21,713 224
Investment accounted for under the equity method 8 3,753,974 4,091,817
Intangible assets other than goodwill 9 196,897 186,082
Property, plant and equipment, net 7 23,977,261 22,628,311
Investment property 5,377 5,854
Total non-current assets 28,706,737 27,247,026
Total Assets 33,402,641 33,304,915

The accompanying notes form an integral part of these Consolidated Financial Statements.

F-248

As of December 31, 2016 and 2015
(In thousands of US dollars – TRUS$)

CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Notes 12/31/2016 12/31/2015
Liabilities and Equity
Liabilities
Current liabilities
Other financial liabilities 13 352,610 1,166,210
Trade and other payables 16 1,208,126 1,306,715
Accounts payable to related companies 3 103,894 163,366
Other provisions 17 290,002 522,695
Tax liabilities 6 15,068 16,253
Current employee benefit accruals 17 439,585 446,212
Other non-financial liabilities 58,654 100,738
Total current liabilities 2,467,939 3,722,188
Non-current liabilities
Other financial liabilities 13 14,931,469 14,026,931
Other liabilities 62,651 –
Accounts payable to related companies 3 – 157,049
Other provisions and accrued expenses 17 1,592,612 1,176,187
Deferred tax liabilities 5 3,143,939 3,257,605
Employee benefit accruals 17 1,308,871 1,228,227
Other non-financial liabilities 4,751 3,907
Total non-current liabilities 21,044,293 19,849,906
Total liabilities 23,512,232 23,572,094
Equity
Issued capital 3,624,423 3,124,423
Retained eamings (30,072) 33,623
Other reserves 19 5,317,392 5,531,920
Equity attributable to owners of the parent 8,911,743 8,689,966
Non-controlling interests 19 978,666 1,042,855
Total equity 9,890,409 9,732,821
33,402,641 33,304,915

Total liabilities and equity

The accompanying notes form an integral part of these Consolidated Financial Statements.

F-249
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the periods ended as of December 31, 2016 and 2015
(In thousands of US dollars – TRUS$)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Notes 1/1/2016 1/1/2015
12/31/2016 12/31/2015

Revenue 20 11,536,751 11,693,492
Cost of sales (9,449,668) (9,916,805)
Gross profit 2,087,083 1,776,687
Other Income, by function 23.2 138,474 152,889
Distribution costs (11,891) (12,435)
Administrative expenses (415,395) (363,494)
Other expenses 23b (1,324,149) (2,086,728)
Other gains 29,400 20,885
Profit from operating activities 503,522 (512,196)
Finance income 23,402 17,198
Finance costs 24 (547,347) (524,847)
A
Foreign exchange differences 26 (232,895) 465,320

| Loss for the period before tax (430,676) (3,056,177)
Income tax expense 5 97,096 728,398

| Loss for the period (333,580) (2,327,779)
Loss attributable to owners of the parent (275,418) (1,492,216)
Loss attributable to non-controlling interests 19. (58,162) (835,563)
Loss for the period (333,580) (2,327,779)

The accompanying notes form an integral part of these Consolidated Financial Statements.

F-250
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Continuation)
For the periods ended as of December 31, 2016 and 2015
(In thousands of US dollars – TRUS$)
(Translation to English ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Notes 1/1/2016 1/1/2015
12/31/2016 12/31/2015
Loss for the period (333,580) (2,327,779)

Components of other comprehensive income (loss), before tax:

Exchange differences on translation of foreign operations
Gain (loss) on exchange differences on translation of foreign

Operations, before tax 2,367 (1,211)
Other comprehensive income (loss), before tax, exchange 2,367 (7,211)
differences on translation of foreign operations : :

Cash flow hedges

Gain (Loss) on cash flow hedges, before tax (which will be

reclassifed to the results of the period) 51,722 (8,664)
E gain (loss), before tax, cash flow 51,722 (8,664)

Other comprehensive loss, before tax, losses for defined benefit (66,925) (19,167)

plans (which will notbe reclassifed to the results of the period)
Share of other comprehensive income (loss) of associates and joint
ventures accounted for using the equity method, before tax (which 936 (8,550)
will be reclassified to the results of the period)

Share of other comprehensive income (loss) of associates and joint

ventures accounted for using the equity method, before tax (which 219 (1,082)
will notbe reclassifed to the results of the period)
Other comprehensive loss, before tax (11,681) (104,674)

Income tax related to other comprehensive income:
Income tax related to cash flow hedges of other
comprehensive income (which will be reclassified to the
results of the period)
Income (loss) tax relating to defined benefit plans of
other comprehensive income (which will not be reclassified to 46,178 53,438
the results of the period)
Aggregated income tax related to components of other
comprehensive income

Other comprehensive loss 1,666 (45,679)
Other comprehensive gain (loss), net, re-classified to profit or

a

(82,831) 5,557

13,347 58,995

loss in subsequent periods 22,194 (18,868)
Other comprehensive loss, net, not re-classifed to profit or (20,528) (26,811)
loss in subsequent periods
Total comprehensive loss (331,914) (2,373,458)
Comprehensive loss attributable to:
Comprehensive loss attributable to owners of the parent (273,752) (1,537,895)
Comprehensive (loss) income attributable to non-controlling 19b (58,162) (835,563)
interests
Total comprehensive loss (331,914) (2,373,458)

The accompanying notes form an integral part of these Consolidated Financial Statements.

F-251
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF CASH FLOWS – DIRECT METHOD

For the periods ended as of December 31, 2016 and 2015
(In thousands of US dollars – TRUS$)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Notes 1/1/2016 1/1/2015
12/31/2016 12/31/2015

Cash flows provided by (used in) operating activities:
Cash receipts provided by operating activities

Cash flows provided by sales of goods and rendering ofservices 11,255,159 12,134,350
Other cash flows provided by operating activities 27 1,636,941 1,775,106
Payments to suppliers for goods and services (7,380,391) (6,829,745)
Payments to and on behalfofemployees (1,664,512) (1,672,219)
Other cash flows used in operating activities 27 (2,014,134) (1,975,383)
Dividends received 78,297 211,142
Income taxes paid (25,051) (247,888)
Netcash flows provided by operating activities 1,886,309 3,395,363
Cash flows provided by (used in) investing activities:
Other payments to acquire equity or debtinstruments of other entities (46,926) (65,511)
Purchases of property, plant and equipment (3,014,856) (4,260,783)
Interest received 11,797 8,328
Other inflows (outflows) ofcash 52,970 35,564
Netcash flows used in investing activities (2,997,015) (4,282,402)
Cash flows provided by (used in) financing activities:
Total amounts from loans 884,472 2,331,000
Dividends paid (851,904) (1,042,821)
Interest paid (588,283) (550,536)
Capital contribution 500,000 600,000
Other cash infows 1,190 –
Netcash flows (used in) provided by financing activities (54,525) 1,337,643
po cera in cash and cash equivalents before foreign (1,165,231) 450.604
Effect of exchange rate changes (5,761) (13,503)
Net (decrease) increase in cash and cash equivalents (1,170,992) 437,102
Cash and cash equivalents at the beginning of period 1 1,747,718 1,310,616
Cash and cash equivalents at the end ofperiod 1 576,126 1,747,718

The accompanying notes form an integral part of these Consolidated Financial Statements.

F-252
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

CORPORACION NACIONAL DEL COBRE DE CHILE

For the periods ended as of December 31, 2016 and 2015
(In thousands of US dollars – TRUS$)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Reserve of
a actuarial
Foreign losses in Other Equity
. currency Cash fiow defined | miscellaneous | Total other Retained atributable to | Non-controling
December 31, 2016 Issued capital | conversion | hedgereserve | ono plans reserves reserves eamings owners ofthe interests Total Equity
reserve parent
Note 18 Note 19 Note 19
Balance as of 11/2016 3,124,423] (12974) (6,549) (246,424) | — 5,797,867 5,531,920 33,623 8,689,966 1,042,855 9,732,821
Changes in equity
Loss for the period (275,418) (275,418) (58,162) (833,580)
Other comprehensive income (loss) 2,367 18,891 (20,747) 1,155 1,666 1,666 1,666
Comprehensive income (273,752) (58,162) (331,914)
Dividends
Capital Increases 500,000 500,000 500,000
(Decrease) increase through transfers and other changes (216,194) (216,194) 211,723 (4,471) (6,027) (10,498)
Total increase (decrease) in equity 500,000 2,367 18,891 (20,747) (215,039) (214,528) (63.695) 221777 (64.189) 157.588
Balance as of 12/31/2016 3,624,423] (10,607) 12,342 (267,171)| — 5,582,828 5,317,302 (30,072) 8,911,743 978,666 9,890,409

The accompanying notes form an integral part of these Consolidated Financial Statements.

F-253

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

CORPORACION NACIONAL DEL COBRE DE CHILE

For the periods ended as of December 31, 2016 and 2015
(In thousands of US dollars – TRUS$)
(Translation to English of the Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Reserve of
Foreign bssesn | ote Equiy
December 31, 2015 issued capital comersin hegeresene defned miscelaneous Toa ote Retained Smnersofie Nor-contolÍng Total Equity
: reserve benefits plans reserves eamings parent
Note 18 Note 19 Note 19
Balance as of 1/1/2015 2,524,423 (5,763) (3,442) (220,695) 5,573,697 5,343,797 1,793,557 9,661,777 1,863,735 11,525,512
Changes in equity
Loss for the period (1,492,216) (1,492,216) (835,563) (2,327,779
Other comprehensive income (loss) (7,211) (3,107) (25,729) (9,632) (45,679) (45,679) (45.679)
Comprehensive income (1,537,895) (835,563) (2,373,458)
Dividends
Capital Increases 600,000 600,000 600,000
Increase (decrease) through transfers and other changes 233,802 233,802 (267,718) (33,916) 14,683 (19,233)
Total increase (decrease) in equity 600,000 (7,211) (3,107) (25,729) 224,170 188,123 (1.759.934) (971.811) (820.880) (1.792.691)
Balance as of 12/31/2015 3,124,423] (12/74) (6,549) (246,424) 5,797,867 5,531,920 33,623 8,689,966 1,042,855 9,732,821

The accompanying notes form an integral part of these Consolidated Financial Statements.

F-254

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)

L. GENERAL INFORMATION

1. Corporate Information

Corporación Nacional del Cobre de Chile (hereinafter referred to as “Codelco”, “Codelco –
Chile”), is the largest copper producer in the world. Codelco and its subsidiaries’ (hereinafter
collectively referred to as the “Corporation”) 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
also manufactures wire rods in Germany, a semi-manufactured product that uses copper
cathodes as raw material, through an associated company (discussed in Note 8).

The Corporation trades its products based on a policy with the objective of selling 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 is registered under Securities Registry No. 785 of the Chilean Superintendency of
Securities and Insurance (the “SVS”) and is subject to the supervision of said SVS. According to
Article 10 of Law No. 20.392 (on the new Corporate Governance of Codelco), such supervision
will be on the same terms as publicly traded companies, notwithstanding the provisions in
Decree Law (D.L.) No. 1.349 of 1976, which created the Comisión Chilena del Cobre (“Chilean
Copper Commission”).

Codelco’s head office is located in Santiago, Chile, at 1270 Huérfanos, telephone number (56-2)
26903000.

Codelco Chile was incorporated under the statutory decree of the Corporation, D.L. No. 1.350 of
1976. In accordance with the statutory decree, Codelco is a state-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. 20.392, Codelco is governed by its organic

standards set forth in Decree Law No. 1.350 (D.L. No. 1.350) and that of its statutes, and in
matters not covered by them and, insofar as they are compatible and do not go against the

F-255
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)

provisions of these rules, the rules that govern publicly traded companies and the common laws
as applicable to them.

In accordance with D.L. No. 1.350 Section IV related to the Companys Exchange and Budget
Regulations, Codelco’s financial activities are conducted following a budgeting system that is
composed of an Operations Budget, an Investment Budget and a Debt Amortization Budget.

The tax system applicable to Codelco’s income is in accordance with Article 26 of D. L. No.
1.350, which refers to Decree Law No. 824 on Income Tax of 1974 and Decree Law No. 2.398
(Article 2) of 1978, as applicable. The Corporation’s income is also subject to a Specific Mining
Tax in accordance with Law No. 20,026 of 2005.

The Corporation is subject to Law No. 13.196, 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.

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 correspond to companies located in Chile and abroad, which are detailed in the
Explanatory Notes Section 11! of Note 8.

2. Basis of Presentation of the Consolidated Financial Statements

The Corporation’s Consolidated Financial Statements are presented in thousands of US dollars
and have been prepared based on the accounting records kept by the Corporation and its
subsidiaries and in accordance with International Financial Reporting Standards (IFRS) issued
by the International Accounting Standards Board (hereinafter “lASB”).

The Corporation’s Consolidated Financial Statements as of December 31, 2015 and the
Consolidated Income Statement of Comprehensive Income, Cash Flows and Changes in Equity
for the period ended December 31, 2015 have been prepared in accordance to the instructions
of the Superintendence of Securities and Insurance (SVS), which are consistent with IFRS,
except for the provisions in the circulated report No.856 issue by the SVS on October 17, 2014,
which instructed listed entities to record the effect of the change in the first category tax rate
introduced by the Law 20.780, on the calculation of deferred income tax assets or liabilities in
equity as opposed to profit and loss of the period as prescribed by IAS 2, Income Taxes.
Starting January 1st, 2016, the Corporation has resumed preparing financial statements in
accordance with IFRS, as such, it has restated its financial statements retrospectively as if it had
never stopped producing IFRS financial statements and opted not to apply IFRSSs as a first-time
adopter.

Responsibility for the Information and Use of Estimates

F-256
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 of the Corporation has been informed of the information included in these
Consolidated Financial Statements and expressly states its responsibility for the consistent and

reliable nature of the information included in aforementioned financial statements as of

December 31, 2016, for the effects of which the instructions from SVS have been applied and
fully prescribe the IFRS principles issued by the lASB. These consolidated financial statements
as of December 31, 2016 were approved by the Board of Directors in a meeting held on March
30, 2017.

Accounting Principles

These Consolidated Financial Statements reflect the financial position of Codelco Chile and its
subsidiaries as of December 31, 2016 and 2015, and the results of their operations, changes in
equity and cash flows for the periods ended December 31, 2016 and 2015, and their related
notes, all prepared in accordance with IAS 1 “Presentation of the Financial Statements”, in
consideration of the presentation instructions of the Superintendency of Securities and
Insurance (SVS), which are not in conflict with IFRS.

For the convenience of the reader, these Consolidated Financial Statements and their
accompanying notes have been translated from Spanish to English.

ll. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. Significant Accounting Judgments, Estimates and Assumptions

The preparation of these consolidated financial statements in accordance with IFRS as issued by
the lASB, requires the Corporations management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and
the accompanying disclosures. Estimates and assumptions are continually evaluated and are
based on management’s experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods. 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:

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). 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.

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
considerations of the Corporation regarding the amount of resources that could be

F-257
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)

exploited and sold at prices exceeding the total cost associated with the extraction and
processing.

The Corporation applies conservative judgment in determining the ore reserves, and as
such, possible changes in these estimates could significantly impact the estimates of net
revenues over time. In addition, these changes would lead to modifications in the usage of
estimates related to charges for depreciation and amortization, calculation of stripping
adjustments, determination of impairment charges, expected future disbursements related
to decommissioning, restoration.

The Corporation estimates its reserves and mineral resources based on the information
certified by the Competent Persons of the Corporation, who are defined and regulated
according to the Chilean Law No. 20.235. 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.

Impairment of 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 indication exists, the recoverable amount of the assets is estimated in
order to determine the extent of the impairment loss. 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 lower than their carrying amount, an
impairment loss exists.

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, 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 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.

The review for impairment includes subsidiaries, associates and joint arrangements.

F-258
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) Provisions for decommissioning and site restoration costs – The Corporation is
obligated to incur decommissioning and site restoration costs when 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.

For these purposes, a defined list of mine sites, installations and other equipment assigned
to this process, considered at the engineering level profile, the cubing of assets that will be
subject to removal and restoration, weighted by a structure of market prices of goods and
services, reflecting the best knowledge at the time to carry 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
must be made, as well as a discount rate used to discount the estimated cash flows, which
considers the time value of money and the risks associated with the liabilities, which is
determined based on the currency in which disbursements are expected to be made.

The liability amounts recorded as of a reporting date represent management’s best
estimate of the present value of the future decommissioning and site restoration costs.
Changes to estimated future costs are recognized in the statement of financial position by
either increasing or decreasing the rehabilitation liability and rehabilitation asset if the initial
estimate was originally recognized as part of an 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 adjusted to 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 are
expensed as incurred.

The decommissioning costs arise at the moment when a plant or other assets are installed.
Such costs are capitalized as part of property, plant and equipment and discounted at their
net present value. These decommissioning costs are charged to net income over the life of
the mine, through the depreciation of the corresponding asset. The depreciation is included
in operating costs, while the unwinding of the discount in the provision is included in finance
costs.

e) 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 Unit Credit Method, and are charged to profit or loss on an
accrual basis.

F-259
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)

The Corporation uses assumptions and best estimates to determine the future obligation
related to these benefits. Such estimates, as well as assumptions, are determined through
external actuarial calculations. These assumptions include demographic assumptions,
mortality and morbidity rates, discount rate and expected salary increases and rotation
levels, among other factors. Although the Corporation believes that the assumptions used
are appropriate, a change in these assumptions could affect net income.

Provisional Pricing Arrangements – The Corporation uses information on future copper
prices, through which it recognizes adjustments to ¡ts revenues and trade receivables, due
to the conditions in provisional pricing arrangements. These adjustments are updated on a
monthly basis. See Note 2 r).

g) Fair Value of Derivatives and Other Instruments – Management may use ¡ts judgment to

choose an adequate and proper valuation method for the financial instruments that are not
quoted in an active market. The Corporation applies customary valuation techniques used
by other professionals in the industry. In the case of derivative financial instruments,
assumptions are based on observable market inputs, adjusted in conformity with the
specific features of the instruments.

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 probable outcome will be obtained or when the results are not probable and the lawsuits
are still pending resolution, no provisions are recognized.

Although the above-mentioned estimates have been made based on the best information
available as of the date of issuance of these consolidated financial statements, it is possible
that new developments could lead the Corporation to modify these estimates in the future.
Such modifications, if occurred, would be adjusted prospectively, as required by IAS 8
“Accounting Policies, Changes in Accounting Estimates and Errors”.

2. Significant accounting policies

a)

b)

Period covered – The accompanying consolidated financial statements of Corporación
Nacional del Cobre de Chile include:

– Statements of Financial Position as of December 31, 2016 and 2015

– Statements of Comprehensive Income for the year ended December 31, 2016 and
2015.

– Statements of Changes in Equity for the year ended December 31, 2016 and 2015.

– Statements of Cash Flows for the year ended December 31, 2016 and 2015.

Basis of preparation – The consolidated financial statements of the Corporation for the

period ended as of December 31, 2016 have been prepared in accordance with the
instructions from the SVS which are consistent with IFRS, as issued by the lASB.

F-260
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 Consolidated Statement of Financial Position as of December 31, 2015, and the
Consolidated Statements of Comprehensive Income, net equity and of cash flows for the
period ended December 31, 2015, included for comparison purposes, have been prepared
in conformity with IFRS as issued by the lASB, and on a consistent basis with the
accounting policies used by the Corporation for the period ended December 31, 2016.

These consolidated financial statements have been prepared based on the accounting
records kept by the Corporation.

Functional Currency – The functional currency of the Corporation is the US dollar, which is
the currency of the primary economic environment in which the Corporation operates and
the currency in which it earns ¡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, as established in IAS 21 “The Effects of Changes in Foreign
Exchange Rates”. However, for those subsidiaries and associates that represent an
extension of the operations of Codelco (entities that are not self-sufficient and whose main
transactions are performed with Codelco); the functional currency is also the US dollar, as
this is the functional currency of Codelco.

When the indicators are mixed and the functional currency ¡is not clear, management uses
its judgment to determine the functional currency that most faithfully represents the
economic effects of the underlying transactions, events and conditions under which each
entity operates.

The Corporation recognizes the foreign exchange differences related to the consolidation of
subsidiaries which functional currency is different than US dollar in the statement of other
comprehensive income in line item “Foreign currency conversion reserve”.

The financial statements of subsidiaries, associates and jointly controlled entities, whose
functional currency is different from the functional currency of the Corporation, are
translated using the following procedures:

e Assets and liabilities are translated using the exchange rate at the date of the
statement of financial position.

e Income and expenses for each statement of comprehensive income are translated at
average exchange rates for the reporting period.

e All resulting exchange differences are recognized as a separate component of
comprehensive income in equity.

F-261
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 period are as follows:

a Exchange rates
Relation
12/31/2016 12/31/2015
US$/CLP 0.00149 0.00141
US$ /GBP 1.23396 1.48280
US$ /BRL 0.30744 0.25109
US$ /EUR 1.05396 1.09075

d) Basis of consolidation – The consolidated financial statements include the financial
statements of Codelco and its subsidiaries.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which
usually the Corporation obtains control, and continue to be consolidated until the date such
control ceases.

The financial statements of the subsidiaries are prepared for the same reporting period as
the Corporation, using consistent accounting principles.

All significant balances and transactions between the consolidated companies are
eliminated, and the equity share of non-controlling interests has been recognized and
presented in the line “Non-controlling Interests”. The companies included in the
consolidation are as follows:

F-262
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)

12/31/2016 1215112015
% Participation Participation
Taxpayer Company Country Entit
a y Share
Number Currency Entity Share Percentage Percentage
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. United States of America US$ 100.00 – 100.00 100.00
Foreign Codelco International 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 of America US$ – 100.00| 100.00 100.00
Foreign Codelco Services Limited England GBP – 100.00| 100.00 100.00
Foreign Codelco Shanghai Company Limited China US$ 100.00 – 100.00 100.00
Foreign Codelco Technologies Ltd. Bermuda US$ – 100.00| 100.00 100.00
Foreign Codelco USA Inc. United States of America US$ 100.00| 100.00 100.00
Foreign Codelco Canada Canada US$ 100.00| 100.00 –
Foreign Ecometales Limited Anglonormandars 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
78.860.780-6 | Compañía Contractual Minera los Andes Chile US$ 99.97 0.03| 100.00 100.00
79.566.720-2 | Isapre Chuquicamata Ltda. Chile CLP 98.30 170| 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 – 100.00 100.00 99.90
89.441.300-K | Isapre Río Blanco Ltda. Chile CLP 99.99 0.01 100.00 100.00
96.817.780-K | Ejecutora Hospital del Cobre Calama S.A. Chile US$ 99.99 0.01 100.00 100.00
96.819.040-7 | Complejo Portuario Mejillones S.A. Chile US$ 99.99 0.01| 100.00 100.00
96.854.500-0 | Instituto de Innovación en Minería y Metalurgia S.A. Chile US$ – – – 100.00
96.876.140-4 | Santiago de Rio Grande S.A. Chile US$ – – 100.00
76.024.442-2 | Ecosea Farming S.A. Chile US$ – 91.32 91.32 85.03
96.991.180-9 | Codelco Tec SpA (Ex -Biosigma S.A.) Chile US$ 99.91 0.09 100.00 66.67
99.569.520-0 | Exploraciones Mineras Andinas S.A. Chile US$ 99.90 0.10| 100.00 100.00
99.573.600-4 | 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 99.00 100| 100.00 100.00
77.773.260-9 | Inversiones Copperfield Ltda. Chile US$ 99.99 0.01| 100.00 100.00
76.883.610-8 | Energía Minera S.A. Chile US$ – – – 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$ 99.90 0.10| 100.00 100.00
76.167.903-1 | Inversiones Mineras Acrux SpA Chile US$ – 67.80 67.80 67.80
76.173.357-5 | 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 – – – –
76.334.370-7 | Inst de Salud Previsional Fusat. Ltda. Chile CLP – – –
78.394.040-K | Centro de Servicios Médicos Porvenir Ltda. Chile CLP 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 99.00 99.00 99.00

For the purposes of these consolidated financial statements, subsidiaries, associates, acquisitions
and disposals and joint ventures are defined as follows:

e Subsidiaries – A subsidiary is an entity over which the Corporation has power to
govern its operating and financial decisions in order to obtain benefits from its activities
in accordance with the provisions of IFRS 10, Consolidation. 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. For partially owned subsidiaries, the net assets and net earnings

F-263

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)

attributable to non-controlling shareholders are presented as “Non-controlling
interests” in the consolidated statements of financial position and consolidated
statement of income.

Associates – An associate is an entity over which the Corporation exercises significant
influence, but not to control or jointly control, through the power to participate in the
financial and operating decisions of that entity.

Codelco’s interest ownership in such entities is recorded in the consolidated financial
statements under the equity method. Under this method, the initial investment is
recorded at cost. The carrying amount of the investment is adjusted to recognize
changes in the Corporation’s share of net assets of the associate since the acquisition
date. Goodwill relating to the associate or joint venture is included in the carrying
amount of the investment and ¡is not tested for impairment separately.

The statement of profit or loss reflects Corporation’s share of the results of operations
of the associate.

Acquisitions and Disposals – The results of businesses acquired are incorporated in
the consolidated financial statements from the date when the control is obtained; the
results of businesses sold during the period are included into the consolidated financial
statements up to the effective date of disposal. Gain or loss 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.

If the Corporation loses control over a subsidiary, it derecognizes the related assets,
liabilities, non-controlling interest and other components of equity, while any resultant
gain or loss is recognized in profit or loss. Any investment retained is recognized at fair
value.

If at the acquisition date of an investment in an associate, the purchase price paid by
the Corporation is lower than the fair value of the net identified assets and liabilities,
the Corporation records a gain for the difference.

Joint Ventures – The entities that qualify as joint ventures in which joint control exists
are accounted using the equity method, consistent with the accounting method applied
in associates as explained above.

Foreign currency transactions – Monetary assets and liabilities denominated in a
currency other that the functional currency, have been translated into U.S. dollars at the
closing exchange rate of the period.

Monetary assets and liabilities denominated in currency other than the functional currency,
indexed in Unidades de Fomento (UF or inflation index-linked units of account)
(12/31/2016: US$39.36; 12/31/2015: US$36.09), are expressed in U.S. dollars at the

F-264
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)

9)

closing exchange rates of the period. Income and expenses denominated in Chilean pesos
have been translated into U.S. dollars at the exchange rate at the transaction date.

Offsetting Balances and Transactions: In general, assets and liabilities, income and
expenses, are not offset in the financial statements, except in cases in which there is a
currently enforceable legal right to offset the recognized amounts and there is an intention
to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

Income or expenses arising from transactions which, for contractual or legal reasons,
consider the possibility of offsetting and which the Corporation intends to liquidate for their
net value or realize the assets and pay the liabilities simultaneously, are stated net in the
statement of income.

Property, plant and equipment and depreciation – Property, plant and equipment items
are initially recorded at cost. After their initial recognition, they are recorded at cost, less
any accumulated depreciation and any accumulated impairment losses.

Costs of modernization or improvements resulting in an increase in productivity, capacity or
efficiency or an increase in the useful life of the assets are capitalized.

Furthermore, this caption includes acquired assets under finance lease contracts. These
assets are not legally owned by the Corporation until the corresponding purchase option is
exercised.

Until fiscal year 2013 property, plant and equipment was depreciated using the straight line
method over the assets’ respective estimated useful lives. 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 related
to the production process. This change was applied prospectively. Other assets are
depreciated using the straight-line method.

The assets included in property, plant and equipment are depreciated over their economic
useful lives, as described below:

Items Useful Life
Land Notdepreciated
Land on mine site Units of production
Buildings Straight-line over 20-50 years
Buildings in underground mine levels Units of production of the mine level
Vehicles Straight-line over 3-7 years
Plantand equipment Units of production
Smelters Straight-line
Refineries Units of production
Mining rights Units of production
Support teams Units of production
Intangibles – Software Straight-line over 8 years
Open pitand underground mine development Units of production, or life ofmine

The assets under finance leases are depreciated during the term of the lease contract or

over their estimated useful life, wh

F-265

r.

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)

h)

Estimated useful lives, residual values and the depreciation method are reviewed at year
end, and any change in estimates is recorded prospectively.

Additionally, depreciation criteria and estimated useful lives of the various assets, especially
plants, facilities and infrastructure are likely to be revised at the beginning of each year and
according to changes in the structure of reserves of the Corporation and productive long-
term plans 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 known information, confirmed and officially recognized by the Corporation.

The profit or loss from disposal of an asset is the difference between the net proceeds
received upon disposal and the carrying value of the asset.

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. Upon this moment such assets are subject to depreciation.

The mining rights owned by the Corporation are recorded in the accounting records at
US$1 (one US dollar).

Notwithstanding the above, rights over reserves and resources acquired as part of business
combinations is recorded at fair value less any accumulated impairment losses.
Subsequently such value is decreased by the use or consumption of such reserves.

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 property, plant and equipment.

Intangible assets – Intangible assets acquired separately are measured at cost. Following
initial recognition, intangible assets are carried at cost less any accumulated amortization
and accumulated impairment losses.

Intangible assets with finite lives are amortized over their estimated economic useful life
and assessed for impairment once a year or whenever there is an indication that the
intangible assets might be impaired. Intangible assets with indefinite lives are not
amortized, but tested for impairment.

The main intangible asset of the Corporation is Expenses for Research and Technological
Development and Innovation. Development expenses for technology and innovation
projects are recognized as intangible assets at cost and are considered to have an
indefinite useful life.

Research expenses for technology and innovation projects are recognized in profit or loss
of the period in which were incurred.

F-266
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 of property, plant and equipment and intangible assets – Property, plant
and equipment and intangible assets with finite useful life are reviewed for impairment, in
order to assess whether there is any indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the
Corporation estimates the asset’s recoverable amount. When the carrying amount of an
asset or CGU exceeds ¡ts recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.

For assets with indefinite useful lives, the impairment testing is performed annually at year
end.

If the asset does not generate cash flows which are independent from other assets, the
Corporation determines the recoverable amount of the CGU which the asset belongs to.

For such purposes, each division of the Corporation has been defined as a cash generating
unit.

The measurement of impairment includes subsidiaries and associates.

The recoverable amount of an asset or CGU ¡s the higher of the fair value less costs of
disposal and ¡its value in use. In assessing value in use, the estimated future cash flows are
discounted 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 (reserves) considering the
Life of Mine (‘LOM”) based on a model of discounted cash flow. For resources and potential
resources to exploit the Corporation uses the measurement of fair value by applying a
market model of multiples for comparable transactions.

If the recoverable value of an asset or CGU is estimated to be lower than ¡ts carrying
amount, an impairment loss is immediately recognized, reducing the carrying amount up to
its recoverable amount with a charge to net income. In case of a subsequent reversal of the
impairment, such reversal is limited so that the carrying amount of the asset does not
exceed its recoverable amount, nor exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognized for the asset in
prior years. Such reversal is recognized in profit or loss as a reduction of depreciation
expense for the year.

The CGU future cash flow estimates are based on the estimates of future production
forecasts, future prices of basic products and future production costs. lAS 36 “Impairment of
Assets” includes a series of restrictions to the future cash flows that can be recognized
regarding the restructurings and future cost efficiencies. When calculating the value in use,
it is also necessary to base the calculations on the current exchange rates at the moment of
the measurement.

F-267
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)

j)

K)

Exploration for and evaluation of mineral resources, mine development and mining
operations costs and expenses – The Corporation has defined an accounting policy for
each of these costs and expenses.

Development expenses for deposits under exploitation whose purpose is to maintain
production levels are charged to net income during the year when incurred.

Exploration and evaluations costs such as: drillings of deposits, include the expenses
necessary to locate new mineralized areas and engineering studies to determine their
potential for commercial exploitation are recorded in profit or loss, normally until the
feasibility is realized.

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 delimitation of new areas or deposit areas in exploitation and of mining
operations (PPé¿E) are recorded in property, plant and equipment and are charged to net
income during the period in which the benefits are obtained.

Deferred stripping – Costs that arise by removing mine waste materials (overburden) in
open pits that are in production, incurred in order to access to mineral deposits, are
recognized in property, plant and equipment, provided they meet the following criteria set
out in International Financial Reporting Interpretations the Committee (“IFRIC” 20
“Stripping Costs in the Production Phase of a Surface Mine”:

– It is probable that the future economic benefits associated with the stripping activity
will flow to the entity.

– It is 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 using to the
units of production method based on the estimated quantity of mineral that will be 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 record Income
Tax based on the net taxable income determined as per the standards established in the
Income Tax Law and Article 2 of the D.L. 2.398, as well as the specific tax on mining
referred to in Law 20.026 of 2005. Its foreign subsidiaries record income tax according to
the taxation standards of each country.

F-268
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)

Deferred taxes due to temporary differences and other events which generate difference
between the accounting and tax bases for assets and liabilities are recorded in accordance
with the standards established in AS 12 “Income taxes”.

In addition, a deferred tax is recognized for the net income of subsidiaries, associates and
joint ventures, originated by withholding taxes on remittances of dividends paid by such
companies to the Corporation.

The tax reform, established by the Law No. 20.780, implied a change in the rates for the
determination of the income tax, whose effect has a prospective impact in the Statements
of Financial Position. The detail of the effect of the tax reform is described in note 5
Deferred taxes and income tax.

Inventory – Inventory is stated at cost, which does not exceed its net realizable value. The
net realizable value represents the estimated sales price less all finishing costs and
marketing, sales and distribution expenses. Inventory comprises of materials, products in
process and finished products. Costs have been determined according to the following
methods:

– Finished products and products in process: This inventory is stated at average
production cost, according to the absorption costing method, including labor and the
depreciation of property, plant and equipment, the amortization of intangible assets and the
indirect expenses of each period. The inventories of work in process are classified in
current and non-current inventories, according to the normal cycle of operation.

– Materials in warehouse: This inventory is stated at acquisition cost, and the Corporation
determines an allowance for obsolescence related to slow moving materials in the
warehouse.

– Materials in transit: This inventory is stated at acquisition cost (costs incurred) at period-
end date. Any difference, between net realizable value of the inventory and its carrying
amount, is recognized in income.

Dividends – The Corporation has an obligation to pay dividends on its net revenue as
determined in Article 6 of D.L. 1.350. The dividends are accrued at year end.

Employee benefits – Codelco recognizes accruals for employee benefits when there is a
current obligation as a result of the services provided.

The contract conditions stipulate, subject to compliance with certain conditions, the
payment of an employee termination benefit when an employment contract ends. In
general, this corresponds to one monthly salary per year of service and considers the
components of the final remunerations which are contractually defined as the basis for the
indemnity. This benefit has been defined as a long-term benefit.

F-269
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)

p)

Codelco has also agreed to post-employment medical care for certain employees, which
are paid according to a fixed percentage of the monthly assessable salary of the employees
covered by this agreement. This benefit has been defined as a post-employment medical
care benefit.

The employee termination benefit obligation and the post-employment medical plans are
calculated in accordance with valuations performed by an independent actuary, using the
projected unit credit method, which are updated on a regular basis. The obligation
recognized in the statement of financial position represents the net present value of the
employee termination benefit obligation and the post-employment medical benefit. Actuarial
gains and losses are recognized immediately in the statement of other comprehensive
income.

Management uses assumptions to determine the best estimate of these benefits. Such
assumptions include an annual discount rate, expected increases in salaries and future
permanence, among other factors.

In accordance with its 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 means of related
addenda to employee contracts or collective union agreements with benefits that
encourage employees to retire. Accordingly, the required accruals are established based
on the accrued obligation at current value. In case of employee retirement programs which
involve multiyear periods, the provisioned obligations for these concepts are updated
considering a discount rate determined by financial instruments for the same currency used
to pay the obligations and similar maturities.

Provisions for dismantling and restoration costs – A legal or constructive obligation
arises when dismantling and restoration costs are incurred as a result of alterations caused
by a mining activity (in development or in production). Costs are estimated on the basis of a
formal closure plan and are annually reviewed.

The costs arising from the obligation to dismantle the installation of a plant or other project
for the preparation of the site, discounted at their net present value, are accrued and
capitalized at the beginning of each project, at which time the obligation to incur such costs
arises. The Corporation recognizes the liability concurrently with an asset that represent the
costs required to perform the dismantling and restoration activities.

Changes in the estimated timing of dismantling and restoration costs or changes to the
estimated future costs are dealt with prospectively by recognizing an adjustment to the
rehabilitation liability and a corresponding adjustment to the asset to which it relates, if the
initial estimate was originally recognized as part of an asset measured in accordance with
1AS 16.

These dismantling costs are recorded in income via the depreciation of the asset that gave
rise to this cost, and the provision is used when the dismantling takes place.

F-270
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)

q)

The restoration costs are accrued at their net present value against operating income, and
the provision is used in the period during which the restoration works are performed.

Interest accrued on the liability is recorded in finance costs.

Leases – (Codelco as a lessee) Leases are classified as finance leases when the terms of
the lease transfer all risks and rewards of ownership to the lessee. All other leases are
classified as operating leases. Lease costs under operating leases are charged to income
over the lease term. Assets acquired and liabilities assumed under finance leases are
recognized as assets and concurrently as liabilities at the start of the lease at either the fair
value or the present value of minimum lease payments for the discounted lease at the
contracted interest rate, whichever is lower. Interest is chargedin finance costs, at
a fixed periodic rate, in the same depreciation period of the asset. The lease
obligations net of financing costs are included in other current or non-current liabilities, as
appropriate.

Under the provisions of IFRIC 4 titled “Determining whether an Arrangement Contains a
Lease”, an arrangement is, or contains a lease at the start date, ¡if it uses a specific asset or
assets or if it grants the right to use the asset, even if that right is not explicitly specified.
For agreements occurring before January 1, 2005, the start date is considered as January
1, 2005 in accordance with the transitional requirements of IFRIC 4.

All “take-or-pay” contracts and any other service and supply contracts that meet the
conditions established in IFRIC 4, are reviewed for indicators of existence of an embedded
lease.

Revenue recognition – Revenue is recorded when ownership rights and obligations have
been substantially transferred to the purchaser, 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 for which the rights and obligations are substantially
transferred based on receipt of the product at the buyer’s destination point, and for these
contracts revenue is recorded at the moment of transfer.

Sales contracts include a provisional price at the shipment date, whose final price is
generally based on the price recorded in the London Metals Exchange (‘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 quoted market
prices on the LME up to the date of final settlement. The period between provisional

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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)

invoicing and final settlement can be between one and nine 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.

Exposure to the price movements from delivery/shipment date to final payment date ¡is
treated as an embedded derivative. The price adjustment feature is closely related to the
contract to supply a commodity.

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.

As indicated in Note 2 s) below the Corporation enters into operations in the market of
metal derivatives. The net results of these contracts are added to or discounted from
revenues.

Additionally the Corporation recognizes 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 rendered.

Derivative contracts – Codelco uses derivative financial instruments to reduce the risk of
fluctuations in the sales prices of its products and of exchange rates.

Derivatives are initially recognized at fair value at the date on which the derivative ¡is
entered into and subsequently adjusted at fair value at each reporting date.

The Corporation from time to time hedges certain future copper delivery commitments and
production in order to manage the risks associated with copper price volatility. The
Corporation uses hedge accounting for all the embedded derivatives whereby the quotation
period is different from its Commercial policy of LME plus 1 month.

The Corporation 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.

The effective part of the changes in fair value of the derivatives that are designated as
“effective cash flow hedges”, is recognized directly in equity, net of taxes, in the item “Cash
flow hedge reserves”, while the ineffective part is recorded in the statements of
comprehensive income on lines “Finance expenses” or “Finance income” depending on the
effect generated by the ineffectiveness. The amount recognized in net equity is not
transferred to other comprehensive income account until the results of the hedged
operations are recorded in the statements of comprehensive income or until the maturity
date of such operations.

A hedge is considered highly effective when the changes in fair value or in the cash flows of
the underlying item attributable to the hedaed risk, are offset with the changes in the fair

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CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ands 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)

value or in the cash flows of the hedge instruments, with effectiveness between ranges of
80% – 125%. The corresponding unrealized profit or loss is recognized in comprehensive
income for the period, only in those cases in which the contracts are liquidated or when
they no longer comply with hedging characteristics.

The total fair value of the hedge derivatives is classified as a non-current asset or liability, if
the remaining maturity of the hedged item is greater than 12 months, and as a current asset
or liability, if the remaining maturity of the hedged item is lower than 12 months.

All derivatives designated as hedge instruments are classified as current or non-current
assets or liabilities, respectively, depending on the maturity date of the derivative.

The derivative contracts entered into by the Corporation are originated by the application of
the risk hedge policies indicated below, and are recorded as indicated for each case:

Hedging policies for exchange rates: From time to time, the Corporation enters into
exchange rate and interest rate hedge transactions to cover exchange rate variations
between the US dollar and the other currencies its transactions are conducted in.
Pursuant to the policies established by the Board of Directors these operations are only
performed when there are recognized assets or liabilities, the forecast of highly probable
transactions or firm commitments, and not for investment or speculative reasons.

The results of foreign exchange insurance operations are recorded at the maturity or
liquidation date of the respective contracts.

Hedging policies in the market of metal derivatives: In accordance with the policies
approved by the Board of Directors, the Corporation entered into contracts in order to
hedge future metal prices, backed by physical production, in order to minimize the
inherent risks in price fluctuations.

The hedging policies seek to protect expected cash flows from the sale of products by
fixing the prices for a portion of future production, while to the extent necessary
adjusting physical contracts to its standard commercial policies. When the sales
agreements are fulfilled and the derivative contracts are settled, income from sales and
derivative operations is offset.

At each reporting date, these derivative contracts are recorded and adjusted to marked-
to-market and recorded at the settlement date of the hedging operations, as a part of the
sales revenue of the products.

Hedging operations carried out by the Corporation are not of a speculative nature.
Embedded derivative: 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 if the host contract is not
recorded at fair value, the procedure determines whether the characteristics and risks of

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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)

t

the embedded derivative are not closely related to the host contract, in which case it is
required to be recorded separately.

The procedure consists of an initial characterization of each contract that allows for
distinguishing among those in which an embedded derivative could exist. In that case,
the contract is submitted to a more in-depth analysis. If as a result of this evaluation it is
determined that the contract has an embedded derivative that needs to be recorded
separately, it is valued and the movements in its fair value are recorded in
comprehensive income in the consolidated financial statements.

Financial information by segment – For the purposes of IFRS 8, “Operating Segments”,
segments are defined as Codelco’s Divisions. The mining deposits in operation, where the
Corporation conducts its production processes in the extractive and processing area, are
managed by its Chuquicamata, Radomiro Tomic, Minister Hales, Gabriela Mistral,
Salvador, Andina and El Teniente divisions. To these divisions Ventanas is added, which
operates only in the smelting and refining area. These divisions have a separate
operational management, which report to the Executive Presidency, through the Vice
Presidents of Operations North and South Central, respectively. Income and expenses of
the Head Office are distributed in the defined segments.

Presentation of Financial Statements – For the purposes of lAS 1 “Presentation of the
Financial Statements”, the Corporation establishes the presentation of its statement of
financial position classified in “current and non-current” and of its statements of income in
conformity with the “by function” method and its cash flows using the direct method.

In the Statements of Other Comprehensive Income (loss) the effects recorded in relation to
cash flow hedges and share of associates and joint ventures accounted under equity
method will be recorded against the statement of Other Comprehensive income, while the
actuarial gains (losses) will not be reclassified in the future periods.

Current and non-current financial assets – The Corporation determines the classification
of its investments upon initial recognition and reviews these at each closing date. This
classification depends on the purpose for which such investments were acquired.

In this section the following categories are observed:

Financial assets at fair value through profit or loss: This category includes those
financial assets acquired for trading or sale in the short term. Their initial and
subsequent recognition is performed at fair value, which is obtained as of the observable
date in the market. The gains and losses from variations in fair value are included in net
income for the period.

Loans granted and accounts receivable: These correspond to financial assets with
fixed or determined payments, and which are not quoted in an active market. Their initial
recognition is at fair value, which includes the transaction costs that are directly
attributed to the issuance of it. Subsequent to the initial recognition, these are stated at
amortized cost, recognizing in the statements of comprehensive income the accrued

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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)

interest according to the effective interest rate and the possible losses in value of these
assets.

A loss in value of the financial assets stated at amortized cost is recognized when there
is objective evidence that the Corporation will not be able to recover all amounts in
accordance with the original terms.

The amount of loss in value is the difference between the carrying amount and the net
present value of the future cash flows discounted at the effective interest rate, and it is
recognized as an expense in the statements of comprehensive income.

If in subsequent periods there is evidence of a recovery in the value of the financial
asset stated at amortized cost, the recognized impairment loss will be reversed as long
as it does not generate an amount in the financial asset ledgers that exceeds the one
recorded prior to the loss. The accounting of the reversal is recognized in net income for
the period.

Accounts receivable are not considered recoverable when events such as the
dissolution of the company, lack of identifiable assets for its execution or a legal
pronouncement are identified.

w) Financial liabilities – Financial liabilities are recognized initially at fair value, net of the

incurred transaction costs. As the Corporation does not own any financial liabilities held for
trading, subsequent to their initial recognition, the financial liabilities are valued at amortized
cost, using the effective interest rate method.

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 when appropriate, a shorter period when the
associated liability has a prepayment option that is considered to be exercised.

Trade accounts payable and other payables are financial liabilities that do not explicitly
accrue interest and are recorded at their nominal value.

The financial liabilities are derecognized when the liabilities are paid or expire.

Allowance for doubtful accounts – The Corporation records an allowance for doubtful
accounts after 6 months have passed from the pre-judicial notification, initiating a judicial
collection. Write-offs of uncollected receivables is recorded when the Corporation has
exhausted all means of collection and in the following cases:

a. debtor is declared in bankrupt,

b. absence of debtor’s goods and/or

c. the cost of the demand is higher than the amount of debt

Renegotiations are assessed based on the experience and the background of each debtor.

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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)

y)

aa)

Cash and cash equivalents and Statement of Cash Flows prepared by direct method –
Cash equivalents are comprised of highly liquid investments, which have a limited risk in
relation to possible changes in value, and maturities of which are less than 90 days from
date of purchase.

For the purposes of preparing the statement of cash flows, the Corporation has defined the
following:

Cash and cash equivalents in the statement of financial position include cash at banks and
on hand, and short-term deposits and other highly liquid short-term investments with an
original maturity of three months or less that are not subject to significant changes in value.
In the statement of financial position, bank overdrafts are classified as external resources in
current liabilities.

– Operating activities: These are the activities that constitute the main source of
operating income for the Corporation, as well as other activities that cannot be
classified as investment or financing activities.

– Investing activities: These correspond to acquisition or sales activities or disposal
through other methods of long-term assets and other investments not included in cash
and cash equivalents.

– Financing activities: These are activities that cause changes in the size and
composition of net equity and of financial liabilities.

Law No. 13,196 – Law 13.196 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
discounts 10% on the amounts that Codelco transferred to its Chilean account. The amount
for this concept is presented in the statement of comprehensive income in the item other
expenses (see Note 23.b).

Cost of sales – Cost of sales is determined according to the absorption cost method,
including the direct and indirect costs, depreciation, amortization and any other expenses
associated with the production process.

ab) Environment – The Corporation adheres to the principles of sustainable development,

ac)

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

F-276
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)

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,
through credit agreements available unconditionally with long-term maturity, these could be
classified as non-current liabilities.

3. 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 annual consolidated financial statements of the
Corporation for the year ended December 31, 2015.

4. New accounting pronouncements

As of the issuance date of these consolidated financial statements, the following IFRS and IFRIC
interpretations have been issued by the lASB. Their application was not mandatory:

New IFRS

Date of mandatory application

Summary

IFRS 9 – Financial Instuments

Annual periods beginning on or after January 1,
2018

Financial assets must be entirely classified on
the basis of the business model of the entity for
financial asset management and the
characteristics of contractual cash fows of
financial assets. Financial assets under this
standard are measured either at amortized
cost or fair value. Only financial assets
classified as measured at amortized cost must
be tested for impairment.

IFRS 15 – Revenue From Contracts with
Clients

Annual periods beginning on or after January 1,
2018

Provides a new model for revenue recognition,
which stresses the concept of the transfer to
the customer “control” of assets sold instead of
the concept of transferring “risk” alluded to in
IAS 18. In addition it requires more detail in
disclosures and refers to more detailed sales
contracts with multiple elements.

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 assethas a low value.
Additionally, the Standard establishes new
requirements of information to disclose related
to the risk exposure on the part of lessors.

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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)

Amendments to IFRS

Date of mandatory application

Summary

IFRS 10 – Consolidated Financial
Statements

lAS 28 — Investments in Associates with
Joint Ventures

Date to be determined by lASB.

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 business, will be partial (even
if the assets are located in a subsidiary).

1AS 12 — Income Taxes

Annual periods beginning on or after
January 1, 2017

Estimates for future taxable profits exclude tax
deductions resulting from the reversal of
deductible temporary differences.

IFRS 2 – Share-based Payment

Annual periods beginning on or after
January 1, 2018

Presents modifications related to the
classification and valuation of share-based
payment transactions.

lAS 40 – Investment Property

Annual periods beginning on or after
January 1, 2018

Clarifies the requirements to the treatment of
investment property transfers.

1AS, International Accounting Standard, IFRS, International Financial Reporting Standard, IFRIC, International Financial Reporting Interpretations

Committee.

Management believes that these standards, amendments and interpretations described above, shall
be adopted in the consolidated financial statements of the Corporation in the respective years
indicated. Codelco is still evaluating the impact that could be generated from such rules and changes.

F-278

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

Cash and cash equivalents are as follows:

Item 12/31/2016 12/31/2015
ThUS$ ThUS$
Cash on hand 6,740 4,132
Bank balances 44,025 682,348
Time deposits 501,278 1,047,641
Mutual Funds — Money Market 1,497 –
Resale agreements 23,186 13,597
Total Cash and cash equivalents 576,726 1,747,718

Interest on time deposits are recognized on an accrual basis using the contractual interest rate
of each of the instruments.

The Corporation does not have restricted cash and cash equivalents.

2. Trade and other receivables

a) Provisional Pricing Arrangements

As mentioned above, the Corporation adjusts its revenues and corresponding trade
accounts receivable balance, based on future copper prices until the shipment arrives to
destination.

When the future price of copper is lower than the provisional invoice amount, this provision
is presented in the Statement of Financial Position as follows:

+» Customers that have debt balances with the Corporation are presented in “Current
Assets”, decreasing the amounts owed by these customers.

+» Customers that do not have debt balances with the Corporation are presented in the
item “Trade and other payables under Current Liabilities”.

When the future copper price is higher than the provisional invoice price, the provision is
presented in current assets, increasing the amounts owed by customers.

Based on the above-mentioned, trade receivables as of December 31, 2016, include an a
positive adjustment of ThuS$95,971 for provisional pricing arrangements. As of December
31, 2015, a negative adjustment to trade receivables was recorded in the amount of
ThUS$66,977,

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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)

b) Trade and other receivables

The following chart shows the amounts of Trade and other receivables, net of the
allowance for doubtful accounts:

Current Non-Current
Items 12/31/2016 12/31/2015 12/31/2016 12/31/2015
ThUS$ ThUS$ ThUS$ ThUS$

Trade receivables (1) 1,549,882 1,200,388 524 850
Allowance for doubtful accounts (3) (2,238) (2,470)

Subtotal trade receivables, net 1,547,644 1,197,918 524 850
Other receivables (2) 713,884 684,976 94,792 84,219
Allowance for doubtful accounts (3) (6,797) (6,031) – –
Subtotal other receivables, net 707,087 678,945 94,792 84,219
Total 2,254,731 1,876,863 95,316 85,069

(1) Trade receivables corresponds to the sales of copper and its by-products.

(2) Other receivables includes receivable from:

e The Corporation’s personnel, including short-term loans and mortgage loans,
payment for which is withheld on a monthly basis from employee paychecks. The
mortgage loans are backed by mortgage guarantees.

Claims from insurance companies.

Liquidations to the Central Bank as per Law 13.196 (please refer to Note 2.2).
Advance payments to suppliers and contractors.

Accounts receivable for toll services (Ventanas’ Smelter).

Tax credit export VAT remains susceptible to refund and other taxes receivable in
the amount of ThUS$141,885 and ThUS$137,653 at December 31, 2016 and
December 31, 2015, respectively.

(3) The Corporation maintains an allowance for doubtful accounts, based on the
experience and analysis of Management regarding the portfolio of trade accounts
receivable and their aging.

The movement of the allowance for doubtful accounts in the periods ended December
31, 2016 and 2015 was as follows:

Items 12/31/2016 12/31/2015
ThUS$ ThUS$
Opening balance 8,501 7524
Increases 1,497 1,464
Write-offs/applications (963) (487)
Movement, subtotal 534 977
Final balance 9.035 8,501

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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)

3.

Past due receivables for which an allowance for doubtful accounts has not been
recorded are as follows:

Maturity 12/31/2016 | 12/31/2015
ThUS$ ThUS$
Less than 90 days 13,232 29,780
Between 90 days and 1 year 1,505 20,958
More than 1 year 14,551 9,150
Tota pastcue with no allowance for doubtful 29,288 59,888

Balance and related party disclosures

a) Operations related to third parties

According to the New Corporate Governance Law, Codelco’s Board Members entered into
transactions with related parties, as described in Title XVI of the Corporations law
(regarding transactions with related parties in publically traded companies and their
affiliates).

Notwithstanding the foregoing, pursuant to the provisions of the final paragraph of Article
147 b) of Title XVI, which contains emergency regulations regarding the approval process
for related party transactions, the Corporation established a general policy of regularity
(reported to the SVS as material fact), which establishes common transactions that are
ordinarily made with ¡ts related parties within their line of business, contribute to their social
interest and are necessary for Codelco’s normal developmental activities.

In addition, consistent with the legal framework, the Corporation maintains within its internal
framework a specific policy about transactions with individuals and companies related to
Codelco personnel. Codelco Corporate Standard No. 18 (NCC No. 18), the latest version of
which is currently in force, was approved by the Executive President and the Board.

Codelco, without the authorization indicated in NCC No. 18 and of the Board of Directors,
when required by Law or the Corporate Statute, shall not enter into contracts involving one
or more Directors, Executive President, members of the Committee of Managing Directors,
Vice President, Legal Counsel, General Auditor, General Manager, Senior Management or
staff who must make recommendations and/or has the authority to resolve tenders,
purchases and assignments and/or purchases of goods and services and the staff that
holds management positions (until the fourth hierarchical level in the organization),
including their spouses, children and other relatives up to the 2nd degree of relation, with
an interest in itself, directly, or represented by third parties or on behalf of another person.
The NCC No. 18 obligates the Corporation’s contract to declare all such relationships, as

“he Corporation has not recorded an allowance for doubtful accounts as it has guarantees from the clients. Such amounts are subject to
confirmations between Codelco and the clients and represent the quotation period adjusments of up to LME +M6.

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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)

well as remove related job responsibilities from any member within these positions who
may be involved.

This prohibition also includes the companies in which such individuals are involved through
ownership or management, whether directly or through representation of other natural
persons or legal entities, or individuals who have ownership or management interests in
those companies.

The Board of Directors has been informed of the transactions covered by Codelco
Corporate Standard No. 18, and upon which it must decide, according to this standard.

Among these operations are those indicated in the following chart, for the total amounts
indicated, which need to be executed in the periods specified by each one of the contracts.

1/1/2016 1/1/2015
Entity Tapar Country Nature of the relationship Description ofthe meras aereos
Thus$ Thus$
Ecometales Limited agencia en Chile. 59.087.530-9 Chile Affiliate Services – 20
Fundación Orquesta Sinfónica Infantil de los Andes. 65.018.784-9 Chile Founder Services 561
Centro de Capacitación y Recreación Radomiro Tomic. 75.985.550-7 Chile Other related companies Services 137
Sociedad de Procesamiento de Molibdeno Ltda. 76.148.338-2 Chile Affiliate Purchases of goods 700,000
Sociedad de Procesamiento de Molibdeno Ltda. 76.148.338-2 Chile Affiliate Commercial current 85,000
Kairos Mining S.A. 76.781.030-K Chile Other related companies Services 14,800
Biosigma S.A 96.991.180-9 Chile Affiliate Services – 15,296
OOPrestaciones de Servicios de la Salud Intersalud Ltda. 77.270.020-2 Chile Affiliate Services 5,739 –
Cosando Construcción y Montaje Ltda. 77.755.770-K Chile Employee’ relative Services – 2,069
Anglo American Sur S.A. 77.762.940-9 Chile Associate Services 1 –
Hatch Ingenieros y Consultores Ltda. 78.784.480-4 Chile Employee’ relative Services 46,339 41,007
Institución de Salud Previsional Chuquicamata Ltda. 79.566.720-2 Chile Affiliate Services 1,133 –
Clinica San Lorenzo Ltda. 88.497.100-4 Chile Affiliate Services 1,849 –
Institución de Salud Previsional Río Blanco Ltda. 89.441.300-K Chile Affiliate Services – 44,795
Sociedad Contractual Minera El Abra. 96.701.340-4 Chile Associate Supplies 1,188
Instituto de Innovación en Minería y Metalúrgica S.A 96.854.500-0 Chile Affiliate Services – 48,000
Sy S Ingenieros Consultores Ltda. 84.146.100-2 Chile Employee’ relative Services 8 –
Clínica Río Blanco S.A. 99.573.600-4 Chile Affiliate Services 2,569 –
Finning Chile S.A. 91.489.000-4 Chile Employee’ relative Supplies 5,134 88,047
Exploraciones Mineras Andinas S.A. 99.569.520-0 Chile Affiliate Services – 170,000
Complejo Portuario Mejillones S.A. 96.819.040-7 Chile Affiliate Services – 6,000
Fundación Educacional el Salvador 73.435.300-0 Chile Founder Services 24 32
Fundación Sewel 65.493.830-K Chile Founder Services 5 –
Femontycía. Ltda. 77.395.540-9 Chile Employee’ relative Supplies – 725
Arcadis Chile S.A 89.371.200-3 Chile Employee’ relative Services 2,325 1,441
RSA Seguros Chile S.A 99.017.000-2 Chile Employee’ relative Services – 24,100
Sonda S.A. 83.628.100-4 Chile Employee’ relative Services 152 156
Ingeniería de Protección S.A. 89.722.200-0 Chile Employee’ relative Supplies – 135
Xtreme Mining Ltda. 96.953.700-1 Chile Employee’ relative Supplies 5 46
SGS Chile Limitada, Sociedad de Control 80.914.400-3 Chile Employee’ relative Services 2,251 1,099
Club de Ski Chapa Verde 71.275.900-3 Chile Employee’ relative Services – 48
Esinel Ingenieros S.A. 76.477.780-8 Chile Employee’ relative Services – 15
Maestranza Acosta y Cía. Ltda. 76.813.840-0 Chile Employee’ relative Supplies 22 7
Komatsu Chile S.A. 96.843.130-7 Chile Employee’ relative Services 194,249 105,917
Cuatro C Consultores en Ingeniería Civil Limitada 79.693.340-4 Chile Employee’ relative Services – 27
SGS Minerals Ltda. 96.671.880-3 Chile Employee’ relative Services 255 1,432
Soc. S yS Ingeniería Ltda. 79.592.060-9 Chile Employee’ relative Services – 100
Transelec S.A. 76.555.400-4 Chile Member ofthe Board Services 1,856
Representaciones Comerciales Ltda. 78.841.100-6 Chile Employee’ relative Services – 4
REQ Ingeniería S.A. 84.865.000-5 Chile Employee’ relative Services 4,551 –
Ayagon S.A. 88.845.100-5 Chile Employee’ relative Supplies 2
Nueva Ancor Tecmin S.A. 76.411.929-0 Chile Employee’ relative Supplies 169

F-282

(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)

CORPORACION NACIONAL DEL COBRE DE CHILE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Sodimac S.A.

Industrial y Comercial Artimatemb Ltda.
Centro de Especialidades Médicas San Lorenzo Ltda.
Kaefer Buildteck SpA

96.792.430-K Chile
76.108.720-7 Chile
76.124.156-7 Chile
76.105.206-3 Chile

Employee’ relative
Employee’ relative

Affiliate

Employee’ relative

Supplies
Senices
Senices
Senices

575
19
622
8,080

(1)

b) Key Personnel of the Corporation

In accordance with the policy established by the Board of Directors and its related
regulation, those transactions affecting the Directors, its Executive President, Vice
Presidents, Corporate Auditor, the members of the Divisional Management Committees and
Divisional General Managers should be approved by this Board.

During the periods ended December 31, 2016 and 2015, the members of the Board of
Directors have received the following amounts as per diems, salaries and fees:

1/1/2016 1/1/2015
, Taxpayer Nature ofthe | Description of | 12/31/2016 | 12/31/2015

Entity Mabe Country relationship | the rensaciion Amount Amount

ThUS$ ThUS$
Augusto González Aguirre 6.826.386-7| Chile | Director Director’s fees – 3
Augusto González Aguirre 6.826.386-7| Chile | Director Payroll – 53
Blas Tomic Errázuriz 5.390.891-8| Chile | Director Director’s fees 114 108
Dante Contreras Guajardo 9.976.475-9| Chile | Director Director’s fees 91 93
Gerardo Jofré Miranda 5.672.444-3| Chile | Director Director’s fees 91 93
Isidoro Palma Penco 4.754.025-9| Chile | Director Director’s fees 91 60
Juan Morales Jaramillo 5.078.923-3| Chile | Director Director’s fees 91 60
Laura Albomoz Pollmann 10.338.467-2| Chile | Director Director’s fees 91 93
Marcos Blichi Buc (1) 7.383.017-6| Chile | Director Director’s fees – –
Marcos Lima Aravena 5.119.963-4| Chile | Director Director’s fees 41
Oscar Landerretche Moreno 8.366.611-0| Chile Chalman of Director’s fees 137 140
Raimundo Espinoza Concha 6.512.182-4| Chile | Director Director’s fees 91 93
Raimundo Espinoza Concha 6.512.182-4| Chile | Director Payroll 44 36

During the periods between January 1, 2015 and May 11, 2015 and January 1, 2014 and December 31,
2014, the Company did not issue any payment of wages to Mr. Marcos Búchi Buc, stemming from his
participation (and until the end of his period) as a Director of the Corporation, as he has expressly and
irrevocably waived such payments, in addition to any collection of wages present or future in relation to

his participation.

Through Supreme Decree of the Ministry of Finance No. 36, dated January 28, 2016, it was
established that the payroll of Directors of the Corporation will be fixed for two years since March 1,
2016, in accordance with the current austerity policies. This document details the calculation method
of such remunerations, as per the following;

a. The monthly salary of the Directors of Codelco for participating in Board meetings was
fixed in the amount of Ch$3,835,860 – (three million eight hundred and thirty five
thousand, eight hundred and sixty Chilean pesos). It is required the assistance to one
session per calendar month at least.

F-283
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. A monthly salary of Ch$7,671,720 – (seven million six hundred and seventy one
thousand, seven hundred and twenty Chilean pesos) is established for the Chairman of
the Board.

Cc. Directors that shall participate in a Board Committee, whether the one referred to in
Article 50 bis) of Law No. 18.046 or another established by the by-laws of the
Corporation, receive a single additional monthly amount of Ch$1,278,619 – (one million
two hundred and seventy eight thousand, six hundred and nineteen Chilean pesos) for
their participation, notwithstanding the number of committees in which they participate. In
addition, the director holding the chair of the Directors’ Committee shall receive a single
monthly remuneration for his participation in committees of Ch$2,557,240 – (two million
five hundred fifty seven thousand, two hundred and forty Chilean pesos).

d. The established salaries are in effect for a period of two years, as of March 1, 2016.
They were adjusted on January 1, 2017, in accordance with the same provisions that
govern the general wage adjustments of officials of the Public Sector.

On the other hand, in relation to the short-term benefits from the executives who serve in the
administrative roles for the Corporation; they are paid during the period of January —
December 2016, a total amount of ThUS$8,714 (January – December 2015: ThUS$8,925)

The criteria that determines the wages for the executives was established by the Board of
Directors by agreement of January 29, 2003.

During the periods of January through December of 2016 and 2015, payments were made to
the Principle Executives of Codelco as compensation for years of service, equal to
ThUS$444 and ThUS$109, respectively.

There were no payments for other noncurrent benefits during the period of January through
December 2016 and 2015, other than those mentioned in the previous paragraph.

There are no share-based benefit plans.
c) Transactions with companies in which Codelco has participation

In addition, the Corporation performs necessary commercial and financial transactions with
entities in which it has capital ownership. The financial transactions correspond mainly to
loans in checking accounts.

The commercial operations with related companies refer to the purchase and sale of
products or services, at market conditions and prices and which do not consider interest or
indexation. These companies, for the periods of January – December 2016 and 2015, are
the following: Sociedad GNL Mejillones S.A., Sociedad Contractual Minera El Abra, Agua
de La Falda S.A., Planta Recuperadora de Metales SpA, Deutsche Giessdraht and Anglo
American Sur S.A.

F-284
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)

Trading operations related to Copper Partners Investment Company Limited (“CuPIC”) are
presented in the Category Other non-current liabilities.

The Corporation does not establish an allowance for doubtful accounts for the main items
receivable from their related companies, as these have been registered by including the
relevant safeguards in the respective debt contracts.

Accounts receivable from and payable to related companies as of December 31, 2016 and

2015, are detailed as follows:

Accounts receivable from related companies:

Nature of . Current Non-current
Taxpayer . Indexation
Number Entity Country the | currenc 12/31/2016 | 12/31/2015 12/31/2016 | 12/31/2015
y
relationship ThUS$ ThUS$ ThUS$ ThUS$
73.063.022-5 — | Inca de Oro Chile | Associate US$ – 17 – –
77.762.940-9 Anglo American Sur S.A. Chile | Associate US$ 13,286 – –
76.255.054-7 Planta Recuperadora de Metales SpA Chile | Associate US$ – 8,019 21,489
96.701.340-4 Sociedad Contractual Minera El Abra Chile | Associate US$ 383 2,350 – –
96.801.450-1 | Agua de la Falda S.A. Chile | Associate US$ – – 224 224
Foreign Copper Partners Invest Company Ltd. | Bermuda | Joint venture US$ 10,671 – –
Totals 13,669 21,057 21,713 224
Accounts payable to related companies:
. Current Non-current
Tapayer Entity Country e oe Indexation 12/31/2016 | 12/81/2015 | 1213112016 | 12/81/2015
P Y | tmuss | Tmuss | ThuS$ | Tnus$
76.775.710-7 | GNL Mejillones S.A. Chile | Associate US$ – 500 – –
77.762.940-9 Anglo American Sur S.A. Chile | Associate US$ 74,101 100,888
96.701.340-4 Sociedad Contractual Minera El Abra Chile | Associate US$ 21,822 25,918 –
Foreign Copper Partners Invest. Company Ltd. | Bermuda | Joint venture US$ – 29,724 157,049
Foreign Deutsche Geissdraht GmbH Germany | Associate EURO 7,971 6,336 –
Totals 103,894 | 163,366 157,049

F-285

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 transactions performed between the Corporation and its related companies for the
periods ended December 31, 2016 and 2015 are detailed in the next table together with their
corresponding effects on profit or loss:

1/1/2016 1/1/2015
12/31/2016 12/31/2015

Effects Effects on

Taxpayer Entity Nature ofthe Country Index. lla e

umber transaction Currency

(charges) (charges) /

Amount | /credits | Amount | Credits

ThUS$ ThUS$ ThUS$ ThUS$

Foreign Copper Partners Investment Co. Ltd. | Sales ofgoods Bermuda US$ 14,597 14,597 119,965 119,965

Foreign Copper Partners Investment Co. Ltd. | Dividends received Bermuda US$ 14,430 – 104,650 –
77.762.940-9 | Anglo American Sur S.A. Dividends received Chile US$ – – 36,876
77.762.940-9 | Anglo American Sur S.A. Dividend receivables Chile US$ 13,286 – – –
77.762.940-9 | Anglo American Sur S.A. Purchase of goods Chile US$ 480,218 | (480,218) 458,103 | (458,103)
76.775.710-7 | Sociedad GNL Mejillones S.A. Retention services Chile US$ – – (469) (469)
76.775.710-7 | Sociedad GNL Mejillones S.A. Retention inventories Chile US$ – – 469 469
76.775.710-7 | Sociedad GNL Mejillones S.A. Reimbursement Chile US$ – – 5,887 (5,887)
96.701.340-4 | SCM El Abra Dividends received Chile US$ 53,900 – 51,450 –
96.701.340-4 | SCM El Abra Purchase of goods Chile US$ 245,684 | (245,684) 394,445 | (394,445)
96.701.340-4 | SCM El Abra Sales of goodss Chile US$ 15,517 15,517 38,844 38,844
96.701.340-4 | SCM El Abra Other sales Chile US$ 1,493 1,493 1,493 1,493
96.701.340-4 | SCM El Abra Purchase of services Chile US$ 236 (236) 4,043 (4,043)
96.701.340-4 | SCM El Abra Commissions received | Chile US$ 124 124 181 181
96.701.340-4 | SCM El Abra Other purchases Chile US$ 1,884 (1,884) 398 (398)
96.801.450-1 | Agua de la Falda S.A. Sales of services Chile CLP 5 5 7 7
96.801.450-1 | Agua de la Falda S.A. Contribution Chile US$ (743) – –

Foreign Deutsche Geissdraht GmbH Dividends received Germany EURO 772 – 1,021
76.063.022-5 | Inca de Oro S.A. Contribution Chile US$ (461) – (481)
76.028.880-2 | Minera Purén SCM Dividends received Chile US$ – – 2,450
76.255.054-7 | Planta Recuperadora de Metales Loan Chile US$ 16,090 – 11,254

F-286

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. Additional information
The current account receivable to the Planta Recuperadora de Metales SpA corresponds to
the loan balance granted to build its plant.

Transactions for the purchase and sales of products with Anglo American Sur S.A,,
correspond to regular business operations to acquire copper and other products. On the
other hand, there are certain transactions associated with the contract between the affiliate
Inversiones Mineras Nueva Acrux SpA (the non-controlling shareholder is Mitsui) and Anglo
American Sur S.A., under which the latter agrees to sell a portion of its annual copper
output to said subsidiary.

Transactions with the company, CUPIC, correspond to the current conditions described in
Note 30 b) of these financial statements.

4. Inventories

Inventories as of December 31, 2016 and 2015 are detailed as follows:

Current Non-current
Items 12/31/2016 12/31/2015 | 12/31/2016 | 12/31/2015
ThUS$ ThUS$ ThUS$ ThUS$

Finished products 335,431 512,711 – –
Products in process 1,055,864 1,108,291 337,411 185,470
Material in warehouse and other 499,905 555,317

Obsolescence allowance adjustnent (90,930) (79,293)

Subtotal material in warehouse and

other, net 408,975 476,024 . .
Total Inventories 1,800,270 | 2,097,026 337,411 185,470

Inventories recognized as cost of operation for the year ended December 31, 2016 and 2015
correspond to finished goods amounting to ThUS$9,413,714 and ThUS$9,877,505,
respectively.

For the period ended December 31, 2016, the Corporation does not have reclassifications of
strategic inventories to Property, Plant and Equipment.

The change in the obsolescence provision is described in the following table:

Obsolescence provision ThUS$
Initial Balance 1/1/2016 (79,293)
Period allowance (11,637)
Final Balance 12/31/2016 (90,930)

F-287
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, 2016 and 2015 Codelco has written off inventory for an
amount of ThuS$10,377 and ThUS$68,708, respectively, which has been recognized in
other expenses by function.

The Corporation adjusted its inventories for which the book value exceeded its net realizable
value for an amount of ThUS$10,344 as of December 31, 2016. (December 31, 2015:
ThUS$84,527).

During the year ended December 31, 2016, the Corporation has not recorded any reversal of
the obsolescence provision.

Codelco purchases copper from Sociedad Contractual Minera El Abra. At December 31,
2016 and December 31, 2015, the finished good balances do not represent any provision for
intragroup profits.

The Corporation purchases and sells copper from and to its associate Anglo American Sur

S.A. As of December 31, 2016 and 2015, the related of finished goods balance does not
include any provisions on intragroup profits.

F-288
5.

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)

Deferred taxes and income taxes
a) Income tax expense

12/31/2016 12/31/2015
Items
ThUS$ ThUS$
Current tax expenses – (4,156)
Effect of Deferred Taxes (1) 113,185 894,607
Additional income taxes paid as a result oftax audits (ii) – (148,935)
Other (16,089) (13,118)
Total Income Taxes 97,096 728,398

Includes deferred tax loss carryforwards for the year ended December 31, 2016, please see the
table below.

Asa part of the process of the tax audit for the long-term sales agreement between the
Corporation and its subsidiary, CuP IC, Codelco received two tax assessments which are
indicated in Note 28 Contingencies and Restrictions. These settlements were challenged by the
Corporation through several administrative and judicial means. As part of those proceedings,
the Corporation and the Internal Revenue Services (“IRS”) agreed to make certain adjustments
to the tax basis which resulted in the payment of ThUS$148,935, on August 31, 2015. This
additional payment was recorded in Income taxes of the Statement of Comprehensive Income.

Such agreement has enabled the Corporation to resolve the liquidated and collected

differences related to this matter until 2011, plus the differences due to this same matter for the
years 2012, 2013 and 2014.

F-289
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) Deferred tax assets and liabilities are detailed as follows:

Deferred tax assets 12/31/2016 12/31/2015
ThUS$ ThUS$
Provisions 1,352,823 1,039,129
Unrealized gains – 9,213
Finance lease 21,997 20,379
Advances from clients – 128,804
Cross currency swap – 12,361
Health care plans – 14,654
Tax losses 1,808,782 672,907
Other – 9,234
Total deferred tax assets 3,183,602 1,906,681
Deferred tax liabilities 12/31/2016 12/31/2015
ThUS$ ThUS$
IFRIC 20 First adoption – 14,971
Taxes from Mining Activity 145,168 55,487
Property, plant and equipment variations 1,015,951 523,733
Valuation of employee termination benefits 26,536 27,100
Accelerated depreciation 4,999,085 4,334,433
Anglo American Sur S.A. investnent 11,638 66,430
Income from fair value of mining properties 108,518 108,509
Derivatives Hedging future contracis 482 1,034
Affiliates income deferred taxes 20,163 30,030
Other – 2,559
Total deferred tax liabilities 6,327,541 5,164,286
The effect of deferred taxes affecting equity is summarized as follows:
Deferred taxes affecting Equity 12/81/2016 12/81/2015
ThUs$ ThUs$

Cash Flow Hedge (82.831) 5,557

Defined Benefit Plans 46,178 53,438

Total deferred taxes affecting equity 13,347 58,995

F-290
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 shows the reconciliation of the effective tax rate:

12/31/2016
Items Taxable Base Taxrate
24.0% 40.0% 5% 24.0% Addit. 40% 5% Total
ThUSs$ ThUSS$ ThUSs$ ThUSs$ ThUSS$ ThUSS$ ThUSS$
(Loss) profit before taxes (865,267) (365,267) (365,267) 87,664 146,107 18,263 252,034
Profit before taxes affiliates (65,409) (65,409) (65,409) 15,698 26,164 3,270 45,132
Profit before taxes consolidated (430,676) (430,676) (430,676) 103,362 172,271 21,533 297,166
Permanentdifferences
Taxes of first category (24%) (94,555) 22,693 22,693
Specific tax for government fims Art. 2 D.L. 2.398 (40%) 274,926 (109,970) (109,970)
Specific mining tax (755,998) (37,800) (37,800)
Tax effect from non-usable losses (1,499,866) (74,993) (74,993)
TOTAL TAX EXPENSE 126,055 62,301 (91,260) 97,096
hems 12/31/2015
Taxable Base Tax rate
22.5% 40.0% 5% 22.5% Addit. 40% 5% Total
Thus$ ThUss$ Thus$ Thus$ ThUss$ ThUs$ ThUss$
(Loss) profit before taxes (2,221,608) (2221603) — (2,221,608) 499,861 888,641 111.080 1,499,582
Profit before taxes affiliates (834,574) (834,574) (834,574) 187,779 333,830 41,729 563,338
Profit before taxes consolidated (3,056,177) (3,056,177) (3,056,177) 687,640 1,222,471 152,809 2,062,920
Permanentdifferences
Taxes of first category (22.5%) 40,851 (9,191) (9,191)
Specific tax for government fims Art. 2 D.L. 2.398 (40%) 2,721,525 (1,088,610) (1,088,610)
Specific mining tax (3,188,280) (159,414) (159,414)
TOTAL TAX EXPENSE 678,449 133,861 (6,605) 805,705
Other payments to the State (15,692) (23,118) (110,125) (148,935)
Change oftax rate 71,628
TOTAL TAX EXPENSE 728,398

Pursuant to Article 2 of the Decree Law 2.398, Codelco ¡is subject to an additional tax rate of 40% to
net earnings plus the dividends received in accordance with the law.

F-291

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)

Tax Reform in Chile

On September 29, 2014, Law No. 20.780 entitled “Tax Reform which modifies the Tax System on
income, and which introduces various adjustments to the Tax System”, was published.

Among the principal changes, the creation of two optional tax systems stands out: The Attributed
Income System, which establishes the progressive increase of the tax rate of the first category for the
commercial years 2014, 2015, 2016 and 2017 increasing such rate to 21%, 22.5%, 24% and 25%,
respectively; and in the Partially Integrated System, which establishes a progressive increase of the
tax rate of the first category for the commercial years 2014, 2015, 2016, 2017 and 2018 increasing
such rate to 21%, 22.5%, 24%, 25.5% and 27% respectively.

For the calculation of the deferred taxes, the Corporation, notwithstanding the above, has applied the
General Taxation Regime?, with tax rates notched for fiscal years 2014, 2015, 2016, and 2017
onwards, increasing them to 21%, 22.5%, 24% and 25%, respectively. Codelco, as a state-owned
company, has the option to avail itself of the schemes provided for in Article 14 of the mentioned Tax
Reform.

A rate of 5% for the Specific Mining Tax has been estimated, in accordance with Law No. 20.496.

? Codelco as a state owned Company is not subject to the Attributed Income or Partially Integrated System
and applies a general tax regime, where the tax rate from 2017 onwards amounts to 25%.

F-292
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. Current tax assets and liabilities

The current tax balance is presented net of provisional monthly payments as assets or liabilities:

12/31/2016 12/31/2015
Tax Assets
Thus$ ThUs$
Recoverable Taxes (255,528) 255,528
Reclassification to Non-current Assets (*) 255,528
Recoverable Taxes 12,009 14,884
Total Current Tax Assets 12,009 270,412
(*) Please refer to Note 11 for the reclassification
o 12/31/2016 12/31/2015
Current Tax Liabilities
Thus$ ThUs$
Provision for Mining Tax – 4,156
Provision PPM – 8,565
Others 15,068 3,532
Total Current Tax Liabilities 15,068 16,253

F-293
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)

7. Property, Plant and Equipment
a) The balance of property, plant and equipment at December 31, 2016 and 2015, are ¡is

follows:
Property, Plant and Equipment, gross 12/81/2016 12/31/2015
ThUS$ ThUs$
Work in progress 6,266,471 4,890,617
Land 151,239 133,133
Buildings 5,141,194 4,962,596
Plant and equipment 14,295,916 14,129,173
Fixtures and fittings 50,687 56,229
Motor vehicles 1,977,631 1,998,687
Land improvements 4,914,797 4,715,847
Mining operations 5,823,625 5,199,036
Mine development 3,980,114 3,863,754
Other assets 1,368,649 1,433,836
Total Property, Plant and Equipment, gross 43,970,323 41,382,908
Property, Plant and Equipment, accumulated depreciation 12/81/2016 12/31/2015
ThUS$ ThUS$
Work in progress – –
Land 6,824 –
Buildings 2,734,011 2,594,337
Plant and equipment 8,893,258 8,644,487
Fixtures and fittings 37,537 38,680
Motor vehicles 1,170,564 1,111,840
Land improvements 2,824,931 2,663,029
Mining operations 3,285,416 2,588,786
Mine development 572,408 659,444
Other assets 468,113 453,994
en Plant and Equipment, accumulated 19,993,062 18,754,597
Property, Plant and Equipment, net 12/81/2016 12/31/2015
ThUS$ ThUs$
Work in progress 6,266,471 4,890,617
Land 144,415 133,133
Buildings 2,407,183 2,368,259
Plant and equipment 5,402,658 5,484,686
Fixtures and fittings 13,150 17,549
Motor vehicles 807,067 886,847
Land improvements 2,089,866 2,052,818
Mining operations 2,538,209 2,610,250
Mine development 3,407,706 3,204,310
Other assets 900,536 979,842
Total Property, Plant and Equipment, net 23,977,261 22,628,311

F-294
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

b) Movements of Property, plant and equipment:

. Movements Work in Land Buildings Plan and o Motor Vehicles Land Mining Mine Other Assets Total

(in Thousands of US$) Progress equipment Fittings Improvements Operations Development
Opening balance as 1/1/2016 4,890,617 | 133,133| 2,368,259 5,484,686 17,549 886,847 2,052,818 2,610,250 3,204,310 979,842 22,628,311
Additions 2,613,389 – 1,167 50,282 94 3,415 1,244 358,759 4,280 32,679 3,065,309
Disposals (22,560) – (5,523) (86,392) (226) (3,128) (5,222) (14,995) – (8) (88,054)
Transfers (1,424,507) 17,603 258,561 548,873 675 38,898 263,637 51,634 244,594 32 –
Depreciation and amortization -| (6,824) (165,079) (552,804) | (2,451) (120,513) (197,960) (739,075) (67.022) (82,014) | (1,933,742)
Reclassifications (76,184) – (64,096) (98,284) 54 1,543 (24,642) 278,885 21,544 (88,820) –
Dismantling Asset 287,780 – – – – – – – 287,780
Other (*) (2,064) 503 13,894 6,297| (2,545) 5 (9) (7,249) – 8,825 17,657
Total movements 1,375,854 | 11,282 38,924 (82.028) | — (4,399) (79,780) 37,048 (72,041) 203,396 (79,306) 1,348,950
Final Balance 12/31/2016 6,266,471 | 144,415 2,407,183 5,402,658 | 13,150 807,067 2,089,866 2,538,209 3,407,706 900,536 | 23,977,261

Movements i a Fixtures Minin Mine

(in Thousands of US$) Progress Land Buildings coment Emos Motor Vehicles Improvements Oper os Development Other Assets Total
Opening balance as 1/1/2015 4,468,987 | 125699] 2,445,734 5,860,944 17,189 902,279 1,842,579 2,765,774 2,442,089 1,033,087 21,904,361
Additions 3,037,635 1,006 4,056 31,662 2,661 3,137 720,072 – 28,183 3,828,412
Disposals (888,881) – (718) (73,752) (25) (1,354) (99) – (3,331) 295 (467,865)
Transfers (1,243,012) 12,085 138,102 557,259 793 80,355 308,908 121,832 3,522 20,156 –
Depreciation and amortization – | (162,877) (681,957) | (3,285) (143,874) (204,701) (615,187) (64,717) (96,542) | (1,973,140)
Reclassifications (738,778) – 1,019 (45,236) 168 51,987 118,005 (249,180) 826,746 35,343 74
Dismanting Asset (45,889) – (15,469) (84,419) – (1) (20,616) – – (116,394)
Impairment (200,864) | (4,236) (44,228) (106,941) (64) (2,477) (11,634) 5,867 – – (864,577)
Other (*) 1,419 (1,421) 2,640 (22.874) 112 (68) 17,239 (138,928) 1 (40,680) (182,560)
Total movements 421,630 7,434 (77,475) (376,258) 360 (15,432) 210,239 (155,524) 762,221 (53,245) 723,950
Final Balance 12/31/2015 4,890,617 133,133 | 2,368,259 5,484,686 | 17,549 886,847 2,052,818 2,610,250 3,204,310 979842 | 22,628,311

(*) please refer to letter g) below.

F-295

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)

d)

9)

h)

The value of construction in progress, is directly associated with the operating activities of
the Corporation, and relates to the acquisition of equipment and projects under construction.

The Corporation has contracted insurance policies to cover the potential risks to which the
various elements of property, plant and equipment are exposed to, and any claims that
could arise from their activities during the period, these policies provide adequate coverage
of the potential risks.

Borrowing costs capitalized for the year ended December 31, 2016 amounted to
ThUS$150,554 at an annual capitalization rate of 3.95%. Borrowing costs capitalized for
the year ended December 31, 2015, amounted to ThUS$127,568 at an annual
capitalization rate of 3.83%.

The costs of exploration and drilling of deposits are recognized in profit or loss in
accordance with the Corporation’s accounting policy. Such expenditures are presented as
follows:

Year ended
Expenditure on exploration and drilling reservoirs Year ended December 31,
December 31, 2016 2015
ThUs$ ThUS$
Results of the period 34,341 87,047
Cash outflows 26,533 52,431

The item “Other assets” under “Property, plant and equipment” includes:

Other assets, net 12/31/2016 12/31/2015
ThUS$ ThUS$

Leased assets 98,695 96,534
Mining properties from the purchase of Anglo American Sur S.A. shares

00 402,000 402,000
Maintenances and other major repairs 285,144 340,303
Other assets Plan Calama 108,327 133,464
Others 6,370 7,541
Total other assets, net 900,536 979,842

(+) fair value adjustment for assets acquired in a business combination in 2012. Please refer to note 8.

With the exception of assets under financing leases whose legal title belongs to the lessor,
the Corporation currently has no ownership restrictions relating to assets included in
Property, plant and equipment.

3 Corresponds to the costs incurred to move the employees from the mine site of Chuquicamata to Calama. Such assets are depreciated over a 15-
year time period.

F-296
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)

Codelco has not granted “Property, plant and equipment” assets as collateral to third
parties in order to enable the realization of its normal business activities or as a
commitment to guarantee payment obligations.

1) According to the accounting policy indicated in note 2.i), related to impairment of Property
Plant €. Equipment and Intangible Assets, and as indicated in note 25 Operating Segments,
as of December 31, 2016, there were not impairment indicators neither reversals of
impairment from prior periods.

For the year ended December 31, 2015, the Corporation recorded an impairment charge
and decreased the value of certain assets of the Divisions Ventanas and Salvador. The
adjustments amount to ThUS$54,047 (Ventanas) and ThUS$310,530 (Salvador), before
taxes.

8. Investments accounted for using the equity method

The following table sets forth the carrying amount and the share of profit of the investments
accounted for using the equity method:

Equity Method
balance share of profit (loss)
Item 12/31/2016 12/31/2015 1/1/2016 1/1/2045
12/31/2016 12/31/2015
ThUus$ ThUS$ ThUS$ ThUS$
Investments in associates accounted for 3,753,974 3,977,786 (177,358) (2,586,742)
using the equity method
Joint ventures – 114,031 – 85,090
Total 3,753,974 4,091,817 (177,358) (2,501,652)

a) Associates
Agua de la Falda S.A.

As of December 31, 2016, Codelco has a 43.28% interest in Agua de la Falda S.A., with
the remaining 56.72% owned by Minera Meridian Limitada.

The line of business of this company is to exploit deposits of gold and other minerals, in the
third region of the country.

Sociedad Contractual Minera El Abra

Sociedad Contractual Minera El Abra was formed in 1994, As of December 31, 2016,
Codelco has a 49% interest in Sociedad Contractual Minera El Abra, with the remaining
51% owned by Cyprus El Abra Corporation, a subsidiary of Freeport-McMoRan Copper €.
Gold Inc.

Company activities involve the ext .ction and marketing of copper cathodes.

F-297
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)

Sociedad Contractual Minera Purén

As of December 31, 2016, Codelco has a 35% interest in Sociedad Contractual Minera
Purén, with the remaining 65% owned by Compañía Minera Mantos de Oro.

This companys line of business 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, 2016, Codelco has a 37% interest in Sociedad GNL Mejillones S.A.,
with the remaining 63% owned by Suez Energy Andino S.A. The Corporaion initially owned
50% interest in this investment, however, on November 5, 2010, its interest was diluted
since the Corporation did not proportionally increase its capital contribution agreed by the
shareholders of meeting held on that date.

This company’s line of business 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, individually or in partnership with third
parties.

Comotech S.A.

On April 4, 2016, the Internal Revenue Service (“IRS”) approved the end of operations of
this company.

Inca de Oro S.A.

On June 1, 2009 Codelco’s Board authorized the incorporation of a company with the
purpose develop studies to allow continuity of the Inca de Oro Project.

On February 15, 2011, the partnership between Codelco and Minera PanAust IDO Ltda.
was approved in respect to the Inca de Oro deposit, with 66% of the intererest of Inca de
Oro S.A. held by Minera PanAust IDO Ltda. and the remaining 34% by Codelco. Pior to
entering into the partnership agreement, Codelco owned 100% of the company.

The Corporation recorded a gain of ThUS$33,668, before taxes, in the consolidated
financial statements ending December 31, 2011.

At December 30, 2014, in the Extraordinary meeting of the shareholders held on that date,

it was agreed to increase the capital share of ThUS$102,010, reducing Codelco’s
participation to 33.19%.

F-298
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 December 31, 2014, the Corporation has decreased the mining property valuations and
exploration and evaluation expenditures, due to an impairment analysis of assets in
accordance with IFRS.

As of December 31, 2016, Codelco holds a participation of 33.2% of shared capital.
Copper for Energy S.A.

On April 25, 2016, the IRS approved the end of operations of Copper for Energy S.A.
Planta Recuperadora de Metales SpA

On December 3, 2012, Planta Recuperadora Metales SpA was incorporaated, with Codelco
owning 100% of the entity.

On July 7, 2014, Codelco reduced its participation in the total equity of the firm Planta
Recuperadora de Metales SpA to a 51% interest. LS-Nikko Copper Inc. holds the remaining
49% of the equity.

On October 14, 2015, Codelco reduced its participation in the total equity of the firm Planta
Recuperadora de Metales SpA to a 34% interest. LS-Nikko Copper Inc. holds the remaining
66% of the equity.

As of December 31, 2016, LS-Nikko Copper Inc. holds the control of the entity, which ¡is
based on the control elements that are described in the shareholders’ agreement.

The principal activity of the company ¡is the processing of intermediate products of the
refining and processing of copper and other metals, with the aim to recover copper, the
other metals and other containing sub products, their transformation in commercial products
and to commercialize and distribute all class of goods or inputs which stand in relation with
the mentioned process.

Deutsche Giessdraht GmbH

As of December 31, 2016, Aurubis and Codelco through its affiliate, Codelco Kupferhandel
GmbH, have a 60% and 400% interest, respectively.

The company produces wire rods in its Emmerich, Germany facility.

Anglo American Sur S.A.

At December 31, 2016, the control of Anglo American Sur belongs to Inversiones Anglo
American Sur S.A. with a 50.06% share interest, while the non-controlling interest
corresponds to Inversiones Mineras Acrux SpA. Codelco controls Inversiones Mineras

Acrux SpA with a share interest of a 67.8% and holds a significant influence of 29.5% in
Anglo American Sur S.A. through its affiliate Inversiones Mineras Becrux SpA.

F-299
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 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 naturally presented. 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 in which the
shareholders agree.

The following table demonstrates the equity value and share of profit (loss) on investments in associates:

Share of profit (loss) on
Tanaver Eunat Equity Interest Equity Method Balance associates
AS Number Currenc. | 12/31/2016 | 12/31/2015 | 12/31/2016 | 12/31/2015 DS zos
% % ThUs$ ThUs$ ThUs$ ThUS$

Deutsche Geissdraht GmbH Foreign EUR 40.0% 40.0% 3,594 3,033 1,748 1,143
Agua de la Falda S.A. 96.801.450-1 US$ 43.3% 43.3% 5,064 4,591 (270) (357)
Sociedad Contractual Minera El Abra 96.701.340-4 US$ 49.0% 49.0% 628,977 650,726 17,649 (3,595)
Minera Purén SCM 76.028.880-2 US$ 35.0% 35.0% 10,091 10,192 (101) 4,014
Sociedad GNL Mejillones S.A. 76.775.710-7 US$ 37.0% 37.0% 70,485 68,029 2,455 8,977
Inca de Oro S.A. 73.063.022-5 US$ 33.2% 33.2% 12,937 23,097 (10,533) –
Anglo American Sur S.A. 77.762.940-9 US$ 29.5% 29.5% 3,011,836| 3,214,570| (187,552) (2,596,610)
Planta Recuperadora de Metales SpA | 76.255.054-7 US$ 34.0% 34.0% 10,990 3,548 (754) (301)
Comotech S.A. 76.009.778-9 US$ % 48,19% – – – (13)
TOTAL 3,753,974| 3,977,786 | (177,358) | — (2,586,742)

The following tables detail the assets and liabilities at December 31 2016 and 2015 and main
movements and results for the periods ended December 31, 2016 and 2015, with respect to
investments in associates accounted for under the equity method:

Assets and liabilities 12/31/2016 12/31/2015
ThUs$ ThUS$
Current Assets 1,711,809 1,240,418
Non-current Assets 5,835,998 6,120,536
Current Liabilities 527,116 339,828
Non-current Liabilities 1,538,710 1,156,418
1/1/2016 1/1/2015
Net Income 12/31/2016 12/31/2015
ThUS$ ThUS$
Revenue 2,239,048 2,965,080
Costof sales (2,525,338) (3,140,367)
Netloss for the period (286,290) (175,287)

F-300

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)

1/1/2016 1/1/2015
Movements of Investment in Associates 12/31/2016 12/31/2015

ThUS$ ThUS$
Opening balances 3,977,786 6,665,113
Contributions 9,499 481
Dividends (67,959) (91,797)
Netincome for the period (98,547) (147,247)
Foreign exchange differences (415) –
Anglo American Sur S.A. Impairment (78,811) (2,439,495)
Other 12,421 (9,269)
Final balance 3,753,974 3,977,786

The following tables provide details of asset and liabilities of the significant associates at December 31, 2016
and 2015, and present the major movements and their results for the year ended December 31, 2016 and

2015.

Anglo American Sur S.A.
Assets and liabilities 12/31/2016 12/31/2015
ThUs$ ThUS$
Current Assets 1,187,986 750,664
Non-current Assets 4,121,970 4,419,038
Current Liabilities 378,584 271,345
Non-current Liabilities 1,035,354 626,548
1/1/2016 1/1/2015
Net Income 12/31/2016 12/31/2015
ThUS$ ThUS$
Revenue 1,675,679 2,080,438
Costof sales (2,000,005) (2,189,688)
Loss for the period (824,326) (109,250)
Sociedad Contractual Minera El Abra
Assets and liabilities 12/31/2016 12/31/2015
ThUS$ ThUS$
Current Assets 451,765 443,237
Non-current Assets 1,151,562 1,221,180
Current Liabilities 48,497 54,475
Non-current Liabilities 271,203 252,782

F-301
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)

1/1/2016 1/1/2015
Net Income 12/31/2016 12/31/2015
ThUS$ ThUS$
Revenue 502,895 807,957
Costof sales (466,876) (815,294)
Profit for the period 36,019 (7,337)

b) Joint ventures

On April 7, 2016, Codeco sold its 50% share interest in Copper Partners Investment
Company Limited (“CuPIC”) that is had through its subsidiary Codelco International (please
refer to Note 30). Codelco was a shareholder in a joint venture with Album Enterprises
Limited (a subsidiary of Minmetals) before selling its shares. Please refer to Note 30 b) for

more details.
Joint Venture Equity
Copper Partners Investment Company 509%
Limited
Assets and liabilities 12/31/2016 12/31/2015
ThUS$ Thus$
Current Assets – 76,806
Non-current Assets – 161,956
Current Liabilities – 10,705
Non-current Liabilities
1/1/2016 1/1/2015
Net Income 12/31/2016 12/31/2015
ThUS$ Thus$
Revenue – 306,160
Costof sales – (135,981)
Profit for the year – 170,179

4 Participation sold on April 7, 2016

F-302
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)

1/1/2016 1/1/2015
Movements of the investment in joint
ventures 12/31/2016 12/31/2015
ThUS$ ThUS$
Opening balances 114,031 133,593
Reduction of share (99,601)
Dividends (14,430) (104,650)
Profit (loss) for the period – 85,090
Other – (2)
Final balance – 114,031

c) Additional information about profit and losses on intragroup transactions

d)

The Corporation has eliminated intragroup profits for the purchases and sales of products,
mining properties, property, plant and equipment and ownership rights with intragroup
entities.

The balance of intragroup profit at December 31, 2016 amounts to TRUS$0 (December 31,
2015: ThUS$14,283).

Codelco carries out copper purchase and sales with Sociedad Contractual Minera El Abra.
At December 31, 2016 and 2015, the value of finished products inventories category
presents eliminations of intragroup profits.

Codelco carries out copper purchases and sales with Anglo American Sur S.A. At
December 31, 2016, the value of finished products inventories category presents no
provision for intragroup profits. At December 31, 2015, the company had a provision of an
intragroup profit amounting to ThUS$161.

The Company has recorded unrealized gains for the purchase of rights to use GNL terminal
of Contractual Minera El Abra in the amount of ThUS$3,920 at December 31, 2016 and
2015.

Share in companies acquired at fair value

The acquisition by Codelco of its participation in Anglo American Sur S.A., on August 24,
2012, was recorded based on the acquisition method, which involved the initial recognition
of an investment in the amount of ThUS$6,490,000, corresponding to the percentage of the
share interest acquired (29.5%) over the fair value of the net assets of the company.

In determining the fair value of the net assets of the acquired share interest, the
Corporation considered both the resources and mineral reserves that can be recovered
reliably and the assessment of intangibles and all other considerations about assets and
contingent liabilities was performed.

F-303
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 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 time of the acquisition of Anglo American Sur S.A.

The transaction has not resulted in the acquisition of control of the acquired company.

The Corporation used the model of discounted cash flows to estimate cash flow projections,
based on the life of the mines. These projections are based on estimated production and
future prices of minerals, operating costs and capital costs at the date of acquisition, among
other estimates. Additionally, resources and potential resources to explore are not included
in the plan because they have been valued separately using a market model. These
resources include the concept of “Mineral Resources”.

As part of update process by applying the valuation methodology described above, the fair
value of the net assets of Anglo-American Sur S.A. amounts to US$22,646 million. Codelco
acquired 29.5% share interest in the Company through Inversiones Mineras Becrux SpA.
Anglo-American Sur S.A. fair value amounts to US$6,681 million at the date of acquisition
by Codelco.

e) Additional information about impairment of investments accounted for using the
equity method

As of December 31, 2015, the Corporation identified the existence of impairment indicators
in the operating units of Anglo American Sur S.A. Accordingly, the Corporation performed a
calculation of the recoverable amount over the amounts calculated at the acquisition date to
verify the existence of impairment.

With the purpose of determining the recoverable amount, the Corporation applied the
methodology of fair value less disposal costs. The recoverable amount of the operating
assets was determined according to the LOM indicator, which is based on a discounted
cash flow model, mainly affected by the ore reserves of the associate, the copper price, the
supply costs, foreign exchange rates, discount rates and the market information for the
long-term assets valuation. The discount rate used for this calculation was 8% for the year,
before taxes.

Furthermore, the resources which are not included in the LOM, as well as the potential
resources to explore, have been valued using a market model of multiples for comparable
transactions.

Such valuation methodologies are in line with the one used at the acquisition date, which is
detailed in letter d) of this note.

As a result, the Corporation recognized an impairment of ThUS$2,439,495 over the

associate identified assets, which are disclosed in the line “Share of profit of associates and
joint ventures accounted for usina the eauitv method” of the Consolidated Statements of

F-304
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)

Comprehensive Income for the period ended December 2015. Such impairment loss is
mainly due to the drop in copper prices during the year 2015.

As of December 31, 2016, the parent company of Anglo American Sur S.A. performed a
review of the discounted cash flow model of its Cash Generating Units (CGU), determining
an impairment of assets of the El Soldado CGU due to the uncertainty in the Operations
Plan approval presented to SERNAGEOMIN, specifically related to environmental permits.
This raises questions about the generation of future economic benefits to support the value
of the assets related to said CGU.

According to the above, and with the purpose of making the accurate adjustments in the
recognition of its participation over the Companys profit or loss for the period, the
Corporation performed a calculation of the recoverable amount of the investment related to
El Soldado operations.

As a result, the Corporation recognized an impairment of ThUS$78,811 over the identified
assets related to El Soldado operations, which are disclosed in the line “Share of profit of
associates and joint ventures accounted for using the equity method” of the Consolidated
Statements of Comprehensive Income for the period ended December 2016.

After the recognition of the share of loss of associates, according to the details above, there
is no additional evidence requiring further impairment recognition other than mentioned
above, on the recoverable amount of the investment held in Anglo American Sur S.A.

f) Share of loss of associates and joint ventures accounted for under the equity method

The share of the loss corresponding to Anglo American Sur S.A. investment for the year
ended December 31, 2016, amounts to ThuS$(95,676). In addition to that, the Corporation
has recorded an impairment over the investment that resulted adjusting the net assets and
the depreciation by ThUS$(91,876). This amount has been decreased from the line item
“Share of loss of associates and joint ventures accounted under the equity method” in the
Consolidated Statements of Comprehensive Income.

9. Intangible assets other than goodwill

As of December 31, 2016 and 2015, the intangible assets other than goodwill are as
follows:

a) This item is comprised as follows:

12/31/2016 12/31/2015
ltem ThUS$ ThUS$
Intangible Assets with finite useful life, net 14,314 13,699
Intangible assets with indefinite useful life 182,583 172,383
Total 196,897 186,082

F-305
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) Balances:
12/31/2016
tem Gross pocumated Net
Thus$ Thus$ ThUS$

Trademarks, patents and licenses 28 – 28

Water rights 7,959 – 7,959
Software 2,984 (1,079) 1,905
Technological development and innovation 174,624 – 174,624

Other 12,874 (493) 12,381

Total 198,469 (1,572) 196,897

12/31/2015
tem Gross Poe Net
Thus$ ThUs$ ThUS$

Trademarks, patents and licenses 28 – 28

Water rights 7,959 – 7,959
Software 2,349 (1,056) 1,293
Technological development and innovation 164,424 – 164,424

Other 12,824 (446) 12,378

Total 187,584 (1,502) 186,082

c) Movements:
Trademarks, Water Technological
Movements rin and rights Software development Other Total

Opening balance 1/1/2016 28 7,959 1,293 164,424| 12,378 186,082
Additions – – 212 10,200 1,061 11,473
Amortization – – (358) – (852) (710)
Reclassifications – – 515 – (515) –
Other – – 243 – | (191) 52
Total Movements – – 612 10,200 3 10,815
Final Balance 12/31/2016 28 7,959 1,905 174,624| 12,381 196,897

F-306
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)

Trademarks, Water Technological
Movements patents and . Software | development | Other Total
s rights : z
licenses é innovation
Opening balance 1/11/2015 28 5,715 713 148,656| 11,950 167,062
Additions – 2,244 1,019 15,768 718 19,749
Disposals – – (67) – (61) (128)
Amortization – – (329) – (850) (679)
Other – – (43) – 121 78
Total Movements – 2,244 580 15,768 428 19,020
Final Balance 31/12/2015 28 7,959 1,293 164,424 | 12,378 186,082

d) Additional Information

– As of December 31, 2016 and 2015, the Corporation owns significant intangible
assets which amount to TRUS$174,624 and ThUS$164,424, respectively, related to
the “Proyecto Minera Continua” – internally generated intangible asset.

– Asof December 31, 2016 and 2015, there are no fully amortized intangible assets
that are being used in the operations.

– — For the years ended December 31, 2016 and 2015, expenses for research and
technological development and innovation recorded in the statement of
comprehensive income amounts to ThUS$7,473 and ThUS$23,872, respectively.
Cash outflows for research and development amounted to ThUS$11,317 and
ThUS$11,793 as of December 31, 2016 and 2015, respectively.

10. Subsidiaries

The following tables present a detail of the assets, liabilities and results of the Corporation’s
subsidiaries, prior to consolidation adjustments:

Assets and liabilities 12/31/2016 12/31/2015
ThUS$ ThUS$
Current Assets 489,259 503,468
Non-current Assets 3,812,342 3,970,939
Current Liabilities 383,060 364,030
Non-current Liabilities 1,306,171 1,268,184
1/1/2016 1/1/2015
Net Income 12/31/2016 12/31/2015
ThUS$ ThUS$
Revenue 1,542,901 (678,343)
Costof sales (1,786,958) (1,905,224)
Profit (loss) for the period (244,057) (2,583,567)

F-307
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)

11.

1

(2

12.

Other non-current non-financial assets

Other non-current non-financial assets included in the consolidated statement of financial
position as of December 31, 2016 and 2015 ¡is detailed as follows:

Other non-current non-financial assets 12/81/2016 12/81/2015
Thus$ ThUS$
Law No.13.196 Asset (1) 8,099 19,866
Others (2) 6,218 8,042
Total 14,317 27,908

Corresponds to the recording of the commitment related to Law No. 13.196 (please refer to Note
2.Z), for the advance payment received for the copper sales contract signed with CuPIC. This
amount will be amortized according to the shipments made.
Corresponds to a reclassification of recoverable income taxes to a category Tax Assets in the
consolidated statement of financial position.

Current and non-current financial assets
Current and non-current financial assets included in the statement of financial position are

detailed as follows:

12/31/2016
At fair value Total

Classification in the statement of financial | though profitand Loans and Hedging Available financial

position loss receivables derivatives for sale assets

ThUS$ ThUS$ ThUs$ ThUS$ ThUS$
Cash and cash equivalents 1,497 575,229 – 576,726
Trade and other current receivables 95,971 2,158,760 2,254,731
Accounts receivables, non — current – 95,316 95,316
AIR due from related companies, current 13,669 13,669
AIR due from related companies, non — current 21,713 – 21,713
Other current financial assets 2,391 7,470 9,861
Other non – current financial assets – 6,550 64,035 70,585
TOTAL 97,468 2,873,628 71,505 3,042,601

12/31/2015
At fair value Total

Classification in the statement of financial | though profitand Loans and Hedging Available financial

position loss receivables derivatives for sale assets

ThUS$ ThUS$ ThUs$ ThUS$ ThUs$
Cash and cash equivalents – 1,747,718 – 1,747,718
Trade and other current receivables (66,977) 1,943,840 1,876,863
Accounts receivables, non — current – 85,069 85,069
AIR due from related companies, current 21,057 21,057
AIR due from related companies, non — current 224 – 224
Other current financial assets 7,425 2,117 10,202
Other non – current financial assets – 5,526 30,765 36,291
TOTAL (66,977) 3,810,858 33,542 3,777,423

Financial assets designated at fair value through profit or loss: At December 31, 2016,
this category mainly includes provisional pricing arrangements and mutual fund investments
made by Codelco Chile subsidiaries.

F-308

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)

13.

The effects on results of open invoices are determined by the differences between the
provisional price at the date of shipment and the futures price curve of products, as explained
under the title Accounting policies (letter p of number 2 of Chapter 1I), while mutual funds
affect the result by the change in fair value of shares.

Loans granted and other receivables: These correspond to financial assets with fixed or
determinable payments that are not traded in an active market.

The effects on the period’s statements of comprehensive income generated by these assets,
come mainly from financial interest gains and from the exchange rate differences related to
the balances in currencies other than the functional currency.

No material impairments were recognized in accounts receivable.

Hedging derivatives: These correspond to the receivable balances for derivative contracts
from the exposure generated by existing operations and which affect the period’s profit and
loss from the liquidation of these operations. The details of derivative transactions are
included in Note 29.

Available-for-sale financial assets: These correspond primarily to non-derivative financial
assets that are specifically designated as available for sale or are not classified as: a) loans
and receivables, b) investments held to maturity or c) financial assets carried at fair value
through profit or loss.

Within the period presented, there was no reclassification of financial instruments among the
different categories established under lAS 39 “Financial Instruments: recognition and
measurement”.

Interest-bearing borrowings

Current and non-current interest-bearing borrowings correspond to Borrowings from financial
institutions, Bond obligations and Finance leases, which are recorded by the Corporation at
amortized cost using the effective interest rate method.

The tables below show the composition of the other financial liabilities, current and non-
current.

12/31/2016
Current Non-current
Loans and
Items Loans and other Hedghg Total other Hedghg Total
payables derivatives derivatives
payables
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Loans from financial entities 166,294 166,294 | 2,988,447 2,988,447
Bonds 150,563 150,563 | 11,608,257 11,608,257
Financial Lease 23,683 – 23,683 100,808 – 100,808
Hedge obligations 10,155 10,155 161,619 161,619
Other financial liabilities 1,915 1,915 72,338 – 72,338

F-309

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)

[ Total [ 342455] 10,155] 352,610] 14,769,850 | 161,619 | 14,931,469 |
12/31/2015
Current Non-current
Loans and other Hedgin Loans and Hedgin
Items payables derialvos Total other dematves Total
payables

ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Loans from financial entities 995,891 0 995891| 2,511,654 0 2,511,654
Bonds 146,923 0 146,923 | 11,176,610 0 11,176,610
Financial Lease 19,173 0 19,173 99,401 0 99,401
Hedge obligations 0 107 107 0 162,437 162,437
Other financial liabilities 4,116 0 4,116 76,829 0 76,829
Total 1,166,103 107 1,166,210 | 13,864,494 162,437 14,026,931

Borrowings from financial institutions:

The Corporation obtains mainly its financing for its projects from financial markets outside
of Chile.

On August 23, 2012, the subsidiary Inversiones Gacrux SpA (Gacrux), entered into a Credit
Agreement, with Oriente Copper Netherlands BV (a subsidiary of Mitsui € Co. Ltd.) by
borrowing approximately US$1,863 million, renewable monthly until November 26, 2012,
after which, if not paid or renegotiated, is automatically renovated as loan with a 7.5 years
maturity from the date of disbursement, and bearing interest at an annual rate of Libor +
2.5%. The Corporation has not issued any guarantees (“non-recourse”) in relation to this
loan. Inversiones Gacrux SpA is the parent of Inversiones Mineras Acrux SpA which has a
subsidiary Inversiones Mineras Becrux SpA.

Codelco’s indirect subsidiary Inversiones Mineras Becrux SpA used this funding for the
acquisition of 24.5% of the shares of Anglo American Sur S.A. and other related expenses.

On October 31, 2012, the Credit Agreement mentioned above was amended, changing the
original floating rate to a fixed rate of 3.25% per annum and a maturity of 20 years, to be
payable in 40 semi-annual payments of principal and interest. The modified credit
agreement includes a pledge over the shares that Inversiones Gacrux SpA has over Acrux
Inversiones SpA (shared participation with Mitsui and non-controlling shareholder in Anglo
American Sur S.A.), in order to ensure compliance with the obligations that the financial agreement
contemplates

Under pre-arranged agreements, Mitsui will be entitled to receive an additional interest
equivalent to one-third of the savings that will accrue to Gacrux from the comparison
between the refinanced loan and the originally signed Credit Agreement.

Prior to the amendment, Mitsui was entitled to receive an additional interest equivalent to

one-third of the savings that Gacrux benefits with the modified agreement as compared with
the original agreement.

F-310

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)

Furthermore, Mitsui (through a subsidiary) held an option to purchase from Gacrux an
additional 15.25% of the shares issued by the company Inversiones Mineras Acrux SpA
(“Acrux”), at a fixed price of approximately US$998 million, to be used in full to prepay
Gacrux’s debt under the Credit Agreement.

Subsequently, on November 26, 2012, Mitsui finished the mentioned purchase of the
additional 15.25% share interest in Acrux. Codelco reduced its loan balance by the sales
amount with Mitsul.

On November 26, 2016, Codelco entered into a financing with Oriente Copper Netherlands
BV, to refinance a semi-annual installment, the conditions establish an annual rate of Libor
+ 2.5% and a duration of 5 years, payable at one installment at maturity date with semi-
annual interest payment. As of December 31, 2016, the credit agreement balance amounts
to ThUS$ 739,440.

eBond obligations:

On May 10, 2005, the Corporation issued and placed bonds in the domestic market for a
nominal amount of UF 6,900,000 in a single series denominated 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, with a 4% annual interest rate and with bi-annual interest payments.

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, with a 5.6250% annual interest
rate and with bi-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, with a 6.15% annual interest rate and
with bi-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
mature in a single installment on January 15, 2019, at an interest rate of 7.5% per annum
with interest paid bi-annually.

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
mature in a single installment on November 4, 2020, at an interest rate of 3.75% per annum
with interest paid bi-annually.

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 mature in a single installment on November 4, 2021, with an interest rate of 3.875%
per annum, with interest paid bi-anni1allv

F-311
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 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. The ThUS$1,250,000
with an interest rate of 3% per annum mature on July 17, 2022 and the ThUS$750,000 with
an interest rate of 4.25% mature on July 17, 2042, and each have interest paid annually.

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 TRUS$750,000, which will mature in
a single installment on August 13, 2023, with a coupon of 4.5% per annum with interest
paid semiannually.

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, which will mature in
a single installment on October 18, 2043, with a coupon of 5.625% per annum with interest
paid semiannually.

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,
which will mature in a single installment on July 9, 2024, with a coupon of 2.25% per annum
with the interest paid annually.

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, which will mature in
a single installment on November 4, 2044, with a coupon of 4.875% per annum with
interest paid semiannually.

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, which will
mature in a single installment on September 16, 2025, with a coupon of 4.5% per annum
with interest paid semiannually.

On August 24, 2016, the Corporation issued and placed bonds in the local market for a
nominal amount of UF10,000,000 in only one series named as Series C, which is
composed by 20,000 tittles of UF500 each one. These bonds will mature in a single
installment on August 24, 2026, with a coupon of 2.5% per annum with interest paid
semiannually.

As of December 31, 2016 and 2015 the Corporation is not required to comply with any
financial covenant related to borrowings from financial institutions and bond obligations.

e Financial debt commissions and expenses:

Obtaining financial resources generates, in addition to the interest rate, fees and other
expenses charged by the financial institutions, and the Corporation receives the net value
of the loans. These expenses are amortized based on the effective interest rate determined
using the amortized cost method.

F-312
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 Finance leases:

Finance lease transactions are generated for service contracts, principally for buildings and
machinery.

F-313
(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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

As of December 31, 2016, the details of loans from financial institutions and bond obligations are as follows:

12/31/2016
Taper Country Loans a fnancial Institution Maturity Rate | Currency Amount Type of amortization Paymentof Nomina! ec o Non cunent
ThUS$ Thus$
Foreign USA Bilateral Credit Bank of Tokyo Mitsubishi Ltd. 9/30/2021 | Floating US$ 250,000,000 | Maturity Quarterly 1.63% | 1.70% 884 249,373
Foreign USA Bilateral Credit Export Dev Canada 11/3/2021 | Floating US$ 300,000,000 | Maturity Quarterly 1.50% | 1.66% 730 298,130
Foreign USA Bilateral Credit Mizuho Corporate Bank Ltd 9/16/2018 | Floating US$ 300,000,000 | Maturity Quarterly 1.58% | 1.83% 211 298,900
Foreign USA Bilateral Credit Bank of America N.A. 10/11/2018 | Floating US$ 300,000,000 | Maturity Quarterly 1.53% | 1.75% 1,006 298,905
Foreign USA Bilateral Credit Bank of Tokyo Mitsubishi Ltd. 7/19/2018 | Floating US$ 300,000,000 | Maturity Quarterly 151% | 1.62% 979 299,657
Foreign USA Bilateral Credit Export Dev Canada 7/17/2018 | Floating US$ 300,000,000 | Maturity Quarterly 151% | 1.60% 854 299,529
Foreign USA Bilateral Credit Mizuho Corporate Bank Ltd 6/5/2019 | Floating US$ 95,000,000 | Maturity Quarterly 157% | 1.81% 95 94,496
Foreign USA Bilateral Credit Export Dev Canada 6/16/2019 | Floating | US$ 300,000,000 | Maturity Quarterly 150% | 1.58% 1,010 299,287
Semi-annual principal installments
Foreign Japan Bilateral Credit Bank of T okyo-Mitsubishi Ltd 5/24/2019 | Floating US$ 96,000,000 | from 2015 until maturity Semi-annual 183% | 2.23% 24,110 35,695
Japan Bank International Semi-annual principal installments
Foreign Japan Bilateral Credit Cooperation 5/24/2022 | Floating US$ 224,000,000 | from 2015 until maturity Semi-annual 1.73% | 1.91% 32,304 143,227
Semi-annual principal installments
from 2015 until maturity
Foreign Netherlands | Bilateral Credit Oriente Copper Netherlands B.V 11/26/2032 | Fixed US$ 874,959,000 Semi-annual 3.25% | 5.37% 67,754 643,142
Semi-annual principal installments at
Foreign Netherlands | Bilateral Credit Oriente Copper Netherlands B.V’ 26-11-2021 | Fixed US$ 23,946,863 | maturity. Semi-annual 3.79% | 4.02% 915 27,629
Foreign Gemany Credit Line HSBC Trinkaus 8. Floating EUR 1.24% | 1.24% 30,097 –
Foreign Gemany Credit Line Deutsche Bank Floating EUR 1.22% | 1.22% 3,723 –
Other 1,622 477
TOTAL 166,294 2,988,447
Taxpayer number Country Matunty Rate | Currency Amount Type ofamortization Paymentof | Nominal | Effectiv Current Noninterest rate| erate balance balance
ThUS$ Thus$
144-AREG.S Luxembourg 1/15/2019 | Fixed US$ | 600,000,000 | Maturity Semi-annual 7.50% | 7.79% 20,788 596,805
144-AREG.S Luxembourg 11/4/2020 | Fixed US$ 1,000,000,000 | Maturity Semi-annual 3.75% | 3.98% 5,905 991,758
144-AREG.S Luxembourg 11/4/2021 | Fixed US$ | 1,150,000,000 | Maturity Semi-annual 3.88% | 4.07% 7,386 1,140,413
144-AREG.S Luxembourg 7/17/2022 | Fixed US$ | 1,250,000,000 | Maturity Semi-annual 3.00% | 3.17% 17,221 1,239,279
144-AREG.S Luxembourg 8/13/2023 | Fixed US$ | 750,000,000 | Maturity Semi-annual 4.50% | 4.75% 12,840 739,645
144-AREG.S Luxembourg 7/9/2024 | Fixed EUR | 600,000,000 | Maturity Anual 2.25% | 2.48% 6,729 622,361
BCODE-B Chile 4/1/2025 | Fixed UF. | 6,900,000 Maturity Semi-annual 4.00% | 3.24% 2,773 286,431
144-AREG.S Luxembourg 9/16/2025 | Fixed US$ 2,000,000,000 | Maturity Semi-annual 4.50% | 4.78% 26,353 1,961,203
BCODE-C Chile 8/24/2026 | Fixed UF. 10,000,000 Maturity Semi-annual 2.50% | 2.48% 3,474 417,595
144-AREG.S Luxembourg 9/21/2035 | Fixed US$ | 500,000,000 | Maturity Semi-annual 5.63% | 5.78% 7,925 491,260
144-AREG.S Luxembourg 10/24/2036 | Fixed US$ | 500,000,000 | Maturity Semi-annual 6.15% | 6.22% 5,998 496,222
144-AREG.S Luxembourg 7/17/2042 | Fixed US$ | 750,000,000 | Maturity Semi-annual 4.25% | 4.41% 14,638 732,251
144-AREG.S Luxembourg 10/18/2043 | Fixed US$ 950,000,000 Maturity Semi-annual 5.63% | 5.76% 11,010 932,674
144-AREG.S Luxembourg 11/4/2044 | Fixed US$ 980,000,000 Maturity Semi-annual 4.88% | 5.01% 7,523 960,360
TOTAL 150,563 | 11,608,257

Nominal and effective interestrates presented above correspond to annual rates.

F-314

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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

As of December 31, 2015, the details of loans from financial institutions and bond obligations are as follows:

12/31/2015
Non-current
Taxpayer number | Country A Institution Maturity Rate | Currency Amount Type of amortization Paymentof Nominal rate | Effective rate Curentbalance balance
ThUS$ ThUS$
Foreign USA Bilateral Credit | Mizuho Corporate Bank Ltd 10/13/2016 | Floating US$ 100,000,000 | Maturity Quarterly 0.92% 1.20% 99,995
Foreign USA Bilateral Credit | Bank of Tokyo Mitsubishi Ltd. 10/14/2016 | Floating US$ 250,000,000 | Maturity Quarterly 0.82% 1.13% 249,855
Foreign USA Bilateral Credit HSBC Bank USA. N.A. 10/11/2016 | Floating US$ 250,000,000 | Maturity Quarterly 0.92% 1.23% 249,959
Foreign USA Bilateral Credit | Export DevCanada 11/3/2016 | Floating US$ 250,000,000 | Maturity Quarterly 0.82% 1.25% 249,702 –
Foreign USA Bilateral Credit | Mizuho Corporate Bank Ltd 9/16/2018 | Floating US$ 300,000,000 | Maturity Quarterly 1.13% 1.37% 151 298,267
Foreign USA Bilateral Credit | Bank ofAmerica N.A 10/11/2018 | Floating US$ 300,000,000 | Maturity Quarterly 0.97% 1.18% 638 298,375
Foreign USA Bilateral Credit | Bank of Tokyo Mitsubishi Ltd. 7/17/2018 | Floating US$ 300,000,000 | Maturity Quarterly 0.94% 1.04% 597 299,357
Foreign USA Bilateral Credit | Export DevCanada 7/20/2018 | Floating US$ 300,000,000 | Maturity Quarterly 0.94% 1.04% 520 299,309
Foreign USA Bilateral Credit | Mizuho Corporate Bank Ltd 6/5/2019 | Floating US$ 95,000,000 | Maturity Quarterly 1.10% 1.33% 64 94,300
Foreign USA Bilateral Credit | Export DevCanada 6/16/2019 | Floating US$ 300,000,000 | Maturity Quarterly 0.94% 1.03% 657 299,055
Semi-annual principal
Foreign Bilateral Credit installments from 2015 Semi-annual
Japan Bank of T okyo-Mitsubishi Ltd 5/24/2019 | Floating US$ 96,000,000 | until maturity 1.17% 1.55% 24,101 59,429
Semi-annual principal
Foreign Bilateral Credit installments from 2015 Semi-annual
Japan Japan Bank International Cooperation 5/24/2022 | Floating US$ 224,000,000 | until maturity 1.07% 1.24% 32,228 174,939
Foreign Netherlands | Bilateral Credit Fixed ¡Sembannud principal Semi-annual
Oriente Copper Netherlands B.V 11/26/2082 US$ 874,959,000 | installments at maturity. 3.25% 5.37% 63,773 686,999
Foreign Gemany | Credit Line HSBC Trinkaus €. Floating | EUR 1.24% 1.24% 12,921 –
Foreign Gemany Credit Line Deutsche Bank Floating EUR 1.22% 1.22% 9,025 –
Other 1,705 1,625
TOTAL 995,891 2,511,654
. Paymentof Nominal Current NonBonds Country Maturity Rate Amount Type of amortization Effective rate balance balance
Currency Interest rate
ThUS$ Thuss
144-AREG.S Luxembourg 1/15/2019 | Fixed US$ 600,000,000 | Maturity Semi-annual 7.50% 7.79% 20,788 595,412
144-AREG.S Luxembourg 11/4/2020 | Fixed US$ 1,000,000,000 | Maturity Semi-annual 3.75% 3.98% 5,943 989,806
144-AREG.S Luxembourg 11/4/2021 | Fixed US$ 1,150,000,000 | Maturity Semi-annual 3.88% 4.07% 7,345 1,138,652
144-AREG.S Luxembourg 7/17/2022 | Fixed US$ 1,250,000,000 | Maturity Semi-annual 3.00% 3.16% 17,221 1,237,442
144-AREG.S Luxembourg 8/13/2023 | Fixed US$ 750,000,000 | Maturity Semi-annual 4.50% 4.75% 12,840 738,341
BCODE-B Chile 4/1/2025 | Fixed UE. 6,900,000 | Maturity Semi-annual 4.00% 3.24% 2,518 264,658
144-AREG.S Luxembourg 9/16/2025 | Fixed US$ 2,000,000,000 | Maturity Semi-annual 4.50% 4.77% 26,311 1,957,617
144-AREG.S Luxembourg 9/21/2035 | Fixed US$ 500,000,000 | Maturity Semi-annual 5.63% 5.78% 7,881 491,006
144-AREG.S Luxembourg 10/24/2036 | Fixed US$ 500,000,000 | Maturity Semi-annual 6.15% 6.22% 5,965 496,127
144-AREG.S Luxembourg 7/17/2042 | Fixed US$ 750,000,000 | Maturity Semi-annual 4.25% 4.40% 14,638 731,865
144-AREG.S Luxembourg 10/18/2043 | Fixed US$ 950,000,000 | Maturity Semi-annual 5.63% 5.76% 10,950 932,407
144-AREG.S Luxembourg 11/4/2044 | Fixed US$ 980,000,000 | Maturity Semi-annual 4.88% 5.01% 7,481 960,040
144-AREG.S Luxembourg 7/9/2024 | Fixed EUR 600,000,000 | Maturity Annual 2.25% 2.48% 7,042 643,237
TOTAL 146,923 11,176,610

Nominal and effective interestrates presented above correspond to annual rates.

F-315

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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

The undiscounted amounts due to the Corporation maintained with financial institutions, is as follows:

12/31/2016 Current Non-current
Efecive Nominal Payments of Less than More than More than 5

Debtor’s Name E eres! Rate Interest 90 days 90 days Currenttotal | 1to 3 years 3 to 5 years years Non-current total
Bank of Tokyo Mitsubishi Ltd. US$ 1.70% 1.63% | Quarterly 2,062 2,073 4,135 8,269 258,122 – 266,391
Export Dev Canada US$ 1.66% 1.50% | Quarterly 1,151 3,415 4,566 9,131 309,143 – 318,274
Mizuho Corporate Bank Ltd. US$ 1.83% 1.58% | Quarterly 1,188 3,629 4,817 303,629 – – 303,629
Bank of America N.A. US$ 1.75% 1.53% | Quarterly 1,011 3,475 4,486 305,792 – – 305,792
Bank of Tokyo Mitsubishi Ltd. US$ 1.62% 1.51% | Quarterly – 3,426 3,426 304,644 – – 304,644
Export Dev Canada US$ 1.60% 1.51% | Quarterly 1,155 3,428 4,583 303,327 – – 303,327
Mizuho Corporate Bank Ltd US$ 1.81% 1.57% | Quarterly 373 1,140 1,513 97,255 – – 97,255
Export Dev Canada US$ 1.58% 1.50% | Quarterly 2,244 3,428 5,672 306,533 – – 306,533
Bank of Tokyo-Mitsubishi Ltd. US$ 2.23% 1.83% | Semitannual – 25,001 25,001 36,666 – – 36,666
Japan Bank International Cooperation US$ 1.91% 1.73% | Semtannual – 34,937 34,937 68,207 65,966 16,139 150,312
BONO 144-A REG. 2019 US$ 7.79% 7.50% | Semiannual 22,500 22,500 45,000 667,500 – – 667,500
BONO 144-A REG. 2020 US$ 3.98% 3.75% | Semiannual – 37,500 37,500 75,000 1,037,500 – 1,112,500
BONO 144-A REG. 2021 US$ 4.07% 3.88% | Semiannual – 44,563 44,563 89,125 1,239,125 – 1,328,250
BONO 144-A REG. 2022 US$ 3.17% 3.00% | Semiannual 18,750 18,750 37,500 75,000 75,000 1,287,500 1,437,500
BONO 144-A REG. 2023 US$ 4.75% 4.50% | Semiamual 16,875 16,875 33,750 67,500 67,500 817,500 952,500
BONO 144-A REG. 2025 US$ 4.78% 4.50% | Semiamual 45,000 90,000 135,000 180,000 180,000 2,360,000 2,720,000
BONO 144-A REG. 2035 US$ 5.78% 5.63% | Semiannual 14,063 14,063 28,126 56,250 56,250 893,750 1,006,250
BONO 144-A REG. 2036 US$ 6.22% 6.15% | Semiannual – 30,750 30,750 61,500 61,500 961,250 1,084,250
BONO 144-A REG. 2042 US$ 4.41% 4.25% | Semiamual 15,938 15,938 31,876 63,750 63,750 1,419,375 1,546,875
BONO 144-A REG. 2043 US$ 5.76% 5.63% | Semiannual – 53,438 53,438 106,875 106,875 2,125,625 2,339,375
BONO 144-A REG. 2044 US$ 5.01% 4.88% | Semiamual – 47,775 47,775 95,550 95,550 2,078,825 2,269,925
Oriente Copper Netherlands B.V. US$ 5.37% 3.25% | Semtannual – 75,588 75,588 146,852 141,137 672,960 960,949
Oriente Copper Netherlands B.V. US$ 4.02% 3.79% | Semtannual – 915 915 1,840 25,789 – 27,629
Total TRhUS$ 142,310 552,607 694,917 3,430,195 3,783,207 12,632,924 19,846,326
BONO BCODE-B 2025 UE 3.24% 4.00% | Semkamual 138,000 138,000 276,000 552,000 552,000 7,866,000 8,970,000
BONO BCODE-C 2026 UE 2.19% 2.50% | Semestral 124,228 124,228 248,457 496,913 496,913 11,242,284 12,236,111
Total U.F. 262,228 262,228 524,457 1,048,913 1,048,913 19,108,284 21,206,111

Subtotal
ThUS$ 10,320 10,320 20,641 41,282 41,282 752,035 834,598
[ BONO 144-A REG. 2024 EUR ] 2.48% | 2.25% | Annual – | 13,500,000 13,500,000 27,000,000 27,000,000 640,500,000 694,500,000
Total EUR – | 13,500,000 13,500,000 27,000,000 27,000,000 640,500,000 694,500,000

Subtotal
ThUS$ . 14,229 14,229 28,457 28,457 675,067 731,981
Total TRUS$ 152,630 577,156 729,786 3,499,934 3,852,946 14,060,025 21,412,905

Nominal and effective interest rates presented above correspond to annual rates.

F-316

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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Nominal and effective interest rates presented above correspond to annual rates.

12/31/2015 Current Non-current

Debtors Name Currency oe Nominal Pame of a so a 9 Current total 1to3 years | 3to5 years yaa Norcurrent
Rate

Mizuho Corporate Bank Ltd US$ 1.20% 0.92% | Quarterly 467 100,467 100,934 – –
Bank of Tokyo Mitsubishi Ltd. US$ 1.13% 0.82% | Quarterly 524 251,561 252,085 – –
HSBC Bank USA. N.A. US$ 1.23% 0.92% | Quarterly 1,180 251,167 252,347 – –
Export Dev Canada US$ 1.25% 0.82% | Quarterly 526 250,973 251,499 – – –
Mizuho Corporate Bank Ltd. US$ 1.37% 1.13% | Quarterly 858 2,594 3,452 306,028 – 306,028
Bank of America N.A. US$ 1.18% 0.97% | Quarterly 1,479 1,479 2,958 305,898 – 305,898
Bank of Tokyo Mitsubishi Ltd. US$ 1.04% 0.94% | Quarterly 714 2,151 2,865 305,016 – 305,016
Export Dev Canada US$ 1.04% 0.94% | Quarterly 724 2,158 2,882 304,992 – 304,992
Mizuho Corporate Bank Ltd US$ 1.33% 1.10% | Quarterly 261 796 1,057 1,850 95,527 97,377
Export Dev Canada US$ 1.03% 0.94% | Quarterly 1,430 2,150 3,580 4,987 301,962 306,949
Bank of Tokyo-Mitsubishi Ltd. US$ 1.55% 1.17% | Sembamual – 24,926 24,926 48,994 12,071 61,065
Japan Bank International Cooperation US$ 1.24% 1.07% | Sembamual – 34,172 34,172 67,292 65,908 48,519 181,719
ORIENTE COPPER NETHERLANDS B.V US$ 3.60% 5.37% | Semiannual 39,161 38,663 77,824 151,188 145,474 778,309 1,074,971
BOND 144-AREG. 2019 US$ 7.79% 7.50% | Semiamnual 22,500 22,500 45,000 90,000 622,500 – 712,500
BOND 144-A REG. 2020 US$ 3.98% 3.75% | Sembamual – 37,500 37,500 75,000 1,075,000 – 1,150,000
BOND 144-AREG. 2021 US$ 4.07% 3.88% | Semiamual – 44,563 44,563 89,125 89,125 | 1,194,563 1,372,813
BOND 144-A REG. 2022 US$ 3.16% 3.00% | Semiamual 18,750 18,750 37,500 75,000 75,000 | 1,325,000 1,475,000
BOND 144-A REG. 2023 US$ 4.75% 4.50% | Semiannual 16,875 16,875 33,750 67,500 67,500 851,250 986,250
BOND 144-A REG. 2025 US$ 4.77% 4.50% | Semiannual 45,000 45,000 90,000 180,000 180,000 | 2,450,000 2,810,000
BOND 144-A REG. 2035 US$ 5.78% 5.63% | Semiannual 14,063 14,063 28,126 56,250 56,250 921,875 1,034,375
BOND 144-A REG. 2036 US$ 6.22% 6.15% | Semiannual – 30,750 30,750 61,500 61,500 992,000 1,115,000
BOND 144-A REG. 2042 US$ 4.40% 4.25% | Semiannual 15,938 15,938 31,876 63,750 63,750 | 1,451,250 1,578,750
BOND 144-A REG. 2043 US$ 5.76% 5.63% | Semiannual – 53,438 53,438 106,875 106,875 | 2,179,063 2,392,813
BOND 144-AREG. 2044 US$ 5.01% 4.88% | Semiamual – 47,775 47,775 95,550 95,550 | 2,126,600 2,317,700
Total ThUS$ 180,450 1,310,409 1,490,859 | 2,456,795 | 3,113,992 | 14,318/429| 19,889,216
[ BOND BCODE-B 2025 ] U.F ] 3.24% [ 4.00% | Semiannual 138,000 138,000 276,000 552,000 552,000 | 8,142,000 9,246,000
Total U.F. 138,000 138,000 276,000 552,000 552,000 | 8,142,000 9,246,000
Subtotal ThUS$ 4,980 4,980 9,961 19,921 19,921 293,838 333,681
[ BOND 144-A REG. 2024 ] EUR ] 2.48% [ 2.25% | Annual – 13,500,000 13,500,000 | 27,000,000 | 27,000,000 | 654,000,000 | 708,000,000
Total EUR – 13,500,000 13,500,000 | 27,000,000 | 27,000,000 | 654,000,000 | 708,000,000
Subtotal ThUS$ . 14,725 14,725 29,450 29,450 713,353 772,254
Total ThUS$ 185,430 1,330,114 1,515,545 | 2,506,167| 3,163,364 | 15,325/620| 20,995,151

F-317

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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Payment commitments for financial leasing transactions are summarized in the following table:

12/31/2016 12/31/2015
Financial Leasing Gross Interest Net Gross Interest Net
ThUS$ ThUS$ ThUs$ ThUs$ ThUS$ ThUS$

Less than 90 days 10,907 (2,497) 8,410 10,025 (2,434) 7,591
Between 90 days and 1 year 22,535 (7,262)| 15,273 19,117 | — (7,535)| 11,582
Between 1 and 2 years 32,335| (10,047) 22,288 28,319 (10,386) 17,933
Between 2 and 3 years 24,697 (8,574) 16,123 23,131 (9,259) 13,872
Between 3 and 4 years 32,388 (9,458) 22,930 40,157 (13,178) 26,979
Between 4 and 5 years 7,7101 — (1,856) 5,854 11,191 | (3,197) 7,994
More than 5 years 42,706 (9,093) 33,613 37,883 (5,260) 32,623
Total 173,278, (48,/87) 124491 169,823 (51,249) 118,574

Future minimum lease payments under operating leases agreements recognized inthe statements of
comprehensive income are summarized in the following table:

12/31/2016 12/31/2015
Future payments under operating leases
ThUS$ ThUS$
Less than one year 591,697 1,114,212
Between one and five years 440,030 620,318
More than five years 32,823 268,864
TOTAL 1,064,550 2,003,394
Operating lease payments recognized in the Statement of 12/31/2016 12/31/2015
Comprehensive Income
ThUS$ ThUS$
Minimum payments for operating leases 230,463 181,876
14, Fair Value of financial assets and liabilities

As the carrying amount of financial assets is a reasonable approximation of their fair value, no
incremental disclosures are required in accordance with IFRS 7.

Regarding financial liabilities, the following table shows a comparison at December 31, 2016
between the book value and the fair value of financial liabilities other than those whose book value
approximate fair value.

Comparison between book Accounting treatment Book value Fair value
value € fair value for valuation ThUS$ ThUS$
As of December 31, 2016 valuatl
Financial Liabilities
Bond Obligations Amortized cost 11,758,820 12,199,472

15. Fair value hierarchy

The estimated market value for the Corporation’s portfolio of financial instruments is based on
calculations of observable inputs. Each of these methodologies has been analyzed to determine
to which of the following levels the instruments can be classified:

F-318
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

+ Level 1 corresponds to Fair Value measurement methodologies through market quotes
(unadjusted) in active markets and considering the same valued assets and liabilities.

+ Level 2 corresponds to Fair Value measurement methodologies using market quote data, not
included in Level 1, that are either directly (prices) or indirectly (derived from the prices)
observable for the valued assets and liabilities.

+ Level 3 corresponds to Fair Value measurement methodologies that use valuation
techniques that include data on the valued assets and liabilities that are not supported by

observable market data.

Based on the methodologies, inputs, and previous definitions the following market levels have
been established for the financial instruments portfolio held by the Corporation as of December

31, 2016:
12/31/2016
Financial assets and liabilities at fair value with effect in
profit and loss statement Level 1 Level 2 Level 3 Total
ThUS$ ThUs$ ThUS$ Thus$
Financial Assets
Provisional price sales contracts 95,971 95,971
Cross Currency Swap – 63,782 63,782
Mutual funds installment 1,497 1,497
Metals futures (*) 7,724 7,724
Financial Liabilities
Metals Futures 112 – 112
Cross Currency Swap 148,972 148,972

(*) Please refer to Note 29 for the accounting treatment

There were no transfers between different levels of hierarchy of fair value during the reporting

period.

F-319
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

16. Trade and other payables
Total trade and other payables, current and non-current, are detailed as follows:
Current Liabilities
ltems 12/31/2016 12/31/2015
ThUS$ ThUS$
Trade payables 983,320 1,103,310
Payables to employees 31,624 20,299
Withholdings 76,615 77,088
Tax withholdings 41,364 26,240
Other payables 75,203 79,778
Total 1,208,126 1,306,715
17. Other provisions

Other short-term accrued expenses and provisions as of the indicated dates are detailed as

follows:
Current Non-current
Other Provisions 12/31/2016 12/31/2015 12/31/2016 12/31/2015
ThUS$ ThUS$ ThUS$ ThUS$

Trade (1) 14,174 14,038 –
Operating (2) 102,270 327,181 –
LawNo. 13.196 99,014 171,530 –
Sundry 74,076 9,946 17,176 10,913
Onerous Contract (6) 468 – 1,600 –
Closure, decommissioning and restoration (3) 1,544,823 1,140,080
Contingencies – 29,013 25,194

Total 290,002 522,695 1,592,612 1,176,187

Current Non-current
Accrual for employee benefits 12/31/2016 12/31/2015 12/31/2016 12/31/2015
ThUS$ ThUS$ ThUS$ ThUS$

Employees collective bargaining agreements 205,931 206,869 –
Employee termination benefit 29,521 37,131 748,185 700,882
Bonus 20,237 1,121 –
Vacation 157,634 136,933 –
Medical care programs (4) 408 922 537,829 457,067
Retirement plans (5) 8,233 47,725 14,415 62,504
Other 17,621 15,511 8,442 7,774

Total 439,585 446,212 1,308,871 1,228,227

(1) Corresponds to sales transactions related accruals, which includes charges for freight, loading, and unloading that were not yet billed at the end of
the period.

(2) Corresponds to the provision for customs duties, freight on purchases, electricity, among others.

(3) Corresponds to future asset retirement provision costs primarily related to tailing dams, closures ofmine operations and other assets. The provision
is calculated based on the present value of discounted cash flow using a pretax discount rate of 2.01% in Chilean pesos and 1.38% pretax discount
rate in US dollars, and reflect the corresponding assessments of the time value of money, according to the current market trends. The discount
rates include the risks associated to the liability that is heinn determined except those that are included in the cash fiows. The discount period

F-320
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

18.

varies between 11 and 82 years. The Company determines and records the liability in accordance with the accounting policies mentioned in note
11.1 letter d) and 11.2 letter 0) ofthe Accounting Policies.

(4) Corresponds to an accrual for contributions to medical care institutions agreed upon with current and former employees.

(5) Corresponds to an accrual for employees who have agreed or expected to agree to retire in accordance with plans in effect for personnel
retirement.

(6) Corresponds to an accrual for onerous contract with CuPIC (see Note 30).

Movements of Other provisions were as follows:

1/1/2016
12/31/2016
Movements Other Provisions, | Provision for mine Contingencies Total
non-current closure
ThUS$ ThUS$ ThUS$ ThUS$
Opening balance 10,913 1,140,080 25,194 1,176,187
Onerous contract provision 4,670 – – 4,670
ARO provision adjustment – 287,780 287,780
Financial expenses – 28,781 – 28,781
Payment of liabilities (22) (4,980) (4,977) (9,979)
Exchange differences (1,169) 96,462 2,455 97,748
Onerous contract, shift to current (3,071) – – (3,071)
Other variations 7,455 (3,300) 6,341 10,496
Final Balance 18,776 1,544,823 29,013 1,592,612

Employee benefits
a. Provisions for post-employment benefits and other long term benefits

Provision for post-employment benefits mainly corresponds to employee termination benefits,
recorded to reflect the obligations for severance, and medical care plans, and is intended to
cover the payment obligations that the Corporation has contracted with its employees, according
to contracts or collective bargaining agreements and to partially cover the costs of medical
services.

Both long term benefits are based on the agreements in the employment contracts or collective
bargaining agreements signed between the Corporation and workers.

These accruals are recorded in the statement of financial position, at the present value of
estimated future obligations. The discount rate applied is determined on the basis of the rates of
financial instruments in the same currency in which the obligations are to be paid and with
similar maturities.

These obligations are denominated in Chilean pesos, therefore the amount included in the
Corporation’s financial statements are exposed to the risk of changes in exchange rates.

The results from adjustments and changes in actuarial assumptions are charged or credited to
the statements of other comprehensive income within equity in the period in which they occur.

For the year ended December 31, 2016, there were no significant changes in the Corporation’s
post-employment benefits plans.

F-321
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Actuarial assumptions for calculating the employee termination benefit accrual are as follows:

12/31/2016 12/31/2015
Assumptions

Retirement plan Health plan Retirement plan Health plan
Annual Discount Rate 4.24% 4.66% 4.66% 5.11%
Voluntary Annual Turnover Rate for Retirement (Men) 3.90% 3.90% 4.24% 4.24%
Voluntary Annual Turnover Rate for Retirement (Women) 4.30% 4.30% 3.44% 3.44%
Salary Increase (real annual average) 3.41% 3.41% 3.72% 3.72%
Future Rate of Long-Term Inflation 3.00% 3.00% 3.00% 3.00%
Infation Health Care 5.05% 5.05% 5.05% 5.05%
Mortality tables used for projections CB14-RV14 CB14-RV14 CB14-RV14 CB14-RV14
Average duration of future cash fiows (years) 7.27 17.84 7.02 18.50
Expected Retirement Age (Men) 60 60 60 60
Expected Retirement Age (Women) 59 59 59 59

The discount rates used correspond to interest rates of government bonds issued in Chile in the
secondary market. Annual inflation corresponds to the long-term goal publicly announced by the
Central Bank of Chile. Rotation rates were determined based on past history of the Corporation,
by studying the cumulative expenditures for the last three years on the current (analysis
executed by causal) behavior. Salary increase rates are based on the long-term trend observed
by reviewing the historical salaries paid by the Corporation. The mortality tables used for the
actuarial calculations correspond to data issued by the SVS, which the Corporation believes
represent appropriately the Chilean market trends. The duration of the liabilities corresponds to
the average maturity of the cash flows related to the defined benefits.

The roll forward of the post-employment benefit and other long term benefits provision is as

follows:
1/1/2016 1/1/2015
12/31/2016 12/31/2015
Movements —
Retirement plan Health plan Retirement plan Health plan
ThUS$ ThUS$ ThUS$ ThUS$
Opening balance 738,013 457,989 805,881 493,082
Service cost 68,499 32,735 78,193 1,047
Financial cost 11,882 9,389 12,894 8,432
Paid contributions (92,335) (44,704) (86,021) (36,850)
Actuarial (gains)/losses 12,339 54,586 44,289 34,878
Transfers from other benefits – 2,910 – 7,780
Subtotal 738,398 512,905 855,236 508,369
(Gains)/Losses on foreign exchange rate 39,308 25,332 (117,223) (50,380)
Final Total 777,706 538,237 738,013 457,989

For the year ended December 31, 2016 the Corporation recognized an actuarial loss in relation
to its retirement plan for an amount of ThUS$12,339, in other comprehensive income. Such
actuarial loss relates to changes assumptions for an amount of ThUS$468, a

F-322
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

loss due to a revaluation of the financing assumptions for an amount of ThUS$3,144 and a
loss of TRUS$8,728 related to adjustment to historical experience.

For the year ended December 31, 2016, the Corporation recognized net actuarial loss in
relation to its health plan for an amount of ThUS$54,586, in other comprehensive income.
Such net actuarial loss is comprised of a gain of ThuS$16 due to changes in demographic
assumptions, a loss in financing assumptions of ThUS$72,764 and a gain corresponding to
historical experience adjustments of ThUS$18,162.

The current balance of the liability amounts to ThUS$29,521 and ThUS$408, corresponding to
staff severance indemnities and Health Benefits, respectively.

The Corporation estimates that at December 31, 2017, the liability for staff severance
indemnities amounts to ThUS$853,362 and ThUS$508,205 for health benefits. Such amounts
are calculated based on the projections made by the Management. The estimation on the
actual cash outflows for the upcoming 12 month period for staff severance indemnities and
health benefits amount to TRUS$2,460 and ThUS$34, respectively.

The following table discloses the sensitivity analysis on the employee benefits by illustrating
three scenarios: low, medium and high for severance indemnities and health benefits and

others.

Severance Benefits for Years of Service Low Medium High Reduction Increase
Financial effect on interest rates 3.540% 4.540% 5.540% 5.35% -4.71%
Financial effect on the real increase in income 3.221% 3.721% 4.221% -2.18% 2.31%
Demographic effect of job rotations 3.440% 3.940% 4.440% 1.42% -1.47%
Demographic effect on mortality tables -25.00% | CB14-RV14, Chile 25.00% -0.05% 0.05%

Health Benefits and Other Low Medium High Reduction Increase
Financial effect on interest rates 3.864% 4.864% 5.864% 15.19% -11.93%
Financial effect on health inflation 4.550% 5.050% 5.550% -5.55% 6.79%
Demographic effect, planned retirement age 58/57 60/59 62/61 3.71% -3.70%
Demographic effect on mortality tables -25.00% | CB14-RV14, Chile 25.00% -9.80% 6.40%

b. Provision for termination benefits

The Corporation under its operational optimization programs seeks to reduce costs and increase
labor productivity, facilitated by the incorporation of modern technologies and/or best
management practices, has established personnel severance programs, using the
corresponding addendum to contracts or collective bargaining agreements, with benefits that
encourage retirement, for which necessary provisions are made based on the accrued obligation
at present value.

At December 31, 2016 and 2015, a thee current balance of these obligations amount to
ThUS$8,233 and ThUS$47,725, respectively, while the non-current balance amounts to
ThUS$14,415 and ThUS$62,504, respectively, the latter of which is associated with the
provision related to the term of the collective bargaining process that the Administration
negotiated with Codelco Chuquicamata during the month of December 2012 with union workers

F-323
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

of that Division. These amounts have been discounted using a discount rate equivalent to that
used for calculating employee benefits.

c. Employee benefits expenses by nature of the benefits

The costs associated with employee benefits classified by their nature, are:

1/1/2016 1/1/2015
Expenditure by Nature of

Employee Benefits 12/31/2016 12/31/2015

ThUS$ ThUS$
Benefits – Short term 1,573,004 1,684,043
Benefits – Post employment 32,735 1,047
Benefits – Termination 13,914 59,963
Benefits by years of service 68,499 78,193
Total 1,688,152 1,823,246

19. Net equity

In accordance with article 6 of Decree Law 1.350 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, in order 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 founded 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 Finance 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. 20.790. 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-324
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Those resources will 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 it was decided to provide capital for US$600 million
once reviewed the follow-up and Development Business Plan 2014-2018 for Codelco, that was

submitted for approval on December 2, 2015.

On December 1st, 2016, it was informed that, pursuant to Article 1 of Law No. 20.790, it was
decided to make an extraordinary capital contribution of US$500 million, which were recorded

on December 28, 2016.

This contribution will be financed by the Public Treasury and sourced from debt issues
performed by the Republic pursuant to Article 2 of Law No. 20.790, which establishes an

Extraordinary Capital Contribution for Codelco and authorizes it to incur additional debt.

As of December 31, 2016 and December 31, 2015, no dividends payable were provisioned.

In the financial statement “Statement of Changes in Net Equity” the changes experienced in the

Corporation’s equity are disclosed.

Due to the bylaws that govern the Corporation, these financial statements do not consider

disclosure of information related to earnings per share.

The movement and composition of other equity reserves is presented in the Consolidated

Statement of Changes in Net Consolidated Equity.

Reclassification adjustments from other comprehensive income to profit or loss resulted in a loss
of ThUS$727 and a ThUS$261 for the periods ended December 31, 2016 and 2015,

respectively.
a) Other reserves

Other equity reserves are listed in the table below, as of the dates indicated in each case.

12/31/2016 | 12/31/2015
Other Reserves ThUS$ ThUs$

Foreign exchange differences on conversion reserves (10,607) (12,974)

Cash flow hedge reserves 12,242 (6,549)

Capitalization fund and reserves 4,955,966 5,172,162
Reserve of gains (losses) of defined benefit plans (267,171) (246,424)

Other reserves

5,862 625,705

F-325
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

20.

Total other reserves

5,317,392 | 5,531,920

b) Non-controlling equity interests

The details of non-controlling equity interests, included in liabilities and net income, are listed in
the table below, as of the dates indicated in each case.

Non-controlling participation Net equity Gain (loss)

ban 1/1/2016 1/1/2015
Subsidiaries 12/31/2016 | 12/31/2015 | 12/31/2016 12/31/2015 12/81/2016 | 12/31/2015

% % ThUS$ ThUs$ ThUS$ ThUS$
Biosigma S.A. – 33.30% – 669 – (633)
Inversiones Gacrux SpA 32.20% 32.20% 978,664 1,042,171 (58,175) (834,890)
Ecosea Farming S.A. 8.68% 14.97% – – 6 (40)
Otros – – 2 15 7 –
Total 978,666 1,042,855 (58,162) (835,563)

Between January 1 and December 31, 2016, Inversiones Gacrux SpA did not report any dividends paid
to non-controlling interest.

The percentage of non-controlling interest over the assets of Inversiones Mineras Acrux SpA is
equal to 32.2% and generates a non-controlling interest in the affiliated company Inversiones
Gacrux SpA, which had the following figures in its statement of financial position, statement of
comprehensive income and cash flows:

as 12/31/2016 12/31/2015
Assets and liabilities ThUss ThUS$
Current Assets 113,993 169,276
Non-current assets 3,014,897 3,215,675
Current liabilities 152,607 168,068
Non-current liabilities 670,771 686,999
1/1/2016 1/1/2015
Results 12/31/2016 12/31/2015
ThUS$ ThUS$
Revenues 303,216 (2,009,439)
Expenses (519,810) (635,488)
Profit (loss) of the period (216,594) (2,644,927)
1/1/2016 1/1/2015
Cash flow 12/31/2016 12/31/2015
ThUS$ ThUs$
Net cash flow from operating activities 5,348 78,263
Net cash flow from investing activities 256 61,647
Net cash flow from financing activities (55,523) (152,376)
Operating income
1/1/2016 1/1/2015
Item 12/31/2016 12/31/2015
ThUS$ ThUS$
Revenue from sales of own copper 8,774,060 8,721,880
Revenue from sales of third-party copper 753,491 2,039,161

F-326
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

21.

22.

Revenue from sales of molybdenum 419,475 391,587
Revenue from sales of other products 584,331 538,289
Revenue in futures market 5,394 2,575

Total 11,536,751 11,693,492

Expenses by nature
The Corporation’s consolidated expenses by nature are detailed as follows:

1/1/2016 1/1/2015
Item 12/31/2016 12/31/2015
ThUus$ ThUS$
Short-term benefits to employees 1,573,004 1,684,043
Depreciation 1,036,500 1,213,102
Amortization 899,652 811,738
Total 3,509,156 3,708,883

Impairment of Assets

Cash Generating Unit Salvador Division

As of December 31, 2016, there were not impairment indicators neither reversals of impairment from

prior periods, hence, the Corporation has not performed adjustment to the assets’ value.

Recognition of impairment of assets 2015

As of December 31, 2015, the Corporation performed a calculation of the recoverable amount in
the CGU Salvador Division, in order to verify the existence of an impairment of value for the

assets related to the mentioned Division, which book value amounted to ThUS$463,314.

As result of the above, an impairment loss was recognized of ThUS$310,530 (before taxes),
which was recorded in Other Expenses by Function in the Consolidated Statements of

Comprehensive Income for the period 2015. (See note 23 b).

The recoverable amount was determined by using the discounted cash flows model by using an
annual discount rate of an 8.5%, before taxes. The main variables used for determining the
recoverable amount correspond to copper prices, treatment and refining charges, exchange

rates and discount rates.

The impairment loss is mainly due to a decrease in copper prices during 2015 and a downward

adjustment for the expected production.

Assets affected by losses due to impairment during the period ended December 31, 2015,
correspond to items of the category Property, Plant € Equipment, mainly in the items of Plant €

Equipment, Ongoing Construction and Buildings. (See note 7).

Cash Generating Unit Ventanas Division

F-327
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

23.

For the year ended December 31, 2016, there were not impairment indicators, neither reversals of

impairment from prior periods.

Recognition of impairment of assets 2015

As of December 31, 2015, the Corporation performed a calculation of the recoverable amount in
the CGU Ventanas Division, in order to verify the existence of an impairment of value for the

assets related to the mentioned Division, which book value amounted to ThUS$284,000.

As result of the above, an impairment loss was recognized for an amount of ThUS$54,047
(before taxes), which was recorded in Other Expenses by Function in the Consolidated

Statements of Comprehensive Income for the period 2015. (See note 23 b).

The recoverable amount was determined by using the discounted cash flows model by using an
annual discount rate of an 8.5%, before taxes. The main variables used for determining the
recoverable amount correspond to copper prices, treatment and refining charges, exchange rate

and discount rates.

The impairment loss was mainly due to the decrease in copper prices during the year 2015.

Assets affected by the impairment loss recorded in 2015, were items of the category Property,
Plant € Equipment, mainly in the items of Plant € Equipment, Ongoing Construction and

Buildings. (See note 7).

The Corporation has not identify based on an analysis performed the existence of impairment

indicators for the rest of the 6 Divisions not mentioned above.

Other revenues and expenses by function

Other revenues and expenses by function are detailed in the following tables:

a) Other income by function

1/1/2016 1/1/2015
Item 12/31/2016 12/31/2015

ThUs$ ThUs$
Penalties to suppliers 7,607 16,737
Delegated Administration 4,071 4,070
Miscellaneous sales (net) 13,763 17,467
Insurances recoveries by incidents 24,813 –
Reversal of provisions – 26,710

5 Corresponds to the Law. No.16.744 related to the safety of the employees. CODELCO administrates a safety fund that generates revenue and costs,
respectively.

F-328
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Won trials – 18,762
Gain from intragroup transactionst 14,283 19,563
Other income 73,937 49,580
Totals 138,474 152,889
b) Other expenses by function
1/1/2016 1/1/2015
Item 12/31/2016 12/31/2015
ThUS$ ThUS$
LawNo. 13.196 (865,655) (854,797)
Research expenses (85,884) (87,047)
Bonus for the end of collective bargaining (64,375) (35,112)
Retirement plan (13,914) (59,963)
Write-off of investment projects (28,836) (276,523)
Write-off of property, plant 8. equipment (56,945) (64,110)
Write-off research projects – (101,229)
Medical care plan (32,735) (1,047)
Impairment of assets (See Note 22) – (364,577)
Write-off inventories (13,739) (68,708)
Loss due to onerous contract (3,275) –
Damages related to Climate impacts – (25,132)
Contractors mobilization – (13,242)
Extraordinary gratification (17,954) –
Other (140,837) (125,241)
Totales (1,324,149) (2,086,728)

Information related to the impairment recorded in 2015 is disclosed in Note 22 Impairment of

Assets.
24, Finance costs
Finance costs are detailed as follows:
1/1/2016 1/1/2015
Item 12/31/2016 12/31/2015
ThUS$ ThUS$
Bond interests (374,754) (335,847)
Bank loan interests (71,548) (82,101)
Exchange differences on severance indemnity provision (9,969) (12,327)
Exchange differences on other non-current provisions (52,536) (60,629)
Other (38,540) (33,943)
Total (547,347) (524,847)

25. Operating segments
In Section ll, “Summary of Significant Accounting Policies” it has been indicated that, in
conformity with IFRS No. 8, “Operating Segments”, the operating segments are determined

according to the Divisions that make up Codelco. The revenues and expenses of the Head
Office are distributed among the defined opening segments.

6 Transactions with El Abra where a provision for intragroup profits was realized.

F-329
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Mining sites in operation, in which the Corporation performs extraction and processing, are
organized in the following divisions: Chuquicamata, Radomiro Tomic, Ministro Hales, Salvador,
Andina, El Teniente and Gabriela Mistral. Additionally the Ventanas Division is added even
though it is operating solely as a smelter and refinery. Those operations are administered
independently and are reporting directly to the Executive President. The details and operations
related to each mine are the following;

Chuquicamata

Types of mine sites: open pit mines

Operating: since 1915

Location: Calama – Region 11

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 11

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 11

Products: calcined copper, copper concentrates.

Gabriela Mistral

Type of mine: open pit mine

Operating: since 2008

Location: Calama – Region 11

Products: electrolytic (electro-obtained) cathodes

Salvador

Type of mine: underground mine and open pit mine

Operating: since 1926

Location: Salvador – Region 11

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

F-330
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

El Teniente

Type of mine: underground mine

Operating: since 1905

Location: Rancagua — Region VI

Products: fire-refined copper and copper anodes

a) Head Office Distribution

Revenue and expenses controlled by the Head Office are allocated to operating segments

based on the criteria detailed as follows.
Main items are allocated according to the following criteria:

Sales and Cost of Sales of Head Office commercial transactions

e Distribution to the operating segments made proportionally to the value of the products and

sub-products invoiced by each division.

Other income, by function

e Other income by function, associated and identified with each operating segment, is allotted

directly.

+ Recognition of realized profits and other income by function of subsidiaries is distributed in

proportion to the operating income of each operating segment.

e The remaining other income is distributed in proportion to the addition of balances of “other

income” and “finance income” of the respective operating segment.
Distribution costs

e Expenses associated and identified with each operating segment are allotted directly.

e Distribution costs of subsidiaries are allotted in proportion to the operating income of each

operating segment.
Administrative Expenses

+ Administrative expenses associated and identified with each segment are allotted directly.

e Administrative expenses are recorded in cost centers associated with the sales function.
Administrative expenses of subsidiaries are distributed in proportion to the operating

income of each operating segment.

e Administrative expenses recorded in cost centers associated with the supply function are

allocated in relation to material account balances in each division warehouse

e The remaining administrative expenses are distributed in relation to operating cash

expenses of each operating segment.

F-331
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

Other Expenses, by function

e Expenses associated and identified with each operating segment are allotted directly.

e Expenses for pre-investment studies and other expenses of subsidiaries by function are

distributed in proportion to the operating income of each operating segment.

Other Earnings

e Other earnings associated and identified with each individual operating segment are

allotted directly

e Other earnings of subsidiaries are distributed in proportion to the operating income of each

operating segment.

Finance Income

e Finance income associated and identified with each operating segment is allotted directly.

e Finance income of subsidiaries is distributed in proportion to the operating income of each

operating segment.

e The remaining finance income is distributed in relation to the operating cash expenses of

each operating segment.

Finance costs

e Finance costs associated and identified with each operating segment in particular are

allotted directly.

e Finance costs of subsidiaries are distributed in proportion to the operating income of each

operating segment.

Share in profit (losses) of Associates and joint ventures, which are accounted for using the equity

method

e The share in profit or losses of associates and joint ventures identified for each individual

operating segment is allotted directly.

Foreign currency conversion

e Foreign currency conversion identifiable with each individual operating segment is allotted

directly.

e Foreign currency conversion of subsidiaries is distributed in proportion to the operating

income of each operating segment.

e The remaining foreign currency conversion is distributed in relation to operating cash

expenses of each operating segment.

Contribution to the Treasury of Chile Law No. 13.196

F-332
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

e The amount of the contribution is distributed and accounted for in relation to values
invoiced and accounted for in the copper and sub-product exports of each operating

segment, subject to taxation.

Income tax income (expenses)

e First category income tax (corporate), of D.L. 2.398 and specific mining tax are distributed
based on the pre-tax income of each operating segment, considering for this purpose the
income and expenses distribution criteria of the Head Office and subsidiaries mentioned

above.

e Other tax expenses are distributed in proportion to the first category income tax, specific

mining tax and D.L. 2.398 allotted to each operating segment.

Losses due to impairment of value

e Losses related to the investment in Anglo American Sur S. A. recognized as of December

31, 2016, (Note 8) has been allocated to Head Office.

b) Transactions between segments

Transactions between segments are made up mainly by products processing services (or
maquilas), which are recognized as revenue for the segment that makes maquilas and as the
cost of sales for the segment that receives the service. Such recognition is performed in the
period in which these services are provided, as well as disposal of both factors on corporate

financial statements.

c) Cash flow from segments

The operating segments defined by the Corporation, maintain a cash management which refers
mainly to operational activities that need to be covered periodically with fixed funds constituted
in each of these segments and whose amounts are not significant in the context of the category

corporate balances cash and cash equivalents.

Conversely, activities such as obtaining financing, investment and payment of relevant duties

are mainly based at the Head Office.

d) Impairment

For the year ended December 31, 2016, there were not impairment indicators neither reversals of

impairment from prior periods.

During the period 2015, the operating segments of Ventanas and Salvador Division present in
their income statement an impairment of value of ThUS$54,047 and ThUS$310,530, before

F-333
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

taxes, respectively. This corresponds to the impairment of asset of Property, Plant and
Equipment assigned to those Divisions, in their capacity as CGU.

The detail of the recognition of the asset impairment in the period 2015 ¡is disclosed in Note 22.

F-334
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 detail the financial information organized by operating segments:

From 1/1/2016
to 12/31/2016
Subsidiaries,
Segments Chuquicamata | R. Tomic Salvador Andina |ElTeniente | Ventanas | G.Mistral | M. Hales sesments od Olas a a
net
ThUs$ ThUs$ ThUS$ ThUS$ ThUs$ ThUS$ ThUS$ ThUs$ ThUs$ ThUS$ ThUs$

Revenue from sales of own copper 1,692,052 1,565,865 507,168 869,197 | 2,344,595 110,342 609,058 | 1,046,392 8,744,669 29,391 8,774,060
Revenue from sales of third-party copper (13,688) – (124) – – 47,610 – 372,742 406,540 1,346,951 1,753,491
Revenue from sales of molybdenum 222591 20,584 11,768 65,561 96,316 – – – 416,820 2,655 419475
Revenue from sales of other products 111,562 – 58,818 5,165 92,089 212,848 – 103,849 584,331 – 584,331
Revenue from futures market 1,69 1,603 (270) 1,261 1,213 (872) 537 59 5,226 168 5,394
Revenue between segments 195,700 – 81,640 860 141 98,058 – – 376,399 (376,399) –
Revenue 2,209,912 1,588,052 659,000 942,04 | 2,534,354 467,986 609,595 | 1,523,042 | 10,533,985 1,002,766 11,536,751
Costof sales ofown copper (1,316,910) | (1,207848)| (504,108) | (904,483)| (1,499,721) (108,326) | (514,329) | (1,025,790) | (7,081,515) (58.455) | (7,139,970)
Costof sales of copper third-party copper 437 – – – – (51,669 – | (379,032) (430,264) (1,336,258) (1,766,522)
Costof sales ofmolybdenum (83,214) (25,745) (9,276 (23.852) (40.441) – – – | (182,528) (2,799) (185,327)
Costof sales of other products (84,558) – (30,192) (56) (74,632) | (213,677 – (4,734) (357,849) (857,849
Cost of sales between segments (328,044) 50,576 (51,809) 6,712 14,967 | (103,277) – 34,476 (376,399) 376,399 –
Cost of sales (1,762,289) — (1,183,017) (595,385) | (921,679)| (1,599,827) (476,949) | (514,329) | (1,375,080) | (8,428,555) (1,021,113) | (9,449,668)
Gross profit 447,623 405,035 63,615 20,365] 934527 (8,963) 95,266] 147962 | 2,105,430 (18,347) 2,087,083
Other income, by funcion 27,243 578 34,703 7,224 15,226 612] 12,109 (1,865) 96,330 42,144 138,474
Distribution costs (2,564) (127) (678) (348) (452) (972) – (1,100) (6,241) (5,650) (11.891)
Administrative expenses (51,106) (27.016) (11.891) | (24,778) | (59,602) (9,646) | (25942) (25473)| (235,454) (179,941) (415,395)
Other expenses, by function (160,224) (30,710) (51425) | (51,425) | (53,062) (8515)| (5,617) (15340) | (376,318) (82,176) (458,494)
Law No. 13.196 (178,767) (154,201 (52,547) (79.412) (202,360) | (26,107) (59,255) (113,006 (865,655) (865,655)
Other gains (losses) – – – – – – – – – 29,400 29,400
Finance income 1,422 921 405 300 1,746 216 (185) 293 5,118 18,284 23,402
Finance costs (115,370) (41,927) (16,906) | — (85,739) | (164,854) | (6,77) | (12249) (52523)| (495,945) (51.402) (547,347)
Share in the profit (loss) of associates and
joint ventures accounted by the equity 222 – 630 (887) (1,451) – – – (1,486) (175,872) (177,358)
method
Exchange differences (65,623) (24,378) (20,867) | (14/99) | (63,904) (4,638) | (10,180) (23,901) | (228,487) (4,408) (232,895)
Profit (loss) before taxes (97,144) 128,175 (54,961) | (229,696)| 406,314] (64,390) | (6,053) (84,953) (2,708) (427,968) (430,676)
Income tax expenses 44,270 (93,078) 22,192] 135/078| (279,274) 38,741 | — (1,633) 39,684 (94,021) 191,117 97,096
Profit (loss) (52,874) 35,097 (82,769) | (94,618) 127,040 | (25649) | (7,686) (45,269) (96,729) (236,851) (833,580)

F-335

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)

From 1/1/2015
to 12/31/2015
Subsidiaries,
Segmentos Chuquicamata R. Tomic Salvador Andina rerente Ventanas | G.Mistral | M. Hales segments Ear O d
net
ThUS$ ThUS$ ThUs$ ThUS$ ThUs$ ThUS$ ThUs$ ThUs$ ThUS$ ThUs$ ThUS$

Revenue from sales of own copper 1,647,849 1,614,728 318,001 957522 | 2,246,131 161,432 662,832 | 1,113,169 8,721,664 216 8,721,880
Revenue from sales of third-par
Copper party 36,497 – 2,458 – 74,461 448,675 562,091 LA77,070 2,030,161
Revenue from sales of molybdenum 157,529 14,415 10,400 100,396 109,808 – 392,548 (961) 391,587
Revenue from sales of other
products 91,255 – 48,000 4,745 102,379 200,522 1,004 90,384 538,289 538,289
Revenue from futures market 1,272 1,349 693 (1,025) (5,375) 3,530 742 759 1,945 630 2,575
Revenue between segments 222,191 – 80,439 644 142 99,702 – – 403,118 (403,118) –
Revenue 2,156,593 1,630,492 459,991 | 1,062,282| 2,453,085 539,647 664,578 | 1,652,987 | 10,619,655 1,073,837 11,693,492
Costof sales of own copper (1,513,500) |] (1,239,743) |] (458,986) (920,584) | (1,449,409) | (159,901) | (566,186) | (1,082,526) | (7,390,835) (5,352) (7,396,187)
Costof sales of copper third-par
conper pper third-party (85,589) | (2,115) – (75,374) (471,060) (585188) 7 099540) (2.033,682)
Costof sales ofmolybdenum (67,674) (21.040)| (12,305) (33/014)| — (40,113) – – – (174,146) 295 (173,851)
Costof sales of other products (19.807) -| (36,700) (60)| — (66,040) (185,870) (1,035) (3,573) | (313,085) (313,085)
Cost of sales between segments (336,168) 40,607 (44,196) 3,648 17,505 (97,448) 12,934 (403,118) 403,118 –
Cost of sales (1,972,738) | — (1,220,176) | (555,302) | (950,010) | (1,538,057) (518,593) | (567,221) | (1,544,225) | (8,866,322) (1,050,483) (9,916,805)
Gross profit 183,855 410,316 (95,311) 112,272 915,028 21,054 97,357 108,762 1,753,333 23,354 1,776,687
Other income, by function 15,497 6,927 16,654 14,132 10,633 1,927 2,467 3,885 72,122 80,767 152,889
Distribution costs (2,007) (119) (312) (407) (612) (782) (904) (5,143) (7,292) (12.435)
Administrative expenses (48.831) (16,228) (7,438) — (25411)| (61,264) (7,974) | — (27,454) | (29,136) (223,736) (139,758) (363,494)
Other expenses, by function (122,021) (16,655) | (514,001) | (177,478) (62,443) (64,261) (14,123) (34,798) | (1,005,780) (216,151) (1,221,931)
Law No. 13.196 (179,769) (158,320) | (34,362) | (95559)| (195,302) (29/002)| (64,260) (108,223) (864,797 (864,797)
Other gains (losses) – – – – – – – – – 20,885 20,885
Finance income 1,580 515 401 233 1,985 279 132 499 5,624 11,574 17,198
Finance costs (115,587) (81,820) | (12,266) | (92/550)| (142,123) (6,873) | (10,639) | (51,281) (462,639) (62,208) (524,847)
Share in the profit (loss) of
associates and joint ventures 14,586 30,102 86 (2,868) 30,380 – 72,286 (2,573,938) (2,501,652)
accounted by the equity method
Exchange differences 155,119 66,451 61,103 46,545 128,047 12,362 19,251 21,227 510,105 (44,785) 465,320
Profit (loss) before taxes (97.578) 291,669| (585,446) | (221,091)| 624,329] (73,270) 2,731] (89,969) | (148,625) (2,907,552) (3,056,177)
Income tax expenses 62,450 (186,668) | 374,685 141498| (399,571) 46,893 (1,748) 57,581 95,120 633,278 728,398
Profit (loss) (35,128) 105,001 | (210,761) | (79,593)| 224,758 (26,377) 983| (32,388) (53,505) (2,274,274) (2,327,779)

F-336

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 and liabilities related to each operating segment, including the Corporation’s head office as of December 31, 2016 and December
31, 2015 are detailed in the following tables:

12/31/2016
Radomi Subsidiaries, Total
Category Chuquicamata o Salvador Andina El Teniente Ventanas G. Mistral M. Hales associates and Consolidate d
Head Office, net
ThUS$ ThUS$ ThUS$ ThUs$ Thus$ ThUS$ ThUS$ ThUS$ ThUs$ ThUS$
Current assets 953,971 605.154 229,135 292,710 746,672 135,869 217,749 437,085 1,077,559 4,695,904
Non-current assets 5,349,989 | 2,156,765 717,540 3,998,820 5,828,982 349,229 1,260,025 3,602,612 5,442,775 28,706,737
Current liabilities 567,733 112,502 122,596 170,520 414811 58,474 81,686 107,128 832,489 2,467,939
Non-current liabilities 918,652 227,952 285,138 298,700 916,632 67,643 127,021 65,092 18,137,463 21,044,293
12/31/2015
Radomiro Subsidiaries, Total
Category Chuquicamata . Salvador Andina El Teniente Ventanas G. Mistral M. Hales associates and .
Tomic . Consolidated
Head Office, net
ThUS$ ThUS$ ThUS$ ThUs$ Thus$ ThUS$ ThUS$ ThUS$ ThUs$ ThUS$
Current assets 850,220 628,448 227,828 318,103 710,726 143,119 254,985 517,588 2,406,871 6,057,888
Non-current assets 4,734,984 | 2,081,427 680,660 3,879,018 5,359,301 289,947 1,325,783 3,683,540 5,351,294 27,385,954
Current liabilities 558,521 134,687 242,124 195,320 524,188 78,811 115,695 104,712 1,907,058 3,861,116
Non-current liabilities 839,186 187,810 257,839 208,714 730,323 48,279 120,740 36,992 17,420,023 19,849,906

F-337

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)

Revenue classified by geographical area ¡is detailed as follows:

1/1/2016 1/1/2015
Revenue per geographical areas 12/31/2016 12/31/2015
ThUS$ ThUS$
Total revenue from domestic customers 745,089 769,769
Total revenue from foreign customer 10,791,662 10,923,723
Total 11,536,751 11,693,492
1/1/2016 1/1/2015
Revenue per geographical areas 12/31/2016 12/31/2015
ThUS$ ThUS$
China 2,123,055 2,875,992
Restof Asia 1,328,971 2,162,099
Europe 2,551,270 1,362,513
America 1,464,017 1,874,217
Others 4,069,439 3,418,671
Total 11,536,751 11,693,492

The main customers of the Corporation are listed in the following table:

1/1/2016
Principal Customers Country 12/31/2016
ThUs$

Trafigura Pte Ltd. Singapore 719,899
Southwire Company U.S.A. 519,343
Glencore International Ag. Switzerland 399,452
Ls-Nikko Copper Inc South Korea 386,152
Nexans France France 362,926
Maike Metals International Ltd China 356,937
Louis Dreyfus Company Metals S Switzerland 337,853
Mitsui 8 Co., Ltd. Japan 325,855
Red Kite Master Fund Ltd. U.S.A. 261,283
Wanxiang Resources (Singapore) Singapore 227,206
Total 3,896,906

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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)

26.

27.

28.

Foreign exchange differences

According to Decree Law 1.350, the Corporation maintains its accounting records in United
States dollars (US$), recording transactions in currencies other than U.S. dollars at the
exchange rate current at the date of each transaction and subsequently updating them,
when necessary, according to the exchange rate as of closing report for each of the
financial statements.

This is consistent with the definition of Functional Currency described in Note 2 c, included
in these Financial Statements.

The following table summarizes the foreign exchange differences included in the
Consolidated Statements of Comprehensive Income:

1/1/2016 1/1/2015
Gain (loss) from foreign exchange differences 12/31/2016 12/31/2015
recognized in income ThUus$ ThUS$
Gain from foreign exchange differences 57,722 629,166
Loss from foreign exchange differences (290,617) (163,846)
Total exchange difference, net (232,895) 465,320

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:

1/1/2016 1/1/2015
. s e 12/31/2016 12/31/2015
Other collections from operating activities Thus$ ThuS$
VAT Refund 1,294,642 1,346,761
Other 342,299 428,345
Total 1,636,941 1,775,106
1/1/2016 1/1/2015
Other payments from operating activities 12/31/2016 12/31/2015
THUS$ THUSS$
Contribution to the Chilean Treasury (Law No. 13.196) (916,735) (866,507)
Finance hedge and sales 28,699 35,096
VAT and other similar taxes paid (1,126,098) (1,143,972)
Total (2,014,134) (1,975,383)

Financial risk management, objectives and policies

Codelco has created committees within its organization to generate strategies with which to
minimize the financial risks to which it may be exposed.

F-339
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 risks to which Codelco is exposed are detailed as follows, along with a brief description
of the management procedures that are carried out in each case.

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.

Taking the financial assets and liabilities as of December 31, 2016 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$43 million of gains or
losses, respectively. This result is obtained by identifying the principle areas affected by
exchange rate, including assets and financial liabilities, in order to measure the impact on
income that a variation of +/- 10 Chilean pesos would have to US$, with respect to the real
exchange rate as of the date of this financial statement.

As of December 31, 2016, the balance of deposits in national currency amounts to
ThUS$12 million. As of December 31, 2015, Codelco does not have any balances related
to these deposits.

– Interest rate risk:

This risk is generated by 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 as of December 31, 2016, a 1% change in

interest rates on the financial liabilities subject to variable interest rates would mean
approximately a US$26 million change in finance costs, before tax. This estimation is

F-340
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)

made by identifying the liabilities assigned to variable interest, accrued at the end of the
financial statements, which may varywitha change ofone percentage point in
variable interest rates.

Total fixed and variable interest rate obligations maintained by Codelco as of December 31,
2016 amount to ThUS$12,498,259 and ThUS$2,416,081, 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 by-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. The
host contract is the sale of metals contained in the concentrate or cathode at the provisional
invoice price, and the embedded derivative is the forward contract for which the provisional
sale is subsequently adjusted. 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 statements 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 assets futures market.

At December 31, 2016, if the future price of copper varied by + / – 5% (with the other
variables constant), the result would vary + / – US$160 million before taxes as a result of
setting the mark to market of sales revenue to provisional prices in effect at December 31,
2016 (MTMF 675). 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 to this period.

In order to protect its cash flow and adjust it, where necessary, its sales contracts to its
trade policy, the Corporation holds operations in futures markets. At the date of
presentation of the financial statements, these contracts are adjusted to fair value,
recording this effect, at the settlement date of the hedging transactions as part of net
product sales. Codelco applies hedge accounting to protect its exposure against sales
prices.

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 assets derivative
market.

At December 31, 2016, 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

F-341
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)

existing contracts (exposures) of ThUS$83 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 the exposure of these
instruments if there is an increase / U.S. € 1 decrease in the price per pound of copper.

No hedging transactions with the specific aim to mitigate the price risk caused by
fluctuations in prices of production inputs.

c. — 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 ¡ts
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 room to increase the level of
borrowing for the normal requirements of its operations and investments established in ¡ts
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 .
12/31/2016 one year and five years five years
ThUS$ ThUS$ ThUS$

Loans from financial institutions 166,294 2,202,078 786,369
Bonds 150,563 2,728,976 8,879,281
Finance leases 23,683 67,195 33,613
Derivatives 10,155 – 161,619
Other financial liabilities 1,915 72,338 –
Total 352,610 5,070,587 9,860,882

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.

F-342
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)

29.

The indications with respect to the payment conditions to the Corporation are detailed in
every sales contract and the negotiation management is in charge of the Vice Presidency of
Commercialization.

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 credit risk exposure as of December 31, 2016 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.

The client items include allowances, which are not significant, designed to cover possible
insolvencies. These provisions are determined based on review of the debt balances and
the clients’ characteristics, to cover possible insolvencies.

Explanatory note 2 in “Trade and other receivables” presents overdue 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 December 31, 2016 and 2015, 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 ¡s 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 period ended December 31, 2016 and 2015, 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.

Derivatives contracts

F-343
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.

As stated in the Board of Directors’ policy, ratified on March 27, 2009, the Corporation has
entered into to hedge contracts, to minimize the risk of foreign exchange rate variations and
sales price variations, detailed as follows:

Exchange rate hedges

The Corporation has taken measures to protect itself from exchange rate variations, whose
negative exposure, net of taxes, amounts to ThUS$7,337.

The following table summarizes the exposure of the financial hedges contracted by the
Corporation:

December 31, 2016

1 Financial
ye of bligation:
Hedge item Bank derivative | Maturity Currency | Amount ed 2. | Exposure | Asset Liability
contract . NECgmg
instrument
THUS$ THUS$ THUS$ THUSS$ THUS$
Bond UF Credit Suisse
Maturiy 2025 | (USA) Swap 4/1/2025 US$ 271,560 208,519 63,781| 331,336 (267,555)
Bond EUR Santander
Maturiyy 2024 | (Chile) Swap 7/9/2024 US$ 316,188 409,650 (84,155) | 375,732 (459,887)
Bond EUR Deustche Bank
Maturiyy 2024 | (England) Swap 7/9/2024 US$ 316,188 409,680 (83,391) | 375,946 (459,337)
Bond UF Santander
Maturity 2026 | (Chile) Swap 8/24/2024 US$ 393,565 406,212 (6,208) | 444,257 (450,465)
Total 1,297,501] 1,434,061] (109,973) | 1,527,271] (1,637,244)

As of December 31, 2016 the balance for cash deposit guarantees amount to
ThUS$12,736,

The current methodology for valuing currency swaps uses the bootstrapping technique from
the mid – swap rate to construct the curves (zero) in UF and US$ respectively, from market
information.

Cash flows hedging contracts and commercial policy adjustment

The Corporation enters into metals hedging activities. The results of such hedges are
recorded at its maturity or when the instruments are sold. Such results increase or
decrease the total sales revenue based on the market prices of the metals. At December
31, 2016, these operations generated a gain of ThUS$4,143.

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, 2016, the Corporation performed derivative market transactions of
copper that represent 339,165 metric tons of fine copper. Codelco uses hedge accounting

F-344

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)

to protect its exposure against the sales prices. Such hedging operations are part of the
Corporation’s commercial policy.

The current contracts as of December 31, 2016, presenting a potential loss of ThUS$7,123
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 completed between January 1, 2016 and December 31, 2016 generated a
gain on net income of ThUS$6,222, which is comprised of the amounts received for sales
contracts for TRUS$6,025 and the values paid for purchases contracts for TRUS$197.

b.2. Commercial Transactions of Current Gold and Silver Contracts

As of December 31, 2016, the Corporation maintains derivative contracts related to the sale
of gold for MOZT 74,7 and silver for MOZT 452,9.

The contracts outstanding at December 31, 2016 represents a potential loss of ThuS$112,
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.

The transactions completed between January 1, 2016 and December 31, 2016 generated a
loss in net income of ThUS$2,079, which is comprised of the amounts received for sales
contracts for ThUS$1,138 and the values paid for purchases contracts for ThUS$941.
These hedging transactions mature in April 2017.

b.3. Cash flow hedging operations backed by future production

The Corporation does not entered into any cash flow hedges backed by future production
as of December 31, 2016.

F-345
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)

Exposure of metal hedges is summarized in the following tables, as referred to in point b

above:
December 31, 2016 Maturity date
ThUS$ 2017 2018 2019 2020 2021 Upcoming Total
Flex Com Copper (Asset) 7,563 190 – – – – 7,753
Flex Com Copper (Liability) – (576) (54) – – – (630)
Flex Com Gold/Silver (112) – – – – – (112)
Price setting
Metal options
Total 7,451 (886) (54) – – – 7,011
December 31, 2015 Maturity date
ThUs$ 2016 2017 2018 2019 2020 Upcoming Total

Flex Com Copper (Asset) 1,452 – – – – – 1,452
Flex Com Copper (Liability) (107) (684) – – – – (791)
Flex Com Gold/Silver 994 – – – – – 994
Price setting
Metal options
Total 2,339 (684) – – – – 1,655
December 31, 2016 Maturity date

ThTM/Ounces 2016 2017 2018 2019 2020 Upcoming Total
Copper Futures [MT] 246.99 84.18 8.00 – – 339.17
Gold/Silver Futures [ThOZ] 527.66 – – – – 527.66
Copper price setting [MT]
Copper Options [MT]
December 31, 2015 Maturity date

ThTM/Ounces 2016 2017 2018 2019 2020 Upcoming Total
Copper Futures [MT] 199.640 29.100 – – – – 228,740
Gold/Silver Futures [ThOZ] 1,475.452 . . . – – 1,475.452
Copper price setting [MT]
Copper Options [MT]

F-346
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)

30.

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 in which the Corporation
is being sued and could have negative results do not represent material potential losses.
Codelco defends its rights and exercises all corresponding relevant legal instances,
resources and procedures.

The most significant lawsuits that involve Codelco are related to the following matters:

– — Tax Lawsuits: There are several tax lawsuits due to IRS tax assessments, for which
the Corporation has filed the corresponding opposition.

– — Labor Lawsuits: Labor lawsuits filed by workers of the Andina Division against the
Corporation, relating to occupational illness (silicosis).

– — Mining and Other Lawsuits derived from operations: The Corporation has been
participating and will probably continue to participate as a claimant and defendant in
certain lawsuits relating to its operations and mining activities through which it seeks to
exercise or oppose certain actions or exceptions with regard to certain mining
concessions that have been established or are pending constitution, and its other
activities. These processes do not currently have a fixed amount and do not essentially
affect the development of Codelco.

A case by case analysis of these lawsuits has shown that there are a total of 531 cases that
have a clearly estimated value. It is estimated that 381 of these, which represent 71.75% of
the total and which amount to ThUS$29,013, could have possible negative impact on the
results of the Corporation. There are also 124 lawsuits, representing 23.55% of the total
and which amount to ThUS$1,244, about which there is remote possibility that the outcome
would be unfavorable for Codelco. For the 26 remaining cases, which amount to ThUS$60,
the Corporation’s legal advisors believe that there is a remote possibility for an unfavorable
outcome. In addition, there are 219 lawsuits for undetermined amounts. lt is believed that
the result of 62 of these could be possibly unfavorable to Codelco.

In connection with the long-term sale contract which Codelco held with its associated
company Copper Partners Investment Company (CuPIC), the IRS has issued to the
Corporation: (i) for the fiscal year 2006 and 2007, the Settlements No. 1 and No. 2, and the
Assistant Director-Control (SDF) Ex. Resolution No.1, all of them issued on July 30, 2010,
(ii) for the fiscal year 2008 and 2009, the Settlements No. 45, No. 46 and No. 47, all of them
issued on June 29, 2012, (iii) for the fiscal year 2010 and 2011, the Settlements No. 7 and
No .8, both of them issued on September 27, 2014, (iv) for the fiscal year 2012, the

F-347
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)

Settlements No. 92 and No. 93, both of them issued on June 30, 2015. In addition, the IRS
issued payment vouchers No, 478211, No. 478143 and No. 478179, all of them issued on
June 12, 2015 which is associated with settlements No. 45, No. 46 and No. 47, previously
mentioned.

The previously mentioned settlements were contested by the Corporation through several
administrative and judicial means. As a part of such procedures, the Corporation and the
IRS agreed to make certain adjustments to the tax basis. At August 31, 2015, the IRS
notified to the Corporation the Exempted Resolutions No.53247/2015; No.25058/2015; SDF
No.3496/2015, which were issued taking into account certain legal aspects, background
and information provided by the Corporation to the IRS during the tax audit period. The
Resolutions provide evidence of the adjustment to the tax basis and cancel the Liquidations
previously mentioned. Instead, the IRS issued the tax collection No.531137; 531125;
531117; 531103, amounting to ThUS$148,935, paid on August 31, 2015. (Composition of
the taxes calculated: ThUS$110,000 for Specific Tax for Mining, ThUS$16,000 for First
Category Tax, ThUS$23,000 for Specific Tax for Public Companies 40%). The settlement
was related to the years 2008 to 2012. Similar findings could be foreseen for the fiscal
years 2012 to 2014. The IRS issued a Resolution No.17020000038 on September 8, 2015
and the Exempt Resolution DGC 17600 No.118/2015 whereby it confirmed that the
collections No.478211, 478143 and 478179 will not have effect.

For litigation costs and potential loss, the necessary provisions exist, which are recorded as
contingency provisions.

b) Other Commitments

i. Continuity of the Salvador Division: On January 21, 2016, it was proposed at an

Extraordinary Session of the Management Committee of the Board a segmented view
of the Salvador Division that is subject to KPIs which will be monitored semiannually
and their compliance will be measured at the end of 2016.
Regarding the Rajo Inca Project, a preliminary assessment was proposed during June
2016 and March 2017, which must provide sufficient information to make the decision
about the continuity of the Salvador Division. lt should be noted that the above
depends on the copper market conditions and the financing capacity of the
Corporation.

On January 21, 2016, at the Ordinary Season of the Board, the following was
proposed:

– To take a segmented view of the Division, by analyzing Mine Concentrator Plant,
Smelter and Refinery.

– Any future decision must necessarily consider the direct cost of the closure for each
one of the business units.

F-348
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 Ordinary Session of June 30, 2016, the Board agreed to approve the study to
evaluate the alternative of opening the Rajo Inca mine and the ore processing in the
current concentrator plant.

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 the latter
for the same period and for equal monthly shipments to complete a total of 836,250
metric tons. Each shipment shall be paid 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.

As of December 31, 2015, the contract is operational, and monthly shipments began in
June 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.

Subsequently, on March 14, 2012, CUuPIC paid off its debt to the abovementioned
bank. As of December 31, 2016, Codelco does not hold any indirect guarantee
regarding its participation in this associated company.

On December 17, 2015, the Codelco administration presented a restructuration for the
Supply Contract, which means Codelco retiring from its participation as a shareholder
of CUPIC.

On April 7, 2016, the Corporation discontinued to be as the shareholder of CuPIC.
Before that date Codelco posed 50% share interest through its subsidiary Codelco
International. Until that date, the remaining share interest was owned by Album
Enterprises Limited (a subsidiary of Minmetals).

Codelco signed a set of agreements in order to discontinue its participation in CUPIC:

+ Copper sales contract modifications from Codelco to CuPIC signed in 2006
(described in Note 30, letter b), paragraph ¡¡)), which establishes the reduction by half

F-349
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)

vi.

of the outstanding tonnage to deliver to said company. Codelco agrees to pay to
CuPIC ThUS$99,330.

» Share capital decrease in CuPIC equivalent to 50% share interest that Codelco
International posed in CuPIC. CuPIC pays repays Codelco the amount of
ThUS$99,330.

» Resignation of any dividends by Codelco associated to 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
current accounting standards, which impacts negatively the results before tax of
Codelco in ThuS$22,184 (negative net tax effect of ThUS6,599 as of April 7, 2016).

Regarding the financing agreement signed on August 23, 2012, between the
subsidiary, Gacrux Inversiones SpA and Mitsui €. Co. Ltd. for the acquisition of the
24.5% stake in Anglo American Sur S.A, which was subsequently amended on
October 31, 2012, includes a pledge over the shares that the subsidiary has on Acrux
Inversiones SpA (shared participation with Mitsui and non-controlling 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.

Law 19.993 dated December 17, 2004, which authorized the purchase of the Refinery
and Smelter Las Ventanas assets from ENAMI, established 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 mode or another form agreed
upon by the parties.

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, at December 31, 2016 and 2015, has complied with these conditions.
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 energy consumption due to lower

F-350
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)

vii.

viii.

demand 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 supply these Divisions is comprised by two contracts:
Contract No.1 for 176 MW, current until December 2030.
Contract No.2 for 334 MW, current until December 2045. 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.

The both of these contracts adapt to 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 return at market price the
energy not consumed by Codelco.

These contracts have maturity date in 2030 and 2045.

On November 6, 2009, Codelco signed the following long-term power purchase
agreements with Electroandina S.A. (associate until January 2011), with a maturity in
2017:

– This replaces the one signed on November 22, 1995, for the supply of electricity
to the Chuquicamata work center, for a 15-year term beginning in January 2010
for between 200 and 280 MW in power and all associated electric energy. The
approximate cost of the contract is US$1,380 million for the whole period.

– — Modification of the contract dated December 21, 1995 for the Radomiro Tomic
work center, for a maximum power of 110 MW, in which new prices are
established, for the power and energy contemplated in the contract as well as
their new adjustment formulas from January 2010.

On November 11, 2011, Law No. 20.551 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. lt also
establishes the obligation to make contributions to a fund which aims to cover the
costs of post-closure activities.

F-351
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, in accordance with the mentioned regulation, provided to
SERNAGEOMIN the Mine Closure Plan (ARO) for all of the Codelco operating
divisions, 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 account
with a mine closure plan previously approved under Mine Safety Regulations Supreme
Decree No. 132.

The Corporation considers that the accounting liability record 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 0) of Main Accounting Policies.

As of December 31, 2016, the Corporation has agreed guarantees for an annual
amount of U.F.21,603,004, with the purposal to comply with the aforementioned Law
N*20.551. The following table details the main given guarantees:

Issuing a ni Currency Issuing Maturity | Issuing [| Amount
bank Division | Principal | mdox date date rate % | ThUS$

Banco

Esado Ventanas 205,208 | UF 3/15/2016 | 3/18/2017 | 0.07 8,500
Banco

Esado Ventanas 62932 | UF 3/30/2016 | 3/18/2017 | 0.07 2,700
Banco Radomito | 166997 | UF 5/8/2016 | 5/10/2017 | 009| 85564
Estado Tomic

o Ministro Hales | 1,072,330 | UF 5/8/2016 | 5/12/2017 0.07 42,341
Bol Chuquicamata | 2,122,707 | UF 5/13/2016 | 5/26/2017 | 0.0 83.815
ltaú Chuquicamata | 3,900,000 | UF 5/17/2016 | 5/26/2017 | 015| 153,992
Chile El Teniente 987,594 | UF 5/20/2016 | 6/1/2017 0.25 38,995
Santander] El Teniente | 5,000,000 | UF 5/23/2016 | 6/1/2017 020 | 197425
Banco Gabriela

bando Mitra! 1,064,019 | UF 6/9/2016 | 6/9/2017 0.09 42.013
Chile Salvador 2,355,477 | UF en2016 | 8/7/2017 | 014 93,006
Banco Andina 2,665,740 | UF 11/2/2016 | 11/3/2017 | 009 | 105257
Estado

Total 21,603,004 853,608

On May 24, 2012, the Corporation has signed with Japan Bank for International
Cooperation and Bank of Tokyo-Mitsubishi UFJ Ltd. a financing contract for up to
US$320 million for the development, construction and operation of a plant metal
processing in the second region of Chile, of which, on October 28, 2015, have been
drawn the totality of the funds.

F-352
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)

31

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, Nueva Acrux agrees to sell to Mitsui, the products purchased under the
agreement described in the preceding paragraphs.

The term of the contract 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.

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-353

Direct Guarantees provided to Financial Institutions
, Type of 12/31/2016 12/31/2015
Creditor of the Guarantee Guarantee Currency Maturity ThUuS$ | Thus$

Directorate-General for the Merchant Marine and Maritime Territory Environmental CLP Mar-16 – 1,519
Urban Regional Manager, Metropolitan Building project UF Mar-17 9 –
Urban Regional Manager, Valparaiso Building project UF Jan-17 43
Urban Regional Manager, Valparaiso Building project UF Jan-17 28
Urban Regional Manager, Valparaiso Building project UF Jan-17 47 –
Department of Public Works, General Office of Waters Building project UF Jul-16 – 24,201
Deparment of Public Works, General Office of Waters Building project UF Oct-16 37,435
Deparment of Public Works, General Office of Waters Building project UF Oct-16 37,435
Deparment of Public Works, General Office of Waters Building project UF Oct-16 37,435
Deparment of Public Works, General Office of Waters Building project UF Oct-16 37,435
Department of Public Works, General Office of Waters Building project UF Oct-16 – 37,435
Department of Public Works Building project USD Jun-18 209 –
Oriente Copper Netherlands B.V. Pledge on shares USD Nov-32 877813| 877,813
Sernageomin Environmental UF Mar-16 1,081
Sernageomin Environmental USD May-16 10,500
Sernageomin Environmental USD May-16 4,450
Sernageomin Environmental USD May-16 30,600
Sernageomin Environmental UF Jun-16 26,700
Sernageomin Environmental UF Jun-16 – 3,660
Sernageomin Environmental USD Mar-17 8,500 –
Sernageomin Environmental UF May-17 11,390
Sernageomin Environmental UF May-17 84,981
Sernageomin Environmental UF May-17 42,053
Sernageomin Environmental UF Jun-17 41,122
Sernageomin Environmental UF Nov-17 107,561
Sernageomin Environmental UF Aug-17 94,538
Sernageomin Environmental UF Jun-17 38,994
Sernageomin Environmental UF Jun-17 197,419

(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)

Sernageomin Environmental UF May-17 153,987
Sernageomin Environmental UF May-17 83,812
Total 1,742,507| 1,167,699

F-354

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 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:

Guarantees received from third parties
Division 12/31/2016 12/31/2015
ThUS$ ThUS$

Andina 21,905 36,526
Chuquicamata 21,621 44,284
Casa Matriz 703,173 404,825
Radomiro Tomic 5,352 7,088
Salvador 30,893 47,592
Ministro Hales 5 5
El Teniente 58,602 47,505
Ventanas 5,044 10,575
Gabriela Mistral 721 1,474

Total 847,316 599,874

32. Balances in foreign currency

a) Assets by Type of Currency

Category 12/31/2016 12/31/2015
ThUs$ ThUS$
Liquid assets 586,587 1,757,920
US Dollars 540,977 1,702,657
Euros 7,892 3,600
Other currencies 4,282 4,772
Norrindexed Ch$ 30,795 46,443
v.R. 2,641 448
Cash and cash equivalents 576,726 1,747,718
US Dollars 531,946 1,694,053
Euros 7,640 3,339
Other currencies 4,282 4,772
Norrindexed Ch$ 30,422 45,230
A 2,436 324
Other current financial assets 9,861 10,202
US Dollars 9,031 8,604
Euros 252 261
Other currencies – –
Norrindexed Ch$ 373 1,213
A 205 124
Short and long term receivables 2,385,429 1,983,213
US Dollars 1,635,971 1,266,467
Euros 92,701 110,671
Other currencies 1,347 619
Norrindexed Ch$ 631,582 591,331
A 23,828 14,125
Trade and other receivables 2,254,731 1,876,863
US Dollars 1,600,589 1,245,186
Euros 92,701 110411
Other currencies 1,316 468
Norrindexed Ch$ 537,292 506,673
A 22,833 14,125

F-355
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)

12/31/2016 12/31/2015
Category
ThUs$ ThUS$
Rights receivables, non-current 95,316 85,069
US Dollars – –
Euros – 260
Other currencies 31 151
Norrindexed Ch$ 94,290 84,658
A 995 –
Due from related companies, current 13,669 21,057
US Dollars 13,669 21,057
Euros – –
Other currencies – –
Nor+indexed Ch$ – –
v.R. – –
Due from related companies, non-current 21,713 224
US Dollars 21,713 224
Euros – –
Other currencies – –
Nor+indexed Ch$ – –
A – –
Rest of assets 30,430,625 29,563,782
US Dollars 29,990,703 28,625,772
Euros 49,273 407,102
Other currencies 222 31,452
Norrindexed Ch$ 118,867 238,061
v.R. 271,560 261,395
Total assets 33,402,641 33,304,915
US Dollars 32,167,651 31,594,896
Euros 149,866 521,373
Other currencies 5,851 36,843
Norrindexed Ch$ 781,244 875,835
v.R. 298,029 275,968

F-356

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:

12/31/2016 12/31/2015
Current liability by currency Upto90 days | 90daysto 1year | Upto90 days | 90 days to 1 year
ThUS$ ThUs$ ThUS$ ThUS$

Current liabilities 2,212,250 255,689 2,885,773 836,415
US Dollars 1,755,127 178,941 2,638,242 780,581
Euros 132,463 41,343 53,949 –
Other currencies 9,261 – 791 –
Non-indexed Ch$ 270,592 29,714 185,515 51,688
v.R 44,807 5,691 7,276 4,146
Other current financial liabilities 127,616 224,994 380,929 785,281
US Dollars 111,045 176,681 346,797 780,581
Euros 6,729 41,343 28,988 –
Other currencies – – – –
Non-indexed Ch$ 1,401 1,494 953 554
v.R 8,441 5,476 4,191 4,146
Bank loans 4,550 161,744 274,621 721,270
US Dollars 3,892 127,924 252,029 721,270
Euros – 33,820 21,946 –
Other currencies – – –
Non-indexed Ch$ 359 – 389
v.R 299 – 257 –
Obligations 112,741 37,822 94,601 52,322
US Dollars 99,765 30,299 85,041 52,322
Euros 6,729 7,523 7,042 –
Other currencies – – –
Non-indexed Ch$ – – –
v.R 6,247 – 2,518 –
Finance lease 8,410 15,273 7,591 11,582
US Dollars 6,044 8,303 5,611 6,882
Euros – – – –
Other currency – – – –
Non-indexed Ch$ 471 1,494 564 554
v.R 1,895 5,476 1,416 4,146
Others 1,915 10,155 4,116 107
US Dollars 1,344 10,155 4,116 107
Euros – – – –
Other currencies – –
Non-indexed Ch$ 571 –
v.R – – – –
Other current liabilities 2,084,634 30,695 2,504,844 51,134
US Dollars 1,644,082 2,260 2,291,445 –
Euros 125,734 – 24,961
Other currencies 9,261 – 791 –
Non-indexed Ch$ 269,191 28,220 184,562 51,134
v.R 36,366 215 3,085 –

F-357

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

CORPORACION NACIONAL DEL COBRE DE CHILE

(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)

12/31/2016 12/31/2015
Non-current liability by 1to3 3to5 5to10 More than 1to3 3to5 5to10 More than
currency years years years 10 years years years years 10 years
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Non-Current liabilities 5,969,958 | 2,866,846 5,893,456 6,314,033 5,166,907 2,192,825 6,603,167 5,887,007
US Dollars 5,609,256 | 2,728,331 4,916,894 4,347,467 4,939,297 2,064,442 6,081,114 4,317,803
Euros – – (10,015) 960,360 – – (11,213) –
Other currencies – – – – – – – –
Non-indexed Ch$ 343,985 130,378 268,192 514,850 199,062 119,227 253,221 1,055,716
UF. 16,717 8,137 718,385 491,356 28,548 9,156 280,045 513,488
e concurrent financial | 2334 118| 2736469 5G04973| 4255909 15304942| 2073/598 6349/96| 4298/44
US Dollars 2,315,498 | 2,728,332 4,896,603 3,295,549 1,292,189 2,064,443 6,081,114 4,298,444
Euros – – (10,015) 960,360 – – (11,213) –
Other currencies – – – – – – – –
Non-indexed Ch$ 5,927 – – – 1,413 – – –
UF. 12,693 8,137 718,385 – 11,340 9,156 280,045 –
Bank loans 1,626,564 575,514 143,227 643,142 1,196,308 453,408 174,939 686,999
US Dollars 1,626,564 575,132 143,227 643,142 1,196,308 452,783 174,939 686,999
Euros – – – – – – – –
Other currencies – – – – – – – –
Non-indexed Ch$ – – – – – – – –
UF. – 382 – – – 625 – –
Obligations 596,805 | 2,132,171 5,266,514 3,612,767 – 1,585,218 5,979,947 3,611,445
US Dollars 596,805 | 2,132,171 3,940,127 2,652,407 – 1,585,218 5,072,052 3,611,445
Euros – – 622,361 960,360 – – 643,237 –
Other currencies – – – – – – – –
Non-indexed Ch$ – – – – – – – –
UF. – – 704,026 – – – 264,658 –
Finance Lease 38,411 28,784 33,613 – 31,805 34,973 32,623 –
US Dollars 20,392 21,029 19,254 – 19,729 26,442 17,236 –
Euros – – – – – – – –
Other currencies – – – – – – – –
Non-indexed Ch$ 5,326 – – – 736 – – –
UF. 12,693 7,755 14,359 – 11,340 8,531 15,387 –
Others 72,338 – 161,619 – 76,829 – 162,437 –
US Dollars 71,737 – 793,995 – 76,152 – 816,887 –
Euros – – (632,376) – – – (654,450) –
Other currencies – – – – – – – –
Non-indexed Ch$ 601 – – – 677 – – –
UF. – – – – – – – –
Other liabilities non-current 3,635,842 130,377 288,482 2,058,123 3,861,967 119,226 253,220 1,588,562
US Dollars 3,293,759 – 20,291 1,051,918 3,647,109 – – 19,359
Euros – – – – – – – –
Other currencies – – – – – – – –
Non-indexed Ch$ 338,059 130,378 268,192 514,850 197,650 119,227 253,221 1,055,716
UF. 4,025 – – 491,356 17,209 – – 513,488

F-358

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)

33.

34,

35.

Sanctions

As of December 31, 2016 and 2015, neither Codelco Chile nor its Directors and Managers
have been sanctioned by the SVS or any other administrative authorities.

Subsequent events

On January 27, 2017, Law No. 20.989 the Capitalization Law was enacted, which
contemplates the contribution of an additional amount that establishes a maximum of
US$475 million per year for 2016 and 2017, with the purpose of reducing the
indebtedness of the Corporation, as a mitigation equivalent to the difference between the
transfers made by the Copper Reserved Law (Law 13.196) and the surplus that the
Corporation has.

On March 7, 2017, itwas informed as an essential fact that Mr. Mauricio Larraín Medina,
General Manager of El Teniente Division, tendered his resignation from the Corporation
as of April 1, 2017.

On March 13, 2017, it was informed as an essential fact that Mr. André Sougarret
Larroquete has been designed as General Manager of El Teniente Division as of April 1,
2017.

The Corporation’s management is not aware of any significant events of a financial or other
nature that would affect these statements occurring between January 1, 2017 and the date
of issuance of these financial statements (March 30, 2017) that may affect them.

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 its 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 December 31, 2016, they have received ISO 14001 certification for the environmental
management of Chuquicamata, Radomiro Tomic, Andina, Salvador, El Teniente, Ventanas,
Gabriela Mistral and the Head Offic

F-359
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)

To comply with the Circular No. 1.901 of 2008 of the SVS, the details of the Corporation’s
main expenditures related to the environment during the periods from January 1 to

December 31, 2016 and 2015, respectively, and the projected future expenses are stated
below.

F-360
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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

. Future committed
Disbursements 12/31/2016 12/31/2015 disbursements
Asset / .
Entity Project Name Project status pl nene Expenditure ie ie Estima ed
Chuquicamata 101,023 108,270 430,873
Codelco Chile | Talambre dam capacity extension, 8th stage In Progress 14,614 Asset P,Pe£E 19,774 300,048 2020
Codelco Chile estores system dust control crushing In Progress 4,299 | Asset P,PEE 1,080 6299| 2018
Codelco Chile | Extension of 5thcps smelting In Progress 14,505 Asset P,Pe E – 582 2017
Codelco Chile | Replacement of circulation pot 1Aand 24 In Progress 7,485 Asset P,P2E 14,083 21.915 2018
Codelco Chile | Standarization sampling and weighing system In Progress 1,027 Asset P,P£E – – –
Codelco Chile | Construction installation surplus management In Progress 7,445 Asset P,P£E – 6,817 2017
Codelco Chile | Replacement of water treatment plant In Progress 5,367 Asset P,P2E – 34,578 2018
Codelco Chile | Replacement gas management system In Progress 10 Asset PP E – 10,317 2018
Codelco Chile | Acid plants In Progress 23,124 | Expenditure | Adm. Expense 48,141 25,641 2016
Codelco Chile | Solid waste In Progress 1,367 | Expenditure | Adm. Expense 2,360 1560 2016
Codelco Chile | Taiings In Progress 21,062 | Expenditure | Adm. Expense 21,848 22,446 2016
Codelco Chile | Acid drainage In Progress – | Expenditure | Adm. Expense – – 2016
Codelco Chile | Water treatment plant In Progress 248 | Expenditure | Adm. Expense 301 420 2016
Codelco Chile | Environmental monitoring In Progress 470 | Expenditure | Adm. Expense 683 250 2016
Salvador 95,987 91,438 208,133
Codelco Chile | Improvement of integrated gas collection process Finished – Asset P,P£E – –
Codelco Chile | Construction Ditch Hazardous Waste Finished – Asset P,Pe E –
Codelco Chile | Construction 5th stage tailings treatment Finished – Asset P,P£E –
Codelco Chile | Construction peralte north wall second stage Finished – Asset P,Pe£E – – –
Codelco Chile | Improved integration ofthe gas process In Progress 54,904 Asset P.PeE 53,804 170407 | 2018
Codelco Chile | Sanitarylandfil construction In Progress – Asset P,P£E – – –
Codelco Chile | Environmental improvement to Puerto Barquito In Progress – Asset P,P£E 1,630 – –
Codelco Chile | Concentrator filter plant construction In Progress 10,746 Asset PP E – 8,857 2017
Codelco Chile | Tallings In Progress 1,918 | Expenditure | Adm. Expense 2,621 1,837 2016
Codelco Chile | Acid plants In Progress 26,269 | Expenditure | Adm. Expense 31,473 24992 | 2016
Codelco Chile | Solid waste In Progress 1,3311 | Expenditure | Adm. Expense 1,256 1063 | 2016
Codelco Chile | Water treatment plant In Progress 839 | Expenditure | Adm. Expense 654 977 | 2016
Codelco Chile | Envioronmental management and monitoring, consulting In Progress – | Expenditure | Adm. Expense – – 2014
Andina 162,685 159,523 212,975
Codelco Chile | Construction of water trap for east ballast deposit Finished – Asset P,P£E 4,691 – –
Codelco Chile | Drain water trealment In Progress 15,143 Asset PP E – 8,557 2017
Codelco Chile | Constuction tracking works In Progress – Asset P.P£E – –
Codelco Chile | Water Nomative Phase 2 In Progress 3,918 Asset P,Pe E 7,633 5,189 2018
Codelco Chile | Building evacuation and capturing towers, Ovejería In Progress 280 Asset P,P£E 3,497 – 2016
Codelco Chile | Construction works infiltration plan Finished – Asset P,P£E – –
Codelco Chile | Improvementto irrigation In Progress – Asset PP E 3,290
Codelco Chile | Improvements to line wall sand In Progress – Asset P,P2E 220 – –
Codelco Chile | Construction site emergency plan In Progress 6,845 Asset PP E – 24,603 2017
Codelco Chile | Construction site emergency plan In Progress 206 Asset PP E 18,696 – 2016
Codelco Chile | Construction adduction Los Leones In Progress 66 Asset P,Pe E 3,764 2016
Codelco Chile | Construction well container spills In Progress – Asset P,Pe E 561 –
Codelco Chile | Drain water treaiment DLN In Progress – Asset P,Pe E 11,842 – 2017
Codelco Chile | Level 640 tranque In Progress 36,644 Asset PP E 15,276 67,808 2017
Codelco Chile | Improved water internal tip E2 In Progress 6,200 Asset PP E 5,172 5,438 2017
Codelco Chile | Replacement Ovejeria line tailings In Progress 492 Asset P,P2E 6,284 – –
Codelco Chile | Improvement of power supply In Progress 1,208 Asset PP E 254
Codelco Chile | Water rights and lands early acquisiion In Progress 381 Asset PP E 7,538 – –
Codelco Chile | Construction of emergency transport system works In Progress 10,028 Asset P,P2E – 25,021 2017
Codelco Chile | Río Blanco trap In Progress 4,049 Asset P,Pe E 641 – –
Codelco Chile | Construction eary alert plan In Progress 1,529 Asset P.PeE – 365 2017
Codelco Chile | Solid waste In Progress 2,183 | Expenditure | Adm. Expense 1,935 2,712 2016
Codelco Chile | Water treatment plant In Progress 2,866 | Expenditure | Adm. Expense 3,532 4,1110 2016
Codelco Chile | Trailing In Progress 67,239 | Expenditure | Adm. Expense 61,968 65,517 2016
Codelco Chile | Acid drainage In Progress 3,408 | Expenditure | Adm. Expense 2,729 3,655 2016
Subtotal 359,695 359,231 | 851,981

F-361

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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

s Future committed
Disbursements 12/31/2016 12/31/2015 disbursements
Enti Project N Proi Amount Assetl E pss ! Amount | Amount | Estimated
ntity roject Name roject status ThUS$ | Expense xpen diture ThuS$ ThUS$ date
El Teniente 209,108 193,207 399,941
Codelco Chile | Construction of 7th phase of Carén In Progress 2,707 Asset P,PeE 1,697 – 2016
Codelco Chile | Network Monitoring System Finished – Asset P,P£E 250 – –
Codelco Chile | Construction of 6th phase of Carén In Progress 28,213 Asset PP E 28,213 81,619 2017
Codelco Chile | Installation of Powder control In Progress – Asset PP E 172 – –
Codelco Chile | Flowmeter Acquisitions In Progress – Asset P,P£E 124 – –
Codelco Chile | Environmental reconstruction of courts In Progress – Asset P,P£E 1,557 – –
Codelco Chile | Emergencyreservoir construction In Progress – Asset PP E 2,099 – –
Codelco Chile | Reinforcement structure and other critical sectors In Progress – Asset P,P£E 701 – –
Codelco Chile | Scale and bridges replacement In Progress 122 Asset P,P£E 122 – –
Codelco Chile | Coya module acquisition In Progress 309 Asset P,P£E 4 – –
Codelco Chile | Construction of slag treamentn plant In Progress 6,092 Asset PP E – 37,112 2016
Codelco Chile | Smelting emissions network In Progress 41,880 Asset PP E – 129,373 2019
Codelco Chile | Acid plants In Progress 61,240 | Expenditure | Adm. Expense 68,748 60,973| 2016
Codelco Chile | Solid waste In Progress 4,079 | Expenditure | Adm. Expense 3,474 3,687 2016
Codelco Chile | Water treatment plant In Progress 12,886 | Expenditure | Adm. Expense 14,423 13,803 2016
Codelco Chile | Tallings In Progress 51,580 | Expenditure | Adm. Expense 71,623 73,374 2016
GabrielaMistral 11,278 17,072 12471
Codelco Chile | Installation of modular pool cover In Progress 691 Asset P,P£E – – –
Codelco Chile | Installation of gravel dump In Progress 7,682 Asset PP E 14,243 8,721 2017
Codelco Chile | Installation of gravel dump phase IV In Progress 41 – 368 2016
Codelco Chile | Environmental monitoring In Progress 1,668 | Expenditure | Adm. Expense 140 65 2016
Codelco Chile | Solid waste In Progress 51 | Expenditure | Adm. Expense 1,532 2,067 2016
Codelco Chile | Water treatment plant In Progress 1,145 | Expenditure | Adm. Expense 1,157 1,250 2016
Ventanas 65,543 59,683 51,873
Codelco Chile | Capturing of second gases In Progress 15,034 Asset PP E 14,236 7,796 2017
Codelco Chile | Capturing of racking gases In Progress 2,044 Asset PP E 6,921 – –
Codelco Chile | Treatmentof gases in line In Progress 1,828 Asset P.P£E 6,356 – –
Codelco Chile | Natural gas conversion burner Finished – Asset P,PeE 397 – –
Codelco Chile | Standardization of Measurements Finished – Asset P,P£E 48 – –
Codelco Chile | Eliminating Visible Smokes In Progress 10,170 Asset P,P£E 3,263 2,1135 2017
Codelco Chile | Fugitive gas treatment In Progress 10,063 Asset P,PeE 1,524 6,799 2017
Codelco Chile | Treatmentof secondarygases In Progress 14 Asset P,P£E – – –
Codelco Chile | Reparation ofexchanger In Progress 30 Asset PP E 517 – –
Codelco Chile | Installation Cloth 6 In Progress – Asset P,P£E 22 – –
Codelco Chile | Contaiercarier In Progress 46 Asset P,PeE – 1,731 2017
Codelco Chile | Acid plants In Progress 18,030 | Expenditure | Adm. Expense 18,687 21,425 2016
Codelco Chile | Solid waste In Progress 1,643 | Expenditure | Adm. Expense 1,430 2,381 2016
Codelco Chile | Environmental monitoring In Progress 1,529 | Expenditure | Adm. Expense 1,542 1,544 2016
Codelco Chile | Effluent treatment plant In Progress 5,112 | Expenditure | Adm. Expense 4,740 8,062 2016
Radomiro Tomic 3,014 2,001 4,809
Codelco Chile | Application ofmonitoring system In Progress 127 Asset PP E – 1,493 2017
Codelco Chile | Solid waste In Progress 1,199 | Expenditure | Adm. Expense 989 1,324 2016
Codelco Chile | Environmental monitoring In Progress 764 | Expenditure | Adm. Expense – 945 2016
Codelco Chile | Effluent treatment plant In Progress 924 | Expenditure | Adm. Expense 1,012 1,047 2016
Ministro Hales 15,669 3,875 3,295
Codelco Chile | Mounting system acquisition and washing In Progress – Asset P,P£E 496 – –
Codelco Chile | Improving accessibility and integration villas In Progress 12,496 Asset P,P£E 2,579 –
Codelco Chile | Acquisition sprinkler truck In Progress – Asset PP E 22 –
Codelco Chile | Silicone Bagging Facility In Progress Asset P,P£E 308 2015
Codelco Chile | Enlargement plant plant filter In Progress – Asset PP E 470 – 2015
Codelco Chile | Solid waste In Progress 1,726 | Expenditure | Adm. Expense – 1,800 2016
Codelco Chile | Environmental monitoring In Progress 669 | Expenditure | Adm. Expense 695 2016
Codelco Chile | Water treatment plant In Progress 778 | Expenditure | Adm. Expense 800 2016
Ecometales Limited 217 207 215
Ecometales Ltd. | Smelting plant of foundry dust In Progress 217 | Expenditure | Adm. Expense 207 215 2015
Subtotal 304,829 276,045 | 472,604
[Total [664,524] 635,276 | 1,324,585]

F-362

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 ofthe Consolidated Financial Statements originally issued in Spanish — see Note 1.2)

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-363
THE ISSUER

Corporación Nacional del Cobre de Chile
Huérfanos 1270
Santiago
Republic of Chile

TRUSTEE, PAYING AGENT, TRANSFER AGENT AND REGISTRAR

The Bank of New York Mellon
240 Greenwich Street, Floor 7 East
New York, New York 10286
United States

LUXEMBOURG LISTING AGENT

The Bank of New York Mellon SA/NV, Luxembourg Branch
Vertigo Building
Polaris 2-4 rue Eugéne Ruppert
L-2453 Luxembourg
Luxembourg

LEGAL ADVISORS TO THE ISSUER

As to New York law

Cleary Gottlieb Steen € Hamilton LLP

One Liberty Plaza
New York, New York 10006
United States

As to Chilean law
Carey y Cía. Ltda.
Isidora Goyenechea, 2800, Piso 43
Las Condes, Santiago
Republic of Chile

LEGAL ADVISORS TO THE INITIAL PURCHASERS

As to New York law
Davis Polk $: Wardwell LLP
450 Lexington Avenue
New York, New York 10017
United States

Deloitte
Auditores y Consultores Ltda.
Rosario Norte 407, Las Condes
Santiago
Chile

INDEPENDENT AUDITORS

As to Chilean law

Philippi, Prietocarrizosa, Ferrero DU €

Uría SpA
El Golf 40, Piso 20
Las Condes, Santiago
Republic of Chile

EY
Servicios Profesionales de Auditoría
y Asesorías SpA
Av. Presidente Riesco 5435, Piso 4
Santiago
Chile
U.S.$2,000,000,000

O

CODELCO

Corporación Nacional del Cobre de Chile

U.S.$1,000,000,000 3.150% Notes due 2030
U.S.$1,000,000,000 3.700% Notes due 2050

Offering Memorandum

Joint Book-Running Managers

BofA Securities HSBC J.P. Morgan Scotiabank

January 7, 2020
COMISIÓN PARA EL.
MERCADO FINANCIERO
CHILE

ANEXO 3
PURCHASE AGREEMENT

COMISIÓN PARA EL MERCADO FINANCIERO
8
EXECUTION VERSION

CORPORACIÓN NACIONAL DEL COBRE DE CHILE
U.S.$2,000,000,000

U.S.$1,000,000,000 3.150% Notes Due 2030
U.S.$1,000,000,000 3.700% Notes Due 2050

Purchase Agreement

New York, New York
January 7, 2020

BofA Securities, Inc.
One Bryant Park
New York, New York 10036

and

HSBC Securities (USA) Inc.
452 Fifth Avenue
New York, New York 10018

and

J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179

and

Scotia Capital (USA) Inc.
250 Vesey Street
New York, New York 10281

As Representatives of the Initial Purchasers

Ladies and Gentlemen:

Corporación Nacional del Cobre de Chile, a state-owned enterprise organized
under the laws of Chile (the “Company”), proposes to issue and sell to the several purchasers
named in SCHEDULE lI hereto (the “Initial Purchasers”), for which you (the
“Representatives”) are acting as representatives, U.S.$1,000,000,000principal amount of its
3.150% Notes Due 2030 (the “2030 Notes”) and U.S.$1,000,000,000 principal amount of its
3.700% Notes Due 2050, representing an additional issuance of the Company”s outstanding
3.700% Notes Due 2050, which will be treated as a single class with the U.S.$900,000,000
aggregate principal amount of the Company”s 3.700% Notes Due 2050 issued on September 30,
2019 (the “2050 Notes” and collectively with the 2030 Notes, the “Securities”) to be issued
pursuant to the indenture (the “Original Indenture”), dated February 5, 2019, among the
Company, The Bank of New York Mellon, as trustee, paying agent, transfer agent and registrar
(the “Trustee”), and The Bank of New York Mellon (Luxembourg) S.A., as Luxembourg paying
agent (the “Luxembourg Agent”), as supplemented by the fourth supplemental indenture, dated
September 30, 2019, among the Company, the Trustee and the Luxembourg Agent (the “Fourth
Supplemental Indenture”), the sixth supplemental indenture to be dated as of January 14, 2020,
between the Company and the Trustee (the “Sixth Supplemental Indenture”), and the seventh
supplemental indenture to be dated January 14, 2020, between the Company and the Trustee
(together with the Original Indenture, the Fourth Supplemental Indenture and the Sixth
Supplemental Indenture, the “Indenture”). Unless otherwise specified, defined terms used
herein shall have the meanings set forth in Section 21 hereof.

The sale of the Securities to the Initial Purchasers will be made without
registration of the Securities under the Act in reliance upon exemptions from the registration
requirements of the Act.

In connection with the sale of the Securities, the Company has prepared a
preliminary offering memorandum, dated January 7, 2020 (including any and all exhibits thereto,
the “Preliminary Memorandum”, and a final offering memorandum, dated January 7, 2020 (as
amended or supplemented at the Execution Time, including any and all exhibits thereto, the
“Final Memorandum”). For the purposes of this purchase agreement (this “Agreement”),
“Additional Written Offering Communication” means any written communication (as defined
in Rule 405 under the Act) that constitutes an offer to sell or a solicitation of an offer to buy the
Securities other than the Preliminary Memorandum or the Final Memorandum, and “Time of
Sale Memorandum” means the Preliminary Memorandum together with the pricing term sheets
prepared by the Company substantially in the form of Exhibit B hereto and any Additional
Written Offering Communications identified in SCHEDULE Il hereto. Each of the Preliminary
Memorandum, the Time of Sale Memorandum and the Final Memorandum sets forth certain
information concerning the Company and the Securities. The Company hereby confirms that it
has authorized the use of the Preliminary Memorandum, the Time of Sale Memorandum, the
Final Memorandum and any Additional Written Offering Communications identified in
SCHEDULE ll hereto, and any amendment or supplement thereto, in connection with the offer
and sale of the Securities by the Initial Purchasers.

1. Representations and Warranties. The Company represents and warrants to each
Initial Purchaser as set forth below in this Section 1.

(a) The Time of Sale Memorandum, at the Execution Time, does not and, on
the Closing Date, will not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The Preliminary Memorandum, at the date
thereof, did not, and the Final Memorandum, at the date thereof, did not and, on the
Closing Date, will not (and any amendment or supplement thereto, at the date thereof,
and at the Closing Date, will not), contain any untrue statement of a material fact or omit
to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however, that the
Company makes no representation or warranty as to any information contained in the
Preliminary Memorandum, the Time of Sale Memorandum or the Final Memorandum, or
any amendment or supplement thereto, in reliance upon and in conformity with
information furnished in writing to the Company by or on behalf of the Initial Purchasers
through the Representatives specifically for inclusion therein, it being understood that the
only such information is set forth in Section 7(b) hereof.

(b) Except for the Additional Written Offering Communications, if any,
identified in SCHEDULE II hereto, and electronic road shows, if any, furnished to you
before first use, the Company has not prepared, used or referred to, and will not, without
your prior consent, prepare, use or refer to, any Additional Written Offering
Communication.

(c) Neither the Company, nor any of its Affiliates, nor any person acting on its
or their behalf has, directly or indirectly, made offers or sales of any “security” (as
defined in the Act), or solicited offers to buy or otherwise negotiated in respect of any
security, which is or will be integrated with the sale of the Securities in a manner that
would require the registration of the Securities under the Act.

(d) Neither the Company, nor any of its Affiliates, nor any person acting on its
or their behalf, has, directly or indirectly, offered or sold the Securities in Chile or to any
resident of Chile, except as permitted by applicable Chilean law.

(e) Neither the Company, nor any of its Affiliates, nor any person acting on its
or their behalf has, directly or indirectly, offered, solicited offers to buy or sell any of the
Securities by any form of general solicitation or general advertising (within the meaning
of Regulation D) or in any manner involving a public offering (within the meaning of
Section 4(a)(2) of the Act).

(£) The Securities satisfy the eligibility requirements of Rule 144A(d)1(3) under
the Act.

(2) The Company is a “foreign issuer” (as defined in Regulation S), and neither
the Company, nor any of its Affiliates, nor any person acting on its or their behalf has
engaged in any “directed selling efforts” (as defined in Regulation S) with respect to the
Securities, except no such representation, warranty or agreement is made by the
Company with respect to the Initial Purchasers.

(h) – Itis not necessary in connection with the offer, sale and delivery of the
Securities to the Initial Purchasers in the manner contemplated by this Agreement to
register the Securities under the Act or to qualify the Indenture under the Trust Indenture
Act.

(1) Each of the Company and its Affiliates, and any person acting on its or their
behalf, has complied with the offering restrictions requirement of Regulation S.
(1) The Company is not, and after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in each of the Time of
Sale Memorandum and the Final Memorandum will not be, required to register as an
“investment company” within the meaning of the Investment Company Act.

(k) The Company has not paid or agreed to pay to any person any compensation
for soliciting another to purchase any securities of the Company (except as contemplated
by this Agreement).

(1) The Company has not taken, directly or indirectly, any action designed to
cause or result in, or that has constituted or which might reasonably be expected to
constitute or cause or result in, under the Exchange Act or otherwise, the stabilization or
manipulation of the price of any security of the Company to facilitate the sale or resale of
the Securities.

(m) Except as disclosed in each of the Time of Sale Memorandum and the Final
Memorandum, 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
Company of the Securities or the enforcement of the Securities, other than (1) a 0.8%
stamp tax on the incurrence of the indebtedness evidenced by the Securities, which will
be paid by the Company upon the issuance of the Securities, and (11) a 4% withholding
tax on interest payments, and all other payments deemed to be interest payments, with
respect to the Securities to the extent paid to a person domiciled or residing outside of
Chile. If thin capitalization rules apply, as described in the Time of Sale Memorandum
and the Final Memorandum, such interest payments would be subject to a 35% penalty
tax that would be payable by the Company. The withholding tax applicable to the interest
payments made by the Company can be credited against such 35% penalty tax.

(n) Any information provided by the Company pursuant to Section 5(¡) hereof
will not, at the date thereof, contain any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

(o) The Company has been duly created and is validly existing as a state-owned
enterprise under the laws of Chile with corporate power and authority to issue and sell the
Securities as contemplated hereby. Each of the Company”s subsidiaries has been duly
organized and is validly existing and in good standing under the laws of their respective
Jurisdictions of organization and, together with the Company, have the corporate power
to own or lease, as the case may be, and to operate their properties and conduct their
business as described in the Time of Sale Memorandum and the Final Memorandum, and
are duly qualified to transact business in each jurisdiction which requires such
qualification, except to the extent that the failure to be so qualified to transact business
would not have a current or prospective material adverse effect on the condition
(financial or otherwise), earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary
course of business.
(p) The Company has no “significant subsidiary” as defined in Rule 1-02 of
Regulation S-X pursuant to the Act.

(q) This Agreement has been duly authorized, executed and delivered by the
Company; the Indenture has been duly authorized, executed and delivered by the
Company and, assuming due authorization, execution and delivery thereof by the Trustee,
constitutes a valid and binding instrument enforceable against the Company in
accordance with its terms (subject, as to the enforcement of remedies, to applicable
bankruptcy, liquidation, reorganization, insolvency, moratorium or other laws affecting
creditors” rights generally and general principles of equity, including, without limitation,
concepts of materiality, reasonableness, good faith and fair dealing (regardless of whether
considered in a proceeding in equity or at law); and the Securities have been duly
authorized and, when executed and authenticated in accordance with the provisions of the
Indenture and delivered to and paid for by the Initial Purchasers under this Agreement,
will have been duly executed and delivered by the Company and will constitute valid and
binding obligations of the Company enforceable against the Company in accordance with
their terms and entitled to the benefits of the Indenture (subject, as to the enforcement of
remedies, to applicable bankruptcy, liquidation, reorganization, insolvency, moratorium
or other laws affecting creditors” rights generally and general principles of equity,
including, without limitation, concepts of materiality, reasonableness, good faith and fair
dealing (regardless of whether considered in a proceeding in equity or at law).

(r) The Securities and the Indenture will conform in all material respects to the
descriptions thereof in the Final Memorandum.

(s) No consent, approval, authorization, filing with or order of any court or
governmental agency or body is required in connection with the transactions
contemplated herein, in the Indenture or in the Securities, except (1) such as may be
required under the blue sky or securities laws of any jurisdiction in connection with the
purchase and distribution of the Securities by the Initial Purchasers in the manner
contemplated herein and in each of the Time of Sale Memorandum and the Final
Memorandum; and (ii) 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 0f 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. 1,554 dated October 28, 2019 and
published in the Official Gazette on December 18, 2019; (B) authorization granted by the
Minister of Finance to the Company to enter into negotiations relating to the issue of the
Securities, pursuant to Decree Law No. 1,350 of 1976, as amended and pursuant to
Ordinary Resolution No. 2,456 issued by the Ministry of Finance on December 23, 2019;
(C) authorization granted by the Minister of Finance to the Company to issue the
Securities, pursuant to Decree Law No. 1,350 of 1976, as amended and pursuant to
Ordinary Resolution No. 41 issued by the Ministry of Finance on January 6, 2020; and
(D) 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.
(t) Neither the execution and delivery of the Indenture or this Agreement, the
issue and sale of the Securities, nor the consummation of any other of the transactions
herein or therein contemplated, nor the fulfillment of the terms hereof, thereof or of the
Securities has conflicted or will conflict with, or has resulted or will result in, a default,
breach or violation of or imposition of any lien, charge or encumbrance upon, any
property or assets of the Company or any of its subsidiaries (except, in the case of (1), (111)
or (iv) below, for any such conflict, default, breach, violation or imposition as would not
have a current or prospective material adverse effect on (x) the consummation of the
transactions contemplated hereby or the rights of the holders of the Securities or (y) the
condition (financial or otherwise), earnings, business or properties of the Company and
its subsidiaries, taken as a whole) pursuant to (1) any provision of applicable law; (11)
Decree Law No. 1,350 of 1976, as amended from time to time, and the Company”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 Company; (111) the terms of any indenture,
contract, lease, mortgage, deed of trust, note agreement, loan agreement or other
agreement, obligation, condition, covenant or instrument to which the Company or any of
its subsidiaries is a party or bound or to which its respective property is subject; or (iv)
any statute, law, rule, regulation, judgment, order or decree applicable to the Company or
any of its subsidiaries of any court, regulatory body, administrative agency, governmental
body, arbitrator or other authority having jurisdiction over the Company, any of its
subsidiaries or their respective properties.

(u) The consolidated historical financial statements and schedules of the
Company and its consolidated subsidiaries included in each of the Time of Sale
Memorandum and the Final Memorandum present fairly in all material respects the
financial condition, results of operations and cash flows of the Company as of the dates
and for the periods indicated and have been prepared in conformity with International
Financial Reporting Standards as adopted by the International Accounting Standards
Board (“IERS”,) in respect of full year periods for 2016, 2017 and 2018 and interim
periods, in each case applied on a consistent basis throughout the periods involved
(except as otherwise noted therein); the selected financial data set forth under the
captions “Summary Consolidated Financial Data” and “Selected Consolidated Financial
Data” in each of the Time of Sale Memorandum and the Final Memorandum fairly
present, on the basis stated in each of the Time of Sale Memorandum and the Final
Memorandum, the information included therein and have been prepared in conformity
with IFRS in respect of full year periods for 2016, 2017 and 2018 and interim periods, in
each case applied on a consistent basis throughout the periods involved (except as
otherwise noted therein).

(v) There is no pending or threatened action, suit or proceeding by or before
any court or governmental agency, authority or body or any arbitrator involving the
Company or any of its subsidiaries or its or their property that is not described in each of
the Time of Sale Memorandum and the Final Memorandum (exclusive of any amendment
or supplement thereto), except for such proceedings that, if the subject of an unfavorable
decision, ruling or finding would not, singly or in the aggregate, have a current or
prospective material adverse effect (1) on the condition (financial or otherwise), earnings,
business or properties of the Company and its subsidiaries, taken as a whole, whether or

6
not arising from transactions in the ordinary course of business, or (ii) on the power or
ability of the Company to perform its obligations under this Agreement, the Indenture or
the Securities or to consummate the transactions contemplated in each of the Time of
Sale Memorandum and the Final Memorandum.

(w) No circumstance or other event has arisen that has caused or, with the
giving of notice or the lapse of time, or both, would cause the Company to be in violation
or default of: (1) any provision of Decree Law No. 1,350 of 1976, as amended, or its
Estatutos, (11) the terms of any agreement or other instrument binding upon the Company
or any of its subsidiaries that is material to the Company and its subsidiaries, taken as a
whole; or (iii) any judgment, order or decree of any governmental body, agency or court
having jurisdiction over the Company or any subsidiary, except for such contraventions
as would not have a current or prospective material adverse effect on the Company or its
subsidiaries, taken as a whole.

(x) The Company and its subsidiaries possess all concessions, licenses,
certificates, permits and other authorizations issued by the appropriate government and
other regulatory authorities necessary to conduct their respective businesses, as described
in each of the Time of Sale Memorandum and the Final Memorandum, and neither the
Company nor any such subsidiary has received any notice of proceedings relating to the
revocation or modification of any such concession, certificate, authorization or permit
which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or
finding, would have a current or prospective material adverse effect on the condition
(financial or otherwise), earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary
course of business.

(y) The Company and each of its subsidiaries maintain a system of internal
accounting controls sufficient to provide reasonable assurance that: (1) transactions are
executed in accordance with management’s general or specific authorizations; (ii)
transactions are recorded as necessary to permit preparation of financial statements in
conformity with IFRS 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 to existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

(z) The Company and its subsidiaries have good and marketable title to all real
property owned by them and good title to all other properties owned by them, including
the Company”s mining concessions, mining rights and water rights, in each case, free and
clear of all mortgages, pledges, liens, security interests, claims, restrictions or
encumbrances of any kind except (1) such as are set forth in or contemplated by each of
the Time of Sale Memorandum and the Final Memorandum (exclusive of any amendment
or supplement thereto) or (ii) where the failure to have good title would not have a
current or prospective material adverse effect on the condition (financial or otherwise),
earnings business or properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of business; all of the
leases and subleases material to the business of the Company and its subsidiaries, taken
as a whole, and under which the Company or any of its subsidiaries holds properties
described in each of the Time of Sale Memorandum and the Final Memorandum, are in
full force and effect, except (i) where the failure to be in full force and effect would not
have a current or prospective material adverse effect on the condition (financial or
otherwise), earnings, business or properties of the Company and its subsidiaries, taken as
a whole, whether or not arising from transactions in the ordinary course of business, or
(11) such as are set forth in or contemplated by each of the Time of Sale Memorandum
and the Final Memorandum (exclusive of any amendment or supplement thereto); and
none of the Company or its subsidiaries has any notice of any material claim of any sort
that has been asserted by anyone adverse to the rights of the Company or any of’its
subsidiaries under any of the leases or subleases mentioned above, or affecting or
questioning the rights of the Company or any of its subsidiaries to the continued
possession of the leased or subleased premises under any such lease or sublease, except
(1) claims which are being contested by the Company or its subsidiaries in good faith and
which would not have a current or prospective material adverse effect on the condition
(financial or otherwise), earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary
course of business, or (11) such as are set forth in or contemplated by each of the Time of
Sale Memorandum and the Final Memorandum (exclusive of any amendment or
supplement thereto).

(aa) Ernst % Young Servicios Profesionales de Auditoría y Asesorías SpA, who
have audited the full-year 2016 financial statements of the Company included in each of
the Time of Sale Memorandum and the Final Memorandum are an independent audit firm
with respect to the Company.

(bb) Deloitte Auditores y Consultores Ltda., who have audited the full-year 2017
and 2018 financial statements of the Company included in each of the Time of Sale
Memorandum and the Final Memorandum and conducted a limited review of the interim
unaudited financial statements of the Company as of September 30, 2019 and for the
nine-month periods ended September 30, 2018 and 2019 included in each of the Time of
Sale Memorandum and the Final Memorandum, are an independent audit firm with
respect to the Company.

(cc) The Company and its subsidiaries (1) are in compliance with any and all
applicable laws, regulations and approvals relating to the protection of human health and
safety, the environment or hazardous or toxic substances or wastes, pollutants or
contaminants (“Environmental Laws”); (11) have received and are in compliance with all
permits, licenses or other approvals required of them under applicable Environmental
Laws to conduct their respective businesses; and (111) have not received notice of any
actual or potential liability for the investigation or remediation of any disposal or release
of hazardous or toxic substances or wastes, pollutants or contaminants, except (x) where
such non-compliance with Environmental Laws, failure to receive required permits,
licenses or other approvals, or liability would not, individually or in the aggregate, have a
current or prospective material adverse effect on the condition (financial or otherwise),
earnings, business or properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of business, and (y) as
described in each of the Time of Sale Memorandum and the Final Memorandum
(exclusive of any amendment or supplement thereto).

(dd) In the ordinary course of its business, the Company periodically reviews the
effect of Environmental Laws on the business, operations and properties of the Company
and its subsidiaries, in the course of which it identifies and evaluates associated costs and
liabilities (including, without limitation, any capital or operating expenditures required
for clean-up, closure of properties or compliance with Environmental Laws, or any
permit, license or approval, any related constraints on operating activities and any
potential liabilities to third parties); on the basis of such review, the Company has
reasonably concluded that such associated costs and liabilities would not, singly or in the
aggregate, have a current or prospective material adverse effect on the condition
(financial or otherwise), earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary
course of business, except as set forth in or contemplated in each of the Time of Sale
Memorandum and the Final Memorandum (exclusive of any amendment or supplement
thereto).

(ee) Since the respective dates as of which information is given in each of the
Time of Sale Memorandum and the Final Memorandum, nothing has occurred giving rise
to a current or prospective material adverse change in the condition (financial or
otherwise), earnings, business or properties of the Company and its subsidiaries, taken as
a whole, whether or not arising from transactions in the ordinary course of business,
except as set forth in or contemplated in each of the Time of Sale Memorandum and the
Final Memorandum (exclusive of any amendment or supplement thereto).

(ff) 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 Company is exempt from the Central
Bank of Chile”s exchange regulations in connection with the issuance, placement and
payments upon the Securities. The Company is entitled to make payments under the
Securities with its own available foreign currency obtained from its export operations and
deposited with the Central Bank of Chile.

(gg) The Company has validly and irrevocably submitted to the non-exclusive
Jurisdiction of any state or federal court located in the City of New York, New York, has
validly and irrevocably waived, to the extent permitted by law, any objection to the venue
of a proceeding in any such court and has validly and irrevocably appointed Cogency
Global Inc. in New York, New York as its authorized agent for service of process.

(hh) The Company has validly and irrevocably waived, pursuant to Section 17
hereof, and will have validly and irrevocably waived pursuant to the Indenture and the
Securities, 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 Securities to which
it may be entitled or become entitled whether or not claimed, including sovereign
immunity, except that (1) 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 Company 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 (11) pursuant to the Chilean Constitution, the mining
concessions corresponding to mining deposits exploited by the Company upon its
creation in 1976 cannot be subject to attachment nor to any act of disposition by the
Company. Each such waiver is binding under Chilean law and remains in full force and
effect.

(11) The Company has an authorized capitalization as set forth in each of the
Time of Sale Memorandum and the Final Memorandum under the heading
“Capitalization”; and all the outstanding shares of capital stock or other equity interests
of each subsidiary of the Company have been duly and validly authorized and issued, are
fully paid and non-assessable and are owned directly or indirectly by the Company, free
and clear of any lien, charge, encumbrance, security interest, restriction on voting or
transfer or any other claim of any third party.

(1) Neither the Company nor any of its subsidiaries nor, to the best knowledge
of the Company, any director, officer, agent, employee or other person associated with or
acting on behalf of the Company or any of its subsidiaries has: (i) used any corporate
funds for any unlawful contribution, gift, entertainment or other unlawful expense
relating to political activity; (11) made any direct or indirect unlawful payment to any
foreign or domestic government official or employee from corporate funds; (111) taken
any action, directly or indirectly, that violated or is in violation of any provision of any
applicable anti-bribery or anti-corruption law or regulation enacted in any jurisdiction,
including, without limitation, the Foreign Corrupt Practices Act of 1977, as amended, or
any applicable law or regulation implementing the OECD Convention on Combating
Bribery of Foreign Public Officials in International Business Transactions, or under the
Bribery Act of 2010 of the United Kingdom, or any other applicable anti-bribery or anti-
corruption laws; or (iv) made any unlawful bribe, influence payment, kickback or other
unlawful payment or gift of money or anything of value prohibited under any applicable
law or regulation in connection with the Company. The Company has instituted, and
maintains and enforces, policies and procedures designed to promote and achieve the
Company and its subsidiaries? compliance with all applicable anti-bribery and anti-
corruption laws.

(kk) The operations of the Company and its subsidiaries are and have been
conducted at all times in compliance with applicable financial recordkeeping and
reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, and applicable money laundering statutes of all jurisdictions, rules and
regulations thereunder and related or similar rules, regulations or guidelines, issued,
administered or enforced by any governmental agency (collectively, the “Money
Laundering Laws”) and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any
of its subsidiaries with respect to the Money Laundering Laws is pending or, to the best
knowledge of the Company, threatened or contemplated.

10
(1) Neither the Company, any of its subsidiaries, nor any director or officer of
the Company or any of its subsidiaries, nor to the knowledge of the Company, any agent,
employee or affiliate (other than the Republic of Chile) of the Company or any of its
subsidiaries (1) is currently an individual or entity that is, or is owned or controlled or is
acting on behalf of, one or more individuals or entities (other than the Republic of Chile)
that are currently the subject of any sanctions administered or enforced by the United
States (including administered or enforced by the Office of Foreign Assets Control of the
U.S. Department of the Treasury (“OFAC”) or the U.S. Department of State), the
European Union, Her Majesty”s Treasury or the United Nations Security Council
(collectively, the “Sanctions”), (11) organized, located or a resident in a country or
territory that is currently the subject of territorial Sanctions broadly prohibiting dealing
with such country or territory (each such country, a “Sanctioned Country,” currently the
Crimea region, Cuba, Iran, North Korea or Syria, and such persons, “Sanctioned
Persons” and each such person, a “Sanctioned Person”), or (i1i) will, directly or
indirectly, use the proceeds of the offering of the Securities hereunder, or lend, contribute
or otherwise make available such proceeds to any subsidiary, joint venture partner or
other person or entity in any manner that would result in a violation of any Sanctions by,
or would reasonably be expected to result in the imposition of Sanctions against, any
individual or entity participating in the offering, whether as underwriter, advisor, investor
or otherwise. Neither the Company nor any of its subsidiaries has, to the knowledge of
the Company, engaged in any dealings or transactions with or for the benefit of a
Sanctioned Person, or with or in a Sanctioned Country, in the preceding 3 years, that have
resulted in a violation of Sanctions by, or the imposition of Sanctions against, the
Company or the Initial Purchasers, nor does the Company or any of its subsidiaries have
any plans to engage in dealings or transactions with or for the benefit of a Sanctioned
Person, or with or in a Sanctioned Country that would result in a violation of Sanctions
by, or the imposition of Sanctions against, the Company or the Initial Purchasers.

(mm) No labor disturbance by or dispute with employees of the Company or any
of its subsidiaries exists or, to the best knowledge of the Company, is contemplated or
threatened, and the Company is not aware of any existing or imminent labor disturbance
by, or dispute with, the employees of any of the Company”s subsidiaries” principal
suppliers, contractors or customers, except (x) as would not have a material adverse
effect on the condition (financial or otherwise), earnings, business or properties of the
Company and its subsidiaries, taken as a whole, whether or not arising from transactions
in the ordinary course of business and (y) as set forth in or contemplated in each of the
Time of Sale Memorandum and the Final Memorandum (exclusive of any amendment or
supplement thereto).

(nn) The Company and its subsidiaries have insurance covering their respective
properties, operations, personnel and businesses, which insurance is in amounts and
insures against such losses and risks as are adequate to protect the Company and its
subsidiaries and their respective businesses, except where any failure to have such
insurance would not result in a material adverse effect on the condition (financial or
otherwise), earnings, business or properties of the Company and its subsidiaries, taken as
a whole, whether or not arising from transactions in the ordinary course of business; and
neither the Company nor any of its subsidiaries has (i) received notice from any insurer

11
or agent of such insurer that capital improvements or other expenditures are required or
necessary to be made in order to continue such insurance or (1i) any reason to believe that
it will not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage at reasonable cost from similar insurers as may be
necessary to continue its business at a cost that would not result in a material adverse
effect on the condition (financial or otherwise), earnings, business or properties of the
Company and its subsidiaries, taken as a whole, whether or not arising from transactions
in the ordinary course of business.

Any certificate signed by any officer of the Company and delivered to the
Representatives or counsel for the Initial Purchasers in connection with the offering of the
Securities shall be deemed a representation and warranty by the Company, as to matters covered
thereby, to each Initial Purchaser.

2. Purchase and Sale. (a) Subject to the terms and conditions and in reliance upon the
representations and warranties herein set forth, the Company agrees to sell to each Initial
Purchaser, and each Initial Purchaser agrees, severally and not jointly, to purchase from the
Company, at a purchase price of 99.707% of the principal amount of the 2030 Notes, plus
accrued interest, if any, from January 14, 2020 and 95.409% of the principal amount of the 2050
Notes, plus accrued interest from September 30, 2019 to the Closing Date (as defined below), the
principal amount of Securities set forth opposite such Initial Purchaser”s name in SCHEDULE I
hereto.

(b) The Company acknowledges and agrees that the Initial Purchasers are
acting solely in the capacity of an arm”s length contractual counterparty to the Company
with respect to the offering of Securities contemplated hereby (including in connection
with determining the terms of the offering) and not as a financial advisor or a fiduciary
to, or an agent of, the Company or any other person. Additionally, no Initial Purchaser is
advising the Company or any other person as to any legal, tax, investment, accounting or
regulatory matters in any jurisdiction. The Company shall consult with its own advisors
concerning such matters and shall be responsible for making its own independent
investigation and appraisal of the transactions contemplated hereby, and the Initial
Purchasers shall have no responsibility or liability to the Company with respect thereto.
Any review by the Initial Purchasers of the Company, the transactions contemplated
hereby or other matters relating to such transactions will be performed solely for the
benefit of the Initial Purchasers and shall not be on behalf of the Company.

3. Delivery and Payment. Delivery of and payment for the Securities shall be made at
10:00 A.M., New York City time, on January 14, 2020 or at such time on such later date as the
Representatives shall designate, which date and time may be postponed by agreement between
the Representatives and the Company or as provided in Section 8 hereof (such date and time of
delivery and payment for the Securities, including as so postponed, being herein called the
“Closing Date”). Delivery of the Securities shall be made to the Representatives for the
respective accounts of the several Initial Purchasers against payment by the several Initial
Purchasers through the Representatives of the purchase price thereof to or upon the order of the
Company by wire transfer payable in same-day funds to the account specified by the Company.

12
Delivery of the Securities shall be made through the facilities of The Depository Trust Company
(“DTC”) unless the Representatives shall otherwise instruct.

4. Offering by the Initial Purchasers. Each Initial Purchaser, severally and not jointly,
represents and warrants to and agrees with the Company that:

(a) It has not offered or sold, and will not offer or sell, any Securities except
(1) to persons it reasonably believes to be qualified institutional buyers (as defined in Rule
144A under the Act) and that, in connection with each such sale, it has taken or will take
reasonable steps to ensure that the purchaser of such Securities is aware that such sale is
being made in reliance on Rule 144A; or (ii) in accordance with the restrictions set forth
in Exhibit A hereto.

(b) Neither it nor any person acting on its behalf has made or will make offers
or sales of the Securities in the United States by means of any form of general solicitation
or general advertising (within the meaning of Regulation D) in the United States or in any
manner involving a public offering within the meaning of Section 4(a)Q2) of the Act.

(c) Unless it has obtained or will obtain the prior written consent of the
Company, it has not used, and will not use, or authorize use of, any written
communication that constitutes an offer to sell or the solicitation of an offer to buy the
Securities other than: (1) the Preliminary Memorandum, (1i) the Time of Sale
Memorandum; (i1i) the Final Memorandum, (iv) any Additional Written Offering
Communications identified in SCHEDULE II hereto; and (v) any Bloomberg or other
customary electronic communications providing certain ratings or proposed terms of the
Securities or relating to marketing, administrative or procedural matters in connection
with the offering of the Securities.

5. Covenants of the Company. The Company agrees with each Initial Purchaser that:

(a) The Company will furnish to each Initial Purchaser and to counsel for the
Initial Purchasers, without charge, during the period referred to in paragraph (d) below,
electronic copies of the materials contained in the Time of Sale Memorandum, the Final
Memorandum and any amendments and supplements thereto as they may reasonably
request.

(b) Before amending or supplementing the Preliminary Memorandum, the Time
of Sale Memorandum or the Final Memorandum, the Company will furnish to the Initial
Purchasers a copy of each such proposed amendment or supplement and will not use any
such proposed amendment or supplement to which the Initial Purchasers reasonably
object.

(c) The Company will furnish to each Initial Purchaser a copy of each proposed
Additional Written Offering Communication to be prepared by or on behalf of, used by,
or referred to by the Company and agrees not to use or refer to any proposed Additional
Written Offering Communication to which the Initial Purchasers reasonably object.

13
(d) Ifat any time prior to the completion of the sale of the Securities by the
Initial Purchasers (as determined by the Representatives), any event occurs as a result of
which the Time of Sale Memorandum or the Final Memorandum, as then amended or
supplemented, would include any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, or if it should be necessary to amend or
supplement the Time of Sale Memorandum or the Final Memorandum to comply with
applicable law, the Company promptly: (1) will notify the Representatives of any such
event; (ii) subject to the requirements of paragraph (b) of this Section 5, will prepare an
amendment or supplement that will correct such statement or omission or effect such
compliance; and (111) will supply any supplemented or amended Time of Sale
Memorandum or the Final Memorandum to the several Initial Purchasers and counsel for
the Initial Purchasers without charge in such quantities as they may reasonably request.

(e) The Company will arrange, if necessary, for the qualification of the
Securities for sale by the Initial Purchasers under the laws of such jurisdictions as the
Initial Purchasers may reasonably designate and will maintain such qualifications in
effect so long as required for the sale of the Securities; provided that in no event shall the
Company be obligated to qualify to do business in any jurisdiction where it is not now so
qualified or to take any action that would subject it to service of process in suits, other
than those arising out of the offering or sale of the Securities, in any jurisdiction where it
is not now so subject. The Company will promptly advise the Representatives of the
receipt by the Company of any notification with respect to the suspension of the
qualification of the Securities for sale in any jurisdiction or the initiation or threatening of
any proceeding for such purpose.

(£) During the period of one year after the Closing Date, the Company will not
resell, and will not permit any person that is an affiliate (as defined in Rule 144 under the
Act) at the time of any contemplated resale or that has been an affiliate within the three
months preceding such time to resell, any of the Securities that have been reacquired by
any of them, except for Securities purchased by the Company or any of its affiliates and
resold in a transaction registered under the Act or in reliance of Regulation S.

(2) Neither the Company, nor any of its Affiliates, nor any person acting on its
or their behalf will, directly or indirectly, make offers or sales of any security, or solicit
offers to buy any security, under circumstances that would require the registration of the
Securities under the Act.

(h) Neither the Company, nor any of its Affiliates, nor any person acting on its
or their behalf will, directly or indirectly, make offers or sales of the Securities in Chile or
to any resident of Chile, except as permitted by applicable Chilean law.

(1) Neither the Company, nor any of its Affiliates, nor any person acting on its
or their behalf will engage in any form of general solicitation or general advertising
(within the meaning of Regulation D) in connection with any offer or sale of the
Securities in the United States or in any manner involving a public offering within the
meaning of Section 4(a)2) of the Act.

14
(1 So long as any of the Securities are “restricted securities” within the
meaning of Rule 144(a)(3) under the Act, the Company will, unless 1t becomes subject to
and complies with Section 13 or 15(d) of the Exchange Act, or becomes exempt from
such reporting requirements pursuant to, and complies with, Rule 12g3-2(b) under the
Exchange Act, provide to each holder of such restricted securities and to each prospective
purchaser (as designated by such holder) of such restricted securities, upon the request of
such holder or prospective purchaser, any information required to be provided by Rule
144A(d)(4) under the Act. This covenant is intended to be for the benefit of the holders,
and the prospective purchasers designated by such holders, from time to time of such
restricted securities.

(k) Neither the Company, nor any of its Affiliates, nor any person acting on its
or their behalf will engage in any directed selling efforts (as defined in Regulation S)
with respect to the Securities.

(1) The Company will cooperate with the Representatives and use its best
efforts to permit the Securities to be eligible for clearance and settlement through DTC,
including its indirect participants, Euroclear Bank S.A./N.V. (“Euroclear”) and
Clearstream Banking, S.A., Luxembourg (“Clearstream”).

(m) The Company will use its best efforts to effect the listing of the Securities
on the Euro MTF market of the Luxembourg Stock Exchange and for so long as the
Securities are outstanding, will file with the Euro MTF market of the Luxembourg Stock
Exchange and any other governmental agency, authority or instrumentality in
Luxembourg as may be required, such reports, documents, agreements and other
information which may, from time to time, be required to be so filed; provided that the
Company may, in its reasonable discretion, de-list the Securities in the event that any
European or national legislation becomes effective in Luxembourg in a manner that
would require the Company to publish or produce financial statements according to
accounting principles or standards that are different from IFRS or that would otherwise
impose requirements that the Company determines, in its reasonable discretion, are not
reasonable.

(n) The Company will not for a period of 60 days following the Execution
Time, without the prior written consent of the Representatives, offer, sell or contract to
sell, or otherwise dispose of (or enter into any transaction which is designed to, or might
reasonably be expected to, result in the disposition (whether by actual disposition or
effective economic disposition due to cash settlement or otherwise) by the Company or
any Affiliate of the Company or any person in privity with the Company or any Affiliate
of the Company), directly or indirectly, or announce the offering of, any U.S. dollar-
denominated debt securities issued or guaranteed by the Company (other than the
Securities).

(o) The Company will not take, directly or indirectly, any action designed to

cause or result in, or that has constituted or which might reasonably be expected to
constitute or cause or result in, under the Exchange Act or otherwise, the stabilization or

15
manipulation of the price of any security of the Company to facilitate the sale or resale of
the Securities.

(p) The Company agrees either to pay directly or to reimburse the Initial
Purchasers, as the case may be, for the reasonable and documented expenses relating to
the following matters: (1) the issuance of the Securities and the fees and expenses of the
Trustee (including, without limitation, the fees of counsel for such trustee); (11) the
preparation, printing and reproduction of each of the Preliminary Memorandum and Final
Memorandum and each amendment or supplement to either of them, including the
pricing term sheets prepared by the Company and any Additional Written Offering
Communications identified in SCHEDULE Il hereto; (ii) the printing (and reproduction)
and delivery (including postage, air freight charges and charges for counting and
packaging) of such copies of each of the Preliminary Memorandum and Final
Memorandum, and all amendments or supplements to either of them, as may, in each
case, be reasonably requested for use in connection with the offering and sale of the
Securities; (iv) the preparation, printing, authentication, issuance and delivery of
certificates for the Securities, including any stamp or transfer taxes in connection with the
original issuance and sale of the Securities; (v) the printing (and reproduction) and
delivery of this Agreement, any blue sky memorandum and all other agreements or
documents printed (or reproduced) and delivered in connection with the offering of the
Securities; (vi) any registration or qualification of the Securities for offer and sale under
the securities or blue sky laws of the several states (including filing fees and the
reasonable fees and expenses of counsel for the Initial Purchasers relating to such
registration and qualification); (vii) the listing of the Securities with the Euro MTF
market of the Luxembourg Stock Exchange (including the fees of the agent retained in
connection with such listing); (viti) the approval of the Securities for book-entry transfer
by DTC, Euroclear and Clearstream; (ix) the rating of the Securities by rating agencies;
(x) the expenses incurred by the Company or the Initial Purchasers in connection with
presentations to prospective purchasers of the Securities; (xi) the fees and expenses of the
Company”s accountants; (x1i) the fees and expenses of counsel (including local and
special United States and Chilean counsels) for the Company; (xiii) all other reasonable
and documented expenses incurred by the Initial Purchasers in connection with the
offering and sale of the Securities; and (xiv) all other fees and expenses incident to the
performance by the Company and the Initial Purchasers of their obligations hereunder;
provided that, if the offering of the Securities (A) is not completed within twelve months
because any condition to the obligations of the Initial Purchasers set forth in Section 6
hereof is not satisfied, because of any termination pursuant to Section 9 hereof or because
of any refusal, inability or failure on the part of the Company to perform any agreement
herein or comply with any provision hereof other than by reason of a default by any of
the Initial Purchasers, the Company shall pay directly all costs and expenses
contemplated by this Section 5(p) or, to the extent the Initial Purchasers have borne such
costs and expenses, shall reimburse the Initial Purchasers severally through the
Representatives; and (B) is completed, the Initial Purchasers shall pay for all such costs
and expenses of this Section S(p) pro rata in proportion to each Initial Purchaser”s
commitment to purchase Securities as listed in SCHEDULE l hereto in accordance with
Section 2(a) and this Section 5(p) (except for the costs and expenses contemplated by
S(p Gx), S(p)Gu)and S(p)xii), which shall be paid directly by the Company whether or

16
not the offering of the Securities is completed), and the Company shall cover such costs
and expenses of this Section S(p) pursuant to Section 2(a).

(q) The Company will apply the net proceeds from the sale of the Securities
substantially in accordance with the description set forth under the heading “Use of
Proceeds” in each of the Time of Sale Memorandum and the Final Memorandum.

(r) The Company will not take any action or omit to take any action (such as
issuing any press release relating to any Securities without an appropriate legend) which
may result in the loss by any of the Initial Purchasers of the ability to rely on any
stabilization safe harbor provided by the Financial Conduct Authority under the U.K.
Financial Services and Markets Act 2000 (the “FSMA”).

6. Conditions to the Obligations of the Initial Purchasers. The obligations of the
Initial Purchasers to purchase the Securities on the Closing Date shall be subject to the accuracy
of the representations and warranties of the Company contained herein at the Execution Time
and the Closing Date, to the accuracy of the statements of the Company made in any certificates
pursuant to the provisions hereof, to the performance by the Company of its obligations
hereunder and to the following additional conditions:

(a) The Company shall have requested and caused Cleary Gottlieb Steen $
Hamilton LLP, U.S. counsel for the Company, to furnish to the Representatives its
opinion, dated the Closing Date and addressed to the Representatives, substantially to the
effect that:

(1) the Indenture has been duly executed and delivered by the Company
under the laws of the State of New York and is a valid, binding and enforceable
agreement of the Company; the Securities, when delivered to and paid for by the
Initial Purchasers in accordance with this Agreement, will be the valid, binding
and enforceable obligations of the Company, entitled to the benefits of the
Indenture pursuant to which such Securities are to be issued; the statements set
forth under the headings “Description of Notes” and “Transfer Restrictions” in the
Time of Sale Memorandum and the Final Memorandum, insofar as such
statements purport to summarize certain provisions of the Securities and the
Indenture, provide a fair summary of such provisions; and the statements in Final
Memorandum under the heading “Plan of Distribution,” insofar as such
statements purport to summarize certain provisions of this Agreement, provide a
fair summary of such provisions;

(ii) this Agreement has been duly executed and delivered by the
Company under the law of the State of New York;

(111) the statements made in each of the Time of Sale Memorandum and
the Final Memorandum under the heading “Taxation—United States Taxation”,
insofar as such statements purport to summarize certain federal income tax laws
of the United States, constitute a fair summary of the principal U.S. federal

17
income tax consequences of an investment in the Securities by a U.S. Holder (as
defined in each of the Time of Sale Memorandum and the Final Memorandum);

(iv) the issuance and the sale of the Securities to the Initial Purchasers
pursuant to this Agreement and the execution and delivery of this Agreement and
the Indenture do not, and the performance by the Company of its obligations
under this Agreement, the Indenture and the Securities will not, (A) require any
consent, approval, authorization, registration or qualification of or with any
governmental authority of the United States or the State of New York that in such
counsel”s experience normally would be applicable to general business entities
with respect to such issuance, sale or performance (but such counsel need express
no opinion relating to United States federal securities laws or any state securities
or blue sky laws other than as set forth in (v) below); or (B) result in a violation of
any United States federal or New York State law or published rule or regulation
that in such counsel”s experience normally would be applicable to general
business entities with respect to such issuance, sale or performance (but such
counsel need not express any opinion relating to the United States federal
securities laws or any state securities or blue sky laws, except as set forth in (v)
below) or (based solely on inquiry of the General Counsel and Head of Finance of
the Company) any judgment, decree or order applicable to the Company of any
New York state or federal court or other governmental authority;

(v) noregistration of the Securities under the Act, and no qualification
of the Indenture under the Trust Indenture Act, are required for the offer and sale
of the Securities by the Company to the Initial Purchasers pursuant to and in the
manner contemplated by this Agreement or by the Initial Purchasers as
contemplated by this Agreement, the Time of Sale Memorandum and the Final
Memorandum;

(vi) no registration of the Company under the Investment Company Act
is required for the offer and sale of the Securities by the Company in the manner
contemplated herein and by each of the Time of Sale Memorandum and the Final
Memorandum; and

(vii) under the laws of the State of New York relating to submission to
Jurisdiction, the Company, pursuant to Section 14 of this Agreement, Section 1.12
of the Indenture and the provisions of the Securities, has (a) validly and
irrevocably submitted to the non-exclusive personal jurisdiction of any New York
state or U.S. federal court located in the Borough of Manhattan, the City of New
York, in any action arising out of or related to this Agreement that is brought by
an Initial Purchaser or by any person who controls any Initial Purchaser, or in any
action arising out of or related to the Indenture or the Securities that is brought by
the holder of any Securities; (b) to the fullest extent permitted by law, validly and
irrevocably waived any objection to the venue of a proceeding in any such court
and (c) validly appointed Cogency Global Inc., as its authorized representative in
the United States, and as its authorized agent for the purpose described in Section
14 hereof, the Indenture and the Securities; and service of process upon such

18
agent in a manner permitted by applicable law will be effective to confer valid
personal jurisdiction over the Company in any action arising under this
Agreement, the Indenture or the Securities.

(b) The Company shall have requested and caused Cleary Gottlieb Steen $
Hamilton LLP, U.S. counsel for the Company, to furnish to the Representatives its letter,
dated the Closing Date and addressed to the Representatives, substantially to the effect
that no information has come to such counsel’s attention that causes it to believe that:

(1) the Time of Sale Memorandum (except the financial statements and
schedules and other financial and statistical data included therein, the information
therein relating to the Company”s ore reserves, as to which such counsel
expresses no view), as of the Execution Time, contained any untrue statement of a
material fact or omitted 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, and

(ii) the Final Memorandum (except the financial statements and
schedules and other financial and statistical data included therein, the information
therein relating to the Company”s ore reserves, as to which such counsel
expresses no view), as of the Closing Date and the Execution Time, contained or
contains an untrue statement of a material fact or omitted or omits 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.

In rendering its opinion under Section 6(a) hereof and furnishing its letter under
Section 6(b) hereof, such counsel may rely (A) as to matters involving the application of laws of
any jurisdiction other than the State of New York or federal laws of the United States, to the
extent they deem proper and specified in such opinion, upon the opinion of other counsel of good
standing whom they believe to be reliable and who are satisfactory to counsel for the Initial
Purchasers; and (B) as to matters of fact, to the extent they deem proper, on certificates of
responsible officers of the Company and public officials. References to the Final Memorandum
in Section 6(a) and Section 6(b) include any amendment or supplement thereto at the Closing
Date.

(c) The Company shall have requested and caused Carey y Cía. Ltda., Chilean
counsel for the Company, to furnish to the Representatives its opinion, dated the Closing
Date and addressed to the Representatives, substantially to the effect that:

(1) the Company has been duly created and is validly existing as a state-
owned company under the laws of Chile, with full corporate power and authority
to own or lease, as the case may be, and to operate its properties, exercise its
mining concessions, mining rights and water rights, and conduct its business as
described in each of the Time of Sale Memorandum and the Final Memorandum,
and is duly qualified to do business under the laws of each jurisdiction which
requires such qualification;

19
(ii) the Indenture has been duly authorized, executed and delivered, and
constitutes a legal, valid and binding instrument enforceable against the Company
in accordance with its terms (subject, as to the enforcement of remedies, to
applicable bankruptcy, liquidation, reorganization, insolvency, moratorium or
other laws affecting creditors” rights generally and general principles of equity,
including, without limitation, concepts of materiality, reasonableness, good faith
and fair dealing (regardless of whether considered in a proceeding in equity or at
law); and the Securities have been duly and validly authorized and, when
executed and authenticated in accordance with the provisions of the Indenture and
delivered to and paid for by the Initial Purchasers under this Agreement, will have
been duly executed and delivered by the Company and will constitute legal, valid,
binding and enforceable obligations of the Company entitled to the benefits of the
Indenture (subject, as to the enforcement of remedies, to applicable bankruptcy,
liquidation, reorganization, insolvency, moratorium or other laws affecting
creditors” rights generally and general principles of equity, including, without
limitation, concepts of materiality, reasonableness, good faith and fair dealing
(regardless of whether considered in a proceeding in equity or at law);

(111) the statements in each of the Time of Sale Memorandum and the
Final Memorandum under the captions “Presentation of Financial and Statistical
Information”, “Enforceability of Civil Liabilities”, “Exchange Rates”, “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”,
“Risk Factors—Risks Relating to CODELCO”s Operations —Future compliance
with a changing and complex regulation scheme may require changes in
CODELCOS*s business”, “Risk Factors—Risks Relating to CODELCO””s
Operations—Labor disruptions involving CODELCO”s employees or the
employees of its independent contractors could affect CODELCO”s production
levels and costs”, “Risk Factors—Risks Relating to CODELCO”s Operations—
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”, “Risk Factors—Risks Relating to CODELCO”s Relationship with the
Government of Chile”, “Management’s Discussion and Analysis of Financial
Condition and Results of Operations—Results of Operations for the Nine Months
Ended September 30, 2018 and 2019—Other expenses”, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations—
Results of Operations for the Nine Months Ended September 30, 2018 and
2019 —Foreign exchange differences”, “Management’s Discussion and Analysis
of Financial Condition and Results of Operations—Results of Operations for the
Nine Months Ended September 30, 2018 and 2019 — Income tax expense”,
“Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources —Distributions to the Chilean
Treasury”, “Regulatory Framework”, “Management”, “Related Party
Transactions”, “Foreign Investment and Exchange Controls in Chile” and
“Taxation—Chilean Taxation”, insofar as such statements constitute summaries

20
of Chilean legal matters, documents or proceedings referred to therein, fairly
summarize the matters therein;

(iv) such counsel has no reason to believe that (A) at the Execution
Time, the Time of Sale Memorandum contained any untrue statement of a
material fact or omitted to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made,
not misleading or (B) at the Execution Time and on the Closing Date, the Final
Memorandum contained or contains any untrue statement of a material fact or
omitted or omits to state any material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading (in each case, other than the financial statements and other financial
information contained therein, as to which such counsel need express no opinion);

(v) this Agreement has been duly authorized, executed and delivered by
the Company;

(vi) the Company has all requisite corporate power and authority, has
taken all requisite corporate action and has received and is in compliance with all
governmental, judicial and other authorizations, approvals and orders necessary to
enter into and perform its obligations under this Agreement and the Indenture and
to issue and perform its obligations under the Securities, and no consent,
approval, authorization, filing with or order of any Chilean court or governmental
agency or body is required in connection with the transactions contemplated
herein, in the Indenture or in the Securities, except (1) such as may be required
under the blue sky or securities laws of any jurisdiction in connection with the
purchase and sale of the Securities by the Initial Purchasers in the manner
contemplated in this Agreement, the Time of Sale Memorandum and the Final
Memorandum, and (ii) 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. 1,554 dated October 28, 2019 and published in the Official Gazette on
December 18, 2019; (B) authorization granted by the Minister of Finance to the
Company to enter into negotiations relating to the issue of the Securities, pursuant
to Decree Law No. 1,350 of 1976, as amended and pursuant to Ordinary
Resolution No. 2,456 issued by the Ministry of Finance on December 23, 2019;
(C) authorization granted by the Minister of Finance to the Company to issue the
Securities, pursuant to Decree Law No. 1,350 of 1976, as amended and pursuant
to Ordinary Resolution No. 41 issued by the Ministry of Finance on January 6,
2020; and (D) 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;

21
(vii) neither the execution and delivery of the Indenture or this
Agreement, the issue and sale of the Securities, nor the consummation of any
other of the transactions herein or therein contemplated, nor the fulfillment of the
terms hereof, thereof or of the Securities will conflict with, or result in, a default,
breach or violation of, or imposition of any lien, charge or encumbrance upon any
property or asset of the Company or its subsidiaries pursuant to, (i) any provision
of applicable Chilean law; (11) Decree Law No. 1,350 of 1976, as amended from
time to time, and the Company”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 Company; or (111) any statute, law, rule, regulation, judgment, order or decree
applicable to the Company or any of its subsidiaries of any Chilean court,
regulatory body, administrative agency, governmental body, arbitrator or other
authority having jurisdiction over the Company, any of its subsidiaries or any of
their respective properties;

(viii) 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 Company is exempt
from the Central Bank of Chile”s regulations in connection with the issuance,
placement and payments upon the Securities. The Company is entitled to make
payments under the Securities with its own available foreign currency obtained
from its export operations and deposited with the Central Bank of Chile;

(ix) except as disclosed in each of the Time of Sale Memorandum and
the Final Memorandum, 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 Company of the Securities or the
enforcement of the Securities, other than (1) a 0.8% stamp tax on the incurrence of
the indebtedness evidenced by the Securities, which will be paid by the Company
upon the issuance of the Securities, and (ii) a 4% withholding tax on interest
payments, and all other payments deemed to be interest payments, with respect to
the Securities to the extent paid to a person domiciled or residing outside of Chile.
Tf thin capitalization rules apply, as described in the Time of Sale Memorandum
and the Final Memorandum, such interest payments would be subject to a 35%
penalty tax that would be payable by the Company. The withholding tax
applicable to the interest payments made by the Company can be credited against
such 35% penalty tax. Payments of fees, compensations and reimbursement of
costs contemplated in this Agreement or in the Indenture, made to persons
domiciled or residing outside of Chile are (or may be, in the case of
reimbursement of costs) subject to a withholding tax at a rate of up to 35%;
provided, however, that any such payment (A) is exempted from withholding tax
if it is deemed a “comisión mercantil” pursuant to the Commercial Code of Chile
and the interpretation of the Chilean Internal Revenue Service (Servicio de
Impuestos Internos, or the “SIT”) or (B) subject to a 15% withholding tax 1 it is
deemed payment for a professional or technical assistance service, provided that
the payment is not made to a party organized, domiciled or resident in one of the
countries which falls under the scope of article 41H of the Chilean Income Tax

22
Law. The withholding tax rate applicable to payments of fees, compensation,
services and reimbursement of costs to a person not domiciled in, or resident of,
Chile may be reduced or may be exempted if there is a double taxation treaty in
force between Chile and the country of such person”s residency that contemplates
a reduced or exempt regime applicable to such payments;

(x) none of the holders of the Securities, the Initial Purchasers or the
Trustee will be deemed resident, domiciled, carrying on business or subject to any
tax liability in Chile solely by reason of the holding of the Securities or the
execution, delivery, performance or enforcement of this Agreement, the Indenture
or the Securities, assuming that none of such persons is domiciled or is a resident
of Chile or has a permanent establishment in Chile;

(xi) the choice of law provisions set forth in Section 15 hereof, in the
Indenture and in the Securities are legal, valid and binding under the laws of Chile
and such counsel knows of no reason why the courts of Chile would not give
effect to the choice of New York law as the proper law of this Agreement, of the
Indenture and of the Securities; the Company has the legal capacity to sue and be
sued in its own name under the laws of Chile; the Company has been empowered
by Decree No. 1,009 issued by the Ministry of Finance, published in the Official
Gazette on December 23, 1978, as renewed by Decree No. 1,554 dated October
28, 2019 and published in the Official Gazette on December 18, 2019, to submit,
and has irrevocably submitted, to the non-exclusive jurisdiction of the New York
courts and has validly and irrevocably appointed Cogency Global Inc. as its
authorized agent for the purpose described in Section 14 hereof, in the Indenture
and in the Securities under the laws of Chile; the irrevocable submission of the
Company to the non-exclusive jurisdiction of the New York courts and the
waivers by the Company of any objection to the venue of the proceeding in a New
York court herein, in the Indenture and in the Securities are legal, valid and
binding under the laws of Chile and such counsel knows of no reason why the
courts of Chile would not give effect to such submission and waivers; service of
process in the manner set forth in Section 14 hereof, in the Indenture and in the
Securities will be effective to confer valid personal jurisdiction over the Company
under the laws of Chile; and the courts in Chile will recognize as valid and final,
and will enforce, any final and conclusive judgment against the Company
obtained in a New York court arising out of or in relation to the obligations of the
Company under this Agreement, the Indenture or the Securities, subject only to
the conditions and qualifications described in each of the Time of Sale
Memorandum and the Final Memorandum under the caption “Enforceability of
Civil Liabilities”;

(xii) the Company has validly and irrevocably waived, pursuant to
Section 17 hereof and to the provisions of the Indenture and the Securities for
itself and its revenues and assets, to the full extent permitted by Chilean 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

23
the Securities to which it may be entitled or become entitled whether or not
claimed, including sovereign immunity, except that (1) 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 Company 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 (11) pursuant to the Chilean Constitution, the mining concessions
corresponding to mining deposits exploited by the Company upon its creation in
1976 cannot be subject to attachment nor to any act of disposition by the
Company. Each such waiver is binding under Chilean law and remains in full
force and effect; and

(xiii) this Agreement, the Indenture and the Securities are in proper legal
form under the laws of Chile for the enforcement thereof against the Company in
Chile without the need to obtain any other consent, approval or authorization, to
file any notification or to take any further action on the part of the Initial
Purchasers or the Trustee and to ensure the legality, validity, enforceability or
admissibility in evidence of any of this Agreement, the Indenture and the
Securities, and except for their translation into Spanish for their presentation to a
Chilean court and subject to the payment of the applicable stamp tax, if any (and
applicable readjustments and penalties, if any), it is not necessary that any other
document be filed or recorded with any court or other authority in Chile or that
any stamp or similar tax be paid on or in respect of any such document or the
Securities.

In rendering such opinion, such counsel may rely (A) as to matters involving the
application of laws of any jurisdiction other than Chile, to the extent they deem proper and
specified in such opinion, upon the opinion of other counsel of good standing whom they believe
to be reliable and who are satisfactory to counsel for the Initial Purchasers; and (B) as to matters
of fact, to the extent they deem proper, on certificates of responsible officers of the Company and
public officials. References to the Final Memorandum in this Section 6(c) include any
amendment or supplement thereto at the Closing Date.

(d) The Company shall have requested and caused María Francisca Domínguez
Meza, Acting General Counsel of the Company, to furnish to the Representatives her
opinion, dated the Closing Date and addressed to the Representatives, substantially to the
effect that:

(1) the Company has been duly created and is validly existing as a state-
owned company under the laws of Chile, with full corporate power and authority
to own or lease, as the case may be, and to operate its properties, exercise its
mining concessions, mining rights and water rights, and conduct its business as
described in each of the Time of Sale Memorandum and the Final Memorandum,
and is duly qualified to do business under the laws of each jurisdiction which
requires such qualification;

24
(ii) the Indenture has been duly authorized, executed and delivered, and
constitutes a legal, valid and binding instrument enforceable against the Company
in accordance with its terms (subject, as to the enforcement of remedies, to
applicable bankruptcy, liquidation, reorganization, insolvency, moratorium or
other laws affecting creditors” rights generally and general principles of equity,
including, without limitation, concepts of materiality, reasonableness, good faith
and fair dealing (regardless of whether considered in a proceeding in equity or at
law); and the Securities have been duly and validly authorized and, when
executed and authenticated in accordance with the provisions of the Indenture and
delivered to and paid for by the Initial Purchasers under this Agreement, will have
been duly executed and delivered by the Company and will constitute legal, valid,
binding and enforceable obligations of the Company entitled to the benefits of the
Indenture (subject, as to the enforcement of remedies, to applicable bankruptcy,
liquidation, reorganization, insolvency, moratorium or other laws affecting
creditors” rights generally and general principles of equity, including, without
limitation, concepts of materiality, reasonableness, good faith and fair dealing
(regardless of whether considered in a proceeding in equity or at law);

(111) to the knowledge of such counsel, there is no pending or threatened
action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any of its
subsidiaries or its or their property that is not set forth in or contemplated by each
of the Time of Sale Memorandum and the Final Memorandum (exclusive of any
amendment or supplement thereto), except for such proceedings that, if the
subject of an unfavorable decision, ruling or finding, would not, singly or in the
aggregate, have a current or prospective material adverse effect (1) on the
condition (financial or otherwise), earnings, business or properties of the
Company and its subsidiaries, taken as a whole, whether or not arising from
transactions in the ordinary course of business, or (ii) on the power or ability of
the Company to perform its obligations under this Agreement, the Indenture or
the Securities or to consummate the transactions contemplated in each of the Time
of Sale Memorandum and the Final Memorandum;

(iv) the Company has an authorized capitalization as set forth in each of
the Time of Sale Memorandum and the Final Memorandum under the heading
“Capitalization”; and all the outstanding shares of capital stock or other equity
interests of each subsidiary of the Company have been duly and validly
authorized and issued, are fully paid and non-assessable and are owned directly or
indirectly by the Company, free and clear of any lien, charge, encumbrance,
security interest, restriction on voting or transfer or any other claim of any third

party;

(v) such counsel has no reason to believe that (1) at the Execution Time,
the Time of Sale Memorandum contained any untrue statement of a material fact
or omitted to state any material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading; or (ii)
at the Execution Time and on the Closing Date, the Final Memorandum contained

25
or contains any untrue statement of a material fact or omitted or omits to state any
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading (in each case, other
than the financial statements and other financial information contained therein, as
to which such counsel need express no opinion);

(vi) this Agreement has been duly authorized, executed and delivered by
the Company;

(vii) the Company has all requisite corporate power and authority, has
taken all requisite corporate action and has received and is in compliance with all
governmental, judicial and other authorizations, approvals and orders necessary to
enter into and perform its obligations under this Agreement and the Indenture and
to issue and perform its obligations under the Securities, and no consent,
approval, authorization, filing with or order of any Chilean court or governmental
agency or body is required in connection with the transactions contemplated
herein, in the Indenture or in the Securities, except (1) such as may be required
under the blue sky or securities laws of any jurisdiction in connection with the
purchase and sale of the Securities by the Initial Purchasers in the manner
contemplated in this Agreement, the Time of Sale Memorandum and the Final
Memorandum, and (ii) 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. 1,554 dated October 28, 2019 and published in the Official Gazette
on December 18, 2019; (B) authorization granted by the Minister of Finance to
the Company to enter into negotiations relating to the issue of the Securities,
pursuant to Decree Law No. 1,350 of 1976, as amended and pursuant to Ordinary
Resolution No. 2,456 issued by the Ministry of Finance on December 23, 2019;
(C) authorization granted by the Minister of Finance to the Company to issue the
Securities, pursuant to Decree Law No. 1,350 of 1976, as amended and pursuant
to Ordinary Resolution No. 41 issued by the Ministry of Finance on January 6,
2020; and (D) 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;

(viii) 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 Company is exempt
from the Central Bank of Chile”s regulations in connection with the issuance,
placement and payments upon the Securities. The Company is entitled to make
payments under the Securities with its own available foreign currency obtained
from its export operations and deposited with the Central Bank of Chile;

(ix) neither the execution and delivery of the Indenture or this
Agreement, the issue and sale of the Securities, nor the consummation of any

26
other of the transactions herein or therein contemplated, nor the fulfillment of the
terms hereof or thereof will conflict with, result in a breach or violation of, or
imposition of any lien, charge or encumbrance upon any property or asset of the
Company or any of its subsidiaries pursuant to: (1) any provision of applicable
law; (11) Decree Law No. 1,350 of 1976, as amended from time to time, and the
Company”s by-laws, as restated in Decree No. 3 of January 13, 2012, or the
Estatutos of the Company; (111) the terms of any indenture, contract, lease,
mortgage, deed of trust, note agreement, loan agreement or other agreement,
obligation, condition, covenant or instrument to which the Company or any of its
subsidiaries is a party or bound or to which its respective property is subject; or
(iv) any statute, law, rule, regulation, judgment, order or decree applicable to the
Company or any of its subsidiaries of any court, regulatory body, administrative
agency, governmental body, arbitrator or other authority having jurisdiction over
the Company, any of its subsidiaries or any of their respective properties;

(x) the statements in each of the Time of Sale Memorandum and the
Final Memorandum under the captions “Presentation of Financial and Statistical
Information”, “Enforceability of Civil Liabilities”, “Exchange Rates”, “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”,
“Risk Factors—Risks Relating to CODELCO”s Operations —Future compliance
with a changing and complex regulation scheme may require changes in
CODELCOS*s business”, “Risk Factors—Risks Relating to CODELCO””s
Operations—Labor disruptions involving CODELCO”s employees or the
employees of its independent contractors could affect CODELCO”s production
levels and costs”, “Risk Factors—Risks Relating to CODELCO”s Operations—
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”, “Risk Factors—Risks Relating to CODELCO”s Relationship with the
Government of Chile”, “Management’s Discussion and Analysis of Financial
Condition and Results of Operations—Results of Operations for the Nine Months
Ended September 30, 2018 and 2019—Other expenses”, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations—
Results of Operations for the Nine Months Ended September 30, 2018 and
2019 —Foreign exchange differences”, “Management’s Discussion and Analysis
of Financial Condition and Results of Operations—Results of Operations for the
Nine Months Ended September 30, 2018 and 2019 — Income tax expense”,
“Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources —Distributions to the Chilean
Treasury”, “Regulatory Framework”, “Management”, “Related Party
Transactions”, “Foreign Investment and Exchange Controls in Chile” and
“Taxation—Chilean Taxation”, insofar as such statements constitute summaries
of Chilean legal matters, documents or proceedings referred to therein, fairly
summarized the matters therein;

27
(xi) no subsidiary of the Company is currently prohibited, directly or
indirectly, from paying any dividends to the Company, from making any other
distribution on such subsidiary”s capital stock, from repaying to the Company any
loans or advances to such subsidiary from the Company or from transferring any
of such subsidiary”s property or assets to the Company or any other subsidiary of
the Company, except as described in or contemplated by each of the Time of Sale
Memorandum and the Final Memorandum (exclusive of any amendment or
supplement thereto);

(xii) the Company and its subsidiaries possess all concessions, licenses,
certificates, permits and other authorizations issued by the appropriate
government and other regulatory authorities necessary to conduct their respective
businesses, and neither the Company nor any such subsidiary has received any
notice of proceedings relating to the revocation or modification of any such
concession, certificate, authorization or permit which, singly or in the aggregate,
if the subject of an unfavorable decision, ruling or finding, would have a current
or prospective material adverse effect on the condition (financial or otherwise),
earnings, business or properties of the Company and its subsidiaries, taken as a
whole, whether or not arising from transactions in the ordinary course of business;

(xiii) the Company and its subsidiaries have good and marketable title to
all real property owned by them and good title to all other properties owned by
them, including the Company”s mining concessions, mining rights and water
rights, in each case, free and clear of all mortgages, pledges, liens, security
interests, claims, restrictions or encumbrances of any kind except (1) such as are
set forth in or contemplated by each of the Time of Sale Memorandum and the
Final Memorandum (exclusive of any amendment or supplement thereto) or (1i)
where the failure to have good title would not have a current or prospective
material adverse effect on the condition (financial or otherwise), earnings,
business or properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of business; all of
the leases and subleases material to the business of the Company and its
subsidiaries, taken as a whole, and under which the Company or any of its
subsidiaries holds properties described in each of the Time of Sale Memorandum
and the Final Memorandunm, are in full force and effect, except (1) where the
failure to be in full force and effect would not have a current or prospective
material adverse effect on the condition (financial or otherwise), earnings,
business or properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of business, or (11)
such as are set forth in or contemplated by each of the Time of Sale Memorandum
and the Final Memorandum (exclusive of any amendment or supplement thereto);
and none of the Company or its subsidiaries has any notice of any material claim
of any sort that has been asserted by anyone adverse to the rights of the Company
or any of its subsidiaries under any of the leases or subleases mentioned above, or
affecting or questioning the rights of the Company or any of its subsidiaries to the
continued possession of the leased or subleased premises under any such lease or
sublease, except (1) claims which are being contested by the Company or its

28
subsidiaries in good faith and which would not have a current or prospective
material adverse effect on the condition (financial or otherwise), earnings,
business or properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of business, or (11)
such as are set forth in or contemplated by each of the Time of Sale Memorandum
and the Final Memorandum (exclusive of any amendment or supplement thereto);

(xiv) the choice of law provisions set forth in Section 15 hereof, in the
Indenture and in the Securities are legal, valid and binding under the laws of Chile
and such counsel knows of no reason why the courts of Chile would not give
effect to the choice of New York law as the proper law of this Agreement, of the
Indenture and of the Securities; the Company has the legal capacity to sue and be
sued in its own name under the laws of Chile; the Company has been empowered
by Decree No. 1,009 issued by the Ministry of Finance, published in the Official
Gazette on December 23, 1978, as renewed by Decree No. 1,554 dated October
28, 2019 and published in the Official Gazette on December 18, 2019, to submit,
and has irrevocably submitted, to the non-exclusive jurisdiction of the New York
courts and has validly and irrevocably appointed Cogency Global Inc. as its
authorized agent for the purpose described in Section 14 hereof, in the Indenture
and in the Securities under the laws of Chile; the irrevocable submission of the
Company to the non-exclusive jurisdiction of the New York courts and the
waivers by the Company of any objection to the venue of the proceeding in a New
York court herein, in the Indenture and in the Securities are legal, valid and
binding under the laws of Chile and such counsel knows of no reason why the
courts of Chile would not give effect to such submission and waivers; service of
process in the manner set forth in Section 14 hereof, in the Indenture and in the
Securities will be effective to confer valid personal jurisdiction over the Company
under the laws of Chile; and the courts in Chile will recognize as valid and final,
and will enforce, any final and conclusive judgment against the Company
obtained in a New York court arising out of or in relation to the obligations of the
Company under this Agreement, the Indenture or the Securities, subject only to
the conditions and qualifications described in each of the Time of Sale
Memorandum and the Final Memorandum under the caption “Enforceability of
Civil Liabilities”;

(xv) to the knowledge of such counsel, the Company and its subsidiaries
(1) are in compliance with any and all Environmental Laws, (11) have received all
permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses and (iii) are in
compliance with all terms and conditions of any such permit, license or approval,
except where such noncompliance with Environmental Laws, failure to receive
required permits, licenses or other approvals or failure to comply with the terms
and conditions of such permits, licenses or approvals would not, singly or in the
aggregate, have a material adverse effect on the condition (financial or otherwise),
earnings, business or properties of the Company and its subsidiaries, taken as a
whole, whether or not arising from transactions in the ordinary course of business;

29
(xvi) except as disclosed in each of the Time of Sale Memorandum and
the Final Memorandum, 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 Company of the Securities or the
enforcement of the Securities, other than (1) a 0.8% stamp tax on the incurrence of
the indebtedness evidenced by the Securities, which will be paid by the Company
upon the issuance of the Securities, and (ii) a 4% withholding tax on interest
payments, and all other payments deemed to be interest payments, with respect to
the Securities to the extent paid to a person domiciled or residing outside of Chile.
Tf thin capitalization rules apply, as described in the Time of Sale Memorandum
and the Final Memorandum, such interest payments would be subject to a 35%
penalty tax that would be payable by the Company. The withholding tax
applicable to the interest payments made by the Company can be credited against
such 35% penalty tax. Payments of fees, compensations and reimbursement of
costs contemplated in this Agreement or in the Indenture, made to persons
domiciled or residing outside of Chile are (or may be, in the case of
reimbursement of costs) subject to a withholding tax at a rate of up to 35%;
provided, however, that any such payment (A) is exempted from withholding tax
if it is deemed a “comisión mercantil” pursuant to the Commercial Code of Chile
and the interpretation of the SII or (B) subject to a 15% withholding tax 1£ it is
deemed payment for a professional or technical assistance service, provided that
the payment is not made to a party organized, domiciled or resident in one of the
countries which falls under the scope of article 41H of the Chilean Income Tax
Law. The withholding tax rate applicable to payments of fees, compensation,
services and reimbursement of costs to a person not domiciled in, or resident of,
Chile may be reduced or may be exempted if there is a double taxation treaty in
force between Chile and the country of such person”s residency that contemplates
a reduced or exempt regime applicable to such payments;

(xvii) none of the holders of the Securities, the Initial Purchasers or the
Trustee will be deemed resident, domiciled, carrying on business or subject to any
tax liability in Chile solely by reason of the holding of the Securities or the
execution, delivery, performance or enforcement of this Agreement, the Indenture
or the Securities, assuming that none of such persons is domiciled or is a resident
of Chile or has a permanent establishment in Chile;

(xviii) the Company has validly and irrevocably waived pursuant to
Section 17 hereof and to the provisions of the Indenture and the Securities for
itself and its revenues and assets, to the full extent permitted by Chilean 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 Securities that it may be entitled or become entitled whether or not claimed,
including sovereign immunity, except that (1) 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

30
with respect to mortgages, the consent of the Company 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 (11) pursuant
to the Chilean Constitution, the mining concessions corresponding to mining
deposits exploited by the Company upon its creation in 1976 cannot be subject to
attachment nor to any act of disposition by the Company. Each such waiver is
binding under Chilean law and remains in full force and effect; and

(xix) this Agreement, the Indenture and the Securities are in proper legal
form under the laws of Chile for the enforcement thereof against the Company in
Chile without the need to obtain any other consent, approval or authorization, to
file any notification or to take any further action on the part of the Initial
Purchasers or the Trustee and to ensure the legality, validity, enforceability or
admissibility in evidence of any of this Agreement, the Indenture and the
Securities, and except for their translation into Spanish for their presentation to a
Chilean court and subject to the payment of the applicable stamp tax, if any (and
applicable readjustments and penalties, if any), it is not necessary that any other
document be filed or recorded with any court or other authority in Chile or that
any stamp or similar tax be paid on or in respect of any such document or the
Securities.

In rendering such opinion, such counsel may rely (A) as to matters involving the
application of laws of any jurisdiction other than Chile, to the extent they deem proper and
specified in such opinion, upon the opinion of other counsel of good standing whom they believe
to be reliable and who are satisfactory to counsel for the Initial Purchasers; and (B) as to matters
of fact, to the extent they deem proper, on certificates of responsible officers of the Company and
public officials. References to the Final Memorandum in this Section 6(d) include any
amendment or supplement thereto at the Closing Date.

(e) The Representatives shall have received from Davis Polk $: Wardwell LLP,
U.S. counsel for the Representatives, such opinion or opinions, dated the Closing Date
and addressed to the Representatives, with respect to the issuance and sale of the
Securities, the Indenture, the Time of Sale Memorandum and the Final Memorandum (as
amended or supplemented at the Closing Date) and other related matters as the
Representatives may reasonably require, and the Company shall have furnished to such
counsel such documents as they request for the purpose of enabling them to pass upon
such matters.

(f) The Representatives shall have received from Philippi, Prietocarrizosa
Ferrero DU á: Uría, Chilean counsel for the Representatives, such opinion or opinions,
dated the Closing Date and addressed to the Representatives, with respect to the issuance
and sale of the Securities, the Indenture, the Time of Sale Memorandum, the Final
Memorandum (as amended or supplemented at the Closing Date) and other related
matters as the Representatives may reasonably require, and the Company shall have
furnished to such counsel such documents as they request for the purpose of enabling
them to pass upon such matters.

31
(2) The Company shall have furnished to the Representatives a certificate of the
Company, signed by the Head of Finance of the Company, dated the Closing Date, to the
effect that the signatory of such certificate has carefully examined each of the Time of
Sale Memorandum, the Final Memorandum, any amendment or supplement to the Final
Memorandum and this Agreement and that:

(1) therepresentations and warranties of the Company in this
Agreement are true and correct in all material respects on and as of the Closing
Date with the same effect as if made on the Closing Date, and the Company has
complied with all the agreements and satisfied all the conditions on its part to be
performed or satisfied hereunder at or prior to the Closing Date; and

(ii) since the date of the most recent financial statements included in
each of the Time of Sale Memorandum and the Final Memorandum (exclusive of
any amendment or supplement thereto), there has been no development giving
rise to a current or prospective material adverse change in the condition (financial
or otherwise), earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising from transactions in the
ordinary course of business, except as set forth in or contemplated by each of the
Time of Sale Memorandum and the Final Memorandum (exclusive of any
amendment or supplement thereto).

(h) At the Execution Time, the Company shall have requested and caused Ernst
$ Young Servicios Profesionales de Auditoría y Asesorías SpA, independent audit firm
with respect to the Company, to furnish to the Representatives a letter, dated as of the
Execution Time, in form and substance satisfactory to the Representatives, containing
statements and information of the type ordinarily included in accountants” “comfort
letters” to underwriters with respect to the full-year 2016 financial statements and certain
financial and other information contained in each of the Preliminary Memorandum and
the Final Memorandum.

(1) At the Execution Time and at the Closing Date, the Company shall have
requested and caused Deloitte Auditores y Consultores Ltda., independent audit firm with
respect to the Company, to furnish to the Representatives letters, dated respectively as of
the Execution Time and as of the Closing Date, in form and substance satisfactory to the
Representatives, containing statements and information of the type ordinarily included in
accountants” “comfort letters” to underwriters with respect to the full-year 2017 and 2018
financial statements, the interim unaudited consolidated financial statements as of and for
the nine months ended September 30, 2018 and September 30, 2019 and certain financial
and other information contained in each of the Preliminary Memorandum and the Final
Memorandum; provided that the letter delivered on the Closing Date shall use a “cut-off
date” not earlier than three business days prior to the date thereof.

References to the Final Memorandum in this Section 6(h) include any amendment
or supplement thereto at the date of the applicable letter.
(1) Subsequent to the Execution Time or, if earlier, the dates as of which
information is given in each of the Time of Sale Memorandum and the Final

32
Memorandum (exclusive of any amendment or supplement thereto), there shall not have
been (1) any change or decrease specified in the letter or letters referred to in

paragraph 6(h) of this Section 6; or (11) any change, or any development involving a
prospective change, in or affecting the condition (financial or otherwise), business or
properties of the Company and its subsidiaries, taken as a whole, whether or not arising
from transactions in the ordinary course of business, except as set forth or contemplated
in the Time of Sale Memorandum and the Final Memorandum (exclusive of any
amendment or supplement thereto) the effect of which, in any case referred to in clause
(1) or (11) above, is, in the reasonable judgment of the Representatives, so material and
adverse as to make it impractical or inadvisable to proceed with the offering, sale or
delivery of the Securities as contemplated by the Time of Sale Memorandum and the
Final Memorandum (exclusive of any amendment or supplement thereto).

(k) Subsequent to the Execution Time, there shall not have been any decrease in
the rating accorded the Company or any of the Company”s foreign-currency denominated
debt securities by any “nationally recognized statistical rating organization” (as such term
is defined in Section 3(a)(62) of the Exchange Act) or any notice given of any intended or
potential decrease in any such rating or of a possible change in any such rating that does
not indicate the direction of the possible change.

(1) At the Execution Time and on the Closing Date, the Representatives shall
have received a written certificate executed by the Chief Financial Officer of the
Company, in form and substance reasonably satisfactory to the Representatives, with
respect to certain financial information contained in the Offering Memorandum.

(m) Prior to the Closing Date, the Company shall have furnished to the
Representatives such further information, certificates and documents as the
Representatives may reasonably request.

If any of the conditions specified in this Section 6 shall not have been fulfilled in
all material respects when and as provided in this Agreement, or if any of the opinions and
certificates mentioned above or elsewhere in this Agreement shall not have been delivered in
form and substance reasonably satisfactory to the Representatives and counsel for the Initial
Purchasers, this Agreement and all obligations of the Initial Purchasers hereunder may be
canceled at, or at any time prior to, the Closing Date by the Representatives. Notice of such
cancellation shall be given to the Company in writing or by telephone or facsimile confirmed in
writing.

The documents required to be delivered by this Section 6 will be delivered at the
office of counsel for the Initial Purchasers, Davis Polk 8: Wardwell LLP, at 450 Lexington
Avenue, New York, New York 10017, on the Closing Date.

7. Indemnification and Contribution. (a) The Company agrees to indemnify and hold
harmless each Initial Purchaser, the directors, officers, employees, affiliates and agents of each
Initial Purchaser and each person who controls any Initial Purchaser within the meaning of either
the Act or the Exchange Act against any and all losses, claims, damages or liabilities, joint or
several, to which they or any of them may become subject under the Act, the Exchange Act or
any other federal or state statutory law or regulation, at common law or otherwise, insofar as

33
such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of a material fact contained in the Time of
Sale Memorandum, any Additional Written Offering Communication prepared by or on behalf
of, used by, or referred to by the Company, any “road show” as defined in Rule 433(h) under the
Act (a “road show”), or the Final Memorandum or any information provided by the Company to
any holder or prospective purchaser of Securities pursuant to Section 5(j), or in any amendment
thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission
to state therein a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading, and
agrees to reimburse each such indemnified party, for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage,
liability or action, as such expenses are incurred; provided, however, that the Company will not
be liable in any such case to the extent that any such loss, claim, damage or liability arises out of
or is based upon any such untrue statement or alleged untrue statement or omission or alleged
omission made in the Time of Sale Memorandum or the Final Memorandum, or in any
amendment thereof or supplement thereto, or in any Additional Written Offering
Communication, in reliance upon and in conformity with written information furnished to the
Company by or on behalf of any Initial Purchasers through the Representatives specifically for
inclusion therein.

(b) Each Initial Purchaser severally and not jointly agrees to indemnify and
hold harmless the Company, each of its directors, each of its officers, and each person
who controls the Company within the meaning of either the Act or the Exchange Act, to
the same extent as the foregoing indemnity from the Company to each Initial Purchaser,
but only with reference to information relating to such Initial Purchaser furnished to the
Company in writing by or on behalf of such Initial Purchaser through the Representatives
specifically for inclusion in the Time of Sale Memorandum, road show or the Final
Memorandum (or in any amendment or supplement thereto). The indemnity agreement
under this Section 7 will be in addition to any liability which any Initial Purchaser may
otherwise have. The Company acknowledges that (1) the names of the Representatives
set forth on the cover page, (11) the statements set forth in the last paragraph of the cover
page regarding delivery of the Securities and (iii) under the heading “Plan of
Distribution”: (A) the names of the Representatives and the amounts in the table, (B) the
single sentence following the second full paragraph regarding the purchase price, (C) the
fifth sentence of the eighth paragraph regarding market making activities, (D) the ninth
paragraph related to stabilization and syndicate covering transactions and (E) the third
sentence of the eleventh paragraph regarding hedging activity, constitute the only
information furnished in writing by or on behalf of the Initial Purchasers for inclusion in
the Time of Sale Memorandum or the Final Memorandum (or in any amendment or
supplement thereto).

(c) Promptly after receipt by an indemnified party under this Section 7 of notice
of the commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against the indemnifying party under this Section 7, notify the
indemnifying party in writing of the commencement thereof; but the failure so to notify
the indemnifying party (1) will not relieve it from liability under paragraphs (a) or (b)
above unless and to the extent it did not otherwise learn of such action and such failure

34
results in the forfeiture by the indemnifying party of substantive rights and defenses; and
(11) will not, in any event, relieve the indemnifying party from any obligations to any
indemnified party other than the indemnification obligation provided in paragraphs (a) or
(b) above. The indemnifying party shall be entitled to appoint counsel of the
indemnifying party”s choice at the indemnifying party?s expense to represent the
indemnified party in any action for which indemnification is sought (in which case the
indemnifying party shall not thereafter be responsible for the fees and expenses of any
separate counsel (including local counsel) retained by the indemnified party or parties
except as set forth below); provided, however, that such counsel shall be satisfactory to
the indemnified party. Notwithstanding the indemnifying party”s election to appoint
counsel to represent the indemnified party in an action, the indemnified party shall have
the right to employ separate counsel (including local counsel), and the indemnifying
party shall bear the reasonable fees, costs and expenses of such separate counsel if (1) the
use of counsel chosen by the indemnifying party to represent the indemnified party would
present such counsel with a conflict of interest; (11) the actual or potential defendants in,
or targets of, any such action include both the indemnified party and the indemnifying
party and the indemnified party shall have reasonably concluded that there may be legal
defenses available to it and/or other indemnified parties which are different from or
additional to those available to the indemnifying party; (111) the indemnifying party shall
not have employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of the institution of such action;
or (iv) the indemnifying party shall authorize the indemnified party to employ separate
counsel at the expense of the indemnifying party. It is understood, however, that the
indemnifying party shall, in connection with any one such action or separate but
substantially similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the reasonable fees and expenses of
only one such separate firm of attorneys (in addition to any local counsel) at any time for
all such indemnified parties and controlling persons, which firm shall be designated in
writing by the indemnified parties. An indemnifying party will not, without the prior
written consent of the indemnified parties, settle or compromise or consent to the entry of
any judgment with respect to any pending or threatened claim, action, suit or proceeding
in respect of which indemnification or contribution may be sought hereunder (whether or
not the indemnified parties are actual or potential parties to such claim or action) unless
such settlement, compromise or consent (i) includes an unconditional release of each
indemnified party from all liability arising out of such claim, action, suit or proceeding;
and (11) does not include any statement as to or any admission of fault, culpability or a
failure to act by or on behalf of an indemnified party.

(d) In the event that the indemnity provided in paragraphs (a) or (b) of this
Section 7 is unavailable to or insufficient to hold harmless an indemnified party for any
reason, the Company and the Initial Purchasers agree to contribute to the aggregate
losses, claims, damages and liabilities (including legal or other expenses reasonably
incurred in connection with investigating or defending same) (collectively “Losses”) to
which the Company and one or more of the Initial Purchasers may be subject in such
proportion as is appropriate to reflect the relative benefits received by the Company on
the one hand and by the Initial Purchasers on the other from the offering of the Securities;
provided, however, that in no case shall any Initial Purchaser (except as may be provided

35
in any agreement among the Initial Purchasers relating to the offering of the Securities)
be responsible for any amount in excess of the purchase discount or commission
applicable to the Securities purchased by such Initial Purchaser hereunder. If the
allocation provided by the immediately preceding sentence is unavailable for any reason,
the Company and the Initial Purchasers shall contribute in such proportion as is
appropriate to reflect not only such relative benefits but also the relative fault of the
Company on the one hand and of the Initial Purchasers on the other in connection with
the statements or omissions that resulted in such Losses, as well as any other relevant
equitable considerations. Benefits received by the Company shall be deemed to be equal
to the total net proceeds from the offering (before deducting expenses) received by it, and
benefits received by the Initial Purchasers shall be deemed to be equal to the total
purchase discounts and commissions in each case set forth on the cover of the Final
Memorandum. Relative fault shall be determined by reference to, among other things, (1)
whether any untrue or any alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information provided by the Company
on the one hand or the Initial Purchasers on the other, (ii) the intent of the parties and (iii)
their relative knowledge, access to information and opportunity to correct or prevent such
untrue statement or omission. The Company and the Initial Purchasers agree that it
would not be just and equitable if contribution were determined by pro rata allocation or
any other method of allocation which does not take account of the equitable
considerations referred to above. Notwithstanding the provisions of this paragraph (d),
no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 7, each person who controls
an Initial Purchaser within the meaning of either the Act or the Exchange Act and each
director, officer, employee, affiliate and agent of an Initial Purchaser shall have the same
rights to contribution as such Initial Purchaser, and each person who controls the
Company within the meaning of either the Act or the Exchange Act and each officer and
director of the Company shall have the same rights to contribution as the Company,
subject in each case to the applicable terms and conditions of this paragraph (d).
Notwithstanding the provisions of this Section 7, no Initial Purchaser shall be required to
contribute any amount in excess of the discounts received by such Initial Purchaser in
connection with the Securities distributed by it. The Initial Purchasers” obligations to
contribute pursuant to this Section 7 are several, and not joint, in proportion to their
respective commitments as set forth opposite their names in SCHEDULE L

8. Default by an Initial Purchaser. Ifany one or more Initial Purchasers shall fail to
purchase and pay for any of the Securities agreed to be purchased by such Initial Purchaser
hereunder and such failure to purchase shall constitute a default in the performance of its or their
obligations under this Agreement, the remaining Initial Purchasers shall be obligated severally to
take up and pay for (in the respective proportions which the principal amount of Securities set
forth opposite their names in SCHEDULE TI hereto bears to the aggregate principal amount of
Securities set forth opposite the names of all the remaining Initial Purchasers) the Securities
which the defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase;
provided, however, that in the event that the aggregate principal amount of Securities which the
defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase shall exceed 10%
of the aggregate principal amount of Securities set forth in SCHEDULE l hereto, the remaining

36
Initial Purchasers shall have the right to purchase all, but shall not be under any obligation to
purchase any, of the Securities, and if such nondefaulting Initial Purchasers do not purchase all
the Securities, this Agreement will terminate without liability to any nondefaulting Initial
Purchaser or the Company. In the event of a default by any Initial Purchaser as set forth in this
Section 8, the Closing Date shall be postponed for such period, not exceeding five Business
Days, as the Representatives shall determine in order that the required changes in the Final
Memorandum or in any other documents or arrangements may be effected. Nothing contained in
this Agreement shall relieve any defaulting Initial Purchaser of its liability, if any, to the
Company or any nondefaulting Initial Purchaser for damages occasioned by its default
hereunder.

9. Termination. This Agreement shall be subject to termination in the absolute
discretion of the Representatives, by notice given to the Company prior to delivery of and
payment for the Securities, if at any time prior to such time (1) trading in securities generally on
the Santiago Stock Exchange, the New York Stock Exchange or the Nasdaq National Market
shall have been suspended or limited or minimum prices shall have been established on either
such exchange or the Nasdaq National Market; (11) trading of any securities issued or guaranteed
by the Company shall have been suspended on any exchange or in any over-the-counter market;
(111) a banking moratorium shall have been declared in New York either by federal or New York
state authorities or in Chile by the Chilean Central Bank or other competent government
regulator; or (iv) there shall have occurred any outbreak or escalation of hostilities, declaration
by the United States of a national emergency or war or other calamity or crisis the effect of
which on financial markets is such as to make it, in the reasonable judgment of the
Representatives, impracticable or inadvisable to proceed with the offering, sale or delivery of the
Securities as contemplated by this Agreement, the Time of Sale Memorandum and the Final
Memorandum (exclusive of any amendment or supplement thereto).

10. Representations, Covenants and Indemnities to Survive. The respective
agreements, representations, warranties, indemnities and other statements of the Company or its
officers and of the Initial Purchasers set forth in or made pursuant to this Agreement will remain
in full force and effect, regardless of any investigation made by or on behalf of the Initial
Purchasers or the Company or any of the officers, directors or controlling persons referred to in
Section 7 hereof, and will survive delivery of and payment for the Securities. The provisions of
Sections 5(p) and 7 hereof shall survive the termination or cancellation of this Agreement.

11. Recognition of the U.S. Special Resolution Regimes.

(a) In the event that any Initial Purchaser that is a Covered Entity becomes subject to
a proceeding under a U.S. Special Resolution Regime, the transfer from such Initial
Purchaser of this Agreement, and any interest and obligation in or under this Agreement,
will be effective to the same extent as the transfer would be effective under the U.S.
Special Resolution Regime if this Agreement, and any such interest and obligation, were
governed by the laws of the United States or a state of the United States.

(b) In the event that any Initial Purchaser that is a Covered Entity or a BHC Act
Affiliate of such Initial Purchaser becomes subject to a proceeding under a U.S. Special
Resolution Regime, Default Rights under this Agreement that may be exercised against

37
such Initial Purchaser are permitted to be exercised to no greater extent than such Default
Rights could be exercised under the U.S. Special Resolution Regime if this Agreement
were governed by the laws of the United States or a state of the United States.

12. Notices. All communications hereunder will be in writing and effective only upon
receipt, and, if sent to the Representatives, will be mailed, delivered or telefaxed to BofA
Securities, Inc., 50 Rockefeller Plaza, NY 1-050-12-02, New York, New York 10020, (fax: (646)
855-5958), Attention: High Grade Transaction Management/Legal; HSBC Securities (USA) Inc.
(fax no.: 212-525-0238), 452 Fifth Avenue, New York, New York 10018; J.P. Morgan Securities
LLC (fax no.: 212-834-6326), 383 Madison Avenue, New York, New York 10179, Attention:
Latin America Debt Capital Markets; and Scotia Capital (USA) Inc. (email:
us. legal(yscotiabank.com), 250 Vesey Street, New York, New York 10281, Attention: Debt
Capital Markets, or, 1f sent to the Company, will be mailed, delivered or telefaxed to the
Corporación Nacional del Cobre de Chile, c/o María Francisca Domínguez Meza, Acting
General Counsel (fax no.: 562-2690-3021) Huérfanos 1270, Santiago, Chile, Attention: Legal
Department.

13. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto and their respective successors and the officers and directors and controlling
persons referred to in Section 7 hereof, and, except as expressly set forth in Section 5(¡) hereof,
no other person will have any right or obligation hereunder.

14. Jurisdiction. The Company agrees that any suit, action or proceeding against the
Company brought by any Initial Purchaser, the directors, officers, employees, affiliates and
agents of any Initial Purchaser, or by any person who controls any Initial Purchaser, arising out
of or based upon this Agreement or the transactions contemplated hereby may be instituted in
any New York state or U.S. federal court located in the Borough of Manhattan, the City of New
York, New York, and waives, to the extent legally permitted, any objection which it may now or
hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-
exclusive jurisdiction of such courts in any suit, action or proceeding. The Company has
appointed Cogency Global Inc. as its authorized agent (the “Authorized Agent”) upon whom
process may be served in any suit, action or proceeding arising out of or based upon this
Agreement or the transactions contemplated herein which may be instituted in any state or
federal court in the City of New York, New York, by any Initial Purchaser, the directors,
officers, employees, affiliates and agents of any Initial Purchaser, or by any person who controls
any Initial Purchaser, and expressly accepts the non-exclusive jurisdiction of any such court in
respect of any such suit, action or proceeding. The Company hereby represents and warrants that
the Authorized Agent has accepted such appointment and has agreed to act as said agent for
service of process, and the Company agrees to take any and all action, including the filing of any
and all documents that may be necessary to continue such appointment in full force and effect as
aforesaid. Service of process upon the Authorized Agent shall be deemed, in every respect,
effective service of process upon the Company. Notwithstanding the foregoing, any action
arising out of or based upon this Agreement may be instituted by any Initial Purchaser, the
directors, officers, employees, affiliates and agents of any Initial Purchaser, or by any person
who controls any Initial Purchaser, in any court of competent jurisdiction in Chile. The
Company hereby irrevocably waives trial by jury in any legal action or proceeding relating to

38
this Agreement and for any counterclaim relating thereto. The Company acknowledges that each
Initial Purchaser is entering into this Agreement in reliance upon such waiver.

15. Applicable Law. This Agreement and any claim, controversy or dispute arising
under or related to this Agreement will be governed by and construed in accordance with the
laws of the State of New York applicable to contracts made and to be performed within the State
of New York.

16. Currency. Each reference in this Agreement to U.S. dollars (the “relevant
currency”) is of the essence. To the fullest extent permitted by law, the obligation of the
Company in respect of any amount due under this Agreement will, notwithstanding any payment
in any other currency (whether pursuant to a judgment or otherwise), be discharged only to the
extent of the amount in the relevant currency that the party entitled to receive such payment may,
in accordance with its normal procedures, purchase with the sum paid in such other currency
(after any premium and costs of exchange) on the Business Day immediately following the day
on which such party receives such payment. If the amount in the relevant currency that may be
so purchased for any reason falls short of the amount originally due, the Company will pay such
additional amounts, in the relevant currency, as may be necessary to compensate for the shortfall.
Any obligation of the Company not discharged by such payment will, to the fullest extent
permitted by applicable law, be due as a separate and independent obligation and, until
discharged as provided herein, will continue in full force and effect.

17. Waiver of Immunity. To the extent that the Company 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 Company such an immunity (whether
or not claimed), the Company hereby irrevocably agrees not to claim and irrevocably waives
such immunity to the maximum extent permitted by law, except that (1) 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 Company 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 Company upon its creation in 1976 cannot be
subject to attachment nor to any act of disposition by the Company. 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 Initial Purchasers in any competent
court in Chile.

18. Payment Free and Clear. All payments to be made by the Company under this
Agreement shall be paid free and clear of, and without deduction or withholding for or on
account of, any present or future taxes, levies, imposts, duties, fees, assessments or other charges
of whatever nature (including any amounts that result from the payment of fees, compensation or
reimbursement of costs contemplated in this Agreement or in the Indenture), imposed by Chile,
or by any department, agency or other political subdivision or taxing authority thereof, and all

39
interest, penalties or similar liabilities with respect thereto (collectively, “Chilean Taxes”). If
any Chilean Taxes are required by law to be deducted or withheld in connection with such
payments, the Company will pay such additional amounts as may be necessary so that the full
amount of such payment is received by the Initial Purchasers, except that no additional amounts
shall be paid with respect to any such taxes, levies, imposts, duties, fees, assessments or charges
(1) imposed by reason of an Initial Purchaser having some connection with the jurisdiction
imposing the tax other than solely as a result of its participation as an Initial Purchaser hereunder
or (ii) imposed by virtue of an Initial Purchaser”s failure to comply with any certification,
identification or other reporting requirement, if such compliance is required under applicable law
as a precondition to relief or exemption from such taxes, levies, imposts, duties, fees,
assessments or charges.

19. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall constitute an original and all of which together shall constitute one and the same
instrument.

20. Headings. The section headings used herein are for convenience only and shall not
affect the construction hereof.

21. Definitions. The terms which follow, when used in this Agreement, shall have the
meanings indicated.

“Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder.
“Affiliate” shall have the meaning specified in Rule 501(b) of Regulation D.

“Business Day” shall mean any day other than a Saturday, a Sunday or a legal
holiday or a day on which banking institutions or trust companies are authorized or obligated by
law to close in the City of New York, New York, U.S.A. or Santiago, Chile.

“BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall
be interpreted in accordance with, 12 U.S.C. $ 1841(k).

“Chile” shall mean the Republic of Chile.

“Commission” shall mean the Securities and Exchange Commission.

“Covered Entity” means any of the following:

(i) a “covered entity” as that term is defined in, and interpreted in
accordance with, 12 C.F.R. $ 252.82(b);

(ii) a “covered bank” as that term is defined in, and interpreted in
accordance with, 12 C.F.R. $ 47.3(b); or

(iii) a “covered FST” as that term is defined in, and interpreted in
accordance with, 12 C.F.R. $ 382.2(b).

“Default Right” has the meaning assigned to that term in, and shall be interpreted
in accordance with, 12 C.F.R. $$ 252.81, 47.2 or 382.1, as applicable.

40
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended,
and the rules and regulations of the Commission promulgated thereunder.

“Execution Time” shall mean 4:05 P.M., New York City time, on January 7,
2020.

“Investment Company Act” shall mean the Investment Company Act of 1940,
as amended, and the rules and regulations of the Commission promulgated thereunder.

“Regulation D” shall mean Regulation D under the Act.
“Regulation S” shall mean Regulation S under the Act.

“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended,
and the rules and regulations of the Commission promulgated thereunder.

“U.S. Special Resolution Regime” means each of (1) the Federal Deposit
Insurance Act and the regulations promulgated thereunder and (11) Title II of the Dodd-Frank
Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

41
If the foregoing is in accordance with your understanding of our agreement,
please sign and return to us the enclosed duplicate hereof, whereupon this Agreement and your
acceptance shall represent a binding agreement between the Company and the several Initial
Purchasers.

Very truly yours,
Corporación Nacional del Cobre de Chile

Name: Alejandro Sanhueza Díaz
Title: Head of Finance

[Signature page to Purchase Agreement]
The foregoing Agreement is hereby
confirmed and accepted as of the
date first above written.

BofA Securities, Inc.

By: UEG

£
eS Matthew Radléy
“Managing Director

For themselves and the other several
Initial Purchasers named in
Schedule 1 to the foregoing Agreement.

[Signature page to Purchase Agreement]
The foregoing Agreement is hereby
confirmed and accepted as of the
date first above written.

HSBC Securities (USA) Inc.

By, Title: — Managing Director

For themselves and the other several
Tnitial Purchasers named in
Schedule Ito the foregoing Agreement.

[Signature page to Purchase A greement]
The foregoing Agreement is hereby
confirmed and accepted as of the
date first above written.

J.P. Morgan Securities LLC
By: Y luis L

Name: Ana Silva-Klarish
Title: Executive Director

For themselves and the other several
Initial Purchasers named in
Schedule 1 to the foregoing Agreement.

[Signature page to Purchase Agreement]
The foregoing Agreement is hereby
confirmed and accepted as of the
date first above written.

Scotia Capital (USA) Inc.

By: |
Name: Juan Fullaondo
Title: Managing Director $: Head

For themselves and the other several
Initial Purchasers named in
Schedule I to the foregoing Agreement.

[Signature page to Purchase Agreement]
SCHEDULE I

Principal Amount of Principal Amount of 2050

2030 Notes Notes
Initial Purchasers to be Purchased to be Purchased
BofA Securities, INC. ….ooooononinnononnonncnononnrnnnncnnoo U.S.$250,000,000 U.S.$250,000,000
HSBC Securities (USA) Inc.. . U.S.$250,000,000 U.S.$250,000,000
J.P. Morgan Securities LLC c.ooocicinicicicnnnnncm… U.S.$250,000,000 U.S.$250,000,000
Scotia Capital (USA) INC. cooooocoionicininnninnnincnnnss U.S.$250,000,000 U.S.$250,000,000

Total coonooinicnnnncnoncnnncnnncnonnnncncnnnnrncncnnnncnnn U.S.$1,000,000,000 U.S.$1,000,000,000
SCHEDULE Il

Time of Sale Memorandum
1. Preliminary Memorandum, dated January 7, 2020.

2. Pricing Term Sheets, dated January 7, 2020.
EXHIBIT A

Selling Restrictions for Offers and Sales outside the United States

(1) (a) The Securities have not been and will not be registered under the 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 a transaction not subject to, the
registration requirements of the Act. Each Initial Purchaser represents and agrees that, except as
permitted by Section 4(a)(1) of the Agreement to which this is an exhibit, it has not offered or
sold, and will not offer or sell, any Securities constituting part of its allotment to U.S. persons
(which term shall not include dealers or other professional fiduciaries in the United States acting
on a discretionary basis for foreign beneficial owners (other than an estate or trust)).
Accordingly, each Initial Purchaser represents and agrees that 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 with respect to the Securities. Terms used in this paragraph have the meanings given to
them by Regulation $.

(b) Each Initial Purchaser also represents and agrees that it has not entered and
will not enter into any contractual arrangement with any distributor (as that term is defined by
Regulation S) with respect to the distribution of the Securities, except with its Affiliates or with
the prior written consent of the Company.

(2) Each Initial Purchaser, severally and not jointly, represents, warrants
and agrees that:

(a) it has only communicated or caused to be communicated and will
only communicate or cause to be communicated any 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 any Securities which are the subject of the offering contemplated by the
Offering Memorandum in circumstances in which Section 21(1) ofthe FSMA does not apply to
the Company;

(b) 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; and

(c) it has not offered, sold or otherwise made available and will not
offer, sell or otherwise make available any notes to any retail investor in the European Economic
Area. For the purposes of this provision:

A. the expression “retail investor” means a person who is one (or more) of the following:

(1) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as
amended, “MiFID IT”); or

(11) a customer within the meaning of Directive 2002/92/EC (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 IT; or

(ii) nota qualified investor as defined in Directive 2003/71/EC (as amended, the
“Prospectus Directive”); and
B. 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.

For purposes of this provision, the expression “Prospectus Directive” means
Directive 2003/71/EC (including Directive 2010/73/EU) and includes any relevant implementing
measure in any Member State of the European Economic Area.
EXHIBIT B

Corporación Nacional del Cobre de Chile

U.S.$1,000,000,000 3.150% Notes due 2030

Pricing Term Sheet

Issuer:

Security Description:
Type of Offering:
Size:

Maturity Date:
Coupon:

Price to Public:

Yield to Maturity:
Spread to Benchmark Treasury:

Benchmark Treasury:

Benchmark Treasury Price and Yield:

Gross Proceeds to Issuer:

Interest Payment Dates:

Trade Date:
Settlement Date:

Optional Redemption:

Corporación Nacional del Cobre de Chile
3.150% Notes due 2030 (the “Notes”)
Rule 144A / Regulation S
U.S.$1,000,000,000

January 14, 2030

3.150%

99.787% of principal amount, plus accrued
interest, if any, from January 14, 2020

3.175%

+135 bps

1.750% due November 2029
99-10+; 1.825%
U.S.$997,870,000

January 14 and July 14, of each year,
commencing July 14, 2020

January 7, 2020

January 14, 2020 (T+5)

Make-whole Call: Prior to October 14, 2029 (the
date that is three months prior to the maturity

date), at T+25 bps

Par Call: On or after October 14, 2029 (the date
that is three months prior to the maturity date)
Tax Redemption: In the event of certain changes in the
withholding tax treatment relating to payments
on the Notes, redeemable in whole but not in
part, at 100% of their principal amount, plus
accrued and unpaid interest to the date of
redemption, and any additional amounts due
thereon.

Additional Amounts: In the event of withholding on account of certain
taxes imposed by Chile, Issuer will pay
additional amounts.

Day Count Convention: 30/360

Minimum Denominations: U.S.$200,000 / U.S.$1,000

Expected Listing: Luxembourg Euro MTF

Expected Ratings*: A3, stable / A+, negative (Moody’s / Sé8zP)
Joint Book-Running Managers: BofA Securities, Inc.

HSBC Securities (USA) Inc.
J.P. Morgan Securities LLC
Scotia Capital (USA) Inc.

144A CUSIP /ISIN: 21987BBB3 / US21987BBB36

Regulation S CUSIP / ISIN: P3143NBH6 / USP3143NBH63

*A securities rating is not a recommendation to buy, sell or hold securities and may be subject to
revision or withdrawal at any time.

This communication is intended for the sole use of the person to whom it is provided by the sender.

The Notes have not been registered under the U.S. Securities Act of 1933, as amended
(the “Securities Act”), and are being offered only (i) to qualified institutional buyers
under Rule 144A of the Securities Act and (ii) outside the United States in compliance
with Regulation S under the Securities Act.

Delivery of the Notes is expected on or about January 14, 2020 which will be the fifth
business day following the date of pricing of the Notes (this settlement cycle being referred to
as “T+5”). Under Rule 15c6-1 of the Exchange Act, trades in the secondary market generally
are required to settle in two business days, unless the parties to any such trade expressly agree
otherwise. Accordingly, purchasers who wish to trade Notes prior to the delivery of the
Notes will be required, by virtue of the fact that the Notes initially will settle in T+S5, to
specify an alternate settlement cycle at the time of any such trade to prevent a failed

2
settlement. Purchasers of the Notes who wish to trade Notes prior to their date of delivery
hereunder should consult their own advisor.

The information in this term sheet supplements the Issuer”s Preliminary Offering
Memorandum dated January 7, 2020 (the “Preliminary Offering Memorandum”) and
supersedes the information in the Preliminary Offering Memorandum to the extent
inconsistent with the information in the Preliminary Offering Memorandum. This term sheet
should be read in conjunction with the Preliminary Offering Memorandum.

ANY DISCLAIMER OR OTHER NOTICE THAT MAY APPEAR BELOW IS NOT
APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED.
SUCH DISCLAIMER OR NOTICE WAS AUTOMATICALLY GENERATED AS A
RESULT OF THIS COMMUNICATION BEING SENT BY BLOOMBERG OR
ANOTHER E-MAIL SYSTEM.
Corporación Nacional del Cobre de Chile

U.S.$1,000,000,000 3.700% Notes due 2050

Pricing Term Sheet

Issuer:

Security Description:

Type of Offering:

Reopening Principal Amount:

Reopening:

Maturity Date:
Coupon:

Reoffer Price to Public:

Yield to Maturity:
Spread to Benchmark Treasury:

Benchmark Treasury:

Benchmark Treasury Price and Yield:

Corporación Nacional del Cobre de Chile
3.700% Notes due 2050 (the “Notes”)
Rule 144A / Regulation S
U.S.$1,000,000,000

The Notes will constitute a further issuance of
and will form a single series with the Issuer”s
U.S.$900,000,000 3.700% Notes due 2050 (the
“Original Notes”) (for a total aggregate principal
amount of U.S.$1,900,000,000). The Notes will
have substantially identical terms as the Original
Notes and will become fully fungible with the
Original Notes following the termination of
certain U.S. selling restrictions. During the
periods subject to certain U.S. selling
restrictions, the Notes offered pursuant to
Regulation S will have temporary CUSIPs and
ISINs.

January 30, 2050

3.700%

95.489% of principal amount, plus accrued
interest in the amount of U.S.$ 10.68889 per
U.S.$1,000 principal amount of Notes for the
period from and including September 30, 2019
up to but excluding January 14, 2020

3.958%

+165 bps

2.250% due August 2049

98-24; 2.308%
Gross Proceeds to Issuer (excluding accrued
interest):

Interest Payment Dates:

Trade Date:
Settlement Date:

Optional Redemption:

Tax Redemption:

Additional Amounts:

Day Count Convention:
Minimum Denominations:
Expected Listing:
Expected Ratings*:

Joint Book-Running Managers:

144A CUSIP /ISIN:

Regulation S CUSIP / ISIN:

U.S.$954,890,000

January 30 and July 30 of each year,
commencing January 30, 2020. Interest accrues
from September 30, 2019.

January 7, 2020
January 14, 2020 (T+5)

Make-whole Call: Prior to July 30, 2049 (the
date that is six months prior to the maturity
date), at T+25 bps

Par Call: On or after July 30, 2049 (the date that
is six months prior to the maturity date)

In the event of certain changes in the
withholding tax treatment relating to payments
on the Notes, redeemable in whole but not in
part, at 100% of their principal amount, plus
accrued and unpaid interest to the date of
redemption, and any additional amounts due
thereon.

In the event of withholding on account of certain
taxes imposed by Chile, Issuer will pay
additional amounts.

30/360

U.S.$200,000 / U.S.$1,000

Luxembourg Euro MTF

A3, stable / A+, negative (Moody’s / Sé8zP)
BofA Securities, Inc.

HSBC Securities (USA) Inc.

J.P. Morgan Securities LLC

Scotia Capital (USA) Inc.

21987BBAS / US21987BBA52

P3143NBFO0 / USP3143NBF08
Temporary Regulation S CUSIP / ISIN for the 40- P3143NBJ2 / USP3143NBJ20
day distribution period:

*A securities rating is not a recommendation to buy, sell or hold securities and may be subject to
revision or withdrawal at any time.

This communication is intended for the sole use of the person to whom it is provided by the sender.

The Notes have not been registered under the U.S. Securities Act of 1933, as amended
(the “Securities Act”), and are being offered only (i) to qualified institutional buyers
under Rule 144A of the Securities Act and (ii) outside the United States in compliance
with Regulation S under the Securities Act.

Delivery of the Notes is expected on or about January 14, 2020 which will be the fifth
business day following the date of pricing of the Notes (this settlement cycle being referred to
as “T+5”). Under Rule 15c6-1 of the Exchange Act, trades in the secondary market generally
are required to settle in two business days, unless the parties to any such trade expressly agree
otherwise. Accordingly, purchasers who wish to trade Notes prior to the delivery of the
Notes will be required, by virtue of the fact that the Notes initially will settle in T+5, to
specify an alternate settlement cycle at the time of any such trade to prevent a failed
settlement. Purchasers of the Notes who wish to trade Notes prior to their date of delivery
hereunder should consult their own advisor.

The information in this term sheet supplements the Issuer”s Preliminary Offering
Memorandum dated January 7, 2020 (the “Preliminary Offering Memorandum”) and
supersedes the information in the Preliminary Offering Memorandum to the extent
inconsistent with the information in the Preliminary Offering Memorandum. This term sheet
should be read in conjunction with the Preliminary Offering Memorandum.

ANY DISCLAIMER OR OTHER NOTICE THAT MAY APPEAR BELOW IS NOT
APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED.
SUCH DISCLAIMER OR NOTICE WAS AUTOMATICALLY GENERATED AS A
RESULT OF THIS COMMUNICATION BEING SENT BY BLOOMBERG OR
ANOTHER E-MAIL SYSTEM.

Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=5ae7f38604592475ddb1b296f13bdb3bVFdwQmVVMUVRWGhOUkVGM1RtcEJNRTlCUFQwPQ==&secuencia=-1&t=1682376108