CODELCO: CORPORACION NACIONAL DEL COBRE DE CHILE 2020-05-04 T-15:05

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Corporación Nacional del Cobre de Chile
Casa Matriz

Huérfanos 1270
Santiago
Región Metropolitana, Santiago

CODELCO www.codelco.com

PE-060/2020
Santiago, 4 de mayo 2020

Señor

Joaquín Cortéz Huerta

Presidente

Comisión para el Mercado Financiero

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 nuestra nota PE-057/2020 enviada con fecha
29 de abril de 2020.

Saluda atentamente a Ua.,

C.c: Bolsas
Banco de Chile
Comisión Clasificadora de Riesgo

CHILE

1.0

2.0

3.0

3.1

3.2

3.3

3.4

3.4.1

3.4.2

3.4.3

3.4.4

3.4.5

3.4.6

FORMULARIO HECHO ESENCIAL

COLOCACIÓN DE BONOS EN EL EXTRANJERO

IDENTIFICACIÓN DEL EMISOR

1.1

1.2

1.3

1.4

1.5

1.6

1.7

Razón Social

Nombre fantasía

R.U.T.

N? Inscripción Reg. Valores

Dirección

Teléfono

Actividades y negocios

Corporación Nacional del Cobre de Chile
CODELCO-CHILE

61.704.000-K

785

Huérfanos 1270, Comuna de Santiago,
Santiago

22 690 3000

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$ 800.000.000 ]

Portador / a la orden

Series

Bonos registrados a nombre de los tenedores en
los libros de DTC

Bonos 2031

Monto de la serie

US$ 800.000.000

N? de bonos

Ver 3.4.3

Valor nominal bono

US$200.000 mínimo. En caso de sumas
superiores, serán por múltiplos de US$1,000.

Tipo reajuste

N/A

Tasa de interés

3,750%

Fecha de emisión

29/04/2020

COMISIÓN PARA EL MERCADO FINANCIERO

1
COMISIÓN PARA EL
MERCADO FINANCIERO

CHILE
3.4.7 Para cada serie llenar la siguiente tabla de desarrollo:
Bonos 2031:

El capital de los bonos será pagadero en su integridad a su vencimiento, el día 15 de
enero de 2031.

Los bonos devengarán un interés de 3,750% anual, base de un año de 360 días, el
cual será pagadero en 21 cuotas los días 15 de enero y 15 de julio de cada año, a
partir del 15 de enero de 2021.

N? Cuota | N* Cuota Fecha Intereses Amortización | Total Cuota | Saldo Capital
Interés | Amortiz.
1 – 15-ene-2021 20.750.000 – 20.750.000 800.000.000
2 – 15-jul-2021 15.000.000 – 15.000.000 800.000.000
3 – 15-ene-2022 | 15.000.000 – 15.000.000 800.000.000
4 – 15-jul-2022 15.000.000 – 15.000.000 800.000.000
5 – 15-ene-2023 | 15.000.000 – 15.000.000 800.000.000
6 – 15-jul-2023 15.000.000 – 15.000.000 800.000.000
7 – 15-ene-2024 | 15.000.000 – 15.000.000 800.000.000
8 – 15-jul-2024 15.000.000 – 15.000.000 800.000.000
9 – 15-ene-2025 | 15.000.000 – 15.000.000 800.000.000
10 – 15-jul-2025 15.000.000 – 15.000.000 800.000.000
11 – 15-ene-2026 | 15.000.000 – 15.000.000 800.000.000
12 – 15-jul-2026 15.000.000 – 15.000.000 800.000.000
13 – 15-ene-2027 | 15.000.000 – 15.000.000 800.000.000
15 – 15-jul-2027 15.000.000 – 15.000.000 800.000.000
15 – 15-ene-2028 | 15.000.000 – 15.000.000 800.000.000
16 – 15-jul-2028 15.000.000 – 15.000.000 800.000.000
17 – 15-ene-2029 | 15.000.000 – 15.000.000 800.000.000
18 – 15-jul-2029 15.000.000 – 15.000.000 800.000.000
19 – 15-ene-2030 | 15.000.000 – 15.000.000 800.000.000
20 – 15-jul-2030 15.000.000 – 15.000.000 800.000.000
21 – 15-ene-2031 15.000.000 800.000.000 815.000.000 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.
4.0 OFERTA:

COMISIÓN PARA EL MERCADO FINANCIERO
2
COMISIÓN PARA EL
MERCADO FINANCIERO

CHILE

5.0

6.0

7.0

PAÍS DE COLOCACIÓN

5.1

5.2

Nombre Bonos vendidos a los Compradores Iniciales (“/nitial

Purchasers”) domiciliados en

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

los Estados Unidos de

Prospecto informativo (“Offering Memorandum”) de fecha 29 de abril de

2020. Ver Anexo 2.

A futuros representantes de tenedores de bonos

Mismo documento mencionado en el punto 6.1 precedente.

CONTRATO DE EMISION

7.1

7.2

Características generales

Contrato de Compraventa (“Purchase
Agreement”) celebrado el día 29 de abril
de 2020 entre (A) Corporación Nacional
del Cobre de Chile, como emisor de los
bonos, y (B) BNP Paribas Securities
Corp; HSBC Securities (USA) Inc.;
Mizuho Securities USA LLC y Scotia
Capital (USA) Inc. como Compradores
Iniciales (“/nitial Purchasers”). Ver
Anexo 3.

El objeto del Purchase Agreement fue la
adquisición, por los Compradores
Iniciales (“Initial Purchasers”), de la
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
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.

del Cobre de Chile

COMISIÓN PARA EL MERCADO FINANCIERO

3
COMISIÓN PARA EL
MERCADO FINANCIERO

8.0

9.0

CHILE

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 29 de abril de 2020.

NOMBRE CARGO C.N.I. FIRMA
Octavio Presidente 8088228-9
Araneda Ejecutivo

COMISIÓN PARA EL MERCADO FINANCIERO
4

COMISIÓN PARA EL
MERCADO FINANCIERO
CHILE

ANEXO 1

MEMORIA ANUAL

https: //www.codelco.com/prontus_codelco/site/artic/20200328/asocfile/20200328104056/memori2019 codelco.pdf

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

ANEXO 2

OFFERING MEMORANDUMI

COMISIÓN PARA EL MERCADO FINANCIERO
6
COMISIÓN PARA EL
MERCADO FINANCIERO
CHILE

ANEXO 3

PURCHASE AGREEMENT

COMISIÓN PARA EL MERCADO FINANCIERO
7
EXECUTION COPY

CORPORACIÓN NACIONAL DEL COBRE DE CHILE

BNP Paribas Securities Corp.
787 Seventh Avenue
New York, New York 10019

and

HSBC Securities (USA) Inc.
452 Fifth Avenue
New York, New York 10018

and

Mizuho Securities USA LLC
1271 Avenue of the Americas
New York, New York 10020

and

Scotia Capital (USA) Inc.
250 Vesey Street
New York, New York 10281

U.S.$800,000,000
3.750% Notes Due 2031

Purchase Agreement

As Representatives of the Initial Purchasers

Ladies and Gentlemen:

New York, New York
April 29, 2020

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 1 hereto (the “Initial Purchasers”), for which you (the
“Representatives”) are acting as representatives, U.S.$800,000,000 principal amount of its
3.750% Notes Due 2031 (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 eighth supplemental indenture to be dated as of May 6, 2020, between the
Company and the Trustee (the “Eighth Supplemental Indenture” and, together with the
Original 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 April 29, 2020 (including any and all exhibits thereto,
the “Preliminary Memorandum”, and a final offering memorandum, dated April 29, 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 sheet
prepared by the Company substantially in the form of Exhibit B hereto and any Additional
Written Offering Communications identified in SCHEDULE II 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 Il 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)(3) under
the Act.

(g) 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.

(i) 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.

(¡) 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 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(j) 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
bankruptey, 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 (i) 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 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. 734 issued by the Ministry of Finance on April 7, 2020;

(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. 829 issued by the Ministry of Finance on April 24, 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), (11)
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 (i) any provision of applicable law; (ii)
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; (iii) 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 2017, 2018 and 20109, 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 2017, 2018 and 2019, 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
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: (i) any provision of Decree Law No. 1,350 of 1976, as amended, or its
Estatutos, (ii) 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: (i) 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 (i) 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 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
(ii) 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
(i) 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 (ii) 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) Deloitte Auditores y Consultores Ltda., who have audited the full-year
2017, 2018 and 2019 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) The Company and its subsidiaries (i) 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”); (ii) 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 (iii) 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).

(cc) 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).

(dd) 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).

(ee) 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.

(ff) 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.

(gg) 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 (i) for the attachment and judicial sale of mining concessions and
installations and other goods permanently dedicated to exploration or extraction of
minerals relating to such mining concessions, except with respect to mortgages, the
consent of the 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.

(hh) 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.

(ii) 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; (1i) made any direct or indirect unlawful payment to any
foreign or domestic government official or employee from corporate funds; (iii) 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.

(3j) 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.

(kk) 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”), (ii) 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

10
Crimea region, Cuba, Iran, North Korea or Syria, and such persons, “Sanctioned
Persons” and each such person, a “Sanctioned Person”), or (iii) 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.

(1) 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).

(mm) 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
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 (ii) 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

11
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 99.7160% of the principal amount of the Securities, plus
accrued interest, if any, from May 6, 2020 to the Closing Date (as defined below) (0.02% of the
principal amount of the Securities to be used by the Initial Purchasers out of the spread over the
offering price set forth in the Final Memorandum to pay for expenses payable by the Initial
Purchasers pursuant to Section 5(p) of this Agreement, with any remaining balance of such
0.02% to be refunded to the Company), the principal amount of Securities set forth opposite such
Initial Purchaser?s name in SCHEDULE lI 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 May 6, 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.
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
(i) 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

12
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)(2) 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: (i) the Preliminary Memorandum, (ii) the Time of Sale
Memorandum, (iii) 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.

(d) If at 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: (i) 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

13
compliance; and (iii) 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.

(1) 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.

(i) 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.

(i) 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 it 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,

14
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 30 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 any public or broadly marketed
offering of, any U.S. dollar-denominated debt securities issued or guaranteed by the
Company in the international capital markets (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
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: (i) the issuance of the Securities and the fees and expenses of the
Trustee (including, without limitation, the fees of counsel for such trustee); (ii) 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

15
pricing term sheet prepared by the Company and any Additional Written Offering
Communications identified in SCHEDULE IT hereto; (iii) 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); (viii) 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; (xii) 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 S5(p) pro rata in proportion to each Initial Purchaser”s
commitment to purchase Securities as listed in SCHEDULE TI hereto in accordance with
Section 2(a) and this Section 5(p) (except for the costs and expenses contemplated by
SP)Gx), S(p)xiJand S(p)(xii), which shall be paid directly by the Company whether or
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

16
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 82
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:

(i) 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
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

17
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
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 82
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:

18
(i) 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:

(i) 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
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 Three Years
Ended December 31, 2019—Other expenses”, “Management’s Discussion and
Analysis of Financial Condition and Results of Operations—Results of
Operations for the Three Years Ended December 31, 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
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);

20
(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 (i) 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. 734 issued by the Ministry of Finance on April 7, 2020; (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. 829 issued by the Ministry of Finance on April 24,
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;

(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 (iii) 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;

21
(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 Memorandunm, 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 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 if 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;

(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

22
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
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 (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; 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

23
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 Lorena Ferreiro Vidal,
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:

(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);

24
(iii) 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 (ti) 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
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

25
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. 734 issued by the Ministry of Finance on April 7, 2020; (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. 829 issued by the Ministry of Finance on April 24,
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
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: (i) any provision of applicable
law; (ii) 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, (iii) 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

26
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 Three Years
Ended December 31, 2019—Other expenses”, “Management’s Discussion and
Analysis of Financial Condition and Results of Operations—Results of
Operations for the Three Years Ended December 31, 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;

(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

27
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 (i) 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 (ii)
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 (ii)
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

28
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
(i) are in compliance with any and all Environmental Laws, (ii) 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;

(xvi) except as disclosed in each of the Time of Sale Memorandum and
the Final Memorandunm, 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 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 if 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

29
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 (i) for the attachment and judicial sale
of mining concessions and installations and other goods permanently dedicated to
exploration or extraction of minerals relating to such mining concessions, except
with respect to mortgages, the consent of the 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; 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

30
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 áz 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.

(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:

(i) the representations 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

(11) 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 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

31
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, 2018
and 2019 financial statements, 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 Error! Reference source
not found. include any amendment or supplement thereto at the date of the applicable letter.

(i) 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
Memorandum (exclusive of any amendment or supplement thereto), there shall not have
been (i) any change or decrease specified in the letter or letters referred to in
paragraph Error! Reference source not found. of this Section 6; or (ii) 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 (ii) 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).

() 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.

(k) 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.

(1) 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.

Tf 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

32
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
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, (ii) 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

33
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
results in the forfeiture by the indemnifying party of substantive rights and defenses; and
(ii) 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; (ii) 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

34
indemnified party from all liability arising out of such claim, action, suit or proceeding;
and (ii) 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
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

35
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. If any 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 TI hereto, the remaining
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; (ii) trading of any securities issued or guaranteed
by the Company shall have been suspended on any exchange or in any over-the-counter market;
(iii) 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

36
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
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 BNP Paribas
Securities Corp., 787 Seventh Avenue, New York, New York 10019, (email:
new.york.syndicate Obnpparibas.com, Attention: Syndicate Desk; HSBC Securities (USA) Inc.
(fax no.: 212-525-0238), 452 Fifth Avenue, New York, New York 10018; Mizuho Securities
USA LLC, 1271 Avenue of the Americas, New York, New York 10020 (fax no.: 212-205-7812),
Attention: Debt Capital Markets; and Scotia Capital (USA) Inc. (email:
us.legal Oscotiabank.com), 250 Vesey Street, New York, New York 10281, Attention: Debt
Capital Markets, or, if sent to the Company, will be mailed, delivered or telefaxed to the
Corporación Nacional del Cobre de Chile, c/o Lorena Ferreiro Vidal, 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

37
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
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. Tf 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

38
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
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.

39
“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 FSI” 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.

“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 4:30 P.M., New York City time, on April 29,
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 (ii) Title II of the Dodd-Frank
Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

40
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

By: _— RARO

Name: Alejandro Sanhueza Díaz
Title: Head of Finance

[Signature page to Purchase Agreement]
The foregoing Agreement is hereby
confirmed and accepted as ofthe
date first above written.

BNP Paribas Securities Corp.

ndre Silva — Managing Director
Head of Latam Debt Capital Markets

By:
Name: Andre Silva
Title: Managing Director

HSBC Securities (USA) Inc.

By:
Name:
Title:

Mizuho Securities USA LLC

By:
Name:
Title:

Scotia Capital (USA) Inc.
By:

Name:
Title:

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.

BNP Paribas Securities Corp.

By:
Name:
Title:

HSBC Securities (USA) Inc.

By lá M ñú—

Name: Diane Kenna
Title: Managing Director

Mizuho Securities USA LLC

By:
Name:
Title:

Scotia Capital (USA) Inc.
By:

Name:
Title:

For themselves and the other several
Initial 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.

BNP Paribas Securities Corp.

By:
Name:
Title:

HSBC Securities (USA) Inc.

By:
Name:
Title:

Mizuho Securities USA LLC

By:
Name: Rodrigo Garcia de Leon Ferrer
Title: Executive Director

Scotia Capital (USA) Inc.

By:
Name:
Title:

For themselves and the other several
Initial Purchasers named in
Schedule I to the foregoing Agreement.

[Signature page to Purchase Agreement]
- The foregoing Agreement is hereby
confirmed and accepted as of the
date first above written.

BNP Paribas Securities Corp.

By:

Name:
Title:

HSBC Securities (USA) Inc.

By:
Name:
Title:

Mizuho Securities USA LLC

By:
Name:
Title:

Scotia Capital (USA) Inc.

By:

Name: Juan Fullaondo
Title: Managing Director 8 Head

For themselves and the other several
Tnitial Purchasers named in
Schedule I to the foregoing Agreement.

[Signature page to Purchase Agreement]
SCHEDULE I

Principal Amount of Securities

Tnitial Purchasers to be Purchased
BNP Paribas Securities COTP. cooooononcnocnnonccncnnnanoncnnnannncnncnnonono U.S.$200,000,000
HSBC Securities (USA) [(MC..oococnnnncninincinnnonnnnnocncncnnnncnncnnonono U.S.$200,000,000
Mizuho Securities USA LLC U.S.$200,000,000
Scotia Capital (USA) INC. cocococcconncnococononaconcononanncnnonncncnncnnnnnnns U.S.$200,000,000

Total coocncinnconnnnnnaconinononnnnnncnnnnnncncnnnn roca cnn nn oran cnn cncnanncnono U.S.$800,000,000
SCHEDULE II

Time of Sale Memorandum
1. Preliminary Memorandum, dated April 29, 2020.

2. Pricing Term Sheet, dated April 29, 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)(i) 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 S.

(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) of the 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 or in the United Kingdom. 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 II; or

(iii) 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.$800,000,000 3.750% Notes due 2031

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:

+193142829v7

Corporación Nacional del Cobre de Chile
3.750% Notes due 2031 (the “Notes”)
Rule 144A / Regulation S
U.S.$800,000,000

January 15, 2031

3.750%

99.816% of principal amount, plus accrued
interest, if any, from May 6, 2020

3.770%

+315 bps

1.500% due February 15, 2030
108-11; 0.620%
U.S.$798,528,000

January 15 and July 15, of each year,
commencing January 15, 2021

April 29, 2020

May 6, 2020 (T+5)

Make-whole Call: Prior to October 15, 2030 (the
date that is three months prior to the maturity

date), at T+50 bps

Par Call: On or after October 15, 2030 (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 / A (Moody”s / SázP)
Joint Book-Running Managers: BNP Paribas Securities Corp.

HSBC Securities (USA) Inc.
Mizuho Securities USA LLC
Scotia Capital (USA) Inc.

144A CUSIP / ISIN: 21987BBC1 /US21987BBC19

Regulation S CUSIP / ISIN: P3143NBK09 / USP3143NBK92

*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 May 6, 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

+193142829v7
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 April 29, 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.

+193142829v7
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 U.S. 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, 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 thereto any time you receive any additional
information from us.

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 UNITED STATES OR OTHER JURISDICTION AND THE
SECURITIES MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES 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 NOTES ARE ONLY ADDRESSED
TO AND DIRECTED AT PERSONS IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA OR IN THE UNITED KINGDOM
WHO ARE “QUALIFIED INVESTORS” AS DEFINED IN REGULATION (EU) 2017/1129 (THE “PROSPECTUS REGULATION”). THIS
COMMUNICATION IS ONLY BEING DISTRIBUTED TO AND IS ONLY DIRECTED AT (I) 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, AS AMENDED, (III) FALL WITHIN ARTICLES 19(Q)1(A) TO (D) OF THE
FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005, AS AMENDED, OR (IV) ARE PERSONS
TO WHOM AN INVITATION OR INDUCEMENT TO ENGAGE IN INVESTMENT ACTIVITY (WITHIN THE MEANING OF SECTION 21
OF THE FINANCIAL SERVICES AND MARKETS ACT 2000) IN CONNECTION WITH THE ISSUE OR SALE OF ANY NOTES MAY
OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER REFERRED TO AS “RELEVANT PERSONS”).
THE NOTES ARE ONLY AVAILABLE TO, AND ANY INVITATION, OFFER OR AGREEMENT TO SUBSCRIBE, PURCHASE OR
OTHERWISE ACQUIRE SUCH NOTES ARE ONLY AVAILABLE TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH,
RELEVANT PERSONS. ANY PERSON WHO IS NOT A RELEVANT PERSON SHOULD NOT ACT OR RELY ON THIS DOCUMENT OR
ANY OF ITS CONTENTS. IN ADDITION, NO PERSON MAY COMMUNICATE OR CAUSE TO BE COMMUNICATED ANY INVITATION
OR INDUCEMENT TO ENGAGE IN INVESTMENT ACTIVITY, WITHIN THE MEANING OF SECTION 21 OF THE FINANCIAL
SERVICES AND MARKETS ACT 2000, RECEIVED BY IT IN CONNECTION WITH THE ISSUE OR SALE OF THE NOTES, WHICH ARE
THE SUBJECT OF THE OFFERING CONTEMPLATED BY THIS OFFERING MEMORANDUM, OTHER THAN IN CIRCUMSTANCES IN
WHICH SECTION 21(1) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 DOES NOT APPLY TO THE ISSUER. EACH
INITIAL PURCHASER HAS COMPLIED WITH ALL APPLICABLE PROVISIONS OF THE FINANCIAL SERVICES AND MARKETS ACT
2000 WITH RESPECT TO ANYTHING DONE BY IT IN RELATION TO THE NOTES IN, FROM OR OTHERWISE INVOLVING THE
UNITED KINGDOM.

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
United States. 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 the delivery of such Offering Memorandum by electronic transmission.

Y ou 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
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.

The following 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 the 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.$800,000,000

CODELCO

Corporación Nacional del Cobre de Chile
U.S.$800,000,000 3.750% Notes due 2031

The notes (the “notes”) will bear interest at the rate of 3.750% per year and will mature on January 15, 2031. The
interest on the notes will be payable semi-annually in arrears on January 15 and July 15 of each year, beginning on
January 15, 2021.

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 prior to the maturity date, 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 prior to the maturity date, 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. Itis 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. Currently, there
is no public market for the notes.

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

Neither the U.S. Securities and Exchange Commission (the “SEC”) nor any other regulatory body has approved
or disapproved of these securities or passed upon the adequacy or accuracy of this 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.
cover page continues to this page

Issue price per note: 99.816% plus accrued interest, if any, from May 6, 2020.
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 May 6, 2020.

Joint Book-Running Managers

BNP PARIBAS HSBC Mizuho Securities Scotiabank

The date of this offering memorandum is April 29, 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, (1i) 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
Page
Note Regarding Forward-Looking Statements …ooocococicicicononnnonocnoonanononnnncnanononnnnononn coca ononannonononononnonoa on anna canon ononancanenno lv

Enforceability of Civil Liabilities
Presentation of Financial and Statistical Information
Summary.
Risk Factors
Use of Proceeds .
Capitalization
Exchange Rates .
Selected Consolidated Financial Data
Selected Operating Data
Management’s Discussion and Analysis of Financial Condition and Results of Operations ..
Business and Properties ..
Overview of the Copper Market…
Regulatory Framework
Management
Related Party Transactions
Foreign Investment and Exchange Controls in Chile
Description of Notes
Taxation
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, BNP PARIBAS SECURITIES CORP., HSBC
SECURITIES (USA) INC., MIZUHO SECURITIES USA 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 BNP PARIBAS SECURITIES CORP., HSBC
SECURITIES (USA) INC., MIZUHO SECURITIES USA 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

* 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” or in the United Kingdom
(the “UK”). 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 Directive 2014/65/EU (as amended, “MiFID II”); or (ii) a customer within the meaning
of Directive (EU) 2016/97 (as amended the “Insurance Distribution 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 Regulation (EU) 2017/1129 (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 notes or otherwise
making them available to retail investors in the EEA or in the UK has been prepared and therefore offering or selling
the notes or otherwise making them available to any retail investor in the EEA or in the UK may be unlawful under
the PRIIPs Regulation.

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

li
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.

” « ” ” « ” « » cs

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

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of
important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and
intentions expressed in these forward-looking statements. These factors, some of which are discussed under “Risk
Factors,” include economic and political conditions and government policies in Chile or elsewhere, inflation rates,
exchange rates, regulatory developments and changes in Chilean law, customer demand, competition, unanticipated
mining and production problems, commodity prices, relations with employees and contractors, variances in ore grade,
adverse weather conditions, natural disasters and the duration and severity of the recent outbreak of coronavirus
(“COVID-19”) and its potential impact on our business. 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.

lv
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, 2017 and 2018 and
the audited consolidated financial statements as of and for the years ended December 31, 2018 and 2019 included
herein are referred to as the “2017-2018 Consolidated Financial Statements” and the “2018-2019 Consolidated
Financial Statements,” respectively. The 2017-2018 Consolidated Financial Statements and the 2018-2019
Consolidated Financial Statements (together, the “Consolidated Financial Statements”) are presented in accordance
with IFRS issued by the IASB.

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.

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. Impairments include charges and reversals
related to charges of investment projects, research projects and investment in associates and joint ventures and exclude
impairment charges related to definitely-lived tangible assets which show indicators of impairment under International
Accounting Standard No. 36. Cash cost is calculated in accordance with the methodology specified by Brook Hunt
á 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,

vi
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: (1) 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 costis 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, 2018
and 2019.

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 January 2, 2019 was Ch$694.77 = U.S.$1.00;
and (iii) as of January 2, 2020 was Ch$748.74 = 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 (1i) 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

vii
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 of revenues
(U.S.$12.5 billion in 2019). As of December 31, 2019, CODELCO”s total assets were U.S.$40.3 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 2019, CODELCO had an estimated 8.1% share of total world copper production, with production amounting
to approximately 1.71 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 8% share of the worlds molybdenum production, with production amounting to
approximately 22,353 metric tons excluding CODELCO s share of Anglo American Sur.

CODELCO*s main commercial product is Grade A cathode copper. In 2019, CODELCO derived 91% of its
total sales from copper and 9% ofits total sales from byproducts of its copper production.

CODELCOS*s sales of copper in 2019 were geographically diversified, with approximately 49% of sales made
to Asia, including approximately 35% to China, as well as approximately 37% to North and South America and 13% to
Europe. CODELCOSs top ten customers purchased approximately 41.5% ofits total copper sales volume in 2019.

CODELCOSs copper operations are divided into the following eight divisions:

+ TheEl Teniente Division operates the El Teniente mine, which is the world”s largest underground copper mine and
has been in operation for more than 100 years. The El Teniente Division includes the Caletones smelter. In 2019,
this division produced 459,744 metric tons of copper, or 26.9% of CODELCO”s total copper output (including
CODELCOSs share of the El Abra deposit and Anglo American Sur), with a cash cost of 100.7 cents per pound,
compared to 106.5 cents per pound in 2018, and a total cash cost of U.S.$1.0 billion in 2019, compared to U.S.$1.1
billion in 2018.

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 2019,
this division produced 266,415 metric tons of copper cathodes, or 15.6% of CODELCO”s total copper output
(including CODELCOS*s share of the El Abra deposit and Anglo American Sur), with a cash cost of 154.3 cents per
pound, compared to 134.1 cents per pound in 2018, and a total cash cost of U.S.$901 million in 2019 compared to
U.S.$973 million in 2018.

+ 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 2019, this
division produced 385,309 metric tons of copper cathodes, or 22.6% of CODELCOS*s total copper output (including
CODELCOSs share of the El Abra deposit and Anglo American Sur), with a cash cost of 120.5 cents per pound,
compared to 131.5 cents per pound in 2018, and a total cash cost of U.S.$996 million in 2019, compared to U.S.$908
million in 2018.

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 2019, this division produced 151,838 metric tons of copper, or
8.9% of CODELCO*s total copper output (including CODELCOS*s share of the El Abra deposit and Anglo American
Sur), with a cash cost of 123.6 cents per pound, compared to 124.0 cents per pound in 2018, and a total cash cost of
U.S.$400 million in 2019, compared to U.S.$517 million in 2018.

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 2019, this
division produced 170,274 metric tons of copper, or 10.0% of CODELCO’s total copper output (including
CODELCOSs share of the El Abra deposit and Anglo American Sur), with a cash cost of 184.6 cents per pound,
compared to 163.7 cents per pound in 2018, and a total cash cost of U.S.$669 million in 2019, compared to U.S.$682
million in 2018.

+ 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 2019, this division produced 104,087 metric tons of copper, or 6.1% of CODELCOSs total copper output
(including CODELCOS*s share of the El Abra deposit and Anglo American Sur), with a cash cost of 231.8 cents per
pound, compared to 191.9 cents per pound in 2018, and a total cash cost of U.S.$532 million in 2019, compared to
U.S.$454 million in 2018.

+ 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 2019, this division produced 50,561 metric
tons of copper cathodes, or 3.0% of CODELCOS*s total copper output (including CODELCO”s share of the El Abra
deposit and Anglo American Sur), with a cash cost of 232.7 cents per pound, compared to 223.5 cents per pound in
2018, and a total cash cost of U.S.$257 million in 2019, compared to U.S.$296 million in 2018. 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 ofthe Ventanas smelter/refinery complex from
Chile”s state-owned mining company Empresa Nacional de Minería (“ENAMT”) in 2005. In 2019, this division
refined 376,400 metric tons of copper, compared to 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 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
2019, CODELCO*s proved and probable reserves represented at least 29 years of future production at current levels.

+ Market Presence. CODELCO is the largest copper producer in the world, with an estimated 8.1% share of the total
world copper production and 1.7 million metric tons (including CODELCO”s share of the El Abra deposit and Anglo
American Sur) of production in 2019. CODELCO is also one of the largest producers of molybdenum in the world,
with an estimated 8% share of total world molybdenum production, producing 22,353 metric tons in 2019 (excluding
CODELCOSs 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 2019, CODELCO*s total costs and expenses
decreased by 11.6 cents per pound (4.7%) to 233.5 cents per pound, compared to 245.1 cents per pound in 2018 and
227.1 cents per pound in 2017, 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 2019, CODELCOS*Ss total costs and
expenses decreased to U.S.$8.2 billion, compared to U.S.$9.1 billion 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 total
costs and expenses increased by 4.4% to U.S.$9.1 billion, compared to U.S.$8.7 billion in 2017 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. In 2019, CODELCO*s cash cost of production was 141.6 cents per pound, compared to 139.1
cents per pound in 2018 and 135.9 cents per pound in 2017. In 2019, CODELCO’”S total cash cost was
U.S.$4.9 billion, compared to U.S.$5.1 billion in 2018 and U.S.$5.1 billion in 2017. See “Management’s Discussion
and Analysis of Financial Condition and Results of Operations—Overview.”

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

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

e Financial Strength. In 2019, CODELCO”s Adjusted EBITDA amounted to U.S.$4.0 billion, total debt to
capitalization as of December 31, 2019 was 59.7% and the ratio of total debt to Adjusted EBITDA was 4.3.

+ 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, 2019 (U.S.$12.5 billion) and is a key contributor to the budget of the Government of Chile. In
2019, CODELCO contributed U.S.$1.0 billion to the Chilean Treasury and accounted for approximately 13.4% 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

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 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.$12.5 billion between 2020 and 2022 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 2020 and 2022 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.$1.4 billion between 2020 and 2022). Environmental approvals
were obtained in September 2010, and the project is approximately 97% complete as of December 31, 2019.

o Thereallocation of the Andina plant, which involves maintaining the treatment capacity of the concentrator
plant in the long-term (an approximate investment of U.S.$172 million between 2020 and 2022). Operations
are expected to begin in 2021, and the project is approximately 83% complete as of December 31, 2019.

o The development of a new production level in the existing El Teniente underground mine (an approximate
investment of U.S.$2.0 billion between 2020 and 2022) 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 December 31, 2019, the project is approximately 56% complete.

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.$1.2 billion
between 2020 and 2022. As of December 31, 2019, the feasibility study has been completed, and the initial
work relating to the project has commenced.

o 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.$80 million
between 2020 and 2022) starting in 2027. As of December 31, 2019, the feasibility study has been authorized
and is approximately 56% 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.

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.

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.

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 plc (“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
Impact of COVID-19 on CODELCO*s Operations

In December 2019, the outbreak of COVID-19 began in mainland China and has since spread through various
countries, including Chile, negatively affecting global and regional economic conditions. CODELCO is complying with
the health and safety protocols established by the relevant authorities and agencies in Chile and monitoring the
developments of the situation closely.

Care for health and safety is CODELCO”s most important corporate value. CODELCO has taken steps and
implemented several measures to safeguard its employees, businesses and the communities surrounding its operations
from the threats posed by the COVID-19 pandemic. Some of the important measures taken by CODELCO to address the
continuing effects of the COVID-19 pandemic are: (a) daily meetings held by CODELCO”s executive committee to
discuss specific response measures, with support and advice from the Government of Chile”s health authorities and the
Department of Infectious Diseases of La Pontificia Universidad Católica de Chile; (b) the classification of certain
employees as part of the high-risk population according to health authority guidance and their temporary release from
duty, along with those who are 65 years old or older; (c) the implementation of remote working wherever possible; (d)
the implementation of cleaning protocols for disinfecting transport vehicles and common areas, such as changing rooms
and cafeterias; (e) a reduction of occupant density in those common areas to ensure social distancing; (f) ensuring
employees maintain a one meter distance from other employees at all times wherever possible; (g) allowing employees
working at onsite projects to begin their shifts individually and in open air spaces; (h) the frequent evaluation of body
temperature of all employees; and (i) the temporary suspension of all non-essential projects to reduce the number of
CODELCO and third-party employees at CODELCO*s operations without impact on production.

In accordance with these measures, on March 25, 2020, CODELCO announced a 15-day temporary suspension
of construction of some of its projects, including the underground mine project at Chuquicamata, the works related to a
transfer system installation at the Andina Division and the early works related to the Inca Pit project at the Salvador
Division, as part of its measures to mitigate the spread of COVID-109. In all affected projects, CODELCO has permitted
limited personnel on premises to safeguard the security of the facilities and equipment. CODELCO continues to evaluate
the implementation of new measures to protect the health of all its employees while also maintaining operational
continuity of its projects. As of the date of this offering memorandum, the construction projects at Chuquicamata and the
Andina Division have gradually resumed and the Inca Pit project is moving forward with a bidding process for
pre-stripping works. In addition, on April 8, 2020, CODELCO announced a 30-day temporary suspension of certain
contracts with third-party service providers for projects and operations support. This suspension affects around 30% of
all third-party employees. The suspension measure is based on the inability of these service providers to perform their
contractual obligations in light of the health and safety measures in place to address the COVID-19 pandemic. All such
suspensions have been managed and implemented to avoid material impacts on production.

Furthermore, as of April 1, 2020, CODELCO has begun paying its tax obligations under the Copper Reserve
Law, pursuant to which CODELCO pays a 10% special export tax, on a monthly basis from an annual basis, following a
response measure from the Government of Chile to the economic effects of the COVID-19 pandemic. As of the date of
this offering memorandum, CODELCO has paid the taxes due for 2019, together with the taxes due for January and
February 2020 and, as of April 1, 2020, has begun paying the 10% special export tax on a monthly basis, beginning with
the taxes due for March 2020. For more information, see “Risk Factors—CODELCO is subject to special taxes.”

Due to the speed with which the COVID-19 situation is developing and that the duration of the situation is not

known, there is uncertainty around its ultimate impact; therefore, the negative impact on CODELCO*s financial and
operating results cannot be reasonably estimated at this time, but the ultimate impact could be material. Between January
and April of 2020, however, CODELCOSs financial performance has been negatively impacted, with a significant decline
in total revenues as compared to the corresponding period in 2019, primarily because of a decrease in copper and
molybdenum prices due to the COVID-19 pandemic, among other possible factors such as the trade disputes between the
United States and China during 2019, as well as a slight decrease in volumes sold due to higher inventory levels in the
same period of 2019. This downward trend in metal prices could continue for an unpredictable period. In addition, any
prolonged outbreak of COVID-19 or the imposition of more restrictive measures in Chile could result in the imposition
of further quarantines or closures and/or import and export restrictions which could further adversely affect our business.
Finally, the existence and continuance of the outbreak in the countries where the purchasers of CODELCO”s products
are located could result in reduced demand. See “Risk Factors—Developments relating to the outbreak of COVID-19
may have a material adverse impact on CODELCO”s operations.”

Bilateral Credit Facility

On April 24, 2020, CODELCO entered into a three-year bilateral credit facility with The Bank of Nova Scotia
for U.S.$165 million and expects to drawdown the full amount on April 29, 2020. See “Management’s Discussion and
Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Bank Debt.”

New International Bond Issuances

On January 14, 2020, CODELCO issued notes in an aggregate principal amount of U.S.$2.0 billion, consisting
of a U.S.$1.0 billion international debt offering of 3.150% notes due 2030 and a U.S.$1.0 billion international debt
offering of 3.700% notes due 2050. The notes due 2050 form part of the same series of CODELCO”s outstanding
U.S.$900 million 3.700% notes due 2050 originally issued on September 30, 2019, resulting in a total aggregate principal
amount outstanding of U.S.$1.9 billion in this series.

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 between December 2019 and March 2020
than in October and November 2019. However, these events had an impact on Chiles economy. According to the Central
Bank of Chile, the GDP grew 1.1% in the fourth quarter of 2019, which represented a 2.1% contraction compared to the
3.2% growth in the same quarter of 2018.

In response, the Government of Chile planned to implement 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 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 were related to: (i) 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.

Due to the outbreak of COVID-19 in Chile, the referendum to draft a new Constitution has been postponed to
October 2020 and a new fiscal plan is in effect. The new fiscal plan has two phases, with the first providing U.S.$12.1
billion to support the public health system, protect income and household employment and provide liquidity measures
for small and medium-sized companies and the second providing U.S.$5.0 billion to support economic activity and low-
income and vulnerable families. See “Risk Factors —CODELCO”s growth and profitability depend on political stability
and economic activity in Chile and other emerging markets.”

Appointment of New Executives

On February 28, 2020, CODELCO announced the appointment of Cristián Cortés Egaña as acting General
Manager for Ventanas Division, effective as of March 1, 2020.

On March 2, 2020, CODELCO announced the appointment of Patricio Vergara Lara as Vice President of Mining
Resources Management and Development, effective as of April 20, 2020.

Corporate Information
CODELCOSs principal executive offices are located at Huérfanos 1270, Santiago, Chile, and its telephone

number is (562) 2690-3000. CODELCO was established by Decree Law 1,350, published in the Official Gazette on
February 28, 1976, as amended by Decree Law 20,392, published in the Official Gazette on November 14, 2009.

Issuer ..

The Offering

Securities OffOre O coooocicicicocononononnnnononononononoonon ono rn ononononnrnonononono

Issue PTICO coccciccnnoncncncnanncnonocinncnono nono no cnononn roca ononon on on ononcicanncno

Interest

Maturity DAt6 coccocicicicococnnanonocnononanonocnnncnnnnnn cn ononononn rn rn onon canina

Withholding Tax …

Tax Redempti0N ..ococicicncnnonnnncnnnnnnnonocnnncnononnnnononononn on rn onononcnnincno

Corporación Nacional del Cobre de Chile.

U.S.$800,000,000 aggregate principal amount of
3.750% notes due 2031 (the “notes”).

The issue price of the notes is 99.816%.
3.750% per year.

The interest on the notes will be payable
semi-annually in arrears on January 15 and July 15
of each year, beginning on January 15,2021. Interest
on the notes will be calculated on the basis of a
360-day year of twelve 30-day months. See
“Description of Notes.”

January 15, 2031.

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.”

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

Optional Redempti0M …oocicinnininnnnnnnnnnncnnnonocicnonono nono rn cnononncncacno

Form and DenoMinatiOM..oooccninncinnnnnnnnnnnococncnonanononnnncnoncnn cnn

Payments; TranSÍelS ..ooicocicicocononononncnnncnononococnnnonono rn rn cnononccancno

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 prior to the maturity date of
the notes, 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 ofredemption. 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 prior to the maturity
date of the notes, 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.”

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. The 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.

Certain COVEnNaMÍS c.ococococcnnnncnnnnnnnnnonnnnnnnnn nono cnonononnononononcncnnanno

Transfer RestrictiOWS ..0oooninicnnninncnnnnncnnonononocncnononono nono cuononccncncnos

Further ISSUES …oooooncinicocononononnnncnonononononncnnnn cn naonononn roca onononcincncno

Listing

Governing Law; Submission to Jurisdicti0M ….oonninninnnnn…

Expected RatidBS..coicninininininnnnnonnnncnoncnananococnonononn corn ononcnincnino

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 (1) 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.”

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 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.

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

Trustee, Paying Agent, Transfer Agent and Registrar………….. The Bank of New York Mellon.

Luxembourg Listing AYOMt..ococicnnncinnnnnoconnnncnonononocicncnonanocncncnos The Bank of New York Mellon SA/NV,
Luxembourg Branch.

¡IN Before investing, you should carefully consider the
risks set forth under “Risk Factors” beginning on
page 16 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.

For the year ended December 31,

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

CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Revenue $ 14,641,555 $ 14,308,758 $ 12,524,931
Cost of sales” (10,380,403) (11,194,341) (10,051,441)
Gross profit 4,261,152 3,114,417 2,473,490
Other income, by function. 154,332 124,826 360,690
Impairment loss determined in accordance
with IFRS 9 N/A 158 378
Distribution costs….. (10,403) (18,262) (17,069)
Administrative expenses (428,140) (465,328) (409,234)
Other expenses? (1,557,473) (2,115,314) (1,747,838)
Other gains…. 32,605 21,395 22,672
Finance income. 29,836 51,329 36,871
Finance costs …. (644,610) (463,448) (479,307)
Share of profit (loss) of associates and joint
ventures accounted for using equity method .. 185,428 119,114 13,203
Foreign exchange differences ….. (206,058) 178,143 153,917
Profit (loss) for the period before tax. 1,816,669 547,030 407,773
Income tax expense* (1,193,067) (857,283) (393,245)
Profit (loss) for the period 623,602 189,747 14,528
Profit (loss) attributable to owners of the

parent 569,175 155,719 6,637
Profit (loss) attributable to non-controlling

interests… 54,427 34,028 7,891

$ 623,602 $ 189,747 $ 14,528

Profit (loss) for the period

As of December 31
2017 2018 2019
(in thousands of U.S.$)

CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION
Total current assets…… au $ 6,211,053 $ 5,828,206 $ 6,050,021
Total property, plant and equipment.. 25,275,512 26,754,998 29,700,164
Investments accounted for using equity
method” 3,665,601 3,568,293 3,483,523
Non-current receivable: 91,442 84,731 98,544
All other assetsó) 1,112,533 854,577 1,012,359
Total assets … $ 36,356,141 Ss 37,090,805 $ 40,344,611
Total current liabil 3,315,456 3,539,412 3,922,957
Total non-current liabilities…………. 22,115,347 22,207,524 24,786,987
Total liabilitics.. $ 25,430,803 Ss 25,746,936 $ 28,709,944
Non-controlling interes 1,007,495 969,204 919,757
Equity attributable to owners of the parent…… 9,917,843 10,374,665 10,714,910
$ 10,925,338 $ 11,343,869 $ 11,634,667

Total equity.

Total liabilities and equity.

$ 36,356,141 $ 37,090,805 $ 40,344,611

As of and for the year ended December 31,

2017 2018 2019

OTHER ITEMS (in thousands of U.S.S, except ratios and copper prices)
Depreciation and amortization of assets ………. $ 2,101,101 $ 2,181,140 $ 2,220,069
Interest expense, net…… $ (614,774) $ (412,119) $ (442.436)
Ratio of earnings to fixed charges (adjusted)% 3.8 3.0 19
Average LME copper price (U.S. £ per

pound)?…. 279.7 295.9 272.1
Adjusted EBITDA* $ 5,668,314 $ 4,695,792 $ 4,042,748
Ratio of debt to Adjusted EBITDA% 2.6 3.2 4.3
Adjusted EBITDA coverage ratio(*…. 9.2 11.4 9.1

(4)
(5)

(6)

(0)
(8)

(9)

(10)

“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 22.b of the
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 2017 and 2019. See
note 5 of the 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
tax reform in 2014) 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 8 of the 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), (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 8, 21 and 22 of the 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 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 8, 21 and 22 of the 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 21 and 22 of the 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 year ended December 31,
2017 2018 2019
(in thousands of U.S.$)

Profit (loss) for the period…. $ 623,602 $ 189,747 $ 14,528
Income tax expense 1,193,067 357,283 393,245
Finance costs …. 644,610 463,448 479,307
Impairments? 7,378 395,965 –
Adjusted EBITO…. 0% 2,468,657 1,406,443 887,080
Ratio of earnings to fixed charges (adjusted)9

3.8 3.0 1.9
Depreciation and amortization of assets” 2,101,101 2,181,140 2,220,069
Copper Reserve Law 1,098,556 1,108,209 935,599
Adjusted EBITDA ….. S 5,668,314 $ 4,695,792 $ 4,042,748

(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 related to definitely-lived tangible assets which show indicators of impairment under International
Accounting Standard No. 36. See notes 8, 21 and 22 of the 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 8, 21 and 22 of the 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), (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 20 of the 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”s Relationship with the Government of Chile— CODELCO is subject to special taxes.”

The following table shows CODELCO”s debt and ratio of debt to Adjusted EBITDA and Adjusted EBITDA
coverage ratio for the periods indicated.

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

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

Ss 14,709,790 $ 15,257,685 S 17,264,356

Ratio of debt to Adjusted EBITDA. 2.6 3.2 4.3

Finance income….. 29,836 51,329 36,871

Adjusted EBITDA coverage ratio” 9.2 11.4 9.1
() Adjusted EBITDA coverage ratio is the ratio of Adjusted EBITDA to finance cost net of finance income.

RISK FACTORS

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

Risks Relating to CODELCO”s Operations

Developments relating to the outbreak of COVID-19 may have a material adverse impact on CODELCO*s
operations.

In December 2019, the outbreak of COVID-19 began in mainland China and has since spread through various
countries, negatively affecting global and regional conditions. In March 2020, the World Health Organization (WHO)
declared the COVID-19 outbreak a pandemic. In response to the outbreak, governmental authorities in various
jurisdictions imposed lockdowns and other restrictions to contain the virus, and various businesses suspended or reduced
operations. The final impact on the global economy and financial markets is still uncertain, but is expected to be
significant.

The COVID-19 outbreak has since spread into Chile and has caused temporary disruptions to some of
CODELCOSs projects as part of measures to contain the spread of the virus. If the outbreak continues, restrictions may
be imposed on CODELCO by governmental authorities and CODELCO may encounter operational difficulties related to
insufficient personnel, higher costs and expenses associated with delayed inspections, assessments and authorizations.
CODELCO may need to adopt contingency measures, such as stricter cleaning protocols and further reductions of
employees at its operations, or even suspend operations. In addition, business activities all over the world, including
manufacturing activities that drive demand for copper and other metals, have started to decline and are expected to be
significantly impacted. The existence and continuance of the outbreak in the countries where the purchasers of
CODELCOSs products are located could result in reduced demand. Due to the speed with which the COVID-19 situation
is developing and that the duration of the situation is not known, there is uncertainty around its ultimate impact on our
business; therefore, the negative impact on our financial and operating results cannot be reasonably estimated at this time,
and CODELCO cannot rule out a material impact. Any prolonged outbreak of the novel coronavirus COVID-19 or the
imposition of more restrictive measures in Chile could result in the imposition of further quarantines or closures and/or
import and export restrictions which could further adversely affect the business, financial condition, results of operations
or prospects of CODELCO. To the extent COVID-19 adversely affects our business and financial results, it may also
have the effect of heightening many of the other risks described in this “Risk Factors” section.

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*Ss total assets are property, plant and equipment. As of December 31, 2019,
73.6% 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. In 2019, CODELCO did not recognize an impairment loss. Because
the impairment calculation is directly associated with the outlook of copper prices, a downturn in the copper price outlook

16
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 2019, copper prices averaged 272.1 cents per pound, down from 295.9 cents per pound in 2018, which may
be attributable primarily to ongoing trade disputes between the United States and China. In the first quarter of 2020,
copper prices averaged 255.7 cents per pound, which was primarily attributable to the impact of the COVID-19 pandemic
on the Chinese economy. China has been the main driver of copper consumption in recent years, and in 2017, 2018 and
2019, 39.6%, 49.8% and 34.5%, respectively, of CODELCO*s sales were made to China. Ifeconomic conditions further
deteriorate in China or other emerging markets, demand from customers in those markets could decline and the market
price of copper could fall. A decline in copper prices would have an adverse impact on CODELCO”s revenues and
financial results. In 2019, each one-cent change in CODELCO”s average annual copper price per pound sold caused a
variation in operating profit of approximately U.S.$35 million. Between January and April of 2020, CODELCO”s
financial performance has been negatively impacted, with a significant decline in total revenues as compared to the
corresponding period in 2019, primarily because of a decrease in copper and molybdenum prices due to the COVID-19
pandemic, among other possible factors such as the trade disputes between the United States and China during 2019, as
well as a slight decrease in volumes sold because of higher inventory levels in the same period of 2019. This downward
trend in copper prices could continue for an unpredictable period. If£CODELCO”s average annual copper price per pound
declines significantly for an extended period of time, CODELCO may, subject to other factors such as operating costs,
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 21 and 22 of the 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.

17
Most of CODELCOS*s copper output is dependent upon production from three of its main mining complexes.

Three of CODELCO”s mining complexes produced over 65.2% of its copper output in 2019 (including
CODELCOSs share in the El Abra deposit and Anglo American Sur). The El Teniente Division, including the Caletones
smelter, produced an aggregate of 459,744 metric tons of copper in 2019. The Radomiro Tomic mine produced an
aggregate of 266,415 metric tons of copper and the Chuquicamata mine produced an aggregate of 385,309 metric tons of
copper, each during the same period. If operations in any of these three mining complexes were significantly reduced,
interrupted or curtailed, CODELCOS*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
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. Ifnew 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

18
polluted. The measures currently included in the prevention or decontamination plans that govern these areas are subject
to change and may become more stringent if compliance with the quality standards is not achieved. CODELCO must
comply with certain air quality environmental regulations regarding particulate matter (PM;0) and sulfur dioxide (SO»)
in the areas surrounding the Potrerillos, Caletones, Ventanas and Chuquicamata smelting plants. The Potrerillos,
Caletones and Ventanas smelting plants have decontamination plans for such pollutants. In the area surrounding the
Chuquicamata smelter, there are decontamination plans for PM¡o under development and under review, and a pollution
prevention plan for SO, is under development. CODELCO is currently unable to fully assess what may be required of it
or the cost of compliance with the revised 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, PM¡o and mercury (Hg) emissions. Since 2013, CODELCO”s cost of complying with this
standard was U.S.$2.4 billion. As of the date of this offering memorandum, the Ventanas, El Teniente, Chuquicamata
and Salvador smelters meet the requirements of this standard. See “Regulatory Framework—Environmental
Regulations.”

Additionally, in 2015, Supreme Decree 10 declared the boroughs of Concón, Quintero and Puchuncaví, where
the Ventanas smelting plant is located, as a saturated zone with regards to PM». and as a latent zone with regards to PMyo,
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, (11) 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.

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 December 31, 2019, CODELCO had total provisions of U.S.$2.0 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.

19
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 impactits 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
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 CODELCO*s results.

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

Although the 2015, 2014 and 2010 earthquakes did not have any substantial effect on CODELCO or its results
of operations, and although CODELCO”s mining operations are subject to, and designed to withstand, damage from
significant seismic events, an earthquake occurring closer to CODELCO”s operations in northern Chile could cause
damage to its mining operations that would not be covered by insurance, except to the extent that its production ceased

20
for more than 30 days. Any such damages caused by an earthquake that were not covered by insurance could have an
adverse effect on CODELCO*s results of financial condition, results of operations or cash flow.

Future compliance with a changing and complex regulation scheme may require changes in CODELCOS*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 government 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 CODELCOSs 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.$12.5 billion between 2020 and 2022 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—
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.”

21
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” 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” 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 CODELCO”s business, financial condition and results of operations.

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

As of December 31, 2019, CODELCO employed 16,731 employees, approximately 90% of whom were covered
by collective bargaining agreements with labor unions. Most of these collective bargaining agreements have terms of
two to three years. CODELCO has experienced material work slowdowns, work stoppages and strikes in the past. Most
recently, CODELCO experienced a 39-day strike involving 83 union workers from the Andina Division, a one-day strike
that blocked access to the Chuquicamata mine to four of the six labor unions and a 14-day strike involving 3,200 union
workers in the Chuquicamata Division (or approximately 67% of the total work force). The 14-day strike diminished
production by approximately 17,600 metric tons.

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

CODELCO has experienced work disruptions in the past, and there can be no assurance that a work slowdown
or work stoppage will not occur prior to or upon the expiration of the current collective bargaining agreements.
Management is unable to estimate the effect of any such work slowdown, stoppage or strike on CODELCO*s production
levels. Work slowdowns, stoppages or other labor-related developments affecting CODELCO could have a material
adverse effect on the business, financial condition, results of operations or prospects of CODELCO. In particular, work

22
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; (1i) services strictly
necessary to guarantee the rendering of all services of public utility, and the attention of the population and basic needs,
including those related to life, safety and health; and (iii) services strictly necessary to guarantee the prevention of sanitary
or environmental damage. If there is any disagreement between CODELCO and its labor unions regarding such minimum
services and emergency equipment, the parties may resolve such disagreement through administrative proceedings before
the Dirección Regional del Trabajo (Regional Labor Board), which are subject to challenge by the parties before the
Director Nacional del Trabajo (National Labor Board).

As of December 31, 2019, CODELCO employed 16,731 employees, approximately 90% 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
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 Consolidated Financial Statements.

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

CODELCOSs production hedging agreements contain events of default and termination events that could lead
to early close-outs of CODELCO””s hedges. These include failure to pay, breach of the agreement, misrepresentation,
default under CODELCO*s loans or other hedging agreements and bankruptcy. In the event of an early termination of
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

23
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 27 and 28 to the 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 1t 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 departure of the UK from the European Union could have an adverse effect on CODELCO*s business, financial
condition and potential growth in Europe.

The UK withdrew from the European Union (“EU”) on January 31, 2020, subject to a transition period that is
set to end on December 31, 2020. The potential impact of this withdrawal, commonly referred to as “Brexit,” is uncertain
while the British government continues to negotiate the terms of the UK”s future relationship with the EU during the
transition period. 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 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 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. CODELCOS*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 (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; (ii) 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

24
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.

Asa state-owned enterprise and according to its governing law, CODELCO”s profit is required to be transferred
to the Chilean Treasury. Before June 30 of each year, the Ministries of Finance and Mining are required to determine,
by means of a joint decree, the amount, if any, that the Company shall allocate to the creation of capitalization and reserve
funds as retention of profits. Between 2014 and 2019, the Government of Chile 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.

If CODELCO” 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.

CODELCO is subject to special taxes.

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. Asa 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. As of April 1, 2020,
CODELCO is paying the taxes owed pursuant to the Copper Reserve Law on a monthly basis, following a response
measure from the Government of Chile to the economic effects of the COVID-19 pandemic. As of the date of this offering
memorandum, CODELCO has paid the taxes due for 2019, together with the taxes due for January and February 2020
and, as of April 1, 2020, has begun paying the 10% special export tax on a monthly basis, beginning with the taxes due
for March 2020.

Pursuant to the terms of Chile”s income tax law (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 CODELCO 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: (i) the beneficiary (i.e., lender or creditor) is incorporated,

25
domiciled, resident or established in one of the territories or jurisdictions listed in section 41 H of the Income Tax Law;
(ii) each of the beneficiary (i.e., lender or creditor) and CODELCO belong to the same corporate group or, directly or
indirectly, owns or participates in 10% or more of the capital or the profits of the other, or if the beneficiary and
CODELCO have a common partner or shareholder which, directly or indirectly, owns or participates in 10% or more of
the capital or the profits of both, and such beneficiary is incorporated, domiciled, resident or established outside Chile;
(iii) the indebtedness is guaranteed directly or indirectly by a third-party related to CODELCO, in the terms of clauses (1)
or (ii) above, or (iv) hereafter, provided that such third-party is domiciled or resident abroad and is a final beneficiary
(beneficiario final) of the financing; (iv) the relevant financial instruments documenting such indebtedness are placed
and acquired by independent entities and such indebtedness is subsequently acquired or transferred to a related entity
according to subsections (i) to (111) 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.

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 2019, CODELCO distributed a total of U.S.$1.0
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 2017, 2018 and 2019.

In 2014 and 2020, extensive tax reforms were enacted in Chile. However, CODELCO, as a 100% state-owned
corporation, is not subject to either of the reforms. Instead CODELCO is 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. In addition, CODELCO is subject to a 40% tax on net earnings applicable to state-owned enterprises
as specified by Decree Law 2,398, Art. 2.

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 of CODELCO*s revenues are derived from its operations in Chile. Accordingly, CODELCO*s results
of operations and general financial condition depend in part on Chilean markets for labor and certain materials and
equipment, and on factors relating to Chilean political stability generally.

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
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 were adversely affected in the fourth quarter of 2019. 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

26
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”):

Year Inflation (CPI)
(in percentages)

2017.. 2.3

2018 2.6

2019 3.0

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.$1.9
billion (6.5% of the total amount of liabilities on a consolidated basis) as of December 31, 2019. In order to cover this
risk, CODELCO has, and currently is, engaged in hedging transactions to partially mitigate the effects of the volatility of
foreign exchange rates. See “Risk Factors—Risks Relating to CODELCO”s Operations—CODELCO engages in hedging
activity from time to time, particularly with respect to its copper production, which may not be successful and may result
in losses to CODELCO.”

Risks Relating to the Offering

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

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

27
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
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.

28
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.

29
USE OF PROCEEDS

The estimated total net proceeds from the offering of the notes are U.S.$796,857,888, after deducting
commissions to the initial purchasers and payment of legal fees and all other expenses related to the offering. 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.”

30
CAPITALIZATION

The following table sets forth the capitalization of CODELCO as of December 31, 2019 (i) on an actual historical
basis, (11) as adjusted to give effect to the notes issuance in an aggregate principal amount of U.S.$2.0 billion in January
2020 and (iii) as further adjusted to give effect to the offering of the notes. The following table does not give effect to
additional bank and bond indebtedness for up to U.S.$700 million that CODELCO expects to incur promptly after the
pricing of the notes. This table is qualified in its 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.

As of December 31, 2019
Actual As Adjusted” As Further Adjusted
(in thousands of U.S.$)

Current financial liabilities
Current portion of loans from financial institutions … $ 666,144 s 666,144 $ 666,144
Current portion of bonds issued… 572,587 572,587 572,587

Total current financial liabilities…… $ 1,238,731 s 1,238,731 $ 1,238,731
Non-current financial liabilities
Bank debt $ 2,408,267 Ss 2,408,267 $ 2,408,267
3.875% Notes due 2021 226,416 226,416 226,416
3.000% Notes due 2022 410,882 410,882 410,882
4.500% Notes due 202 332,188 332,188 332,188
2.250% Euro Notes due 2024 666,384 666,384 666,384
4.000% UF Notes due 20256) 270,374 270,374 270,374
4.500% Notes due 2025 1,055,236 1,055,236 1,055,236
2.500% UF Notes due 2026’” 394,774 394,774 394,774
3.63% Notes due 2027 1,443,875 1,443,875 1,443,875
2.869% Notes due 2029 . 128,808 128,808 128,808
3.000% Notes due 2029 . 1,087,092 1,087,092 1,087,092
3.150% Notes due 2030 . – 1,000,000 1,000,000
2.840% Notes due 2034’% 63,593 63,593 63,593
5.625% Notes due 2035.. 492,115 492,115 492,115
6.150% Notes due 2036 . 496,544 496,544 496,544
3.580% Notes due 20395 48,519 48,519 48,519
4.250% Notes due 2042 733,450 733,450 733,450
5.630% Notes due 204. 933,573 933,573 933,573
4.875% Notes due 2044 961,425 961,425 961,425
4.50% Notes due 2047 1,205,925 1,205,925 1,205,925
4.85% Notes due 2048 594,487 594,487 594,487
4.375% Notes due 2049 . 1,182,292 1,182,292 1,182,292
3.700% Notes due 2050 . 889,406 1,889,406 1,889,406
Notes offered hereby” – – 800,000
Total non-current financial liabilities ……………. $ 16,025,625 s 18,025,625 $ 18,825,625
Non-controlling interest …. $ 919,757 s 919,757 $ 919,757
Equity
Issued capital $ 5,619,423 Ss 5,619,423 $ 5,619,423
Other reserves. 5,291,747 5,291,747 5,291,747
Retained Earnings
Retained earnings…… (196,260) (196,260) (196,260)
Profits distributions to the Chilean Treasury ….. – – –
Equity attributable to equity owners of the paren s 10,714,910 $ 10,714,910 $ 10,714,910
Total capitalization” s 28,899,023 $ 30,899,023 $ 31,699,023

31
0)
0)
6)
(4)
(5)
(6)

(0)
(8)

For more information on the international note issuance issued in January 2020 a 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 = €0.8918 at December 31, 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 = 0.026448 UF at December 31, 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 = 0.026448 UF at December 31, 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 1.4282 at December 31, 2019.

Net of deferred financing costs, commissions to the initial purchasers 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 2.84% notes due 2034 has been translated at an exchange rate of
U.S.$1.00 = HKD 7.7858 at December 31, 2019.

32
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*

715.66 597.10 654.25 707.34

730.31 645.22 676.83 667.29

679.05 615.22 649.33 615.22

698.56 588.28 640.29 695.69

828.25 649.22 702.63 744.62

729.38 709.71 721.03 726.34

828.25 735.05 776.53 828.25

812.13 744.62 770.39 744.62

797.96 748.74 772.65 797.96

816.26 776.99 796.38 816.26

867.83 809.81 839.38 846.30

April (though April 24, 2020)……………. 863.99 839,49 853.95 858.87

(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 April 24, 2020 was Ch$858.87 =
U.S.$1.00.

33
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.

CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME

Revenue

Cost of sales’”

Gross profit
Other income, by function.

Impairment loss determined in accordance
with IFRS 9

Distribution costs…..

Administrative expenses

Other expenses?

Other gains….

Finance income.

Finance costs …..

Share of profit (loss) of associates and
joint ventures accounted for using equity
method …. 0.2

Foreign exchange differences ……….

Profit (loss) for the period before tax.

Income tax expense’.
Profit (loss) for the period .

Profit (loss) attributable to owners of the
parent

Profit (loss) attributable to non-controlling
interests..

Profit (loss) for the period

CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION

Total current assets…..

Total property, plant and equipment

Investments accounted for using equity
method…

Non-current receivables

All other assetsó)

Total assets …

Total current liabil

Total non-current liabilities…………..

Total liabilities…

Non-controlling interes

Equity attributable to owners of the parent…..

Total equity.
Total liabilities and equity.

For the year ended December 31,

2017 2018 2019
(in thousands of U.S.$)
S 14,641,555 $ 14,308,758 $ 12,524,931
(10,380,403) (11,194,341) (10,051,441)
4,261,152 3,114,417 2,473,490
154,332 124,826 360,690
N/A 158 378
(10,403) (18,262) (17,069)
(428,140) (465,328) (409,234)
(1,557,473) (2,115,314) (1,747,838)
32,605 21,395 22,672
29,836 51,329 36,871
(644,610) (463,448) (479,307)
185,428 119,114 13,203
(206,058) 178,143 153,917
1,816,669 547,030 407,773
(1,193,067) (357,283) (393,245)
623,602 189,747 14,528
569,175 155,719 6,637
54,427 34,028 7,891
S 623,602 $ 189,747 $ 14,528
As of December 31
2017 2018 2019
(in thousands of U.S.$)
6,211,053 $ 5,828,206 6,050,021
25,275,512 26,754,998 29,700,164
3,665,601 3,568,293 3,483,523
91,442 84,731 98,544
1,112,533 854,577 1,012,359
36,356,141 $ 37,090,805 40,344,611
3,315,456 3,539,412 3,922,957
22,115,347 22,207,524 24,786,987
25,430,803 $ 25,746,936 28,709,944
1,007,495 969,204 919,757
9,917,843 10,374,665 10,714,910
10,925,338 $ 11,343,869 11,634,667
36,356,141 $ 37,090,805 40,344,611

34
As of and for the year ended December 31,

2017 2018 2019

OTHER ITEMS (in thousands of U.S.$, except ratios and copper prices)
Depreciation and amortization of assets ……… $ 2,101,101 $ 2,181,140 $ 2,220,069
Interest expense, net …… $ (614,774) $ (412,119) $ (442,436)
Ratio of earnings to fixed charges
(adjusted)O… 3.8 3.0 1.9
Average LME copper price (U.S. £ per

pound)”…. 279.7 295.9 272.1
Adjusted EBITDAS.. $ 5,668,314 $ 4,695,792 $ 4,042,748
Ratio of debt to Adjusted EBITDA% 2.6 3.2 4.3
Adjusted EBITDA coverage ratio(*”. 9.2 11.4 9.1

(4)
(5)

(6)

(0)
(8)

(9)

(10)

“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
22.b of the 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 2017 and
2019. See note 5 of the 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 tax reform in 2014) 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 8 of the 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 s ratio of earnings to fixed charges (adjusted), (i) “earnings” consist of Adjusted EBIT and (ii)
“fixed charges” consist of finance cost. The ratio of earnings to fixed charges (adjusted) is calculated by dividing Adjusted EBIT by finance
cost. Adjusted EBIT is calculated by adding finance cost, impairment charges net of reversals (as defined in note (1) of the following table)
and income tax expense to profit (loss) for the period. Adjusted EBIT, while not a financial performance measure under IFRS, is presented
as an indicator of funds available to service debt. Adjusted EBIT and Adjusted EBITDA data are included in this 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 8, 21 and 22 of the
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 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 8, 21 and 22 of the 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 21 and 22 of the 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.

35
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.

(4)
6)

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

Profit (loss) for the period $ 623,602 $ 189,747 $ 14,528
Income tax expense .. 1,193,067 357,283 393,245
Finance costs ….. 644,610 463,448 479,307
Impairments? 7,378 395,965 –
Adjusted EBITO…. 2,468,657 1,406,443 887,080
Ratio of earnings to fixed charges

(adjusted) O . 3.8 3.0 1,9
Depreciation and amortization of assets(” … 2,101,101 2,181,140 2,220,069
Copper Reserve Law 1,098,556 1,108,209 935,599
Adjusted EBITDA …. $ 5,668,314 S 4,695,792 S 4,042,748

Impairments include charges and reversals related to charges of investment projects, research projects and investment in associates and joint
ventures and exclude impairment charges related to definitely-lived tangible assets which show indicators of impairment under International
Accounting Standard No. 36. See notes 8, 21 and 22 of the 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 8, 21 and 22 of the 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), (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 20 of the 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.”

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 year ended December 31,
2017 2018 2019

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

eones $ 14,709,790 $ 15,257,685 $ 17,264,356
Ratio of debt to Adjusted EBITDA ……………. 2.6 3.2 4,3
Finance income…. 29,836 51,329 36,871
Adjusted EBITDA coverage ratio” 9.2 11.4 9.1

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

36
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, 2017, 2018 and 2019. For more information regarding such data, see “Business Properties.”

Year ended December 31,

2017 2018 2019
COPPER MINING OPERATIONS
Ore Mined (in thousands of dry metric
tons):
Mina Ministro Hales 23,653 19,827 19,160
Chuquicamata Division 50,104 56,909 65,582
Radomiro Tomic Division . 78,582 77,692 70,753
Gabriela Mistral Division… 40,503 39,430 38,180
El Teniente Division 50,812 52,454 52,006
Andina Division … 31,863 29,264 30,676
Salvador Division…… 14,513 12,892 10,362
290,029 288,467 286,718
Average Copper Ore Grad:
Mina Ministro Hales 1.08% 1.09% 0.99%
Chuquicamata Division 0.77 0.62 0.73
Radomiro Tomic Division . 0.51 0.53 0.48
Gabriela Mistral Division… 0.43 0.37 0.42
El Teniente Division 0.98 0.96 0.95
Andina Division … 0.78 0.75 0.67
Salvador Division….. 0.56 0.59 0.63
Weighted Averag; 0.71% 0.67% 0.67%
PLANT COPPER PRODUCTION
(by division in metric tons):
Mina Ministro Hales. 215,086 195,485 151,838
Chuquicamata Division 330,910 320,744 385,309
Radomiro Tomic Division 318,878 332,667 266,415
Gabriela Mistral Division 122,737 107,247 104,087
El Teniente Division 464,328 465,040 459,744
Andina Division. 220,030 195,531 170,274
Salvador Division 61,942 60,840 50,561
1,733,911 1,677,554 1,588,229
PLANT COPPER PRODUCTION
(contained copper in metric tons):
ER Cathodes … 65,579 44,308 10,228
SX-EW Cathodes 442,136 410,649 395,998
Calcined …. 159,113 152,653 116,999
Anodes — Blister 381,526 386,393 338,769
Concentrates…. 685,557 683,551 726,235
1,733,911 1,677,554 1,588,229
MOLYBDENUM PRODUCTION
(contained molybdenum in metric tons)……. 28,674 24,031 22,353
COPPER SALES
(in metric tons; includes sales of third-party
copper):
Cathodes…. 1,233,012 1,231,172 1,076,097
Fire Refined – – –
Anodes — Blister 118,986 135,509 58,491
Concentrates. 610,852 529,292 721,339
Total… 1,962,850 1,895,974 1,855,926
COPPER EXPORTS
(in metric tons; includes sales of third-party
copper):
Cathodes…. 1,164,459 1,173,010 1,009,355

Anodes – Blister 118,986 133,499 57,487
Concentrates…. 515,214 379,398 503,424
aenmrnnnnns 1,798,659 1,685,906 1,570,266
INVENTORIES OF COPPER AT
PERIOD-END
(in metric tons)…….. 54,448 80,233 38,375

38
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
2019, CODELCO derived 91% of its total sales from copper and 9% 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.$108.1 billion (in 2019 currency)
to the Chilean Treasury. Approximately 62.7% of this amount was generated in the last 16 years, representing 8.4%
of the revenues of the Government of Chile. In 2019, CODELCO accounted for 13.4% 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
272.1 cents per pound in 2019 compared to 295.9 cents per pound in 2018 and 279.7 cents per pound in 2017. Since
the first half of 2018 copper prices have been affected by 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 2019, CODELCO s total costs and expenses decreased by 11.6 cents per pound (4.7%) to 233.5
cents per pound, compared to 245.1 cents per pound in 2018 and 227.1 cents per pound in 2017, 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 2019, CODELCOSs total costs and expenses decreased to U.S.$8.2 billion, compared to U.S.$9.1 billion
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 total costs and expenses increased by 4.4% to U.S.$9.1 billion, compared to
U.S.$8.7 billion in 2017 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-offof an innovation project for underground mining and impairment
losses on fixed assets associated with the Ventanas Division. In 2019, CODELCO”s cash cost of production was 141.6
cents per pound, compared to 139.1 cents per pound in 2018 and 135.9 cents per pound in 2017. In2019, CODELCO*S
total cash cost was U.S.$4.9 billion, compared to U.S.$5.1 billion in 2018 and U.S.$5.1 billion in 2017. See
“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview.”

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 December
31, 2019, CODELCO did not have any production hedging commitments and, accordingly, there was no related impact

39
on pre-tax income for the year ended December 31, 2019. See notes 27 and 28 to the 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
27 and 28 to the 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 2019, CODELCO”s annual production, including its investment in El Abra and Anglo American
Sur, slightly decreased to 1.71 million metric tons from 1.81 million metric tons in 2018 and 1.84 million metric tons
in 2017. The lower production levels in 2019 were 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. 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 CODELCO”s stake in Anglo American Sur and El Abra.

In 2019, each one-cent change in CODELCO”s average annual copper price per pound caused a variation in
operating profit of approximately U.S.$35 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; (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 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.

In 2019, CODELCO invested U.S.$3.7 billion, 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.
CODELCO has no long-term commitments regarding third-party copper purchases or sales other than pursuant to the
joint venture with China Minmetals Non-Ferrous Metals Co. Ltd. (“Minmetals”), a Chinese state-owned metals
company. This joint venture ended in April 2016 and the related selling commitment ends in 2021. For more

40
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:

Year ended December 31,
2017 2018 2019
Revenue 100.0% 100.0% 100.0%
Cost of sales (70.9) (78.2) (80.3)
Gross profit 29.1 21.8 19.7
Other income, by function 1.1 0.9 2.9
Administrative expenses (Q.9) (3.3) (3.3)
Other expenses…. (10.6) (14.8) (14.0)
Finance costs………. (4.4) G.2) (3.8)
Profit (loss) for the period before tax . 12.4 3.8 3.3
Income tax expense … (8.1) (Q.5) (3.1)
Profit (loss) for the period 4.3% 1.3% 0.1%

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

Year ended December 31,

2017 2018 2019
CODELCO Average Metal Price (per pound)””
¡CA Ss 2.86 $ 2.76 $ 2.56
Molybdenum….. $ 7.88 Ss 11.64 $ 11.37
CODELCO Sales Volume (in metric tons)
Own copper(2)…. cos 1,846,452 1,838,150 1,804,005
Third-party COPPOT comicios 304,026 296,109 172,218
Total copper 2,150,478 2,134,259 1,976,223
Molybdenum (in oxide and concentrate)
28,918 25,385 23,775
135.96 139.14 141.66
(09) The average metal price is the weighted average of prices actually paid to CODELCO for its product mix.
(0) Includes wire rod sales and cathodes from CODELCOS*s subsidiaries.

Impact of COVID-19

The COVID-19 pandemic and the resulting economic impact have primarily contributed to a decrease in
copper prices in 2020. CODELCO*s financial results and prospects are largely dependent on the prices of copper.
Between January and April of 2020, CODELCO”s financial performance has been negatively impacted with a
significant decline in total revenues as compared to the corresponding period in 2019, primarily because of a decrease
in copper and molybdenum prices due to the COVID-19 pandemic, among other possible factors such as the trade
disputes between the United States and China during 2019, as well as a slight decrease in volumes sold due to higher
inventory levels in the same period of 2019. This downward trend in metal prices could continue for an unpredictable
period. The ultimate impact of COVID-19 on CODELCO*s financial and operating results is unknown and will depend
on the duration and spread of the outbreak. The effect of the COVID-19 outbreak will not be fully reflected in
CODELCOSs results of operations until future periods.

41
Results of Operations for the Three Years Ended December 31, 2019

The following table sets forth CODELCO”s summarized results of operations for the years ended
December 31, 2017, 2018 and 2019:

Year ended December 31, % Change
2017 2018 2019 2017/2018 2018/2019
(in millions of U.S.$)
14,642 14,309 12,525 Q3)% (12.5)%
(10,380) (11,194) (10,051) 7.8 (10.2)
Gross profit 4,261 3,114 2,473 (26.9) (20.6)
Other income, by function… 154 125 361 (18.8) 189.0
Administrative expenses. (428) (465) (409) 8.6 (12.1)
Other expenses. (1,557) (2,115) (1,748) 35.8 (17.4)
Finance costs . (645) (463) (479) (28.2) 3.4
Share of profit (loss) of associates and
joint ventures accounted for under the
equity method…………. 185 119 13 (35.7) (88.9)
Foreign exchange differences. (206) 178 154 (186.4) (13.6)
Profit (loss) for the period before tax. 1,817 547 408 (69.9) (25.5)
Income tax expense …. (1,193) (357) (393) (70.1) 10.1
Profit (loss) for the period… 624 190 15 (69.6) (92.3)
Profit (loss) attributable to owners o:
parent …. 569 156 7 (72.6) (95.7)
Profit (loss) attributable to non-controlling
interests …… 54 34 8 (37.0) (76.8)

Revenue. The following table sets forth CODELCO*s revenues for the years ended December 31, 2017, 2018
and 2019:

Year ended December 31, % Change
2017 2018 2019 2017/2018 2018/2019
(in millions of U.S.$)

Revenue $ 14,642 $ 14,309 $ 12,525 Q3% (12.5)%
Sales of CODELCO””s own copper.. 11,635 11,19 10,393 (3.6) (7.4)
Sales of third-party copper …… 2,006 1,901 1,006 (5.2) (47.1)
Sales of byproducts and other . 1,001 1,189 1,126 18.8 (5.3)

In 2019, revenue decreased by 12.5% to U.S.$12.5 billion, compared to U.S.$14.3 billion in 2018. This
decrease was primarily attributable to a decrease in CODELCO”s average copper price from U.S.$2.76 per pound in
2018 to U.S.$2.56 per pound in 2019 and a decrease in the volume of copper sold by 7.4% as a result of lower
production levels. Our own copper sales decreased by 7.4% mainly due to the decrease in CODELCO”s average
copper price. 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.

Third-party copper sales totaled U.S.$1.0 billion in 2019, compared to U.S.$1.9 billion in 2018, attributable
to lower average copper prices and a decline of sales volume. In 2018, third-party copper sales totaled U.S.$1.9 billion,
compared to U.S.$2.0 billion in 2017. 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. 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 5.3% to U.S.$1.1 billion in 2019, compared to U.S.$1.2 billion

in 2018. This decrease was primarily due to the 6.3% decline in molybdenum sales volume. In 2018, sales of
byproducts and other totaled U.S.$1.2 billion, compared to U.S.$1.0 billion in 2017. The increase of 18.8% in 2018

42
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 tonnage sold.

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 years ended December 31, 2017, 2018 and 2019:

Year ended December 31, % Change
2017 2018 2019 2017/2018 2018/2019
(in millions of U.S.$)

Cost Of SalOS ..ooconcnnonnncnnaconncoronanrooos Ss 10,380 $11,194 $ 10,051 7.8% (10.2)%
Cost of CODELCO’s own coppe: 7,793 8,646 8,418 10.9 (2.6)
Cost of third-party sales. 2,000 1,881 996 (6.0) (47.0)
Cost of byproducts and other.. 588 667 637 13.4 (4.5)

CODELCOSs total cost of sales decreased by 10.2% to U.S.$10.1 billion (80.3% of sales) in 2019, compared
to U.S.$11.2 billion (78.2% of sales) 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. In 2018, CODELCOSs total cost of sales 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. 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.$8.4 billion in 2019, compared to U.S.$8.6
billion 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. In 2018, CODELCOS*s cost of sales of its own copper increased by 10.9% to
U.S.$8.6 billion compared to U.S.$7.8 billion in 2017. The increase in 2018 compared to 2017 was 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.

The cost of copper purchased from third parties decreased by 47.0% in 2019 to U.S.$996 million, compared
to U.S.$1.9 billion in 2018. The decrease was caused by lower sales volume of third-party copper and by a decrease
in the average price of copper. 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.

The cost of byproducts and other decreased by 4.5% to U.S.$637 million in 2019, compared to U.S.$667
million in 2018, primarily due to lower sales volume of molybdenum, sulfuric acid, gold and silver. In 2018, 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. The
increase in 2018 compared to 2017 was 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 1.8% to U.S.$2,220 million in 2019, compared to
U.S.$2,181 million in 2018. In 2018, depreciation and amortization expenses increased by 3.8% to U.S.$ 2,181 million
compared to U.S.$2,101 million in 2017. The increases are mainly due to the higher capital expenditure.

Gross profit. Gross profit amounted to U.S.$2.5 billion in 2019, compared to U.S.$3.1 billion in 2018. The
20.6% decrease was primarily attributable to the decrease in revenues mainly due to lower average price received for
CODELCOSs product mix and lower sales volume of copper and molybdenum, partially offset by the decrease in the
cost of sales mainly due to lower sales volumes and cost reduction efforts. In 2018, gross profit amounted to U.S.$3.1
billion, compared to U.S.$4.3 billion in 2017. 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

43
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.

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
189.0% to U.S.$361 million in 2019, compared to U.S.$125 million in 2018, primarily attributable to miscellaneous
sales and sales of assets. In 2018, other income decreased by 19.1% to U.S.$125 million compared to U.S.$154 million
in 2017. The decrease in 2018 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. See note 22a to the Consolidated Financial Statements.

Administrative expenses. Administrative expenses decreased to U.S.$409 million (3.3% of total revenues)
in 2019, compared to U.S.$465 million (3.3% of total revenues) in 2018. This decrease was primarily attributable to
the positive effect of the depreciation of the Chilean peso against the U.S. dollar. In 2018, administrative expenses
increased to U.S.$465 million (3.3% of total revenues) compared to U.S.$428 million (2.9% of total revenues) in 2017
The increases in 2018 compared to 2017 was mainly due to the appreciation of the Chilean peso against the U.S.
dollar.

Other expenses. Other expenses amounted to U.S.$1.7 billion (14.0% of total revenues) in 2019, compared
to U.S.$2.1 billion (14.8% of total revenues) 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 in 2018, partially offset by the increase in indirect fixed
costs. In 2018, other expenses amounted to U.S.$2.1 billion (14.8% of revenues), compared to U.S.$1.6 billion (10.6%
of revenues) in 2017. 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 million, an impairment recognition
in the Ventanas Division amounting to U.S.$199 million and the increase in collective bargaining bonuses.

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

Year ended December 31,

2017 2018 2019
(in millions of U.S.$)

Copper Reserve Law ……. $ (1,099) $ (1,108) $ (936)
Bonus for the end of collective bargaining and
Employee Benefits.. (53) (269) (50)
Asset impairments … (0) (199) –
Other non-cash charges (89) Q17) (42)
Other expenses. (317) (322) (519)

Total… $ (1,557) s (2,115) s (1,748)

CODELCO recorded other expenses of U.S.$0.9 billion, U.S.$1.1 billion and U.S.$1.1 billion in 2019, 2018,
and 2017, 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 decrease of this tax recorded in 2019 compared to 2018 is primarily attributable to lower revenues
from CODELCO”s own copper sales

In 2019, bonuses for the end of collective bargaining and other employee benefits decreased to U.S.$250
million from U.S.$269 million in 2018, due to a smaller number of employees benefitting from collective bargaining
negotiations in 2019. Other expenses increased from U.S.$322 million in 2018 to U.S.$519 million in 2019 due to an
increase in indirect fixed costs. 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.

44
Finance costs. Finance costs in 2019 increased to U.S.$479 million, compared to U.S.$463 million in 2018.
This increase was primarily attributable to costs incurred in connection with the consummation of the tender offer in
September 2019. In 2018, finance costs amounted to U.S.$463 million, compared to U.S.$645 million in 2017. 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. CODELCOS*s debt level was U.S.$17.3 billion
as of December 31, 2019, U.S.$15.3 billion as of December 31, 2018 and U.S.$14.7 billion as of December 31, 2017.
CODELCOSs average interest rate was 4.21% as of December 31, 2019 and 4.34% as of December 31, 2018. As of
December 31, 2019, 86% of our debt had a fixed rate and 14% had a floating rate. As of December 31, 2018, 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, 2017, 2018 and 2019.

Share of profit/(loss) of associates and joint ventures accounted for using equity method. CODELCO” net
equity participation in related companies decreased to a net profit of U.S.$13 million in 2019, compared to a net profit
of U.S.$119 million 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. In 2018, CODELCOS”s net equity participation in associates
and joint ventures accounted for using the equity method was a profit of U.S.$119 million, compared to a profit of
U.S.$185 million in 2017. The decrease in 2018 as compared to 2017 was primarily attributable to lower income from
CODELCOSs stake in Anglo American Sur. See note 8 to the Consolidated Financial Statements.

Profit (loss) before tax. In 2019, profit before tax decreased to U.S.$408 million, compared to U.S.$547
million in 2018. This decrease was primarily attributable to the decrease in the average copper price and lower sales
volume. Profit before tax was U.S.$547 million in 2018, compared to a profit of U.S.$1.8 billion in 2017. 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.

Income tax expense. In 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 0f 65%. CODELCO is also subject to an additional mining tax that is based on its operating
income, and, effective as of fiscal year 2012, is imposed at progressive rates of between 5% and 14%. CODELCO”s
statutory rate of the mining tax for 2019, 2018 and 2017 was 5%. CODELCO”s taxes on income amounted to an
expense of U.S.$393 million in 2019, compared to an expense of U.S.$357 million in 2018 and U.S.$1.2 billion in
2017, primarily as a result of a decrease in CODELCO”s pre-tax profit in 2019 as compared to 2018 and 2017. For
more information regarding this payment, see note 5 to the 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.$15 million in 2019, U.S.$190 million in 2018 and U.S.$624 million in 2017.

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. In 2019, non-cash charges were U.S.$3 million in amortization and U.S.$2.2 billion in
depreciation. Non-cash deferred tax charges of U.S.$384 million were recorded in 2019. Specifically with respect to
deferred taxes, non-cash charges or benefits are generated by recording the fluctuation of the deferred tax assets and

45
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 CODELCOS*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.

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.

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. In 2019, net cash flows from operating activities decreased by 38.3% to U.S.$2.4 billion from
U.S.$3.9 billion 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. 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. 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. See note 26 to the 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 57.4% as of December 31, 2017, 57.4% as of December 31, 2018 and
59.7% as of December 31, 2019. CODELCOSs total outstanding financial debt as of December 31, 2017, 2018 and
2019 was U.S.$14.7 billion, U.S.$15.3 billion and U.S.$17.3 billion, respectively. As adjusted to give effect to the
U.S.$1.0 billion international debt offering of 3.150% notes due 2030 and the U.S.$1.0 billion international debt

46
offering of 3.700% notes due 2050 in January 2020, CODELCO” total financial debt as a percentage of its total
capital would have been 62.3% and its total outstanding financial debt would have been U.S.$19.3 billion as of
December 31, 2019.

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 December 31, 2019, U.S.$80 million was outstanding under the loan described above with Japan Bank
for International Cooperation, and we had repaid in full the loan described above with The Bank of Tokyo Mitsubishi
UFJ, Ltd. As of December 31, 2019, CODELCO had amortized U.S.$144 million of the loan with the Japan Bank for
International Cooperation.

Between October and November 2016, CODELCO rolled over loans with The Bank of Tokyo-Mitsubishi
UFJ, Ltd. for U.S.$250 million and 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 Cadada…cocicininnnncnnninnnnn. U.S.$300.0 million LIBOR plus 62.0 basis points

As of December 31, 2019, U.S.$253 million was outstanding under the loan described above with Bank of
Tokyo-Mitsubishi UFJ, Ltd and U.S.$300 million was outstanding under the loan described above with Export
Development Canada.

In April 2017, CODELCO entered into a short-term U.S. dollar unsecured bilateral bank loan with Scotiabank
$ Trust (Cayman) Ltd. and used the proceeds to prepay a loan from Bank of America N.A. for U.S.$300 million in
full. 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 a 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… U.S.$300.0 million LIBOR plus 65.0 basis points
Export Development Canada U.S.$300.0 million LIBOR plus 62.0 basis points

As of December 31, 2019, U.S.$301 million was outstanding under the loan described above with Scotiabank
8 Trust (Cayman), Ltd. and U.S.$303 million was outstanding under the loan described above with Export
Development Canada.

In October 2018, CODELCO rolled over a loan with Export Development Canada for U.S.$300 million. 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 December 31, 2019, U.S.$303 million was outstanding under the loan described above with Export
Development Canada.

47
In December 2018, CODELCO entered into a one-year revolving credit facility with Scotiabank Chile 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€ …ooonnioninn…… U.S.$300.0 million LIBOR plus 72.5 basis points December 2018

As of December 31, 2019, U.S.$300 million was outstanding under the loan described above with Scotiabank
Chile.

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

Credit Amount Interest Rate Date Loan Drawn
Scotiabank Chile… U.S.$100.0 million LIBOR plus 35.0 basis points March 2019
Scotiabank Chile… U.S.$65.0 million LIBOR plus 35.0 basis points March 2019
Santander Chile. .. U.S.$100.0 million LIBOR plus 30.0 basis points April 2019
Itaú Chile ..- U.S.$30.0 million LIBOR plus 63.0 basis points June 2019
Banco de Crédito e Inversione: U.S.$50.0 million LIBOR plus 39.5 basis points June 2019
Banco Chil€ c.oociniccicininnnnnnnnon. U.S.$120.0 million LIBOR plus 66.0 basis points June 2019

As of December 31, 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 and the
loans described above with Banco Chile, Banco de Crédito e Inversiones and Itaú Chile were prepaid in full.

Between June and December 2019, CODELCO entered into a bilateral credit facility with Export
Development Canada. The credit facility included a commitment fee of 50.0 basis points and matures in 2029.
CODELCO also entered into a seven-year U.S. dollar unsecured bilateral credit facility with the Banco
Latinoamericano de Comercio Exterior. 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 July 2019
Banco Latinoamericano de
Comercio ExteriOT…oocinicninnnnon… U.S.$75.0 million LIBOR plus 62.0 basis points December 2019

As of December 31, 2019, U.S.$301 million was outstanding under the loan described above with Export
Development Canada and U.S.$74 million was outstanding under the loan described above with Banco
Latinoamericano de Comercio Exterior.

In April 2020, CODELCO entered into a three-year bilateral credit facility with The Bank of Nova Scotia for
U.S.$165 million and expects to drawdown the full amount on April 29, 2020. The terms are described below:

Credit Amount Interest Rate Date Loan Drawn
The Bank of Nova Scotia ……. U.S.$165.0 million Variable April 2020 (expected)

Codelco-Kupferhandel GmbH has a short-term line of credit for €80 million, with a guarantee letter provided
by CODELCO. As of December 31, 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

48
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. On January 14, 2020, CODELCO
issued notes in an aggregate principal amount of U.S.$2.0 billion, consisting of a U.S.$1.0 billion international debt
offering of 3.150% notes due 2030 and a U.S.$1.0 billion international debt offering of 3.700% notes due 2050. The
notes due 2050 form part of the same series of CODELCOS*s outstanding U.S.$900 million 3.700% notes due 2050
issued on September 30, 2019, resulting in a total aggregate principal amount outstanding of U.S.$1.9 billion in this
series.

The following table shows amounts due by CODELCO under notes issued in both international and local
markets as of December 31, 2019:

Outstanding
Principal Amount and
Type of Principal Accrued Interest
Issuance Maturity Amount as of December 31,2019 Interest Rate
International November 4, 2020 U.S.$1.00 billion U.S.$397 million 3.75%
International November 4, 2021 U.S.$1.15 billion U.S.5228 million 3.88%
International July 17, 2022 U.S.$1.25 billion U.S.$416 million 3.00%
International August 13, 2023 U.S.$750 million U.S.$337 million 4.50%
International July 9, 2024 €600 million U.S.$674 million 2.25%
International September 16, 2025 U.S.$2.00 billion U.S.$1.1 billion 4.50%
Local April 1, 2025 6.9 million UF U.S.$273 million 4.00%
Local August 24, 2026 10 million UF U.S.$398 million 2.50%
International August 1, 2027 U.S.$1.50 billion U.S.$1.5 billion 3.63%
International August 23, 2029 U.S.$130 million U.S.$130 million 2.87%
International September 30, 2029 U.S.$1.10 billion U.S.$1.1 billion 3.00%
International November 7, 2034 HKDS500 million U.S.$64 million 2.84%
International September 21, 2035 U.S.$500 million U.S.$500 million 5.63%
International October 24, 2036 U.S.$500 million U.S.$502 million 6.15%
International July 22, 2039 AUD?7O million U.S.$49 million 3.58%
International July 17, 2042 U.S.$750 million U.S.$748 million 4.25%
International October 18, 2043 U.S.$950 million U.S.$944 million 5.63%
International November 4, 2044 U.S.$980 million U.S.$969 million 4.88%
International August 1, 2047 U.S.$1.25 billion U.S.$1.2 billion 4.50%
International May 18, 2048 U.S.$600 million U.S.$598 million 4.85%
International February 5, 2049 U.S.$1.30 billion U.S.$1.2 billion 4.38%
International January 1, 2050 U.S.$900 million U.S.$898 million 3.70%

The following table sets forth the scheduled maturities of CODELCO”s bank and unsecured note obligations
as Of December 31, 2019:

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

Average
Less than 1 More than Annual
Total year 1-2 years 2-3 years 3-5 years 5 years Interest Rate
Loans from financial institutions. 3,074 666 549 646 0 1,213 LIBOR+0.78%
Bonds isSUCA ..oooccccnnnionacionnnconorinnss 14,190 573 226 411 999 11,981 4.37%

Total c..cocannnannnnnononnnonononenenennnennnnos 17,264 1,239 773 1,057 999 13,195

49
In addition to the obligations set forth in the table above, CODELCO was a party to certain commitments primarily
to secure the payment of (i) deferred customs duties and (ii) staff severance indemnities payable upon the retirement
of individual employees, amounting to U.S.$22 million and U.S.$830 million, respectively, as of December 31, 2018
and to U.S.$36 million and U.S.$727 million, respectively, as of December 31, 2019. See notes 16 and 17 to the
Consolidated Financial Statements. In addition, as of December 31, 2019, CODELCO believes that its net deferred
taxes will reverse as follows: deferred tax expense in the amount of U.S.$647 million in 2020, U.S.$386 million in
2021 and U.S.$4.1 billion after 2024 and deferred tax benefit in the amount of U.S.$26 million in 2022 and U.S.$256
million in 2023. CODELCO currently has no hedges related to its production of copper through 2019. See “Business
and Properties—Marketing—Pricing and Hedging” and “Risk Factors—Risks Relating to CODELCO”s Operations—
CODELCO engages in hedging activity from time to time, particularly with respect to its copper production, which
may not be successful and may result in losses to CODELCO.”

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

On August 23, 2012, the parties amended and restated the loan agreement described above (the “A8R Mitsui
Bridge Loan Facility”) pursuant to which 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
the first renegotiation done in November 2016. As of December 31, 2019, the aggregate outstanding balance of the
credit agreements is U.S.$592 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.$12.5 billion between 2020 and 2022 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 2020 and 2022 are expected to include:

50
starting in 2019 (an approximate investment of U.S.$1.4 billion between 2020 and 2022). Environmental
approvals were obtained in September 2010, and the project is approximately 97% complete as of
December 31, 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.$172 million between 2020 and 2022).
Operations are expected to begin in 2021, and the project is approximately 83% complete as of December
31, 2019.

+ The development of a new production level in the existing El Teniente underground mine (an approximate
investment of U.S.$2.0 billion between 2020 and 2022) 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 December 31, 2019, the project is approximately 56%
complete.

+ 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.$1.2
billion between 2020 and 2022. As of December 31, 2019, the feasibility study has been completed, and
the initial work relating to the project has commenced.

+ The expansion of the existing Andina open pit is an initiative that is expected to expand the treatment
capacity of the concentrator plant up to 150 thousand tons per day (an approximate investment of U.S.$80
million between 2020 and 2022) starting in 2027. As of December 31, 20109, the feasibility study has been
authorized and is approximately 56% complete.

CODELCO has already begun investing in the aforementioned projects. In 2019, CODELCO invested
U.S.$3.7 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.
CODELCO invested U.S.$3.6 billion in 2018 and U.S.$3.5 billion in 2017. 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.

51
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—CODELCOS”s funding through retention of profits is restricted and is subject to the approval of the Ministries
of Finance and Mining.”

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

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

Environmental. An important part of CODELCO*s investment policy is its pollution abatement plan, which
includes several environmental projects undertaken to comply with Chilean law and to achieve its own environmental
performance goals. See “Regulatory Framework—Environmental Regulations.”

CODELCO invested U.S.$3.6 billion in environmental projects from 2012 to 2019 and plans to continue
implementing its pollution abatement plan through additional capital investments of approximately U.S.$930 million
in 2020 through 2021. In 2019, CODELCO invested U.S.$833 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.$439
million in 2020 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 2021, 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.$2.4
billion, which was incurred over a period of approximately five years and which started in 2013.

The following table sets forth CODELCO”s principal environmental investments in the years 2017-2019:

Environmental Investments
(in millions of U.S.$)
2017 2018 2019 Total

52
Decontamination plans 433.2 581.6 545.2 1,560.0

Tailing dams ………… 183.5 245.9 218.6 648.1
Solid WasStes .ooooccococnnaronnconncorenanrornnooo 15.2 9.0 40.9 65.0
Liquid wastes and water management . 24.9 15.6 17.1 57.7
6.7 8.9 11.0 26.6

663.3 861.0 832.9 2,357.5

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 2019 CODELCO did not distribute dividends. 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, 2019.

Contributions to the Chilean Treasury

(in millions of U.S.$)
Year Ended December 31,
2017 2018 2019
Income tax payments $ 31 $ 70 $ 82
Copper Reserve Law 1,062 1,137 918
Subtotal… $ 1,093 $ 1,207 $ 1,000
Dividends….. 273 602 –
Tota cococcncccconicnnncnonoconnrennconrrenererrrenc $ 1,366 $ 1,809 $ 1,000

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 27 and 28 to the
Consolidated Financial Statements. In 2019, 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.

53
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 28 to the Consolidated
Financial Statements for further information on CODELCO*s hedging activity.

Exchange Rates and Interest Rates. CODELCO”s main currency exposure is between the Chilean peso and
the U.S. dollar due to the fact that a significant portion of 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 December 31, 2019, CODELCO had swap contracts in place to hedge the risk of future UF/U.S.$,
HKD/U.S.$, AUD/U.S.$ and Euro/U.S.$ exchange rate fluctuations with respect to a notional amount of U.S.$615
million, U.S.$64 million, U.S.$49 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 December 31, 2019.

As of December 31, 2019, 14% of CODELCOSSs financial debt was at a variable interest rate and 86% had a
fixed rate.

Controls and Procedures

CODELCO”s management conducted an assessment utilizing The Committee of Sponsoring Organizations
(COSO) criteria of the effectiveness of its internal controls as of the year ended December 31, 2019. Based on the
assessment performed, CODELCO”s management has not identified any material weakness in its control environment.

New Accounting Standards

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

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

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

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

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

As of January 1, 2019, CODELCO recognizes its leases with the accumulated effect on the date of initial
application, opting to recognize a right to use asset equal to the lease liability. Practical expedients applied in the
transition to operating leases: (a) single discount rate applied to a lease portfolio; (b) short-term and low value lease
exemption for those contracts whose term ends within twelve months from January 1, 2019 and/or are of low value;

54
and (c) review of contracts under the onerous contract provisions of IAS 37 as an alternative to impairment testing
under IAS 36.

The following table sets the impact of the adoption of IFRS 16 on assets, liabilities and equity as of January
1,2019.

Balances prior to Adjustment Balances adjusted
IFRS 16 IFRS 16 by IFRS 16
(in millions of U.S.$)
Property, plant and equipment (”….. s 26,754,998 s 373,889 $ 27,128,887
Total Assets .. ce. 37,090,805 373,889 37,464,694
Other current financial liabilities (.. 872,277 96,404 968,681
Other non-current financial liabilities ) 14,674,510 277,485 14,951,995
Total Liabilities …… 25,746,936 373,889 26,120,825
Net Effect 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.

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

January 1, 2019

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

accordance with IAS17 …. Ss 266,351
Less initial recognition exception:
Short-term leases …… au (55,360)
Leases with variable payments that do not depend on an index or a rats (69,070)
Low-value leases . (220)
Total lease liabilities (undiscounted) recognized as of January 1, 2019 141,701
Plus:
Leases identified in existing contracts as of January 1, 2019 under IFRS 16% 421,608
Discounted using the incremental borrowing rate at the date of the initial application (January 1, 2019) 3.81%
Discounted financing lease liabilities recognized as of January 1, 2019 .. 373,889
Lease liabilities related to leases previously classified as financial leases 107,839
Total lease liabilities recognized on January 1, 2019 0% 481,728
Consisting of:
Lease liabilities current portion 117,914
Lease liabilities non-current portion 363,814
Total lease liabilities recognized on January 1, 2019 m0. 481,728

See Section II, part 4 of the 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

55
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 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.

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. If the recoverable amount of the assets is less than their carrying amount, an
impairment loss exists.

CODELCO defines the CGUs and also estimates the timing and cash flows that such CGUs should generate.

Subsequent changes in the grouping of the CGU, or changes in the assumptions supporting the estimates of cash flows
or the discount rate, could impact the carrying amounts of the corresponding assets.

56
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
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.

57
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
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.

58
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.$12.5 billion in 2019). As of December 31, 2019, CODELCOS*s total assets were U.S.$40.3 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 2019,
CODELCO had an estimated 8.1% share of the total world copper production, with production amounting to
approximately 1.71 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 8% share of the world”s molybdenum production with production amounting to approximately 22,353
metric tons.

CODELCO*s main commercial product is Grade A cathode copper. In 2019, CODELCO derived 91% of its
total sales from copper and 9% of’its total sales from byproducts of its copper production.

The following table sets forth certain production, cost and price information relating to CODELCO for the
three-year period ended December 31, 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)

Year ended December 31,

2017 2018 2019
CODELCO*s Copper Production 1,734 1,678 1,588
CODELCOS*s Cash Cost of Production . 135.9 139.1 141.6
Average LME Price” 279.7 295.9 272.1

(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:

+ 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.$1.4 billion between 2020 and 2022). Environmental
approvals were obtained in September 2010, and the project is approximately 97% complete as of
December 31, 2019.

59
+ Thereallocation ofthe Andina plant, which involves maintaining the treatment capacity of the concentrator
plant in the long-term (an approximate investment of U.S.$172 million between 2020 and 2022).
Operations are expected to begin in 2021, and the project is approximately 83% complete as of December
31, 2019.

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

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
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.

60
Copper Production
General

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

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

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

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

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

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

61
and has been in operation for more than 100 years. The El Teniente Division includes the Caletones smelter. In
2019, this division produced 459,744 metric tons of copper, or 26.9% of CODELCO’s total copper output
(including CODELCOS*s share of the El Abra deposit and Anglo American Sur), with a cash cost of 100.7 cents
per pound, compared to 106.5 cents per pound in 2018, and a total cash cost of U.S.$1.0 billion in 2019, compared
to U.S.$1.1 billion in 2018.

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 2019, this division produced 266,415 metric tons of copper cathodes, or 15.6% of CODELCOSs total copper
output (including CODELCOS*s share of the El Abra deposit and Anglo American Sur), with a cash cost of 154.3
cents per pound, compared to 134.1 cents per pound in 2018, and a total cash cost of U.S.$901 million in 2019
compared to U.S.$973 million in 2018.

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 2019, this
division produced 385,309 metric tons of copper cathodes, or 22.6% of CODELCO’s total copper output
(including CODELCOS*s share of the El Abra deposit and Anglo American Sur), with a cash cost of 120.5 cents
per pound, compared to 131.5 cents per pound in 2018, and a total cash cost of U.S.$996 million in 2019,
compared to U.S.$908 million in 2018.

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 2019, this division produced 151,838 metric tons of
copper, or 8.9% of CODELCOS”s total copper output (including CODELCO*s share of the El Abra deposit and
Anglo American Sur), with a cash cost of 123.6 cents per pound, compared to 124.0 cents per pound in 2018, and
a total cash cost of U.S.$400 million in 2019, compared to U.S.$517 million in 2018.

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 2019, this division produced 170,274 metric tons of copper, or 10.0% of CODELCO”s total copper output
(including CODELCOS*s share of the El Abra deposit and Anglo American Sur), with a cash cost of 184.6 cents
per pound, compared to 163.7 cents per pound in 2018, and a total cash cost of U.S.$669 million in 2019,
compared to U.S.$682 million in 2018.

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 2019, this division produced 104,087 metric tons of copper, or 6.1% of CODELCO”s total copper
output (including CODELCOS*s share of the El Abra deposit and Anglo American Sur), with a cash cost of 231.8
cents per pound, compared to 191.9 cents per pound in 2018, and a total cash cost of U.S.$532 million in 2019,
compared to U.S.$454 million in 2018.

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 2019, this division produced
50,561 metric tons of copper cathodes, or 3.0% of CODELCO”s total copper output (including CODELCO”s
share of the El Abra deposit and Anglo American Sur), with a cash cost of 232.7 cents per pound, compared to
223.5 cents per pound in 2018, and a total cash cost of U.S.$257 million in 2019, compared to U.S.$296 million
in 2018. 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 2019, this division refined 376,400 metric tons of
copper, compared to 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 copper

62
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).

CODELCO'”s copper production, including its share of the El Abra deposit and of Anglo American Sur,
decreased to 1,706,013 metric tons during the twelve months of 2019 from 1,806,363 metric tons in the twelve months
of 2018. This decrease was mainly due to lower copper production from the Radomiro Tomic, Andina and Ministro
Hales Divisions. Molybdenum production decreased by 7.0% in 2019 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, 2019:

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

Year ended December 31, % Change

2017 2018 2019 2018/2019
El Teniente Division .. 464 465 460 (1.1%
Radomiro Tomic Division 319 333 266 (19.9)
Chuquicamata Division. 331 321 385 20.1
Mina Ministro Hales 215 195 152 (22.3)
Andina Division.. 220 196 170 (12.9)
Gabriela Mistral Division …. 123 107 104 (3.0)
Salvador Division 62 61 51 (16.8)
El Abra”… 38 44 40 (10.3)
Anglo American Sur? 70 84 78 (7.8)
CODELCO Total Production 1,842 1,806 1,706 (5.6)
Chilean Private Sector*…. 3,661 4.026 4,081 1.4
Total Chilean Production 5,503 5,832 5,787 (0.8)

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

(2) CODELCO*s figures presented for Anglo American Sur include 20% of the mine”s total production (the share of production which
corresponds to CODELCO*s 20% ownership interest in the mine). The balance of Anglo American Sur production is included in the
private sector figures.

(3) Source: Chilean Copper Commission.

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

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

Year ended December 31,
2017 2018 2019
Cathodes………. 508 455 406
Blister and anode: 382 386 339
Calcines… 159 153 117
Concentrates. 686 684 726
1,734 1,678 1,588

The following table sets forth CODELCOSs initial capital expenditures budget for the period 2020-2022 by
division, and for the executive offices, as approved by the Companys Board of Directors as part of CODELCO”s
BDP report, which is subject to the approval of the Ministries of Finance and Mining (capital expenditures are subject
to change at the discretion of CODELCO). The capital expenditures budget is subject to an annual review and therefore
may be subject to change.

Estimated
Division Investment?
(in millions of U.S.$)

Chuquicamata $ 2,183
El Teniente 2,973
Andina.. 1,327
Radomiro Tom: 1,400
Salvador 1,368
Mina Mini 157
Gabriela Mistral 159
Ventanas… 99
Executive Offices 262
Subsidiaries….. 89
Deferred expense: 2,448

$ 12,467

(1) Includes equipment replacement and facilities repair, contributions to subsidiaries and other.

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

Estimated

Division Project Status Investment
(in millions of U.S.$)
El Teniente …… .- New mining level (2023) Execution” 5,183
Chuquicamata Chuquicamata Underground (2019) Execution” 5,036
Andina Expansion phase II (N.A.) Feasibility 3,017
a Reallocation Plant (2020) Execution” 1,275
SalvadOT cocccicinninininnoninincnns Inca Pit (2021) Feasibility 1,362
$ 15,874

() 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
2020 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.

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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 459,744 metric tons in 2019, 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 rock 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.

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 December 31, 2019, the El Teniente Division employed 4,036 persons and produced 459,744 metric
tons of copper at a cash cost of 100.7 cents per pound and a total cash cost of U.S.$1.01 billion, as compared to a cash
cost of 106.5 cents per pound and a total cash cost of U.S.$1.08 billion in 2018. In 2017, this division had a cash cost
of 113.5 cents per pound and a total cash cost U.S.$1.2 billion.

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

Year ended December 31,
TB 2019
Copper Production 464 465 460
Cash Cost 113.5 106.5 100.7

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

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.

As of December 31, 2019, the Radomiro Tomic Division employed 1,245 persons and produced 266,415
metric tons of copper at a cash cost of 154.3 and a total cash cost of U.S.$901 million compared to a cash cost of 134.1
cents per pound and a total cash cost of U.S.$973 million in 2018. In 2017, this division had a cash cost of 131.4 cents
per pound and a total cash cost of U.S.$915 million.

65
Copper Production and Cash Cost—Radomiro Tomic Division
(production in thousands of metric tons and cash cost in cents per pound)

Year ended December 31,
2017 2018 2019
Copper Production Radomiro ToMiC…ocociininnnnnnnecos 319 333 266
Cash Cost Radomiro TOMiC ..ococicicinnninnnnnnnnincnnincncnncnns 131.4 134.1 154.3

Chuquicamata Division

Mining Operations. Located in the Atacama Desert, 1,200 kilometers north of Santiago and 240 kilometers
east of the Chilean city of Antofagasta, the Chuquicamata 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.”

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 December 31, 2019, the Chuquicamata Division employed 4,863 persons and produced 385,309 metric
tons of copper at a cash cost of 120.5 cents per pound and a total cash cost of U.S.$996 million, compared to a cash
cost of 131.5 cents per pound and a total cash cost of U.S.$908 million in 2018. In 2017, this division had a cash cost
of 130.9 cents per pound and a total cash cost of U.S.$933 million.

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

Year ended December 31,
2017 2018 2019
Copper Production Chuquicamata 331 321 385
Cash Cost Chuquicamata 130.9 131.5 120.5

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.

As of December 31, 2019, Mina Ministro Hales employed 787 persons and produced 151,838 metric tons
of fine copper at a cash cost of 123.6 cents per pound and a total cash cost of U.S.$400 million, compared to a cash
cost of 124.0 cents per pound and a total cash cost of U.S.$516.9 million in 2018. In 2017, this division had a cash
cost of 121.8 cents per pound and a total cash cost of U.S.$560 million.

66
Copper Production and Cash Cost—Mina Ministro Hales Division
(production in thousands of metric tons and cash cost in cents per pound)

Year ended December 31,
2017 2018 2019
215 195 152
121.8 124.0 123.6

Copper Production
Cash Cost ……….

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.

As of December 31, 2019, the Gabriela Mistral Division employed 447 persons and produced 104,087 metric
tons of copper at a cash cost of 231.8 cents per pound and a total cash cost of U.S.$532 million, as compared to a cash
cost of 191.9 cents per pound and a total cash cost of U.S.$454 million in 2018. In 2017, this division had a total cash
cost of 151.9 cents per pound and a total cash cost U.S.$411 million.

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

Year ended December 31,
2017 2018 2019

123 107 104
151.9 191.9 231.8

Copper Production
Cash Cost ……..

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 December 31, 2019, the Andina Division employed 1,592 persons and produced 170,274 metric tons of copper
at a cash cost of 184.6 cents per pound and a total cash cost of U.S.$669 million, as compared to a cash cost of 163.7
cents per pound and a total cash cost of U.S.$682 million during in 2018. In 2017, this division had a cash cost of
139.6 cents per pound and a total cash cost of U.S.$654 million.

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.

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

Year ended December 31,
2017 2018 2019
Copper Production 220 196 170
Cash Cost ……….. 139.6 163.7 184.6

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 CODELCO*s divisions. In 2019, it produced
50,561 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 December 31, 2019, Salvador employed 1,433 persons and produced 50,561 metric tons of fine copper
at a cash cost of 232.7 cents per pound and a total cash cost of U.S.$257 million, compared to a cash cost of 223.5
cents per pound and a total cash cost of U.S.$296 million in 2018. In 2017, this division had a cash cost of 198.7 cents
per pound and a total cash cost of U.S.$269 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.

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

Year ended December 31,
2017 2018 2019
62 61 51
198.7 223.5 232.7

Copper Production.
Cash Cost ………..

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 376,400
metric tons of copper in 2019. Pursuant to the terms of the acquisition, CODELCO is required to provide, on market

68
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 December 31, 2019, the Ventanas Division employed 849 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:

SCM El 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. In 2019, the production was 81,520 metric tons of fine copper with a cash cost of 268 cents per
pound.

o The project had delivered total dividends of U.S.$80 million, U.S.$10 million and U.S.$6 million in
2017, 2018 and 2019, respectively, and CODELCO had received U.S.$39.2 million, U.S.$4.9 million
and U.S.$3 million in dividends in 2017, 2018 and 2019, respectively. As of December 31, 2019, the
carrying value of SCM El Abra’s ownership interest was equal to U.S.$594.9 million.

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

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

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. 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 A8¿R Mitsui Bridge Loan Facility described
under “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources—Other Debt;” and (ii) shares representing 0.94%
of the equity interests of Anglo American Sur for a purchase price of U.S.$206.8 million, which
was financed by cash contributions made by Mitsui; and

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

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.

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

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.

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.

Anglo American Sur fine copper production was metric 389,194 tons in 2019 with a cash cost of 139
cents per pound, compared to 422,247 with a cash cost of 149 cents per pound and 348,732 metric tons
in 2017 with a cash cost of 173 cents per pound. Anglo American Sur distributed U.S.$187.3 million in
2017, U.S.$182.9 million in 2018, and U.S.$84.4 million in 2019 in cash dividends to Becrux, which is
an indirectly owned subsidiary of CODELCO. As of December 31, 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 2017, 2018 and 2019, this company did not issue dividends.

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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 (42%) and Minera Meridian Limitada (58%), 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 (33%) and PanAust Minera Limited (67%) 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 allowed CODELCO to produce wire rod until December 31, 2018 to fulfill its
sales contract obligations that expire at the end of 2018.

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

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

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

o On August 6, 2019, CODELCO completed 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

71
integration of knowledge and innovation into mining processes. The following is a representative list of such
associations:

o GCodelcoTec SpA: CODELCO established CodelcoTec SpA (formerly, BioSigma S.A.) (“CodelcoTec”)
in 2002 with the Japanese company JX-Nippon Mining and Metals Corporation (“JX-Nippon Mining”)
and has since increased its participation to 99% following the exit of JX-Nippon Mining in 2016.
CodelcoTec”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. CodelcoTec 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 2012, a full industrial test of CodelcoTec”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
testing successfully finished in 2014. Results indicate that CodelcoTec”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 2006 in association with Honeywell
Chile S.A., which owns 60% (CODELCO owns the remaining 40%). 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
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,
EcoSeais 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 December 31, 2019:

Major Mining and Exploration Agreements
(As of December 31, 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

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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
is based on technical parameters, such as robustness of the genetic-geological model, and its validation through
drillings. Geological resources are further categorized as measured, indicated and inferred.

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

Mineral Resources

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

Ore Reserves

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

73
Resources and Reserves, CODELCO

EXPLORATION

GEOLOGICAL
RESOURCES

Mining Plan
Life – of – mine

MINERAL
RESOURCES

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

Chilean Code: CH20.235

RESERVES

Based on the methods and categories described above, CODELCO”s proved and probable reserves include
50.1 million metric fine tons of copper as of December 31, 2019, an amount that represents at least 29 years of future
production at current levels. In 2018 and 2017, CODELCO”s proved and probable reserves included 47.6 and 48.3
million metric fine tons of copper, respectively. As of December 31, 2019, CODELCO”s mineral resources include
140.2 million metric fine tons of copper, and its identified geological resources include 394.2 million metric tons of
copper, for a cut-off grade of 0.2% copper.

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, 2019:

Radomiro Tomic .
Chuquicamata…
Ministro

Hales….
Gabriela Mistral.
Salvador.
Andina…
El Teniente
Exploration/Business
and Subsidiaries(”.

Geological Resources?

Mineral Resources”

Ore Reserves

Grade Fine Grade Fine Grade Fine
Tonnage* Copper copper”?_ Tomnage”? copper copper*? Ore? copper copperó?

7,591 0.40% 30.5 4,282 0.44% 18.9 1,943 0.49% 9.4
14,633 0.43% 63.3 1,889 0.69% 13.1 1,289 0.73% 9.4
3.010 0.75% 22.6 1,328 0.87% 11.5 278 0.97% 2.7
1,438 0.33% 4.8 374 0.35% 1.3 285 0.35% 1.0
3,475 0.41% 14.1 813 0.60% 4.8 582 0.64% 3.8
22,063 0.61% 135.3 4,796 0.75% 36.1 1,213 0.76% 9.2
16,418 0.57% 93.9 4,633 0.79% 36.4 1,338 0.83% 11.2
8,368 0.35% 29.6 3,099 0.58% 18.1 770 0.45% 3.5
76,996 0.51% 394.2 21,213 0.66% 140.2 7,698 0.65% 50.1

‘eological resources cut-o! rade U.Z’/o COpper.
1) Geological ff grade 0.2% copp:

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

(3) In millions of metric tons.

(4) Includes artificial geological resources

74
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, 2019:

World CODELCO CODELCO’s
(in millions of tons) (in millions of tons) share (%)
Geological Resources ….. 2,1000 394.20 19
Proved and Probable ReserveS …ociicicccaaaomnonns. 8700 50.1 6

(1) As defined by the U.S. Geological Survey (January 2020) 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 2020 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 2020 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 2020 BDP, production is almost exclusively based on proved and probable reserves
and mining projects are at advanced stages of engineering or at the investment stage. Mining projects must support
their economic evaluation based on pre-defined minimum proved and probable reserves in order to be approved for
investment.

Resource Development

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

Potential geological resources, which have been identified by our internal exploration division as the result
of projects carried out through 2020, 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
7,391 million of metric tons of ore with an 0.44% average copper ore grade, and equivalent to 32.3 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, 2019:

Potential Geological Reserves”
Region Ore? Grade Copper_ Fine Copper”

CODELCO Northern District (CND) ……….
Don Felipe
San Andrés NW
Carmen

3,076 0.44 13.38

Zeus
San Antonio (Greenfield)
Exploradora Campamento (Greenfield)

International Exploration.
Liberdade (Brazil)

4,315 0.44 18.92

Llurimagua (Ecuador)

7,391 0.44 32.30

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(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, CODELCOSs annual production of copper was 1.68 million metric tons, or 1.81 million metric tons
including the El Abra and Anglo American Sur interests. CODELCO continues to focus on controlling and limiting
increases in production costs. In 2018, CODELCO s total costs and expenses were 245.1 cents per pound, compared
to 227.1 cents per pound in 2017, 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. In 2019,
CODELCOSs annual production of copper was 1.59 million metric tons, or 1.71 million metric tons including the El
Abra and Anglo American Sur interests. In 2019, CODELCO*s total costs and expenses decreased by 11.6 cents per
pound (4.7%) to 233.5 cents per pound, compared to 245.1 cents per pound 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;
(11) budget optimization to identify expendable and necessary contracts to control the budget for third-party services
costs; (iii) energy and input costs optimization marked by a review of energy and main inputs contracts; and (iv) a
review of hygienic factors and costs, such as travel expenses and consulting services. Moreover, CODELCO has also
created a new Vice President for Productivity and Costs position with the aim of increasing productivity, reducing
costs and enhancing the cost control program.

In 2018, CODELCOSSs cash cost of production was 139.1 cents per pound compared to 135.9 cents per pound
in 2017 primarily attributable to the appreciation of the Chilean peso against the U.S. dollar, lower production levels,
and higher main input prices. In 2019, CODELCO”s cash cost was 141.6 cents per pound, compared to 139.1 cents
per pound 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, CODELCOSS total cash cost was U.S.$5.1 billion, compared to U.S.$5.1 billion in 2017. In 2019,
CODELCOS*s total cash cost was U.S.$4.9 billion, as compared to U.S.$5.1 billion in 2018. Because a significant
portion of CODELCOS*s costs are denominated in Chilean pesos, the depreciation of the Chilean peso against the U.S.
dollar reduces CODELCO”s cash costs in U.S. dollar terms and, on the other hand, the appreciation increases these
costs. See “Exchange Rates.”

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

76
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.

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, 2019:

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

Year ended December 31,

2017 2018 2019
Cathodes ……….. 1,233 1,231 1,076
Blisters and Anode: 119 136 58
Concentrates . 611 529 721

1,963 1,896 1,856
CODELCOSs marketing strategy is focused in three major areas:

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

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

7
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 2019,
the base premium for CIF shipments (including shipping and insurance costs) to Rotterdam was set at U.S.$98 per
metric ton, compared to U.S.$87 per metric ton in 2018 and U.S.$82 per metric ton in 2017.

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

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

CODELCO has hedged certain future copper delivery commitments and production in order to manage the
risks associated with copper price volatility in the past. CODELCO currently does not have any hedged production
commitments and therefore there is no relevant impact from hedging. See notes 27 and 28 to the 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 27 and 28 to the Consolidated Financial Statements for further details regarding
CODELCOSs hedging activity.

Major Export Customers

As discussed above, most of CODELCO”s customers receive shipments on a monthly basis. Consequently,
CODELCOSs sales volume is relatively consistent throughout the year. CODELCO*s sales of copper in 2019 were
geographically diversified, with approximately 49% of sales made to Asia, including 35% to China, 13% of sales
made to Europe and 37% to North and South America. CODELCO*s top ten customers purchased approximately
41.5% of its total copper sales volume in 2019.

The following table shows CODELCO”s copper sales for the three years ended December 31, 2019 to
CODELCOSs top export markets and in Chile:

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

2017 2018 2019
CAMA ccocnconnaroononnonornnnonnonnrnnnrnnonrnnnocnnnnrnnno rene ron rnnnererrrnncn 789 869 656
United States 295 248 273
South Korea …. 123 107 113

78
Chile 170 201 251

France. 2. 95 82 79
Brazil.. 88 72 73
Germany… 58 17 1
58 30 30

37 43 42

54 48 74

51 31 48

28 22 3

29 25 22

11 5 5

10 14 31

Malaysia… 7 5 6
Thailand … 7 7 8
12 8 6

6 32 –

Others” 63 33 135
Total… 1,991 1,899 1,889

(Mm In 2019, CODELCO sold 65 thousand metric tons to Peru and 34 thousand metric tons to Netherlands.

The sales to China decreased in 2019 as compared to 2018 and 2017 primarily driven by stronger demand in
the U.S. and other markets.

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, 2019, CODELCO employed 16,731 employees as compared to 18,203 employees as of
December 31, 2018. CODELCO spent U.S.$11.5 million during 2019 on staff development and training. A total of
578,555 hours of training were held, with 16,053 employees attending multiple courses. CODELCO employed an
average work force of 17,395 persons during the twelve months of 2019.

As of December 31, 2019, approximately 90% 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 2019, CODELCO negotiated eight 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

79
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 December 31, 2019, there were 31,711 employees of regular independent operating contractors and
13,735 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.

As part of its compensation plan, CODELCO offers each employee the opportunity to partially finance the
purchase of a first home or to obtain other personal loans granted through each employee”s severance plan. Such
home loans have a term of up to 15 years, and such personal loans have a term of less than one year. Loans of both
kinds provide for interest rates of actual inflation plus a margin of between 1% and 5%. As of December 31, 2019, an
aggregate principal amount of U.S.$192.5 million of these loans was outstanding.

Number of Employees by Division”?

January to December Variation (%)

Divisions 2017 2018 2019 2018/2019
Chuquicamata . 5,679 5,601 5,155 (8.03%
Radomiro Tomic . 1,238 1,258 1,20 (3.0%
Gabriela Mistral 548 550 s01 (8.9%
Mina Ministro Hales 758 780 177 (0.4)%
1,666 1,661 1,517 (8.7)%
1,691 1,719 1,623 (5.61%
4,526 4,378 4,154 (5.1%
Headquarters . 477 606 578 (4.60%
Ventanas.. . 936 895 845 (5.61%
Shared Services (Vice Presidency of Projects) 855 944 982 (4.0%
Internal Auditing . . 29 34 49 23.5%
Total 18,403 18,426 17,395 (5.61%

(09) 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 was one
fatality involving CODELCO personnel. CODELCO is currently investigating the cause of this fatality.

80
The total number of “lost time” accidents in 2018 was 122 and the accident frequency rate was 0.86 accidents
per million hours worked. In 2019, the current total number of “lost time” accidents was 108 and the accident
frequency was 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
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 SI”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 the claim detailed below:

. 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, Eiffel Ingeniería Eléctrica y Construcción Ltda. (“Eiffel”) filed a civil claim against
CODELCO seeking specific performance of a service agreement for electric works at CODELCO”s Andina Division

81
and claiming damages in the amount of approximately U.S.$11.1 million. In April 2019, the claim was dismissed by
the Supreme Court on the basis that Eiffel had agreed to litigate before an arbitral venue under the service agreement.

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 currently in the discovery period. A final ruling is still pending.

In July 2019, Ingeniería y Maquinarias Indak Limitada et al. filed a civil a claim against CODELCO claiming
payment of damages, loss of profits, loss of opportunities and moral damages, plus interest thereon, 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 29 to the Consolidated Financial Statements.

82
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 2017 on the LME:

Average Copper Price

(U.S.¿/Pound)
2017
First Quarter 264.5
Second Quarter.. 256.8
Third Quarter … 288.0
Fourth Quarter… 308.8
2018
First QUarteTcocoocnicocnconncnnnnonnnncncnonnnnnnnnnoconnnn cuna nono Dn onenanana Ran RR aan RR RRRR RRA Dean Rn RR RR ONDA RR aR RR RR Rnann nena nan an anan ainia 315.7
Second Quarter.. 311.7
Third Quarter 276.9
Fourth Quarter… 280.0
2019
First Quarter 281.9
Second Quarter.. 277.3
Third Quarter 263.2
Fourth Quarter… 266.8
2020
First QUarteTcocoocnicococonncnnnnonnnncncnnnnnnonnnnocnnnonon nano nn Dn aen aaa Ran RR GR RR RR ORO RRA RR RR RR RR RRRR RRA RR an RR RR an anna ena nan anar an anni nnnn 255.7
Second Quarter (through April 23, 2020).0.0oooccccccccccccncnoncannnnnnononoconnnononono no co nnon crono aora na on ononanrna rn cnrnanno 227.1

Source: London Metal Exchange, Monthly Average Settlement.
On April 23, 2020, the closing price for refined copper on the LME was 232.26 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 March 31, 2020:

83
*000 tons

1,600
1,400
1,200
1,000
800
600
400

200 a

1996 1998 2000

Source: Metal Exchanges: London, COMEX and Shanghai.

==> Stocks

2002

Copper Prices and Inventories on Commodities Exchanges o/b

——— Copper price

2004 2006 2008 2010 2012 2014 2016 2018 2020

450

400

350

300

250

200

150

100

50
Historically, copper prices have been subject to wide fluctuations and are affected by numerous factors,
including international economic and political conditions, levels of supply and demand, the availability and costs of
substitutes, inventory levels maintained by producers and others and actions of participants in the commodities
markets. To a lesser extent, copper prices are also subject to the effects of inventory carrying costs and currency
exchange rates. In addition, the market prices of copper have occasionally been subject to rapid short-term changes.
See “Risk Factors—Risks Relating to CODELCO”s Operations—CODELCO*s business is highly dependent upon
the price of copper.”

Opportunities for Copper

Since 2005, copper prices have experienced significant volatility. LME copper prices averaged 272.1 cents
per pound in 2019, compared to 295.9 cents per pound in 2018 and 279.9 cents per pound in 2017. While higher
copper prices in 2018 compared to prices in 2017 reflected an increased in global demand, higher expectations on
China and disruptions on the supply side, lower prices in 2019 reflected concerns on the trade disputes between
China and the U.S. and its impact on the global growth. In 2019, demand for copper is estimated that remained flat,
while supply would have increased 0.4%. 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 2019 (in thousands of metric tons):

Refined Copper Supply and Demand Worldwide Balance

25,000 1,500

—-—- Production —-— Consumption

24,000 1250

23,000

22,000

21,000

20,000

19,000 250

18,000

17,000
-250

16,000
-500
15,000

14,000 -750

13,000 -1,000

000z
Tooz

-00z.
E00z
vooz

007.
9007
007.
800z
6007
otoz
Troz
zo
Etoz
vroz
stoz
9roz
£10z
8roz
stoz

Source: CODELCO, internal data (March 2020)

85
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. CODELCO*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: (1) 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 CODELCOS*s 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.

CODELCOS*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

86
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: (1) establish limits and controls on the use of resources
of the Board of Directors; (ii) implement a transparent and traceable system for the handling of hiring requests,
promotions and redundancies of CODELCO”s officers and employees; (iii) regulate the relationships between
members and management of the Board of Directors with related parties; and (iv) establish guidelines for corporate
speakers. CODELCO”s Board of Directors also agreed to consider directives that: (i) regulate lobbying activities
within CODELCO); (ii) strengthen and reform internal audit systems; and (iii) strengthen policies to avoid any
conflicts of interest.

Mining Regulations

Legal framework. CODELCO*s exploration, mining, milling, smelting and refining activities are subject
to Chilean laws and regulations which are generally applicable to all Chilean companies in the mining sector. The
legal framework which regulates CODELCO as a holder of mining concessions is contained in the Chile”s
Constitution, the Constitutional Law Governing Mining Concessions (Law 18,097 of January 21, 1982) and the
Mining Code (Law 18,248 of October 14, 1983). Under Chilean mining law, Chile is the owner of all mineral and
fossil substances, regardless of who owns the surface land in which such substances are located. Private persons
and companies may obtain mining concessions for exploration and exploitation. These concessions are granted by
judicial resolutions in accordance with the Mining Code.

Mining concessions are transferable, mortgageable and irrevocable and regulated by the same civil law that
regulates real estate rights generally. Generally, the owner of a mining concession may occupy as much of the
surface land as is necessary for mining activities upon the creation of a mining easement or upon other authorization
given by the land owner, such as a lease agreement or a license. Mining easements can be obtained by way of direct
negotiation with the surface land owner or, if the latter opposes, by way of a summary procedure before the relevant
court. Regardless of how the mining easement is obtained, the party granting the easement is entitled to
compensation should the mining activities and works caused by the owner of the mining concession cause damage.
Exploitation concessions have an indefinite duration. Exploration concessions are granted for two years and may
be extended for a maximum of two additional years subject to waiving at least half of the area originally allocated.
Prior to the expiration of the first or the second two-year period, exploration concessions can be converted to
exploitation concessions. If they are not so converted, the exploration concession terminates.

Owners of mining concessions must pay an annual fee equivalent to approximately U.S.$1.3 per hectare in
the case of exploration concessions and approximately U.S.$6.0 per hectare in the case of exploitation concessions.
However, the latter fees, within certain limits, may be credited to income taxes originated through the exploitation
of the concession. Payments of the annual fees must be made in March of each year. Failure to make the annual
fee payments may result in the loss of title to the concession through its auction.

CODELCO owns mining concessions granted by the Constitution and the Chilean Ordinary Courts for its
exploration and exploitation operations. Some of these concessions were previously held by foreign private mining
companies before being transferred to Chile in 1971 and subsequently to CODELCO upon its incorporation in 1976.
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. In 2019, CODELCO paid total concession fees of U.S.$8.4 million.

Pursuant to the Mining Code, all mining concessions, as well as certain raw materials, assets and other
property permanently dedicated to the exploration or extraction of minerals cannot be subject, except in extremely
limited circumstances, to an order of attachment. In addition, pursuant to the Constitution, mining concessions
corresponding to mining deposits exploited by CODELCO upon its incorporation in 1976 cannot be subject to

87
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), (111) the Environmental Assessment Service (Servicio de Evaluación Ambiental); (iv) the Bureau
of the Environment (Superintendencia del Medio Ambiente); and (v) the Environmental Courts (Tribunales
Ambientales), each of which are in charge of designing, evaluating and enforcing laws and regulations relating to
projects and activities that could have an environmental impact. These institutions are fully operational. Recent
legal and regulatory changes are likely to impose additional restrictions or costs on CODELCO and also increased
fines due to non-compliance with such laws and regulations, relating to environmental litigation and protection of
the environment, particularly those related to flora and fauna, wildlife protected areas, water quality standards, mine
closure, air emissions, and soil pollution. Since the Bureau of the Environment became fully operational on
December 28, 2012, infringement of environmental regulations may result in fines of up to approximately U.S.$8.7
million, the closure of facilities and the revocation of environmental approvals. As described in more detail below,
CODELCO incurs, and may be required in the future to incur, substantial capital and operating costs related to
environmental compliance. However, many of these costs are inextricably intertwined with the operation of
CODELCO*s business as a whole.

The General Environmental Law, as complemented by additional regulations, enables the Government of
Chile to: (1) bring administrative and judicial proceedings against companies that violate environmental laws;
(11) 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.

88
Additionally, citizens affected by environmental pollution may file a petition for relief to Chilean Courts
of Appeal, requiring the suspension of the offending activity and the adoption of protective measures through the
judicial process called recurso de protección (constitutional protection action).

If determined that CODELCO violated its environmental permits, the Bureau of the Environment could
impose a fine on CODELCO and could require CODELCO to implement environmental compensation and
mitigation measures. There can be no assurance that the Bureau of the Environment will not impose additional fines
or require that additional measures be taken. As of the date of this 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 2012 to 2019,
CODELCO invested U.S.$3.6 billion in environmental projects, and plans to continue implementing pollution
abatement plans through additional capital investments amounting to U.S.$439 million in 2020 and U.S.$490 million
in 2021. In 2019, CODELCO allocated U.S.$834 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.

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

89
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. The cost of complying
with this new standard was U.S.$2.4 billion, which was incurred over a period of approximately five years.

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, as of December 31,
2018, and U.S.$2.0 billion as of December 31, 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
(11) has not been contacted by any party or served by the Environmental Court. If and when CODELCO becomes a
party to this proceeding, CODELCO expects to: (a) enforce all its available legal remedies against any adverse
decision; and (b) implement operational mitigation measures, if necessary.

Future legislative or regulatory developments, private causes of action or the discovery ofnew facts relating
to environmental matters may impose new restrictions or result in additional costs that may have a material adverse
effect on CODELCO*s business, financial condition, results of operations or prospects. See “Risk Factors—Risks
Relating to CODELCO”s Operations —CODELCO'”s compliance with environmental, health and safety laws may
require increased costs, including capital commitments, and non-compliance may subject it to significant penalties.”

90
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.ben.cl/) or in a booklet that CODELCO will issue upon request, which contains free translations
of the regulations into English.

91
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: (1) 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; (111) 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; (111) 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: (i) participates in the designation of the Board
of Directors by designating three directors without external input and by electing six directors on the basis of
third-party short-lists; (11) appoints the Chairman of the Board of Directors; and (iii) may approve and amend the
bylaws of the Company, by means of an executive decree issued jointly by the Ministries of Finance and Mining.
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 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.

On December 27, 2018, CODELCO announced the appointment of Renato Fernandez Baeza as Vice
President of Corporate Affairs 8 Sustainability. On January 16, 2019, CODELCO announced the appointment of
José Pesce Rosenthal as the Acting Vice President of Corporate Affairs $ 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, until April 20, 2020.

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 CODELCOSs first Vice President of Technology.

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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 January 31, 2020, CODELCO announced the appointment of Lorena Ferreiro Vidal as General Counsel
and created the position Vice Presidency of Smelters and Refiners, appointing José Sanhueza Reyes in the role. Both
appointments are effective as of March 1, 2020. On February 28, 2020, CODELCO announced the appointment of
Cristián Cortés Egaña as acting General Manager for Ventanas Division, effective on March 1, 2020. On March 2,
2020, CODELCO announced the appointment of Patricio Vergara Lara as Vice President of Mining Resources
Management and Development, effective on April 20, 2020.

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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….
Ghassan Dayoub Pseli
Rodrigo Cerda Norambuena.

Executive Officers

Octavio Araneda Osses…
Alejandro Rivera Stambuk
Marcelo Alvarez Jara……
Carlos Alvarado Hernandez
Gerhard von Borries Harms..
Patricio Vergara Lal A..coocnnicicinninnnocnononnnonnnnonononononarona cocina

Renato Fernandez Baeza
José Robles Becerra
Alvaro García Gonzalez .
José Sanhueza Reyes…
Alejandro Sanhueza Diaz
Lorena Ferreiro Vidal
César Correa Parker
Mauricio Barraza Gallardo
Alvaro Aliaga Jobet
Nicolás Rivera Rodriguez
Lindor Quiroga Bugueño
Rodrigo Barrera Páez…
Sergio Herbage Lundín
Christian Toutin
Cristián Cortés Egaña
Andrés Music Garrido .
Jaime Rivera Machado .occcinicininnononcnnnncnononennncocnrnraracanannos

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

Position

ChairmanV0
Director
Director)
Director)
Director
Director)
Director00)
Director
DirectorV4)

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

Vice President of Smelters and Refineries

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

There is no family relationship between any director or executive officer and any other director or executive

officer.

The business address for the executives and directors previously listed is Huérfanos 1270, 6th floor,

Santiago, Chile. No executive holds a position as an employee outside of CODELCO.
Committees of the Board of Directors
Audit, Benefits and Ethics Committee (Comité de Auditoría, Compensaciones y Ética)

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 Hernán De Solminihac Tampier, 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 Companys 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 (Comité de Ciencias, Tecnología e Innovación)
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. This committee
was formed in 2016 and discusses the challenges facing the corporation with respect to science and technology.

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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 Consolidated
Financial Statements.

In its dealings with Cyprus El Abra Corporation (a subsidiary of Freeport-McMoRan Inc.), the partner in
SCM El Abra, CODELCO acts through a subsidiary, as agent. CODELCO does not sell copper to Nordeutsche
Affinerie Group, its partner in Deutsche Giessradht GmbH.

Pursuant to Article 147 of the Corporations Law, CODELCO may only enter into operations with related
parties if its intent is to benefit the corporate interest, if its price, terms and conditions are consistent with those
prevailing in the market when approved, and if it follows certain requirements and procedures established by the
law.

According to Article 146 of the Corporations Law, as amended, “operations with related parties” of
CODELCO include any and all negotiations, acts, contracts or operations in which the Company must take part, as
well as:

(1) one or more related persons to the Company, pursuant to the definition contained in Article 100
of Law 18,045 (the “Securities Market Law,” as amended);

(1) a board member, manager, a main executive or a liquidator of CODELCO, acting directly or on
behalf of any persons other than the Company, or their respective spouses or relatives up to the
second degree (consanguinity or affinity);

(111) 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; (1i) 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.

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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.

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FOREIGN INVESTMENT AND EXCHANGE CONTROLES IN CHILE

As a general matter, the Central Bank of Chile is, among other things, responsible for monetary policies
and for exchange controls in Chile. Most Chilean companies must inform the Central Bank of any international
issue of bonds and if the proceeds of the issuance are not left abroad, should be brought into Chile through a bank
or other participant in the Formal Exchange Market. Article 23 of Decree Law 1,350 provides that CODELCO has
an obligation to return the total proceeds of its exports to Chile, but has no obligation to convert such proceeds to
Chilean pesos beyond its peso requirements. These proceeds from its exports are deposited at the Central Bank of
Chile, and withdrawals against such foreign exchange deposits are made to cover CODELCO”s expenses. Asa
result, CODELCO does not require foreign exchange approval in connection with the issuance or placement of, or
payments upon the notes. See “Regulatory Framework—Payment of Obligations.”

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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 Eighth Supplemental Indenture, to be dated as of May
6, 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 notes will be payable semi-annually in arrears on January 15
and July 15 of each year, commencing on January 15, 2021, 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 31 and June 30, respectively, 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 mature on January 15, 2031. The notes will not be redeemable prior to maturity except as
described below and in the event of certain developments affecting taxation, in that case at a price equal to the
outstanding principal amount thereof, together with any Additional Amounts and accrued interest to the redemption
date. On the maturity date of the notes, CODELCO will be required to pay 100% of the then outstanding principal
amount of the 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

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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 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 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 8: 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 offered and sold in offshore transactions to non-U.S. persons in reliance on Regulation S under
the Securities Act will initially be issued in the form of one or more registered notes in global form, 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.”

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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 ofa 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, if any, 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, (11) a “banking organization” within the meaning of the New York Banking Law, (iii) 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,
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 (1) 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).

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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 ofa 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
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

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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 the 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; (ii) 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
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 (i) issue, assume or guarantee any indebtedness for money borrowed (“Debt”) if such Debt is secured by a lien
upon, or (ii) directly or indirectly secure any outstanding Debt by a lien upon, any Principal Property (as defined
below) or upon any shares of stock of, or indebtedness of, any Restricted Subsidiary, now owned or hereafter
acquired, without effectively providing that the notes shall be secured equally and ratably with such Debt, except

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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, (iii) liens to
secure Debt of a Restricted Subsidiary to CODELCO or another Subsidiary, (iv) the sale or other transfer of any
interest in property of the character commonly referred to as a “production payment,” (v) liens over any property at
the time of acquisition of such property by CODELCO or any of its Restricted Subsidiaries which lien was not (or
is not) created in connection with such acquisition, (vi) liens in existence on the date of the offering of the notes,
(vii) liens on deposits to secure, or any lien otherwise securing, the performance of bids, statutory obligations, surety
bonds, appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of
business, (viii) liens created on any property to secure Debt incurred in connection with the financing of such
property, the repayment of which Debt is to be made from the revenues arising out of, or other proceeds of realization
from, such property, with recourse to those revenues and proceeds and other property used in connection with, or
forming the subject matter of, such property, but without recourse to any other property of CODELCO or any
Restricted Subsidiary and (ix) any extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any lien referred to in the foregoing clauses (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 (ii) any Subsidiary which owns, directly
or indirectly, any stock or debt of a Restricted Subsidiary.

Limitation on Sale-and-Lease-Back Transactions

The indenture provides that neither CODELCO nor any Restricted Subsidiary will enter into any
arrangement with any person (other than CODELCO or a Restricted Subsidiary), or to which any such person is a
party, providing for the leasing to CODELCO or a Restricted Subsidiary for a period of more than three years of
any property or assets which has been or is to be sold or transferred by CODELCO or such Restricted Subsidiary to
such person or to any person (other than CODELCO or a Restricted Subsidiary) to which funds have been or are 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

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by CODELCO or a Restricted Subsidiary), applies to the voluntary retirement of indebtedness of CODELCO
(including the notes) maturing by its terms more than one year after the original creation thereof (“Funded Debt”)
an amount equal to the value of such transaction, less an amount equal to the sum of (a) the principal amount of
notes delivered, within six months after the effective date of such arrangement, to the trustee for retirement and
cancellation and (b) the principal amount of other Funded Debt voluntarily retired by CODELCO within such
six-month period, in each case excluding retirements of notes and other Funded Debt as a result of conversions or
pursuant to mandatory sinking fund or mandatory prepayment provisions or by payment at maturity.

Periodic Reports

CODELCO will furnish, to the noteholders and to prospective purchasers of notes, upon request to the
trustee, any information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act so long as
the notes are not freely transferable under the Securities Act.

Events of Default

An Event of Default with respect to the notes is defined in the indenture as being any of the following (each
an “Event of Default”): (i) default for 30 days in payment of any interest on the notes; (ii) default in payment of
principal of the notes; (iii) default in the performance, or breach, of any covenant or warranty or obligation of
CODELCO in the indenture and continuance of such default or breach for a period of 60 days after written notice is
given to CODELCO by the trustee or to CODELCO and the trustee by the holders of at least 33 1/3% in aggregate
principal amount of the notes; (iv) default under any bond, debenture, note or other evidence of indebtedness for
money borrowed, or under any mortgage, indenture or instrument under which there may be issued or by which
there may be secured or evidenced any indebtedness for money borrowed by CODELCO or any Subsidiary, whether
such indebtedness now exists or shall hereafter be created, in an aggregate principal amount exceeding U.S.$50
million (or its equivalent in any other currency or currencies) which default (x) shall constitute the failure to pay any
portion of the principal of such indebtedness when due and payable, whether at maturity, upon redemption or
acceleration or otherwise, or (y) shall have resulted in such indebtedness becoming or being declared due and
payable prior to the date on which it would otherwise become due and payable, in either case, if such default shall
continue for more than 30 Business Days and within such 30 Business Days the time for payment of such amount
has not been expressly extended (provided that if such default under such indenture or instrument shall be remedied
or cured by CODELCO or waived by the holders of such indebtedness, then the event of default with respect to the
notes shall be deemed likewise to have been remedied, cured or waived); and (v) certain events of bankruptcy or
insolvency of CODELCO or any Significant Subsidiary. “Significant Subsidiary” is defined in the indenture as a
Subsidiary, the total assets of which exceed 10% of the total assets of CODELCO and its subsidiaries on a
consolidated basis as of the end of the most recently completed year. The trustee shall not be charged with
knowledge of any Event of Default with respect to the notes unless a written notice of such default or Event of
Default shall have been given to an officer of the trustee who has direct responsibility for the administration of the
indenture and the notes by CODELCO or any holder of notes.

The indenture provides that (i) if an Event of Default (other than an Event of Default described in
clause (v) above) shall have occurred and be continuing with respect to the notes, either the trustee or the holders of
not less than 33’/3% of the total principal amount of the notes of such series then outstanding may declare the
principal of all such outstanding notes and the interest accrued thereon, if any, to be due and payable immediately
and (ii) if an Event of Default described in clause (v) above shall have occurred, the principal of all such outstanding
notes and the interest accrued thereon, if any, shall become and be immediately due and payable without any
declaration or other act on the part of the trustee or any holder of such notes. The indenture provides that the notes
owned by CODELCO or any of its affiliates shall be deemed not to be outstanding for certain purposes, including
declaring the acceleration of the maturity of the notes. Upon the satisfaction by CODELCO of certain conditions,
including (1) the payment of all fees and expenses of the trustee, (11) 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.

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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, (111) 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
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;

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(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 notes will be redeemable, in whole or in part, at our option at any time and from time to time, prior to
October 15, 2030 (three months prior to the scheduled maturity of the notes) (the “Par Call Date”) at a redemption
price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed or (ii) the sum of the
present values of the remaining scheduled payments of principal and interest thereon as ifredeemed on the Par Call
Date (exclusive of any interest accrued and unpaid to the date of redemption) discounted to the date of redemption
on a semi-annual basis (assuming a 360-day year consisting of twelve 30 day months) at the applicable Treasury
Rate plus 50 basis points, plus, in either case, accrued and unpaid interest, if any, to the date of redemption.

The notes will be redeemable, in whole or in part, at our option at any time from time to time, commencing
on the 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.

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For purposes of determining the optional redemption price, the following definitions are applicable:

“Comparable Treasury Issue” means the United States Treasury security or securities selected by an
Independent Investment Banker as having an actual or interpolated maturity that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of
a comparable maturity to the Par Call Date with respect to the 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 BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Mizuho
Securities USA LLC, 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.

“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual
equivalent yield to maturity (computed as of the third business day immediately preceding that redemption date) of
the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of
its principal amount) equal to the Comparable Treasury Price for that redemption date.

Tax Redemption

The notes may be redeemed at the election of CODELCO, in whole, but not in part, by the giving of notice
as provided in “—Notices” below (which notice shall be irrevocable), at a price equal to the outstanding principal
amount thereof, together with any Additional Amounts and accrued and unpaid interest to the redemption date, if,
as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated thereunder,
including a holding by a court of competent jurisdiction) of the Taxing Jurisdiction, or any change in the official
application, administration or interpretation of such laws, regulations or rulings in such Taxing Jurisdiction,
CODELCO has or will become obligated to pay Additional Amounts on the applicable notes in excess of the
Additional Amounts that would be payable were payments of interest on the notes subject to 4% withholding
(“Excess Additional Amounts”), and if such change or amendment is announced or becomes effective on or after
the date of the agreement to purchase the notes and such obligation cannot be avoided by CODELCO taking
measures it considers reasonable and that are available to it (for this purpose, reasonable measures shall not include
any change in 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.”

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Notices

For so long as the notes are outstanding in global form, notices to be given to holders will be given to the
depositary, in accordance with its applicable procedures as in effect from time to time. If notes are issued in
individual definitive form, notice to holders of the notes will be given by mail to the addresses of such holders as
they appear in the security register. In addition, so long as the notes are 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; (i1i) to
cure any ambiguity, defect or inconsistency in the indenture; (iv) to provide for the issuance of any new series of
securities, and/or add to the rights of any holders of any series of notes; (v) to provide for the appointment of a
successor trustee; (vi) to add any additional Events of Default for the benefit of any or all series; (vii) to provide for
the issuance of securities in bearer form; and (viii) to make any other change to the indenture as shall not adversely
affect the interests of any holder of the notes.

In addition, with certain exceptions, the indenture and the notes may be modified by CODELCO and the
trustee with the consent of the holders of a majority in aggregate principal amount of the notes of the series affected
thereby then outstanding, but no such modification may be made without the consent of the holder of each
outstanding note affected by the modification which would:

(1) 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
Amounkts, 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;

(1) 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

(111) modify provisions relating to waiver of certain defaults, waiver of certain covenants and
the provisions summarized in this paragraph, including provisions governing the amendment of the
indenture, except to increase any such percentage or to provide that certain other provisions of the indenture
cannot be modified or waived without the consent of the holder of each outstanding note affected by the
modification.

The indenture provides that the notes owned by CODELCO or any of its affiliates shall be deemed not to
be outstanding for, among other purposes, consent to any such modification.

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Defeasance and Covenant Defeasance

CODELCO, at its option, at any time upon the satisfaction of certain conditions described below, may elect
to be discharged from its obligations with respect to the notes. In general, upon a defeasance, CODELCO shall be
deemed to have paid and discharged the entire indebtedness represented by the notes and to have satisfied all of its
obligations under the notes, except for: (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; (i1i) 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
process may be served in any action arising out of or based on the notes which may be instituted in the Supreme
Court of the State of New York or the United States District Court for the Southern District of New York, in either
case in the Borough of Manhattan, The City of New York, by any holder of a note, and CODELCO will expressly
accept the jurisdiction of any such court.

To the extent that CODELCO may be entitled, in any jurisdiction in which judicial proceedings may at any
time be commenced with respect to the notes, to claim for itself or its revenues or assets any immunity from suit,
jurisdiction, attachment in aid or execution of a judgment or prior to a judgment, execution of a judgment or any
other legal process with respect to its obligations under the notes, and to the extent that in any such jurisdiction there
may be attributed to CODELCO such an immunity (whether or not claimed), CODELCO will irrevocably agree not
to claim and will irrevocably waive such immunity to the maximum extent permitted by law.

Article 226 of the Mining Code of Chile prohibits the attachment and judicial sale of a debtor”s mining
concessions and installations and other goods permanently dedicated to exploration or extraction of minerals relating
to those mining concessions, except with respect to mortgages. However, a debtor may consent to such attachment
and sale, provided that the consent is given in the same judicial proceeding in which the attachment and sale is
sought. The general waiver of immunity by CODELCO in the notes will not be effective with respect to immunity
under Article 226. In addition, pursuant to the Constitution, mining concessions corresponding to mining deposits
exploited by CODELCO upon its creation in 1976 cannot be subject to attachment or to any act of disposition by
CODELCO.

Further Issues of Notes

Without the consent of the holders, CODELCO may create and issue additional notes with terms and
conditions that are the same (or the same except as to scheduled interest payments prior to the time of issue of the
additional notes) as the terms and conditions of the notes. CODELCO may consolidate the additional notes to form
a single series with the notes; provided, however, that unless such additional notes are issued under a separate CUSIP
number, such additional notes must be part of the same “issue” as the outstanding series of notes for U.S. federal

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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,
uninterruptedly or not, for a period or periods that in total exceed 183 days within a twelve month period, 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, 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”).

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,

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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.

This issuance of notes is subject to the provisions of article 3 of the Law 21,225, according to which the
stamp tax rate has been temporarily reduced to 0% with respect to those taxes that accrue from April 1, 2020 to
September 30, 2020, both dates included.

United States Taxation

This summary of U.S. federal income tax considerations deals with U.S. Holders (as defined below) that
will hold CODELCO notes as capital assets and whose functional currency is the U.S. dollar. It does not purport to
be a comprehensive description of all of the tax considerations that may be relevant to a particular investor”s decision
to purchase notes and generally does not address the tax treatment of U.S. Holders that may be subject to special tax
rules, such as certain banks, tax-exempt entities, partnerships (or entities classified as partnerships for U.S. federal
income tax purposes) or partners therein, insurance companies, dealers in securities, nonresident alien individuals
present in the United States for 183 days or more during a taxable year, or persons that will hold notes as part of an
integrated investment (including a “straddle”) consisting of the notes and one or more other positions, nor does it
address the tax treatment of U.S. Holders that do not acquire notes as part of the initial distribution at the notes”
“issue price,” which will equal the first price to the public (not including bond houses, brokers or similar persons or
organizations acting in the capacity of underwriters, placement agents or wholesalers) at which a substantial amount
of the notes is sold for money.

As used in this section “—United States Taxation,” the term “U.S. Holder” means a beneficial owner of a
note that is a citizen or resident of the United States or a U.S. domestic corporation or that otherwise will be subject
to U.S. federal income taxation on a net income basis in respect of the notes.

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.

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. Itis expected, and this discussion assumes, that the notes will be issued without original
issue discount (“OID”) for U.S. federal income tax purposes. In general, however, if the notes are issued with OID
at or above a de minimis threshold, a U.S. Holder will be required to include OID in gross income, as ordinary
income, under a “constant-yield-method” before the receipt of cash attributable to such income, regardless of the
U.S. holder”s regular method of accounting for U.S. federal income tax purposes.

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Subject to generally applicable restrictions and conditions, Chilean Interest Withholding Tax withheld from
payments of interest on the notes, or from Additional Amounts, at the appropriate rate applicable to the U.S. Holder
will be treated as a foreign income tax eligible (1) for credit against a U.S. Holder”s U.S. federal income tax liability,
or (ii) at the election of such U.S. Holder, for deduction in computing such U.S. Holder”s taxable income provided
that the U.S. Holder does not elect to claim a foreign tax credit for any foreign income taxes paid or accrued for the
relevant taxable year. Interest and Additional Amounts will constitute income from sources without the United
States for foreign tax credit purposes. Such income generally will constitute “passive category income” or, in the
case of certain U.S. Holders, “general category income.”

The calculation of foreign tax credits and, in the case of a U.S. Holder that elects to deduct foreign taxes,
the availability of such deduction, involves the application of rules that depend on a U.S. Holder”s particular
circumstances. U.S. Holders should consult their own tax advisors regarding the availability of foreign tax credits
and the treatment of Additional Amounts.

Taxation of Dispositions. A U.S. Holder will generally recognize taxable gain or loss upon the sale,
exchange, redemption or other taxable disposition of the notes in an amount equal to the difference between the
amount realized upon such sale, exchange, redemption or other disposition (less any accrued interest and, in the case
of a redemption, any Additional Amounts with respect to accrued interest, which will be taxable in the manner
described above under “—Taxation of Interest and Additional Amounts”) and such U.S. Holder”s adjusted tax basis
in those notes. A U.S. Holder”s adjusted tax basis in a note will generally equal such U.S. Holder”s initial investment
in the note. Such gain or loss will be capital gain or loss, and will be long-term capital gain or loss if the notes are
held for more than one year. Certain non-corporate U.S. Holders (including individuals) may be eligible for a
preferential rate in respect of long-term capital gain. The deduction of capital losses is subject to limitations.

Capital gain or loss recognized by a U.S. Holder generally will be U.S. source gain or loss. Consequently,
if any such gain would be subject to Chilean withholding tax, a U.S. Holder may not be able to credit the tax against
its U.S. federal income tax liability unless such credit can be applied (subject to applicable conditions and
limitations) against tax due on other income treated as derived from foreign sources. U.S. Holders should consult
their own tax advisors as to the foreign tax credit implications of a disposition of the notes.

Foreign Asset Reporting. Certain U.S. Holders that own “specified foreign financial assets” with an
aggregate value in excess of U.S.$50,000 on the last day of the taxable year or U.S.$75,000 at any time during the
taxable year are generally required to file an information statement along with their tax returns, currently on Form
8938, with respect to such assets. “Specified foreign financial assets” include any financial accounts held at a non-
U.S. financial institution, as well as securities issued by a non-U.S. issuer (which would include the notes) that are
not held in accounts maintained by financial institutions. Higher reporting thresholds apply to certain individuals
living abroad and to certain married individuals. Regulations extend this reporting requirement to certain entities
that are treated as formed or availed of to hold direct or indirect interests in specified foreign financial assets based
on certain objective criteria. U.S. Holders who fail to report the required information could be subject to substantial
penalties. In addition, the statute of limitations for assessment of tax would be suspended, in whole or part.
Prospective investors should consult their own tax advisors concerning the application of these rules to their
investment in the notes, including the application of the rules to their particular circumstances.

Information Reporting and Backup Withholding. Payments of interest and Additional Amounts on the
notes and sales or redemption proceeds that are made within the United States or through certain U.S.-related
financial intermediaries generally are subject to information reporting and to backup withholding unless
(i) the holder is an exempt recipient that, if required, establishes its exemption or (ii) in the case of backup
withholding, the holder provides a correct taxpayer identification number and certifies that it is not subject to backup
withholding.

Any amounts withheld under the backup withholding rules from a payment to a holder will be refunded (or

credited against such holder”s U.S. federal income tax liability, if any), provided the required information is properly
furnished to the U.S. Internal Revenue Service on a timely basis.

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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, BNP Paribas Securities
Corp., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, 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:

Initial Purchasers Principal Amount of Notes

U.S.$200,000,000
U.S.$200,000,000

BNP Paribas Securities Corp…
HSBC Securities (USA) Inc. …
Mizuho Securities USA LLC .. U.S.$200,000,000
Scotia Capital (USA) Inc. …. U.S.$200,000,000

Total U.S.$800,000,000

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 30 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 any public or broadly marketed offering of, any U.S. dollar-denominated debt securities issued or
guaranteed by CODELCO in the international capital markets (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
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

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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 of the notes. Syndicate covering transactions
involve purchases of the notes in the open market after the distribution has been completed in order to cover short
positions. Stabilizing transactions and syndicate covering transactions may cause the price of the notes to be higher
than it would otherwise be in the absence of those transactions. If the 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 and may in the future perform 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.$765 million.

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 May 6, 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.

Notice to Prospective Investors in the European Economic Area (“EEA”) and the United Kingdom

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 EEA or in the United Kingdom (the “UK”. 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 Directive 2014/65/EU (as amended, “MiFID IP”); or (ii) a customer within the meaning of Directive
(EU) 2016/97 (the “Insurance Distribution Directive”), where that customer would not qualify as a professional
client as defined in point (10) of Article 4(1) of MiFID II. Consequently no key information document required by
Regulation (EU) No 1286/2014 (as amended, the “PRIIPs Regulation”) for offering or selling the notes or otherwise
making them available to retail investors in the EEA or in the UK has been prepared and therefore offering or selling
the notes or otherwise making them available to any retail investor in the EEA or in the UK may be unlawful under
the PRIIPs Regulation.

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Notice to Prospective Investors in the United Kingdom

This document is for distribution only to persons who (i) have professional experience in matters relating
to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion)
Order 2005 (as amended, the “Financial Promotion Order”), (ii) are persons falling within Article 49(2)(a) to (d)
(“high net worth companies, unincorporated associations, etc.”) of the Financial Promotion Order, (iii) are outside
the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity
(within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or
sale of any notes may otherwise lawfully be communicated or caused to be communicated (all such persons together
being referred to as “relevant persons”). This document is directed only at relevant persons and must not be acted
on or relied on by persons who are not relevant persons. Any investment or investment activity to which this
document relates is available only to relevant persons and will be engaged in only with relevant persons.

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,
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

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(1) in any other circumstances where an express exemption from compliance with the restrictions on
offers to the public applies, as provided under Article 100 of the Italian Legislative
Decree No. 58 of February 24, 1998, as amended from time to time, (the “Financial Services Act”)
and Article 34-ter of the Issuers Regulation.

Moreover, and subject to the foregoing, any offer, sale or delivery of the notes or distribution of copies of this
offering memorandum or any other document relating to the notes in Italy under (i) or (11) 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”);

(1) 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

(111) 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 “SFA”), (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

(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:

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(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)(11(B) of the SFA;

(1) where no consideration is or will be given for the transfer;
(111) where the transfer is by operation of law;
(iv) as specified in Section 276(7) of the SFA; or

(v) as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and
Debentures) Regulations 2005 of Singapore.

Notification under Section 309(BX(1)(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 “PRC”) (for such purposes, not including the Hong Kong and Macau Special Administrative
Regions or Taiwan), except as permitted by the securities laws of the PRC.

Notice to Prospective Investors in the Dubai International Financial Centre

This 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

120
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;

(ii) 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;

(1i1) 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;

(v) 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 it is 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)G) 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

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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
JUNE 15, 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)(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 of a 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.

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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 $: Wardwell LLP may rely without independent investigation as to all matters
of Chilean law on Philippi, Prietocarrizosa, Ferrero DU 8: Uría SpA.

125
INDEPENDENT AUDITORS

The financial statements of CODELCO and its subsidiaries as of and for the years ended December 31,
2019 and 2018 and 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
reports appearing herein (which reports express unmodified opinions and include, respectively, an explanatory
paragraph referring to the convenience translation of the financial statements into English).

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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.

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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.

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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.

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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 unitof 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.

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GENERAL INFORMATION
Authorization

The Ministry of Finance of Chile authorized CODELCO to commence negotiations to issue bonds abroad
through Resolution No. 734 dated April 7, 2020. The Ministry of Finance of Chile authorized the issuance of the
notes by Resolution No. 829 dated April 24, 2020.

CODELCOS*s Board of Directors authorized the issuance of the notes in its ordinary session of March 26,
2020 by means of Reserved Agreement No. 16/2020. 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 notes are:

CUSIP Number ISIN Number Common Code
Rule 144A Global Note …. 21987BBC1 US21987BBC19 217009545
Regulation S Global Note . P3143NBK9 USP3143NBK92 217009367

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
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;
. CODELCOSs statutory documents;

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

131
. the most recent annual report, including the 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” financial condition and prospects since the date
of the last audited financial statements.

132
O

CODELCO

CODELCO – CHILE

Consolidated Financial Statements as of and for the years ended December 31,
2019 and 2018

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

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

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ..coconciccicosconccacinccacanens F-6
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ..c.oouonciccocccaconcnanas
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS…..
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS….. ..
CONSOLIDATED STATEMENTS OF CASH FLOWS – DIRECT METHOD…… F-10
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY….

L GENERAL INFORMATION cooocococccccccononcncnnnccnnnnnnnnnenannnns an F-12
1. Corporate InforMatiON….nmonmnninninnncmmcereeee F-12
2. Basis of Presentation of the Consolidated Financial Statements — F-13

IL SIGNIFICANT ACCOUNTING POLICIES ..cooooccciccononncinnccnnnnnnanncnnnncnanenanannnnnnos
1. —Significant Judgments and Key Estimates …. …

2. Significant accounting policieS……ommcncinnnmnmeeens
3. New standards and interpretations adopted by the Corporation…… F-37
4. New accounting pronNOUNCEeMentS …cocconnncnnnnnninncnnnncnnnannnnacnnnnonanacnnnanos F-41

IL EXPLANATORY NOTES oococccccccccccconoccnnonennnncnnnncnnnncnnnncnnnnennnncnnnn cnn rcnnnnennnn canes F-42
1. Cash and cash equivalents … au. F-42
2. Trade and other receivableS…..ooommccconninnimmmm”mm.. a… F-43
3. Balance and transactions with related parties .. F-45
4. InventoriéesS ..cooonccccnncccncnnnnnnnnnnnnnns n=. P-50
5. Income taxes and deferred taxeS ..oooomnccnnccnnccnnnannnnnns an F-51
6. Current and non-current tax assets and liabilities .. an. P-53
7. Property, Plant and EquipMent ….ooooonnnccnncccnnnnnnnceninannnnas sn. P-54
8. Investments accounted for using the equity method….. mn. P-57
9. Intangible assets other than goodwil! ………………ma…… a. F-65
10. Subsidiaries …..ococnncnnncnnnnnnnnnennernneeennancnnnenn F-68
11. Current and non-current financial assets … F-69
12. Other financial liabilities ………………… F-70
13. Fair Value of financial assets and liabilities… … F-80
14. Fair value hierarchYy…..oommoonnconnccnnncnnnananannnnannos a… F-80
15. Trade and other payables.. a… F-81
16. Other proviSiONS omnia F-82
17. Employee benefitS……ooonmccnnnccnnnnnncnnnnncincnnnnaananacn naar anar nnno rana r ana rana F-83
18. EQuUItY coconmcccnccnnnnnns.

19. Revenue …

20. EXpenses by NAtUll..oomconnccnnnncnnnncnnnncnnncnnnncnnnnc cnn crac rn rra racer F-91
21. Impairment Of ASSOiS coocoonnncnnccnnnncnnonnninncnnnncnnncnnnnc nana F-91
22. Other income and expenses by function …. a… F-92
23. Finance COStS..occccccccccnnnnnnccnnnancncnnanacnernnannnnnns a… P-93
24. Operating segmentS…oocccncnm… a… F-93
25. Foreign exchange differenceS….ommmcocccccnnnncncennasnnnnnnanncnnnnnrrnnncnnnnas F-100
26. Statement Of Cash ÍÍOWS ….ooococncoconccnnnccnnnncnnncnnnnccnnnennnnnrcnnennnnen rancia F-100
27. Financial risk management, objectives and policies ……….mcccnoccon. F-101
28. Derivatives CONtFractsS .ooomoccccnnnccccnnnanccnnnnnnccnnnncnnnnnnn rre rra F-105

F-2
29.
30.
31.
32.
33.
34.

Contingencies and
Guarantees………….

Balances in foreign currency

Sancti0NS …ccmcccccnano

Environmental Expenditures.

Subsequent events

restrictiONS …ooooccccnnncnnncnnoncnconononnnnnnnnannnnnnnnrnnnnnnnas

F-3

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 financial statements of Corporación Nacional
del Cobre de Chile and its subsidiaries (the “Company”), which comprise the consolidated
statements of financial position as of December 31, 2019 and 2018 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 Statements

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.

Auditors” 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.

Deloitte? se refiere a Deloitte Touche Tohmatsu Limited una compañía privada limitada por garantía, de Reino Unido, y a su red de firmas miembro, cada una de las cuales es una
entidad legal separada e independiente. Por favor, vea en www.deloitte.com/c//acercade la descripción detallada de la estructura legal de Deloitte Touche Tohmatsu Limited y sus
firmas miembro.

Deloitte Touche Tohmatsu Limited es una compañía privada limitada por garantía constituida en Inglaterra 8: Gales bajo el número 07271800, y su domicilio registrado: Hill House,
1 Little New Street, London, EC4A 3TR, Reino Unido. F-4
We believe that the audit evidence that we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.

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, 2019 and 2018, 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. (“IASB”).

Other matter — Translation into English

The accompanying consolidated financial statements have been translated into English solely
for the convenience of readers outside of Chile.

arch 26, 2020

Santiago, Chile

F-5
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of December 31, 2019 and 2018
(In thousands of US dollars – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

12/31/2019 12/31/2018
Notes
Assets
Current Assets
Cash and cash equivalents 1 1,303,105 1,229,125
Other current financial assets 11 172,951 231,409
Other current non-financial assets 20,969 6,805
Trade and other currentreceivables 2 2,588,268 2,212,209
Accounts receivable from related parties, current 3 20,874 92,365
Inventories 4 1,921,135 2,042,648
Currenttax assets 6 22,719 13,645
Total current assets other than assets or groups ofassets for
disposition classified as held for sale or held as distributable to 6,050,021 5,828,206
owners
Total current assets 6,050,021 5,828,206
Non-current assets
Other non-current financial assets 11 91,800 145,751
Other non-current non-financial assets 4,561 6,817
Non-currentreceivables 2 98,544 84,731
Accounts receivable from related parties, non-current 3 15,594 20,530
Non-current inventories 4 585,681 457,070
Investments accounted for using equity method 8 3,483,523 3,568,293
Intangible assets other than goodwill 9 47,837 48,379
Property, plantand equipment 7 29,700,164 26,754,998
Investment property 981 981
Recoverable non-current tax assets 6 222,169 143,606
Deferred tax assets 5 43,736 31,443
Total non-current assets 34,294,590 31,262,599
Total Assets 40,344,611 37,090,805

The accompanying notes are an integral part of these consolidated financial statements.
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of December 31, 2019 and 2018
(In thousands of US dollars – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Notes 12/31/2019 12/31/2018
No
Liabilities and Equity
Liabilities
Current liabilities
Other current financial liabilities 12 1,378,351 872,277
Trade and other current payables 15 1,420,915 1,546,584
Accounts payable to related parties, current 3 137,234 150,916
Other current provisions 16 502,172 384,249
Current tax liabilities 6 13,857 10,777
Current provisions for employee benefits 17 435,565 510,034
Other current non-financial liabilities 34,863 64,575
| Total current liabilities 3,922,957 3,539,412 |
Non-current liabilities
Other non-current financial liabilities 12 16,538,223 14,674,510
Non-current payables 8,346 26,613
Other non-current provisions 16 2,090,487 1,600,183
Deferred tax liabiliies 5 4,860,881 4,586,168
Non-current provisions for employee benefits 17 1,283,357 1,315,520
Other non-current non-financial liabiliies 5,693 4,530
Total non-current liabilities 24,786,987 22,207,524
Total liabilities 28,709,944 25,746,936
Equity
Issued capital 5,619,423 5,219,423
Accumulated deficit (196,260) (198,917)
Other reserves 18 5,291,747 5,354,159
| Equity attributable to owners of the parent 10,714,910 10,374,665 |
Non-controlling interests 18 919,757 969,204
Total equity 11,634,667 11,343,869
[| Total liabilities and equity 40,344,611 37,090,805 |

The accompanying notes are an integral part of these consolidated financial statements.
CORPORACION NACIONAL DEL COBRE DE CHILE

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

For the years ended December 31, 2019 and 2018
(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

N? 12/31/2019 12/31/2018
Revenue 19 12,524,931 14,308,758
Costof sales (10,051,441) (11,194,341)
[Gross profit 2,473,490 3,114,417 |
Other Income, by function 22a 360,690 124,826
Provision established net, in accordance with IFRS 9 378 158
Distribution costs (17,069) (18,262)
Administrative expenses (409,234) (465,328)
Other expenses 22b (1,747,838) (2,115,314)
Other gains 22,672 21,395
[Income from operating activities 683,089 661,892 |
Finance income 36,871 51,329
Finance costs 23 (479,307) (463,448)
Share of profit of associates and joint ventures accounted for using equity method 8 13,203 119,114
Foreign exchange difference 25 153,917 178,143
[Income for the years before tax 407,773 547,030 |
Expense – income taxes 5 (393,245) (357,283)
[Net income for the years 14,528 189,747 |
Net income attributable to owners of parent 6,637 155,719
Netincome attributable to non-controlling interests 18.b 7,891 34,028
[Net income for the years 14,528 189,747 |

The accompanying notes are an integral part of these consolidated financial statements.
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
CONTINUED
For the years ended December 31, 2019 and 2018
(In thousands of US dollars – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Notes 1/1/2019 1/1/2018
No 12/31/2019 12/31/2018
[Net income for the years 14,528 189,747 ]

Components of other comprehensive income that will not be reclassified to
profit or loss, before tax:

Losses on remeasurementof defined beneft plans, before tax (100,957) (48,626)
Share of other comprehensive (loss) income of associates and joint ventures accounted

for using the equity method that will not be reclassified 2363 (1,517)
per comprehensive loss that will not be reclassified to profit or loss before (98,594) (650,243)
Components of other comprehensive income that will be reclassified to profit
or loss, before tax:
Gains (losses) on exchange difference on translation, before tax 191 (848)
(Losses) gains on cash flow hedges, before tax (80,111) 104,160
Share ofother comprehensive income of associates and joint ventures accounted for

. . . . (3,275) 554
using equity method that will be reclassified
Other comprehensive (loss) income that will be reclassified to profit or loss (83,195) 103,866
before tax
Other comprehensive (loss) income, before tax (181,789) 53,623
Income tax effect on component of other comprehensive income which will
not be reclassified profit or loss
Netincome tax efect relating to benefit plans in other comprehensive income 5 69,667 33,148
Net income (loss) tax of components of other comprehensive income which
will be reclassified to profit or loss
Netincome (loss) tax relating to cash fow hedges of the other comprehensive income 5 52,072 (67,704)
Total other comprehensive (loss) income (60,050) 19,067
Total Comprehensive (loss) Income (45,522) 208,814
Comprehensive (loss) income attributable to:
Comprehensive (loss) income attributable to owners of the parent (53,413) 174,786
Comprehensive income attributable to non-controlling interests 18.b 7,891 34,028
[Total comprehensive (loss) income (45,522) 208,814 ]

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

F-9
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF CASH FLOWS – DIRECT METHOD
For the years ended December 31, 2019 and 2018
(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
12/31/2019 12/31/2018
Cash flows provided by (used in) operating activities:
Receipts from sales of goods and rendering of services 12,553,666 15,428,893
Other cash receipts from operating activities 26 1,827,264 1,733,555
Payments to suppliers for goods and services (7,917,563) (8,870,763)
Payments to and on behalf of employees (1,800,223) (1,920,204)
Other cash payments from operating activities 26 (2,237,355) (2,555,184)
Dividends received 87,434 188,749
Income taxes paid (81,762) (67,326)
| Cash fows provided by operating actvites 2,431,461 3,937,720 |
Cash flows provided by (used in) investing activities:
Other payments to acquire equity or debt instruments of other entities (240) (338)
Other charges for the sale of interests in join ventures and associates 8 193,480 21,842
Purchase of property, plantand equipment (4,102,073) (3,893,851)
Interest received 33,874 47,259
Other cash outlows (5,078) (127,570)
| Cash fows used in investing actvites (3,880,037) (3,952,658)
Cash flows provided by (used in) financing activities:
Proceeds from borrowings long term 3,918,199 900,000
Proceeds from borrowings short term 465,000 –
Total proceeds from borrowings 4,383,199 900,000
Repayment of borrowings (2,234,446) (259,011)
Payments of finance lease liabilities (148,181) (27,130)
Dividends paid – (602,461)
Interest paid (656,705) (634,289)
Other cash infows 197,555 500,802
Cash fiows provided by (used) in financing activities 1,541,422 (122,089)
Increase (decrease) in cash and cash equivalents before effects of exchange 92,846 (137,027)
diference
Effect ofexchange rate changes on cash and cash equivalents (18,866) (82,683)
Increase (decrease) in cash and cash equivalents 73,980 (219,710)
Cash and cash equivalents at beginning of years 1 1,229,125 1,448,835
Cash and cash equivalents atend ofyears 1 1,303,105 1,229,125

The accompanying notes are an integral part of these consolidated financial statements.
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the years ended December 31, 2019 and 2018
(In thousands of US dollars – ThUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

Reserve on Rose of 0 Equiy
er
exchange [Reserve ofcash fow| “9Méasurementof attibutable to

miscellaneous
issued capital diferences on hedges defined benefit plans Total obher Accumulated owners ofthe Non-controlling
reserves Total Equity
translation reserves deficit parent interests

December 31,2019

Note 18 Nole 18
Initial balance as of 1/1/2019 5,587,710 159 10,374,665 969,
in

Netincome 6,637 7,891
Other income: (60, –
e income 53,413) 7,891

160,

Dividends – – –

contributions 400,000 – – – – – 400,000 – 400,000
Increase (decrease transfers and other – – (24; – 41 (3,980) 6, 57, 63,
Total es in 657 340,245 (49, 798

Final balance as of 12/31/2019 19,506 5,584,683 10,714,910 919,757 11,634,667

Reserve on Reserve of oter Equity
exchange [Reserve ofcash flow | remeasurement of atributable to
December 31,2018 Issued capital diference on hedges deined beneñtplans | “SCellaneous Total other Accumulated owners ofthe Non-controlling
reserves Total Equity
translation reserves deficit parent interests
Note 17 Note 18 Note 18
Initial balance as of 1/1/2018 01: 11,336 ,125 1,007,495 10,927,620
in
Netincome 155,719 155,719 34,028 189,747
Other income: 19,067 – 19,067
e income: 174,786 34,028 208,814
Dividends 306,619) 306,61 306,61
contributions 600,000 – 600,000 – 600,000
Increase (decrease transfers and other – – – – – 13, 13, 85,
Total es in 456 154 1 A 454, 416,249

Final balance as of 12/31/2018 423 47,792 4, 5,587,710 A 10,374,665

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

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-12
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 audited 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 11! of Note 8.

Basis of Presentation of the Consolidated Financial Statements

The Corporation’s consolidated statements of financial position as of December 31, 2019 and 2018, and
the consolidated statements of comprehensive income, changes in equity and of cash flows for the years
ended December 31, 2019 and 2018, have been prepared in accordance with International Financial
Reporting Standards (*IFRS”) as issued by the International Accounting Standards Board (“lASB”).

These consolidated financial statements include all information and disclosures required in annual
financial statements.

These consolidated financial statements have been prepared from accounting records maintained by the
Corporation.

The consolidated financial statements of the Corporation are presented in thousands of United States
dollar (*U.S. dollar”).

Responsibility for the Information and Use of Estimates

The Board of Directors of the Corporation has been informed of the information included in these
consolidated financial statements and expressly declared its responsibility for the consistent and reliable
nature of the information included in such financial statements as of and for the year ended December 31,
2019, which financial statements fully comply with IFRS as issued by the lASB. These consolidated
financial statements as of December 31, 2019 and for the year then ended were approved by the Board of
Directors at a meeting held on March 26, 2020.

F-13
Accounting Principles

These consolidated financial statements reflect the financial position of Codelco and its subsidiaries as of
December 31, 2019 and 2018, and the results of their operations, changes in equity and cash flows for the
years ended December 31, 2019 and 2018, and their related notes, all prepared in accordance with lAS 1,
“Presentation of Financial Statements,” in consideration of the presentation instructions of the Commission
for the Financial Markets, where not in conflict with IFRS.

For the convenience of the reader, these consolidated financial statements and their accompanying notes
have been translated from Spanish into English.

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) Useful economic lives and residual values of property, plant and equipment – The useful lives
and residual values of property, plant and equipment that are used for calculating depreciation are
determined based on technical studies prepared by specialists (internal or external). The technical
studies consider specific factors related to the use of assets.

When there are indicators that could lead to changes in the estimates of the useful lives of such
assets, these changes are made by using technical estimates to determine the impact of any change.

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

The Corporation applies prudent judgment in determining the ore reserves, and as such, possible
changes in these estimates might significantly impact the estimates of net revenues over time. In
addition, these changes might lead to modifications in usage estimates, which might have an effect
on depreciation and amortization expense, calculation of stripping cost adjustments, determination of
impairment losses, expected future disbursements related to decommissioning and restoration
obligations, long term defined benefits plans’ accounting and the accounting for financial derivative
instruments.

F-14
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 decommissioning and site restoration costs is recognized as property, plant and
equipment in accordance with IAS 16, and simultaneously a liability in accordance with IAS 37, is
recorded.

F-15
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 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
indicator 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).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.

f) Accruals for open invoices – The Corporation uses information on future copper prices, through
which it recognizes adjustments to ¡ts revenues and trade receivables, due to the conditions in

F-16
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. When it
is considered more likely than not that a loss is probable and it may be reliably estimated, a provision
is recognized.

Application of IFRS 16 that include the following:

– Estimation of the lease term;
– Determine 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 IAS 8 “Accounting Policies, Changes in Accounting
Estimates and Errors.”

F-17
2.

Significant accounting policies

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

– Consolidated statements of financial position as of December 31, 2019 and 2018.

– Consolidated statements of comprehensive income for years ended December 31, 2019 and
2018.

– Consolidated statements of changes in equity for years ended December 31, 2019 and 2018.

– Consolidated statements of cash flows for years ended December 31, 2019 and 2018.

Basis of preparation – The consolidated financial statements of the Corporation as of December 31,
2019 and 2018, and for the years ended December 31, 2019 and 2018 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, 2018, and the consolidated
statement of comprehensive income for the year ended December 31, 2018, the consolidated
statement of changes in equity and consolidated statement of cash flows for the year ended
December 31, 2018, which are included for comparative purposes, have been prepared in
accordance with IFRS issued by the IASB, on a basis consistent with the criteria used for the same
period ended December 31, 2019, except for the adoption of the new IFRS standards and
interpretations adopted by the Corporation as of and for the years ended December 31, 2019, 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. For those subsidiaries and associates that are an extension of the operations of Codelco
(entities that are not self-sustaining 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.

F-18
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-19
The companies included in the consolidation are as follows:

12/31/2019 12/31/2018
Taxpayer ID Number Company Country Currency % Ownership % Ownership
Direct | Indirect Total Total
Foreign Chile Copper Limited England EP 100.00] a] 100.00 100.00]
Foreign Codelco do Brasil Mineracao Brazil BRL a] 100.00 100.00 100.00]
Foreign Codelco Group Inc. United States of US$ 100.00] dl 100.00 100.00]
America
Foreign Codelco International Limited Bermuda US$ 100.00] a] 100.00 100.00]
Foreign Codelco Kupferhandel GmbH Germany EURO 100.00] a] 100.00 100.00]
Foreign Codelco Metals Ino. United States of | ¡og 0] 100.00] 100.00] 100.00]
America
Foreign Codelco Services Limited England Gap a] 100.00 100.00 100.00]
Foreign Codelco Shanghai Company Limited China RMB 100.00] a] 100.00 100.00]
Foreign Codelco Technologies Ltd. Bermuda US$ a] J – 100.00]
Foreign Codelco USA Inc. United States of US$ a] 100.00 100.00 100.00]
America
Foreign Codelco Canada Canada US$ a] 100.00 100.00 100.00]
Foreign Ecometales Limited Channel Islands | US$ a] 100.00 100.00 100.00]
Foreign Exploraciones Mineras Andinas Ecuador EMSAEC S.A. Ecuador US$ a] 100.00 100.00 100.00]
Foreign Cobrex Prospeccao Mineral Brazil BRL a] 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]
79.506.720-2 Isapre Chuquicamata Ltda. Chile CLP 0.00] 0.00 – 100.00]
81.767.200-0 Asociación Garantizadora de Pensiones Chile CLP 96.59 a] 96.69 96.59
88.497.100-4 Clínica San Lorenzo Limitada Chile CLP 99.90 0.10 100.00 100.00]
76.521.202 San Lorenzo Institución de Salud Previsional Ltda. Chile CLP a] 100.00 100.00 100.00]
89.441.300-K Isapre Río Blanco Ltda Chile CLP a] a] – 100.00]
96.817.780-K Ejecutora Proyecto Hospital del Cobre Calama S.A. Chile US$ 99.99 0.01 100.00 100.00]
96.819.040-7 Complejo Portuario Mejilones S.A Chile US$ 99.99 0.01 100.00 100.00]
96.991.180-9 Codelco Teo 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 Clínica Río Blanco S.A. Chile CLP 99.00 1.00] 100.00 100.00]
76.064.682-2 Centro de Especialidades Médicas Río Blanco Lta Chile CLP 99.00 1.00] 100.00 100.00]
77.773.260 Inversiones Copperfeld SpA Chile US$ 99.99 0.01 100.00 100.00]
76.043.396-9 Innovaciones en Cobre S.A. Chile US$ 0.05] 99.96] 100.00 100.00]
76.148,338-2 Sociedad de Procesamiento de Molíbdeno Ltda. Chile US$ 99.96 0.05 100.00 100.00]
76.173.357-5 Inversiones Gacrux SpA Chile US$ 100.00] a] 100.00 100.00]
76.231.838-5 Inversiones Mineras Nueva Acrux SpA Chile US$ a] 67.80 67.80 67.80
76.237.866-3 Inversiones Mineras Los Leones SpA Chile US$ 100.00] a] 100.00 100.00]
76.173.783-k Inversiones Mineras Becrux SpA Chile US$ a] 67.80 67.80 67.80
76.124.156-7 Centro de Especialidades Médicas San Lorenzo Ltda. Chile US$ a] 100.00 100.00 100.00]
76,255.061-K Cental Eléctica Luz Minera SpA Chile US$ 100.00] a] 100.00 100.00]
70.905.700-6 Fusat Chile CLP a] a] 0 a]
76.334.370-7 Isalud Isapre de Codelco Ltda. Chile CLP 59.26 40.73 99.99 a]
78.394.040-K Centro de Servicios Médicos Porvenir Ltda. Chile CLP a] 99.00] 99.00 99.00
77.928.390-9 Inmobiliaria e Inversiones Rio Cipreces Ltda Chile CLP a] 99.90] 99.90 99.90
77.270.020 Prestaciones de Servicios de la Salud Intersalud Ltda Chile CLP a] 99.00] 99.00 99.00
76.764.301-8 Salar de Maricunga SpA Chile CLP 100.00] dl 100.00 100.00]

On July 15, 2019, according to Bermuda Registration Certificate No. 28890, the merger between
Codelco Technologies and Codelco International is reported, the latter being the absorbing company
of Codelco Technologies, for which it acquires 9.99 % of subsidiary Codelco Brasil and 100% of
Ecometales.

F-20
On December 2, 2019, by public deed, the partners approved the merger by incorporation of the
Institución de Salud Previsional Chuquicamata Ltda., San Lorenzo Institución de Salud Previsional
Ltda., Institución de Salud Previsional Río Blanco Ltda., and Institución de Salud Previsional Fusat
Ltda., the latter being the absorbing Isapre (health insuring entity). In addition, the partners approved
modifications to the statutes related to a change in the company name, capital increase due to the
merger, contribution and participation of the partners in the share capital.

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 ¡i¡) 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” in the statements of comprehensive income.

+. 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.

F-21
e)

+. 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.

+. Joint Ventures – The entities that qualify as joint ventures are accounted for using the equity
method.

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 (12/31/2019: US$37.81; 12/31/2018: US$39.68). 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.

F-22
9)

+ 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
12/31/2019 12/31/2018

USD / CLP 0.00134 0.00144
USD / GBP 1.31320 1.27000
USD / BRL 0.24910 0.25848
USD/EURO 1.12133 1.14390
USD/AUD 0.70018 –
USD /HKD 0.12844

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 — ltems 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:

F-23

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
Vehicles

Plant and equipment

Smelters

Refineries

Mining rights

Support equipment

Intangibles – Software

Open pit and underground mine
development

Units of production level
Straight-line over 3-7 years
Units of production
Straight-line
Units of production
Units of production
Units of production
Straight-line over 8 years

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 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.

F-24
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-25
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 its carrying amount, an
impairment loss is recognized immediately in profit or loss, reducing the carrying amount to its
recoverable amount. When an impairment loss subsequently reverses, the carrying amount of the
asset or CGU is increased to the revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss been recognized for the asset or CGU in prior years.

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

(PP8E) are recognized in property, plant and equipment and are amortized through profit or loss
over the period during which the benefits are obtained.

F-26
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 ¡ts 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.

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.

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-27
- 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 retirees, which are
paid based on a fixed percentage applied to the monthly taxable salary of 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, 2019.

The employee termination indemnity and the post-employment medical plan obligations are
determined using the projected unit credit method, with actuarial valuations being carried out at the
end of each reporting period. The defined benefit plan obligations recognized in the statement of
financial position represent the present value of the accrued obligations. Actuarial gains and losses
are recognized immediately in other comprehensive income and will not be reclassified to profit or
loss.

The Corporation’s management uses assumptions to determine the best estimate of these benefits.
The assumptions include an annual discount rate, expected increases in salaries and 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.

F-28
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.

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 as of January 1, 2019 – Effective January 1, 2019, IFRS 16 Leases becomes effective, for
which the Corporation evaluates its contracts at initial application to determine whether they contain a
lease. The Corporation recognizes an asset for right of use and a corresponding liability for lease with
respect to all lease agreements in which Codelco is the lessee, except for short-term leases (defined
as a lease with a lease term of 12 months or less) and leases of low-value assets. For these leases,
the Corporation recognizes lease payments as an operating cost on a straight-line basis over the
term of the lease unless another systematic basis is more representative of the time pattern in which
the economic benefits of the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that have not been

paid at the commencement date, discounted using the interest rate implicit in the lease. If this rate
cannot be easily determined, the Corporation uses the incremental borrowing rate.

F-29
The incremental rate for loans used by Codelco is determined by estimating the interest rate that the
Corporation would have to pay for borrowing the necessary funds to obtain an asset of an equivalent
nature similar in value to the right-of-use asset 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. The assets for right to use are subsequently measured at cost less accumulated
depreciation and accumulated losses due to impairment.

When the Corporation incurs a cost obligation to dismantle or remove a leased asset, restore the
location in which it is located or restore the underlying asset to the condition required by the terms
and conditions of the lease, a provision is recognized and measured in accordance with 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 consolidated statement of financial position.

F-30
Leases until December 31, 2018- Leases are classified as finance leases whenever the terms of the
lease transfer substantially all the risks and rewards of ownership to the Corporation. All other leases
are classified as operating leases. Operating lease costs are recognized as an expense on a straight-
line basis over the lease term.

Assets held under finance leases are initially recognized as assets at the inception of the lease at
either their fair value or the present value of the minimum lease payments (discounted at the interest
rate implicit in the lease), whichever is lower. Lease payments are apportioned between finance costs
and reduction of the lease obligation so as to achieve a constant rate of return on the remaining
balance of the liability. Lease obligations are included in other current or non-current liabilities, as
appropriate.

In accordance with IFRIC 4 “Determining whether an Arrangement contains a Lease”, an
arrangement is, or contains a lease if fulfilment of the arrangement is dependent on the use of a
specific asset or assets and if the arrangement conveys the right to use the asset, even if that right is
not explicitly specified.

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 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

F-31
s)

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 lAS 39 instead of the requirements of the new
standard. Therefore, there were 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 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

F-32
t)

transaction is not expected to occur, the amount accumulated in other comprehensive income ¡is
reclassified to profit or loss.

The total fair value of hedging derivatives is classified as “non-current financial asset or liability”, if the
remaining maturity of the hedged item is greater than 12 months, and as “current financial asset or
liability”, if the remaining maturity of the hedged item ¡is less than 12 months.

The derivative contracts held by the Corporation have been entered into to apply the risk hedging

policies and are accounted for as indicated below:
Hedging policies for exchange rate risk: The Corporation enters into exchange rate derivatives
to hedge exchange rate variations between the U.S. dollar and the currencies of transactions the
Corporation undertakes. In accordance with the policies established by the Board of Directors,
these hedge transactions are only entered into when there are recognized assets or liabilities,
forecasts of highly probable transactions or firm commitments. The Corporation does not enter
into derivative transactions for non-hedging purposes.

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.

F-33
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.

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.

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.

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.

F-34
- Atfair 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 for debt
instruments are reclassified to income.

Codelco did not irrevocably choose to designate any of its investment assets at fair value with
effect on other comprehensive 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 unless doing so creates an accounting mismatch.

– — Financial liabilities at amortized cost: This category includes all financial liabilities other
than those measured at fair value through profit or loss.

The Corporation includes in this category bonds, obligations and other current payables.

These financial liabilities are measured using the effective interest rate method, recognizing
interest expense based on the effective rate.

The effective interest rate method is a method of calculating the amortized cost of a financial
liability and of allocating interest expense over the relevant period. The effective interest rate
is the rate that exactly discounts estimated future cash payments through the expected life of
the financial liability, or where appropriate, a shorter period, to the net carrying amount on
initial recognition.

Trade and other current payables are financial liabilities that do not explicitly accrue interest
and are recognized at their nominal value, which approximates its fair value.

Financial liabilities are derecognized when the liabilities are paid or expire.

F-35
x)

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 these, it uses the simplified
approach as required under IFRS 9. The Corporation considers a trade receivable to be in default at
90 days.

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.

Other accounts receivable and other financial assets are reviewed using reasonable and sustainable
information that is available without cost or disproportionate effort in accordance with IFRS 9 to
determine the credit risk of the respective financial assets. A provision is established for impairment
losses in trade accounts receivable and other financial assets, when there is objective evidence that
those amounts owed cannot be fully recovered.

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.

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 the 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.

F-36
aa)

ab)

ac)

ad)

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 the tenth year 2.5% per year until reaching 0% in the twelfth year. The
validity of this law is as of January 1, 2020.

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.”

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, 2018, except for the adoption of new standards, interpretations and
amendments, effective from January 1, 2019, which are:

F-37
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, allowing exemptions for short-term leases and leases of low-value assets. In contrast to the
accounting for the lessee, the requirements for the accounting of the lessor remain largely unchanged.
Details of these new requirements are described in Chapter Il, note 2, letter q Leases. The impact of the
adoption of IFRS 16 in the consolidated financial statements of the Corporation is described below.

The initial application date of IFRS 16 for the Corporation is January 1, 2019.

The Corporation has applied IFRS 16 with the cumulative effect of the initial application of the standard
recognized as of January 1, 2019. Consequently, it has not restated the comparative financial information.

Impact of the new definition of a lease

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

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 ¡is less than twelve months;
– — Exemption for leases of low-value;
– Review of lease contracts at transition under the “onerous contract” provisions of lAS 37 rather
than undertaking an impairment review under lAS 36;
– — Measurement of right-of-use assets at lease liability amount at date of initial application;

F-38
Impact on assets, liabilities and equity as of January 1, 2019

. . Balances

Balances prior Adjustment diusted b:
to IFRS 16 IFRS 16 2 1ERS 16 y

ThUs$ ThUS$
ThUS$

Property, plant and equipment (1) 26,754,998 373,889 27,128,887
Total Assets 37,090,805 373,889 37,464,694
Other current financial liabilities 872,277 96,404 968,681
Other non-current financial liabilities 14,674,510 277,485 14,951,995
Total Liabilities 25,746,936 373,889 26,120,825
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

ia , January 1, 2019
Reconciliation of operating leases ThUS $

Operating lease commitments as of December 31, 2018, as disclosed in the consolidated

financial statements in accordance with |AS17. 266,351
Less initial recognition exceptions:

Short-term leases (55,360)

Leases with variable payments that do not depend on an index or a rate (69,070)

Low-value leases (220)
Total lease liabilities (undiscounted) recognized as of January 1, 2019 141,701
Plus:
Leases identified in existing contracts as of January 1, 2019 under IFRS 16 (1) 421,608
Discounted using the incremental borrowing rate at the date of the initial application (January 1,

3.81%

2019)
Discounted financing lease liabilities recognized as of January 1, 2019 373,889
Lease liabiliies related to leases previously classified as financial leases 107,839
Total lease liabilities recognized on January 1, 2019 481,728
Consisting of:
Lease liabiliies current portion 117,914
Lease liabiliies non-current portion 363,814
Total lease liabilities recognized on January 1, 2019 481,728

(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.

F-39
b) IFRIC 23 Uncertainty about treatment of income tax

IFRIC 23 establishes how to determine a tax position when there is uncertainty about the treatment for
income tax. For this determination, the steps are as follows:

i. determine if uncertain tax positions should be evaluated separately or as a whole;
li. evaluate if the tax authority is likely to accept an uncertain tax treatment used, or proposed to be
used, by an entity in its tax returns:
– Ifacceptable, the entity must determine its accounting tax position in a manner consistent with the tax
treatment used or planned to be used in ¡ts tax return.
– Ifuncertain, the entity must reflect the effect of uncertainty in the determination of its accounting tax
position.

The Corporation has determined that it has no significant uncertain tax positions.

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) Amendmenkts 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 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-40
f) Annual improvements cycle 2015 – 2017 (amendments to IFRS 3, IFRS 11, IAS 12 and lAS 23)
– Amendments to IFRS 3 and IFRS 11: Adds paragraphs on treatment for acquisitions in
participations previously held in a joint operation.
– Amendments to lAS 12: Add paragraph on treatment of taxes related to dividends payable.
– Amendments to lAS 23: Modify wording on application of the capitalization rate.
The application of these amendments had no impact on the consolidated financial statements of the
Corporation, however it could affect the accounting of future transactions or agreements.
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.

Amendments to IFRS

Date of mandatory application

Summary

Amendment to IFRS 10 and IAS
28: Sale or Contribution of
Assets

Date to be determined by 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 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 IAS 1 and lAS
8)

Annual reporting periods beginning on
or after January 1, 2020

Clarifies the definition of ‘material”
and aligns the definition used in the
Conceptual Framework and the
standards.

F-41

Modifications Conceptual
Framework for the Report
Revised Financial

Annual periods initiated on or after the
January 1, 2020

It incorporates some new concepts,
provides updated definitions and
recognition criteria for assets and
liabilities. This modification
accompanies a separate document,
“Modifications to the References to
Conceptual Framework in the Rules
IFRS , which establishes
amendments to other IFRS in order to
update the references to the new
Conceptual Framework

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 December 31, 2019 and 2018, is as follows:

ltem 12/31/2019 | 12/31/2018
TRUS$ ThHUS$

Cash on hand 49,017 25,033
Bank balances 213,580 59,030
Time deposits 972,125 | 1,131,049
Mutual Funds – Money Market 2,158 1,698
Repurchase agreements 66,225 12,315
Total cash and cash equivalents 1,303,105 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.

Cash and cash equivalents meet the low credit risk exemption under IFRS 9.

F-42
2.

Trade and other receivables

Accruals for open sales invoices

As mentioned in the Summary of Significant Accounting Policies Section, the Corporation adjusts ¡ts
revenues and trade receivable balances, based on future copper prices through the recognition of an
accrual for open sales invoices.

When future price of copper is lower than the provisional invoicing price, the accrual is presented in
the statement of financial position as follows:

– For those customers that have due balances with the Corporation the accrual is presented as a
deduction from the line item trade and other current receivables.

– For those customers that do not have due balances with the Corporation the accrual is presented
in the line item trade and other current payables.

When the future copper price is higher than the provisional invoicing price, the accrual is added to the
line item trade and other current receivables.

According to the foregoing, as of December 31, 2019 and for provisions for unfinalized sales
invoices, a positive amount of ThUS$98,045 is presented intrade and other current receivables for
open invoices related to customers with no outstanding amounts to Codelco.

As of December 31, 2018, a negative amount 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, the latter associated with 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 12/31/2019 12/31/2018 12/31/2019 12/31/2018
LES THUS$ THUS$ LES

Trade receivables (1) 1,934,245 1,542,420 438 820
Allowance for doubtful accounts (3) (7,530) (37,811) – –
Subtotal trade receivables, net 1,926,715 1,504,609 438 820
Other receivables (2) 668,218 712,446 98,106 83,911
Allowance for doubtful accounts (3) (6,665) (4,846) – –
Subtotal other receivables, net 661,553 707,600 98,106 83,911
Total 2,588,268 2,212,209 98,544 84,731

F-43
(1) Trade receivables correspond to the sales of copper and its by-products, those that in general
are sold in cash or through banks transfers.

(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$48,809 are secured with collateral.

Reimbursement receivables from insurance companies.

Advance payments to suppliers and contractors.

Accounts receivable for tolling services (Ventanas Smelter).

VAT credit and other refundable taxes of ThUS$179,486 and ThUS$201,274 as of
December 31, 2019 and 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 year ended December
31, 2019 and 2018, were as follows:

12/31/2019 12/31/2018
Items
TRUS$ TRUS$

Opening balance 42,657 40,100
Net Increases 1,709 7,215
Write-ofis/applications (30,171) (4,658)
Total movements (28,462) 2,557
Closing balance 14,195 42,657

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

follows:
. 12/31/2019 12/31/2018
Maturity
ThUS$ ThUS$

Less than 90 days 9,510 3,473
Between 90 days and 1 year 1,211 4,789
More than 1 year 9,530 10,266
Total trade receivables past-due but not impaired 20,251 18,528

F-44
3.

Balance and transactions with related parties

Transactions with related persons

In accordance with Law on New Corporate Governance, the members of Codelco’s Board are, in
terms of transactions with related persons, subject to the provisions of Title XVI of Law on
Corporations, which sets the requirements regarding transactions with related parties in publicly
traded companies and their subsidiaries.

Notwithstanding the foregoing, pursuant to the provisions of the final paragraph of Article 147 b) of
Title XVI, which contains exceptions to the approval process for transactions with related parties, the
Corporation has established a general policy over customary transactions (which were
communicated through a significant event notice to the CMF), that defines customary transactions as
those carried out with its related parties in the normal course of business, which contributes to the
social interest and are necessary to the normal development of Codelco’s activities.

Likewise, consistent with the legal framework, the Corporation maintains within its internal framework
a specific policy about transactions between related persons and companies with Codelco’s
employees. Codelco’s Corporate Policy No.18 (“CCP No. 18”), the latest version currently in force,
was approved by the Chief Executive Officer and the Board of Directors.

Accordingly, Codelco without the authorization required in CCP No. 18 and of the Board of Directors,
when required by Law or by the Corporation by-laws, shall not enter into any contracts or agreements
involving one or more Directors, its Chief Executive Officer, the members of Division’s Managing
Committees, Vice-presidents, Legal Counsel, General Auditor, Division Chief Executive Officers,
Advisors of Senior Management, employees who must make recommendations and/or have the
authority to award tenders, assignments of purchases and/or contracting goods and services, and
employees in management positions (up to fourth hierarchical level in the organization), including
their spouses, children and other relatives up to second degree of relation, with a direct interest,
represented by third parties or on behalf of another person. Likewise, CCP No. 18 requires
administrators of Corporation’s contracts to declare all related persons, and disqualify himself/herself
¡Fany 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-45

11112019 1/1/2018
. Taxpayer o Description of the 12/31/2019 12/31/2018
Entity Country | Nature of the relationship .
number transaction Amount Amount
ThUS$ ThUS$

Administración de Sistemas y Services Herman 76.349.138-2 | Chile |Employee’s relative Services – 200
Yerko Valenzuela Rojas E.LR.L

Anglo American Sur S.A. 77.762.940-9 | Chile [Associate Supplies 16 55
Arcadis Chile S.A. 89.371.200-3 | Chile [Employee’s relative Services – 3,511
Asociación Chilena de Seguridad 70.360.100-6 | Chile | Member of Board of directors Services – 852
B.Bosch S.A 84.716.400K | Chile. [Employee’s relative Supplies 5,071 –
Centro de Capacitación y Recreación Radomiro Tomi, 75.985.550-7 | Chile [Other related Services 62 847
Codelco Tec SpA 96.991.180-9 | Chile |Subsidiary Services – 10,000
Ecometales Limited agencia en Chile 59.087.580-9 | Chile |Subsidiary Services 43,495 20,040
Exploraciones Mineras Andinas S.A. 99.569.520-0 | Chile |Subsidiary Services – 358,130
Fismidih S.A 89.564.200-6 | Chile [Employee’s relative Supplies 5812 –
Fundacion Educacional de Chuquicamata 72.747.300-9 | Chile |Founder member donor Services 134 –
Fundación Orquesta Sinfónica Infantil de los Andes. | 65.018.784-9 | Chile. |Founder member donor Services 270 297
Glasstech S.A, 87.949.500-8 | Chile [Employee’s relative Supplies – 3
Highservice ingeniería y construcción ltda. 76.378.396-0 | Chile |[Employee’s relative Services 11,803 –
Industrial Support Company Ltda 77.276.280-1 | Chile [Employee’s relative Services 76,389 –
Industrial y Comercial Arimatemb Ltda. 76.108.720-7 | Chile [Employee’s relative Services 20 2
Inoxa SA. 99.513.620-1. | Chile [Employee’s relative Services – 468
Instítución de Salud Previsional Chuquicamata Ltda. | 79.566.720-2 | Chile |Subsidiary Services 3,257 2
Insttución de Salud Previsional Río Blanco Ltda. 89.441.300 | Chile |Subsidiary Services – 47,028
Kairos Mining S.A. 76.781.030 | Chile. [Other related Services – 13,700
Komatsu Chile S.A. 96.843.130-7. | Chile |[Employee’s relative Services y Supplies 20,446 138,962
Linde Gas Chile S.A. 90.100.000: | Chile. [Employee’s relative Supplies 147 91
Marsol S.A. 91.443.000-3 | Chile [Employee’s relative Supplies 101 –
San Lorenzo Isapre Limitada 76.521.250-2 | Chile |Subsidiary Services – 25,945
Services de Ingeniería IMA S.A. 76.523.610 | Chile. [Employee’s relative Services – 125
Soc. de Prod. y Serv. Solava Ltda 78.663..520-9 | Chile [Employee’s relative Supplies 57 –
Sociedad Contractual Minera El Abra. 96.701.340-4 | Chile [Associate Supplies 73 –
Sodimac S.A. 96.792.430 | Chile. [Employee’s relative Supplies 1,644 –
Sonda S.A. 83.628.100-4 | Chile |[Employee’s relative Services 221 –
Suez Medioambiente Chile S.A 77.441.870-9 | Chile [Employee’s relative Supplies 57 –
Transeleo Norte S.A. 99.521.960-6 | Chile | Member of Board of directors Services – 4411
S y $ Ingenieros Consultores S.A 84.146.102 | Chile |Employee’ relative Servicios 43 –

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, 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 year ended December 31, 2019 and 2018, the members of the Board of Directors have

received the following amounts as per diems, salaries and fees:

F-46

1/1/2019 1/1/2018
Taxpayer Nature of the Description of the 12/31/2019 12/31/2018
Name Country . . .
number relationship transaction Amount Amount
ThUS$ ES
Blas Tomic Errázuriz 5.390.891-8 Chile [Director Directors’s fees 115 122
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 92 97
Ghassan Day oub Pseli 14.695.762-5 Chile [Director Payroll 122 107
Hernán de Solminihac Tampier 6.263.304-2 Chile [Director Directors’s fees 92 63
Ignacio Briones Rojas 12.232.813-9 Chile [Director Directors’s fees 78 63
Isidoro Palma Penco 4.754.025-9 Chile [Director Directors’s fees 92 97
Juan Benavides Feliú 5.633.221-9 Chile [Chairman of the board Directors’s fees 138 95
Juan Morales Jaramillo 5.078.923-3 Chile [Director Directors’s fees 92 97
Laura Albornoz 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 7.170.719-9 Chile [Director Directors’s fees 92 97
Raimundo Espinoza Concha 6.512.182-4 Chile [Director Directors’s fees 92 97
Raimundo Espinoza Concha 6.512.182-4 Chile [Director Payroll 36 64

The Ministry of Finance through Supreme Decree No. 100, dated February 5, 2018, established the
compensation for the Corporation’s Directors. The compensation to Board of Director members, is as
follows:

a. The Directors of Codelco will receive a fixed monthly compensation of Ch$3,931,757 (three
million nine hundred and thirty one thousand, seven hundred and fifty seven Chilean pesos) for
meeting attendance. The payment of the monthly compensation is dependent on meetings
attended.

b. The Chairman of the Board will receive a fixed monthly compensation of Ch$7,863,513 (seven
million eight hundred and sixty three thousand, five hundred and thirteen Chilean pesos).

Cc. Each member of the Directors” Committee, whether the one referred to in Article 50 bis) of Law
No. 18046 or another established by the Corporation by-laws, will receive a fixed additional
monthly compensation of Ch$1,310,584 for meeting attendance, regardless of the number of
committees of which they are members. In addition, the Chairman of the Directors” Committee
will receive a fixed monthly compensation of Ch$2,621,171 for meeting attendance.

d. The compensation established in 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%.

F-47
c)

On the other hand, the short-term benefits of key management of the Corporation paid during
the year ended December 31, 2019 and 2018, were ThUS$11,442 and ThUS$12,382,
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.

During the year ended December 31, 2019 and 2018, severance indemnities were paid to key
management of the Corporation for ThUS$1,619 and ThUS$1,084, respectively.

There were no payments to key management for other non-current benefits during the year
ended December 31, 2019 and 2018.

There are no share based payment plans granted to Directors or key management personnel of
the Corporation.

Transactions with companies in which Codelco has ownership interest

The Corporation undertakes commercial and financial transactions that are necessary for ¡ts activities
with its subsidiaries, associates and joint ventures (“related parties”). The financial transactions
correspond mainly to loans granted (mercantile current accounts).

Commercial transactions with related companies mainly consist of purchases/sales of products or
rendering of services carried out under market conditions and prices, which do not bear any interest
or indexation.

As of the date of these financial statements, the Corporation has not recognized any allowance for
doubtful accounts with respect to receivable balances from ¡ts related companies.

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

Accounts receivable from related companies:

. Current Non-current

Taxpayer Nature of the Indexation
Name Country a a 12/31/2019 | 12/31/2018 | 12/31/2019 | 12/31/2018

number relationship currency

LES ES LES THUS$
77.762.940-9 Anglo American Sur S.A. Chile Associate US$ 16,677 88,497 –

76.063.022-5 Inca de Oro S.A. Chile Associate US$ 438 380 – –
76.255.054-7 Planta Recuperadora de Metales SpA Chile Associate US$ 1,677 3,099 15,370 20,306
96.701.340-4 Sociedad Contractual Minera El Abra Chile Associate US$ 2,077 383 – –
96.801.450-1 Agua de la Falda S.A. Chile Associate US$ 5.0 6 224 224
Totals 20,874 92,365 15,594 20,530

F-48

Accounts payable to related companies:

Current Non-current
Taxpayer Nature of the Indexation
Name Country Monshi 12/31/2019 | 12/31/2018 | 12/31/2019 | 12/31/2018
number relationship currency
THUS$ ES THUS$ LES

77.762.940-9 ‘Anglo American Sur S.A. Chile Associate US$ 108,243 125,913
96.701.340-4 Sociedad Contractual Minera El Abra Chile Associate US$ 26,608 22,940
76.255.054-7 Planta Recuperadora de Metales SpA Chile Associate US$ 430 –
76.781.030-K Kairos Mining S.A. Chile Associate US$ 1,953 2,063
Totals 137,234 150,916

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 year ended December 31, 2019

and 2018:
1/1/2019 1/1/2018
12/31/2019 12/31/2018
Effects on net Effects on net
Taxpayer , o Index. . .
Entity Nature of the transaction | Country income (charges) / income (charges) /
number Currency . .
Amount credits Amount credits
Thus$ ThHUS$ Thuss$ ThuS$

96.801.450-1 | Agua de la Falda S.A. ¡Sales of services Chile CLP 3 3 4 4
96.801.450-1 | Agua de la Falda S.A. Capital contribution Chile US$ 19 338
77.762.940-9 | Anglo American Sur S.A. Dividends received Chile US$ 84,372 182,903
77.762.940-9 | Anglo American Sur S.A. Dividends receivable Chile US$ – – 84,372 –
77.762.940-9 | Anglo American Sur S.A. ¡Sales of goods Chile US$ 25,044 25,044 58,411 58,411
77.762.940-9 | Anglo American Sur S.A. ¡Sales of services Chile CLP 8,661 8,661 8,162 8,162
77.762.940-9 | Anglo American Sur S.A. Purchase of products Chile US$ 643,832 (643,832) 711,384 (711,384)

Extranjera [Deutsche Geissdraht GmbH Dividends received Alemania EURO – – 946
76.063.022-5 |Inca de Oro S.A. ¡Sales of services Chile CLP 198 16 214 29
77.781.030 |Kairos Mining Services Chile CLP 21,050 (21,050)| 31,281 (31,281)
77.781.030 |Kairos Mining ¡Sales of services Chile CLP 1 1
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$ 23,656 (23,656)| 23,443 (23,443)
76.255.054-7 [Planta Recuperadora de Metales SpA ¡Sales of services Chile CLP 8,087 8,087 940 940
76.255.054-7 [Planta Recuperadora de Metales SpA ¡Sales of goods Chile US$ 65 65 4,077 4,077
76.255.054-7 [Planta Recuperadora de Metales SpA Loan recovery Chile CLP 5,966 3,242 –
96.701.340-4 |Soc. Contractual Minera El Abra Dividends received Chile US$ 3,062 – 4,900
96.701.340-4 |Soc. Contractual Minera El Abra Buy shares Chile US$ 4,000 4,000 – –
96.701.340-4 |Soc. Contractual Minera El Abra Purchase of products Chile US$ 242,900 (242,900) 293,173 (293,173)
96.701.340-4 |Soc. Contractual Minera El Abra ¡Sales of goods Chile US$ 39,046 39,046 24,79 24,79
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$ 100 100 113 113
96.701.340-4 |Soc. Contractual Minera El Abra ¡Other purchases Chile US$ 39 (39) – –

Additional information

The current account receivable from Planta Recuperadora de Metales SpA. corresponds to the loan
agreement granted to build its plant, which was signed on July 7, 2014.

F-49

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.

4. Inventories

The detail of inventories as of December 31, 2019 and 2018, is as follows:

Current Non-current
Items 12/31/2019 12/31/2018 12/31/2019 12/31/2018
ThHUS$ TRUS$ TRUS$ ThHUS$

Finished products 210,309 446,344 –

Subtotal finished products, net 210,309 446,344 – –
Products in process 1,150,060 1,137,605 585,681 457,070
Subtotal products in process, net 1,150,060 1,137,605 585,681 457,070
Material in warehouse and other 723,264 555,504

Obsolescence allowance adjustment (162,498) (96,805)

Subtotal material in warehouse and other, net 560,766 458,699 – –
Total Inventories 1,921,135 2,042,648 585,681 457,070

The amount of inventories of finished goods transferred to cost of sales for the year ended December 31,
2019 and 2018 was ThUS$10,007,361 and ThUS$11,145,242, respectively.

For the year ended December 31, 2019 and 2018, the Corporation has not reclassified strategic
inventories to Property, Plant and Equipment.

The reconciliation of changes in the allowance for obsolescence ¡s detailed below:

Changes in Allowance for Obsolescence 1213112019 123112018
ThHUS$ ThUS$
Opening Balance (96,805) (94,083)
Period provision (65,693) (2,722)
Closing Balance (162,498) (96,805)

For the year ended December 31, 2019 and 2018, the Corporation recognized write-offs of damaged
inventories for ThUS$35.136 and ThUS$4,004, respectively.

The provision for the net realizable value of inventories was ThUS$38,144 for the year ended December
31, 2019 (ThUS$31,889 for the year ended December 31, 2018).

During the year ended December 31, 2019 and 2018, increases in the provision for net realizable value
were ThUS$6,255 and ThUS$28,890, respectively.

F-50
As of December 31, 2019 and 2018, there are no unrealized gains or losses recognized on the
intercompany sales of inventories of finished products.

As of December 31, 2019 and 2018, there are no inventories pledged as security for liabilities.
Income taxes and deferred taxes

a) Composition of income tax expense

1/1/2019 1/1/2018
Items 12/31/2019 | 12/31/2018

ThUS$ TRUS$
Current income tax (7,484) (92,270)
Eftect of Deferred Taxes (384, 160) (249,217)
Adjustments to current tax from the prior period – (19,956)
Other (1,601) 4,160
Total tax expense (393,245) (357,283)

b) Deferred tax assets and liabilities:

The following table details deferred tax assets and liabilities:

Deferred tax assets 12/31/2019 12/31/2018
ThUuS$ Thus$
Provisions 1,556,662 1,429,060
Right of use liabilities 4,808 13,162
Tax loss 613,340 250,255
Other 2,906 4,603
Total deferred tax assets 2,177,716 1,697,080
Deferred tax liabilities 1213112019 1213112018
TRUS$ TRUS$
Tax on mining activity 235,931 163,280
Property, plant and equipment 1,386,874 889,841
Postemploy ment benefit obligations 14,676 10,346
Accelerated depreciation for tax purposes 5,198,975 5,017,532
Fair value of mining properties acquired 108,518 108,518
Hedging derivatives — future contracts 14,889 12,282
Undistributed profits of subsidiaries 34,998 50,006
Total deferred tax liabilities 6,994,861 6,251,805

F-51
The following tables sets forth the deferred taxes as presented in the statement of financial position:

Deferred taxes 12/31/2019 12/31/2018
TRUS$ TRUS$
Non-current assets 43,736 31,443
Non-current liabilities 4,860,881 4,586, 168
Net 4,817,145 4,554,725

The effects of deferred taxes on the components of other comprehen

sive income are as follows:

Deferred taxes on components of other comprehensive income

12/31/2019 | 12/31/2018
THUS$ ThUS$

(Charge) credit cash flow hedge
Defined Benefit Plans

52,072 (67,704)

69,667 33,148

Total deferred tax effect on components of other comprehensive income (loss)

121,739 (34,556)

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

12/31/2019
Reconciliation of tax rate Taxable Base At the Tax rate

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

ES ThHUSs$ Thus$ THus$ ES ThUS$ ES
Tax effect on the income (loss) before taxes 404,692 404,692 404,692 (101,173) (161,877) (20,235) (283,285)
Tax effect on the income (loss) before taxes of subsidiaries 3,081 3,081 3,081 (770) (1,232) (154) (2,156)
Tax effect consolidated profit (loss) before taxes 407,773 407,773 407,773 (101,943) (163,109) (20,389) (285,441)
Permanent differences:
First category income tax (25% ) 86,549 (21,637) – (21,637)
Specif tax for state-owned entities Art. 2 D.L. 2398 (40% ) 60,799 . (24,320) (24,320)
Specific tax on mining activities 1,136,260 (56,813) (56,813)
Single Tax Art 21 Inc. N*1 (3,417)
Differences imposed previous years – – (1,617)
TOTAL TAX EXPENSE (123,580) — (187,429) — (77,202) (393,245)

12/31/2018
Reconciliation of tax rate Taxable Base At the Taxrate

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

ES ThHUSs$ Thus$ THus$ ES ThUS$ ES
Tax effect on the income (loss) before taxes 498,216 498,216 498,216 (124,554) (199,286) (24,911) (348,751)
Tax effect on the income (loss) before taxes of subsidiaries 48,814 48,814 48,814 (12,204) (19,526) (2,441) (34,171)
Tax effect consolidated profit (loss) before taxes 547,030 547,030 547,030 (136,758) (218,812) (27,352) (382,922)
Permanent differences:
First category income tax (25% ) (96,902) 24,226 – 24,226
Specific tax for state-owned entities Art. 2 D.L. 2398 (40% ) (114,392) – 45,757 45,757
Specific tax on mining activities 868,189 (43,409) (43,409)
Single Tax Art 21 Inc. N*1 (3,856)
Others – – 2,921
TOTAL TAX EXPENSE (412,532) — (173,055) — (70,761) (357,283)

F-52

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.

For the calculation of deferred taxes, the Corporation has applied a General Tax Regime, with first-
rate tax rates for the 2019 and 2018 business years of 25%. There ¡is no option to avail of the regimes
established in article 14, as a State Company. Meanwhile, the national subsidiaries and associates,
by default, have applied the Partially Integrated Taxation system with a rate of 27% for both years.
Foreign subsidiaries and associates have applied the tax rates in force in their respective countries.
In relation to the specific tax on mining activities the tax rate applicable is 5% under Law No. 20469.

The Corporation, as a Taxpayer of first category, is liable to the single Tax of 40%, contained in the
first paragraph of Article 21 of the Income Tax Law No. 824, in numbers ¡), ii) and ii) , 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):

12/31/2019 | 12/31/2018

Current Tax Assets

ThUS$ TRUS$
Taxes to be recovered 22,719 13,645
Total Current Tax Assets 22,719 13,645

12/31/2019 | 12/31/2018
THUS$ US$

Current Tax Liabilities

Monthly Provisional Pay ment Provision 10,672 6,910
Provision Tax 3,185 3,867
Total Current Tax Liabilities 13,857 10,777

12/31/2019 | 12/31/2018
THUS$ TRUS$

Non-Current Tax Assets 222,169 143,606

Total Non-Current Tax Assets 222,169 143,606

Non-Current Tax Assets

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 realized in the current period. The Corporation has tax loss carryforwards of
ThUS$874,222.

F-53
7. Property, Plant and Equipment

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

Property, Plant and Equipment, gross 1213112019 1213112018

TRUS$ THUS$
Construction in progress 6,234,130 8,808,652
Land 173,316 173,926
Buildings 5,963,605 5,403,295
Plant and equipment 19,217,547 15,894,046
Fixtures and fitings 58,631 58,807
Motor vehicles 2,080,124 2,062,920
Land improvements 6,504,063 5,619,800
Mining operations 8,751,368 7,214,915
Mine development 4,546,765 4,117,362
Assets by right of use 692,262 –
Other assets 1,164,163 1,380,354
Total Property, Plant and Equipment, gross 55,385,974 50,734,077

Property, Plant and Equipment, accumulated depreciation 1213112019 1213112018

TRUS$ THUS$

Construction in progress –

Land 9,975 8,964
Buildings 3,152,227 3,048,902
Plant and equipment 10,618,524 10,125,253
Fixtures and fitings 47,431 43,878
Motor vehicles 1,480,020 1,378,911
Land improvements 3,482,960 3,267,244
Mining operations 5,253,285 4,728,591
Mine development 893,575 804,318
Assets by right of use 260,110 –
Other assets 487,703 573,018
Total Property, Plant and Equipment, accumulated depreciation 25,685,810 23,979,079

Property, Plant and Equipment, net 12/31/2019 12/31/2018

THUS$ ThHUS$
Construction in progress 6,234,130 8,808,652
Land 163,341 164,962
Buildings 2,811,378 2,354,393
Plant and equipment 8,599,023 5,768,793
Fixtures and fitings 11,200 14,929
Motor vehicles 600,104 684,009
Land improvements 3,021,103 2,352,556
Mining operations 3,498,083 2,486,324
Mine development 3,653,190 3,313,044
Assets by right of use 432,152 –
Other assets 676,460 807,336
Total Property, Plant and Equipment, net 29,700,164 26,754,998

F-54
b) Movement of Property, plant and equipment:

Fixed
Movements Construction in | Lana | Buildings | Plantand | installations | Motor Ground Mining — |Development| Assetsby | Other Total
equipment and vehicles |improvements | operations | ofmines | rightofuse | assets
Thus$ progress .
accessories
Reconciliation of changes in properties, plant and equipment
Properties, plant and equipment at the beginning of the period. Opening Balance 1/1/2019 8,808,652| 164,962| 2,354,303| 5,768,793] 14,920| 684,009 2,352,556] — 2,486,324] — 3,313,044 807,336| 26,754,998
Changes in property, plant and equipment
Increases other than those from business, property, plant and equipment combinations 3,602,113 . 1,750 14,525 23 7.852 19,128 521,191 . 109,505] — 14,917| — 4,291,004
Depreciation, property, plant and equipment =| (1,010)| — (162,340) (649,076) (8,663)| — (109,913) (215,641) (796,714) (87,933)| — (143,369)| (47,606)| (2,217,265)
Increases (decreases) in transfers and other changes, properties, plant and equipment
Increases (decreases) by transfers from constructions in process, properties, plant and equipment (6,173,762) -| 646,591] 3,511,039 6 17,702 816,773 1,176,508 5,049 – 94 –
Increases (decreases) by other changes, properties, plant and equipment 4,3380] — (611)| — (23,221) (28,739) (94) 1,874 48,561 110,774 423,030 465,558| — (95,338)] 906,183
Increase (decrease) by transfers and other changes, properties, plant and equipment (6,169,373)| — (611)| — 623,370| 3,482,300 (68) 19,576 865,334 1,287,282 428,079 465,558| (95,244)| 906,183
Dispositions and withdrawals of service, property, plant and equipment
Retirements, property, plant and equipment (7,262) | (5795) (17,519) (1) (1,420) (274) . 458] (2.943)] (34,756)
Dispositions and withdrawals of service, property, plant and equipment (7,262) | (5,795) (17,519) 0) (1,420) (274) – – 458] (2,943)| (34,756)
Increase (decrease) in properties, plant and equipment (2,574,522) (1,621) 456,985| 2,830,230 (3,729)| (83,905) 668,547 1,011,759 340,146 432,152| (130,876)| 2,945,166
Properties, plant and equipment at the end of the period. Closing balance 12/31/2019 6,234,130] 163,341] 2,811,378] 8,599,023 11,200| 600,104 3,021,103| 3,498,083| 3,653,190 432,152| 676,460| 29,700,164
Fixed
Movements o Plantand | installations | Motor Mining Assets by | Other
Construction in | Land a . . Ground . Development| Total
Buildings | equipment and vehicles | operations : right ofuse | assets
Thus$ progress . improvements of mines
accessories
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| 2,490,520] 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, property, plant and equipment combinations 3,582,688 . 138 21,028 376 1,383 484 375,575 1,125 “| 38,478| 4,021,275
Depreciation, property, plant and equipment | (1.011)| — (167,547) (665,721) (8,669)| — (113,872) (218,323) (859,955) (80,153) -| (70,299)| (2,180,550)
Impairment losses 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 – 359 .
Increases (decreases) by other changes, properties, plant and equipment (851,945)| — (1,113) 11,228 46,177 (68) 2,879 135,714 342,497| (202,839) | 7536 (9,934)
Increase (decrease) by transfers and other changes, properties, plant and equipment (1,633,310) — (1,113)| — 114,093 859,078 579 54,637 327,700 363,665] (103,158) «| 7,895 (9,934)
Dispositions and withdrawals of service, property, plant and equipment
Retirements, property, plant and equipment (143,069) . (235) (7,100) (199) (1,541) . . – (263)| — (152,407)
Dispositions and withdrawals of service, property, plant and equipment (143,069) – (235) (7,100) (199) (1,541) – – – – (263)| — (152,407)
Increase (decrease) in properties, plant and equipment 1,804,130| —(2,124)| _ (136,136) 108,608 (2,913)| (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] 164,962| 2,354,393| 5,768,793 14,929| 684,009 2,352,556] 2,486,324| 3,313,044, -| 807,336| 26,754,998

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 year ended December 31, 2019 and 2018 were ThUS$367,548
and ThUS$31 1,399, respectively. The annual capitalization average rate for the year ended
December 31, 2019 and 2018 was 4.19% and 4.42%, 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 12/31/2019 | 12/31/2018
ThUS$ TRUS$
Recognized in profit /(loss) 47,048 50,765
Cash outflows disbursed 47,551 62,857

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

Other assets, net 12/31/2019 | 12/31/2018
TRUS$ TRUS$

Leased assets (1) – 93,334
Mining properties from the purchase of Anglo American Sur S.A. 402,000 402,000
Maintenances and other major repairs 217,079 235,091
Other assets — Calama Plan 54,174 72,225
Other 3,207 4,686
Total other assets, net 676,460 807,336

(1) As of January 1, 2019, the lease agreements under lAS 17 and IFRIC 4 become part of the lease
agreements under IFRS 16 that are classified under the name of assets for right of use.

During the first quarter of 2018, US$103.6 million were reclassified from the line item Intangible
assets other than goodwill, to Construction in Progress of Property, plant and equipment,
corresponding to assets of the Continuous Mining project (see note 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.

The Corporation currently has no ownership restrictions relating to assets belonging to Property,
plant and equipment, except for leased assets whose legal title corresponds to the lessor.

F-56
j) 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.

k) According to the policy indicated in note 2 ¡), referring to impairment property, plant and equipment
and intangible assets, and as indicated in note 21, 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 December 31, 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 21).

1) As of December 31, 2019, the composition by asset class of assets for right of use ¡s:

Assets by right of use 12/31/2019 | 1/1/2019
TRUS$ THUS$
Buildings 18,286 24,069
Plant and equipment 298,463 283,750
Motor vehicles 11,504 140,960
Fixtures and fitings 97,952 12,028
others assets by right ofuse 5,947 6,922
Total Assets by right of use 432,152 467,729

m) The Corporation presents at December 31, 2019 a reclassification of property, plant and equipment
to the item intangible assets other than goodwill which amounts to ThUS$2,090.

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 (all material associates’ principal place of business is Chile) :

Equity Interest Carrying Value Net income (loss)
Associates Taxpayer Funct. Cuurenc. 1/1/2019 1/1/2018
Numbers 12/31/2019 12/31/2018 12/31/2019 12/31/2018 12/31/2019 12/31/2018
% % ThUS$ THUS$ ThUS$ ThUS$
Agua de la Falda S.A. 96.801.450-1 USD 42.26% 42.26% 4,864 4,953 (279) (329)
Anglo American Sur S.A. 77.762.940-9 USD 29.5% 29.5% 2,850,171 2,835,412 19,852 99,709
Deutsche Geissdraht GmbH Foreign USD 0.0% 40.0% – – – 1,159
Inca de Oro S.A. 73.063.022-5 USD 33.19% 33.19% 12,675 12,913 (101) (42)
Kairos Mining S.A. 76.781.030-K USD 40.00% 5.00% 82 – 29 –
Minera Purén SCM 76.028.880-2 USD 35.0% 35.0% 9,934 9,902 32 8
Planta Recuperadora de Metales SpA 76.255.054-7 USD 34.0% 34.0% 10,914 10,365 549 55
¡Sociedad Contractual Minera El Abra 96.701.340-4 USD 49.0% 49.0% 594,883 610,339 (12,799) 10,181
Sociedad GNL Mejillones S.A. 76.775.710-7 USD 0.0% 37.0% – 84,409 5,920 8,373
TOTAL 3,483,523 3,568,293 13,203 119,114

F-57

Associates
Agua de la Falda S.A.

As of December 31, 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 December 31, 2019, Codelco
holds a 49% ownership interest, with the remaining 51% owned by Cyprus El Abra Corporation, a
subsidiary of Freeport-McMoRan Copper 8 Gold Inc.

On October 9, 2019, El Abra increased its capital by ThUS$4,000 represented by 300 shares.
Codelco bought all the shares and made payment through a contribution in the domain of
Concesiones Mineras. Along with the subscription of shares, Codelco sold 153 shares (51%) to
Cyprus El Abra Corporation, thus maintaining the structure and percentage participation of the
company’s shareholders.

The company business activities involve the extraction, production and selling copper cathodes.
Sociedad Contractual Minera Purén

As of December 31, 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 held a 37% ownership interest, with the remaining 63% owned by
Suez Energy Andino S.A. These 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.

F-58
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 22) and a
result after tax of US $ 36 million.

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.

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, 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 December 31, 2019, LS-Nikko Copper Inc, is the controlling shareholder of this company based
on the control elements set out in the shareholders’ agreement.

The principal business activity of the company is the processing of intermediate products of the
refining and processing of copper and other metals aiming to recover the copper, other metals and
other sub products, their transformation to commercial products and the selling and distribution of all
classes of goods or inputs derived from such process.

F-59
Deutsche Giessdraht GmbH

On July 31, 2018 the share sale agreement was finalized representative of the shareholding in
Deutsche Giessdraht GmbH maintained by Codelco Kupferhandel GmbH. (CK), which until before
that date was the holder of a 40% stake in the capital of DG.

The acquiring company of the shares was the Aurubis Company AG, which was, until before the sale
transaction, the majority shareholder of DG. The result after taxes of this transaction was Euro
15,214 Thousands (ThUS$18,172 in its equivalence to the exchange rate of the date of the
transaction).

Anglo American Sur S.A.

As December 31, 2019, the controlling shareholder of Anglo American Sur S.A. is Inversiones Anglo
American Sur S.A. holding a 50.06% ownership interest, while the non-controlling interest is held by
Inversiones Mineras Becrux SpA., which in turn is a subsidiary controlled by Codelco with a 67.8%
ownership interest. Consequently, Codelco exercises significant influence in Anglo American Sur
S.A. through its indirect ownership interest of 29.5%.

On December 21, 2017, according to archive No. 12285 / 2017, by public deed, it was agreed
between the shareholders to merge the Acrux SpA Mining Investment Company (“Absorbed
Company”) into the Investment Company Minera Becrux SpA (“Absorbing Company”), which took
effect as of December 22, 2017, where the Absorbing Company acquired all the assets and liabilities
of the Absorbed Company, which was to 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.

F-60
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 December 31, 2019, the control of the company lies in Honeywell Chile S.A. which owns 60%
of the shares while Codelco owns the remaining 40%.

The purpose of the company is to provide automation and control services for industrial and mining
activities and to provide technology and software licenses.

The following tables provide details of asset and liabilities of the associates as of December 31, 2019
and 2018, and their profit (loss) for the year ended December 31, 2019 and 2018:

Assets and Liabilities 12/31/2019 12/31/2018
TRUS$ TRUS$
Current Assets 1,735,588 1,805,003
Non-current Assets 5,248,569 5,637,321
Current Liabilites 618,644 1,008,086
Non-current Liabilities 1,793,879 1,699,529
1/1/2019 1/11/2018
Net Income 12/31/2019 12/31/2018
TRUS$ ThUS$
Revenue 2,825,062 3,256,402
Cost of sales (2,646,416) (2,665,805)
Profit for the year 178,646 590,597
Movements of Investment in Associates 1/1/2019 1/1/2018
12/31/2019 12/31/2018
TRUS$ TRUS$
Opening balances 3,568,293 3,665,601
Contributions 2,200 338
Dividends (3,062) (213,172)
Result of the period 13,203 119,114
Sales (90,328) –
Other comprehensive income (6,648) (710)
Other (135) (2,878)
Final balance 3,483,523 3,568,293

The following tables provide details of asset and liabilities of the principal associates as of December
31, 2019 and 2018, and their profit (loss) for the years ended December 31, 2019 and 2018.

F-61
Anglo American Sur S.A.

Assets and liabilities 12/31/2019 12/31/2018
TRUS$ TRUS$
Current Assets 1,099,695 1,164,724
Non-current Assets 4,083,739 4,104,271
Current Liabilities 531,089 890,874
Non-current Liabilites 1,405,143 1,226,503
1/1/2019 1/1/2018
Net Income 12/31/2019 12/31/2018
TRUS$ TRUS$
Revenue 2,286,876 2,543,730
Costof sales (2,174,029) (2,158,834)
Profit for the y ear 112,847 384,896

Sociedad Contractual Minera El Abra

Assets and liabilities 1213112018 1213112018
ThUs$ ThUS$
Current Assets 590,850 576,167
Non-current Assets 1,007,012 1,013,165
Current Liabiliies 79,422 73,458
Non-current Liabilities 304,394 270,283
1/1/2019 1/1/2018
Net Income 12/31/2019 12/31/2018
TRUS$ TRUS$
Revenue 493,531 596,060
Cost of sales (519,651) (575,283)
Profit (loss) for the year (26,120) 20,777

b) Additional information on unrealized profits (losses)

Codelco enters into transactions for the purchase and sale of copper with Sociedad Contractual
Minera El Abra. As of December 31, 2019 and 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 December 31, 2019, (as of
December 31, 2018: ThUS$3,920).

F-62
e)

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.

F-63
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 have 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 ¡ts 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, 2019 and 2018, there are no indicators of impairment nor reversal, therefore,
there have been no adjustments recognized to the carrying amounts of the assets.

F-64
9.

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, 2019 was income of ThUS$33,290 (income of ThUS$113,544 for the year ended
December 31, 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$13.438 for the year ended December 31,
2019 (an expense of ThUS$13,835 for year ended December 31, 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.

Intangible assets other than goodwill

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

This item is composed of the following:

Intangible assets composition 12/31/2019 12/31/2018
TRUS$ TRUS$
Intangible assets with finite useful lives, net 37,789 40,421
Intangible assets with indefinite useful lives 10,048 7,958
Total 47,837 48,379

F-65
b) Carrying amount and accumulated amortization:

12/31/2019
Accumulated
intangible assets Gross Amortization Net
ThUS$ TRUS$ TRUS$
Trademarks, patents and licenses 28 – 28
Water rights 10,048 – 10,048
Sofware 2,738 (1,745) 993
Other intangible assets 36,791 (23) 36,768
Total 49,605 (1,768) 47,837
12/31/2018
Accumulated
intangible assets Gross Amortization Net
ThUS$ TRUS$ TRUS$
Trademarks, patents and licenses 28 – 28
Water rights 7,958 – 7,958
Sofware 2,803 (1,351) 1,452
Other intangible assets 38,950 (9) 38,941
Total 49,739 (1,360) 48,379

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

Trademarks, | y… Technological

Movements patents and | ¿yy | Software | devolopmentand | 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 goodwil 13 40 53
Amortization, intangible assets other than goodwil (594) (2,210) (2,804)
Increases (decreases) in transfers and other changes, intangible assets other than goodwill
Increases (decreases) in transfers and other changes, intangible assets other than goodwil 2,090 – – 2,090
Increases (decreases) due to other changes, intangible assets other than goodwil – 122 0] 119
Increase (decrease) in transfers and other changes, intangible assets other than goodwill 2,090 122 6 2,209
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 – 2,090 (459) (2,173) (542)
Intangible assets other than goodwill. Final Balance 12/31/2019 28| 10,048 993 36,768 47,837

F-66

Trademarks, Technological

Water

Movements patents and rights Software | development and | Other Total
licenses innovation

Reconciliation of changes in intangible assets other than goodwill

Intangible assets other than goodwill. Opening balance (1/1/2018) 28 7,959 1,693 175,710 33,727 219,117

Changes in intangible assets other than goodwill

increases other than those arising from business combinations, intangible assets other than goodwill – – 586 704 9,261 10,551

‘Amortization, intangible assets other than goodwill – – (690) – (590)

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 (decrease) due to other changes, intangible assets other than goodwill – (1) (62) – (859) (422)

Increase (decrease) in transfers and other changes, intangible assets other than goodwill – (1) (62) (103,638) (859)| — (104,060)

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. lt was expected that its subsequent
implementation would be at Chuquicamata Underground and of the new mining projects of Codelco.
During the 2018 period, project studies were carried out and Management decided not to continue
with it.

In view of the discontinuation 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 was 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 was US$138.1 million (US$48
million after taxes).

F-67
As of December 31, 2019 and 2018, there are no fully amortized intangible assets that are still in use.

For the year ended December 31, 2019 and 2018, research and technological development and
innovation expenditures recognized in assets were ThUS$7,536 and ThUS$6,816 (accrued),
respectively. On the other hand, research recognized in expense was ThUS$4,956 and
ThUS$10,042 (expended) for the year ended December 31, 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 1213112019 12/31/2018
Thus$ Thus$
Current assets 464,674 621,753
Non Current Assets 3,607,177 3,605,801
Current Liabiliies 281,973 305,030
Non Current Liabilities 1,086,975 1,122,471
1/1/2019 1/1/2018
Profit (loss) 12/31/2019 12/31/2018
THUS$ ThUuS$
Ordinary Income 1,140,473 2,119,617
Ordinary Expenses (1,176,801) (2,071,713)
Profit (loss) of year (36,328) 47,904

F-68
11. Current and non-current financial assets

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

12/31/2019
At fair value though . Total financial
Amortized Cost Derivatives for hedging
Classification in the statement of financial profit and loss — assets
position Hedging Cross currency
derivatives swap

ThUS$ ThUuS$ ThUs$ ThUuS$ ThUS$
Cash and cash equivalents 2,158 1,300,947 – – 1,303,105
Trade and other current receivables 723,619 1,864,649 – – 2,588,268
Non – current receivables – 98,544 – – 98,544
Current receivables from related parties – 20,874 – – 20,874
Non – current receivables from related parties – 15,594 – – 15,594
Other current financial assets – 171,636 1,315 – 172,951
Other non – current financial assets – 8,691 525 82,584 91,800
TOTAL 725,777 3,480,935 1,840 82,584 4,291,136

12/31/2018

At fair value though Amortized Cost Derivatives for hedging Total financial

Classification in the statement of financial profit and loss — assets

position Hedging Cross currency
derivatives swap

ThUS$ ThUuS$ ThUs$ ThUuS$ 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

» Fair value through profit or loss: As of December 31, 2019, this category mainly includes
receivables from provisional invoicing sales. Section 11.2.r.

» Amortized cost: lt corresponds to financial assets held within a business model whose objective is to
hold financial assets to collect contractual cash flows that are solely payments of principal and interest
on the principal outstanding. These assets are not quoted in an active market.

The effects on profit or loss recognized for these assets are mainly from financial income and
exchange differences from balances denominated in currencies other than the functional currency.

No material impairments were recognized in trade and other receivables.

F-69
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 28.

As of December 31, 2019 and 2018, there were no reclassifications between the different categories of
financial instruments, under the accounting standards at the respective dates.

12. 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:

12/31/2019
Current Non-current
Items Amortized Cost Hedging Amortized Cost Hedging

derivatives Total derivatives Total

LES LES LES Thus$ Thus$ Thus$
Loans from financial institutions 066,144 – 666,144 2,408,267 – 2,408,267
Bonds issued 572,587 – 572,587 13,617,358 – 13,617,358
Lease 127,761 – 127,761 305,110 – 305,110
Hedging derivatives – 11,496 11,496 – 148,987 148,987
Other financial liabilities 363 – 363 58,501 – 58,501
Total 1,366,855 11,496 1,378,351 16,389,236 148,987 16,538,223

12/31/2018
Current Non-current
Items Amortized Cost Hedging Amortized Cost Hedging

derivatives Total derivatives Total

LES LES LES 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

F-70
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 of Libor + 2.5%. This loan has no underlying guarantees given by Codelco.

On October 31, 2012, the credit agreement was amended, the new terms established an annual fixed
interest rate of 3.25% and a 20-year maturity, to be paid in 40 semi-annual installments of principal and
interest, and maintaining the “non-recourse” (no underlying guarantee) condition. Under previous
agreements, Mitsui is entitled to an additional interest equivalent to one-third of the savings obtained
by Gacrux under the renegotiated credit as compared to the conditions from the credit agreement
originally signed. Thus, Mitsui (through its subsidiary) held an option to acquire from Gacrux an
additional 15.25% of the shares of Inversiones Mineras Acrux SpA (“Acrux”), at a fixed price of
approximately US$998 million. These funds were fully allocated to a portion of Gacrux’s debt under the
Credit Agreement.

On November 26, 2012, Mitsui exercised the call option and acquired the additional ownership interest
in Acrux. The proceeds received were used by Codelco to partially pre-pay the debt with Mitsui.

On November 26, 2016, Codelco signed a credit agreement with Oriente Copper Netherlands BV
renegotiating the payment of principal at the end of the contract. The terms established an annual
interest rate of Libor +2.5% with a 5 year maturity to be payable in one installment at maturity with
semi-annual interest payment.

On May 26, 2017, Codelco signed a credit agreement with Oriente Copper Netherlands BV
renegotiating the semi-annual payment. The terms established an annual interest rate of Libor +2.5%
with a 5 year maturity to be payable in one installment at maturity with semi-annual interest payment.
The credit agreements obtained in 2016 and 2017, mentioned above, were paid on May 23, 2018.

As of December 31, 2019, the outstanding balance of the credit agreements is ThUS$591,933.

F-71
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 TRUS$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-72
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 US$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-73
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 US$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 TRUS$2,000,000
whose maturity will be, under one tranche, on September 30, 2029 corresponding to an amount of
ThUS$1,100,000 with a 3% annual coupon. The other tranche 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, in which a repurchase amount of US$
152 million was reached. The effect recognized in results associated with this refinancing was a charge
of US$2 million after taxes.

As of December 31, 2019 and 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-74
As of December 31, 2019, the details of loans from financial institutions and bond obligations are as follows:

1213112019
Principal Nominal Current | NO”
rincipal lomina urren
A A Loans with instal maturity | Mierest | a P . vee ofamortizat Payment e | Effective | current
uni Institution laturi urrency | Amoun e of amortization nteres alance
Number ‘Y — [financial entities Y late y ye Interest Rao [“erestRate balance
ate

THUS$ | THUS$

97.036.000-K | Chile Bilateral Credit — [Santander Chile 3/27/2020 | Floating | US$ |100,000,000| Maturty Semiannual | 2.36% | 2.36% | 100,597 –
97.018.000-1 | Chile Bilateral Credit — [Scotiabank Chile 9/7/2020 | Floating | US$ |100,000,000| Maturity Semizannual | 2.34% | 2.34% | 100,753 –
97.018.000-1 | Chile Bilateral Credit — [Scotiabank Chile 9/14/2020 | Floating | US$ | 65,000,000| Maturity Semizannual | 2.40% | 2.40% | 65473 –
97.018.001 | Chile Bilateral Credit — [Scotiabank Chile 12/20/2020 | Floating | US$ |300,000,000| Maturiy Semizannual | 2.63% | 2.63% | 300,241 –
Foreign USA Bilateral Credit — |MUFG Bank Ltd 9/30/2021 | Floating | US$ |250,000,000| Maturity Semizannual | 2.96% | 3.08% 3,409 | 249,690
Foreign USA Bilateral Credit. [Export Dev Canada 11/3/2021 | Floaing | US$ |300,000,000| Maturiyy Semizannual | 2.54% | 2.72% 1,205 | 299,265
Foreign Cayman Island | Bilateral Credit |[Scotabank 8 Trust (Cayman) Ltd | 4/13/2022 | Floating | US$ |300,000,000| Maturity Quarterly | 2.65% | 2.86% 1,701 | 298,834
Foreign Vapan Bilateral Credit — [Japan Bank International Cooperation. | 5/24/2022 | Floating | US$ | 224,000,000| Halfy early principal payments fom 2015 to the present. | Semizannual | 2.34% | 2.53% | 32,187 | 47,833
Foreign USA Bilateral Credit. [Export Dev Canada 7/17/2022 | Floating | US$ | 300,000,000| Matuity Semizannual | 2.83% | 2.95% 3,774 | 299,550
Foreign Panama Bilateral Credit. [Banco Latinaamericano de Comercio | 12/18/2026 | Floating | US$ | 75,000,000| Maturity Semizannual | 3.10% | 3.28% 77 74401
Foreign USA Bilateral Credit. [Export Dev Canada 10/25/2028 | Floating | US$ | 300,000,000| Maturiy Semizannual | 3.40% | 3.52% 4,505 | 298,390
Foreign USA Bilateral Credit. [Export Dev Canada 7/25/2029 | Floating | US$ | 300,000,000| Matuity Semizannual | 3.42% | 3.62% 4,393 | 296,200
Foreign Holland Bilateral Credit — [Oriente Copper Netherlands B.V. — |11/26/2032| Fixed | US$ |874,959,000| Semi-annual Semizannual | 3.25% | 5.42% | 47,829 | 544,104
TOTAL 666,144 | 2,408,267
Principal Current Non-current

Taxpayer Country Maturity Interest Rate Currency Amount Type of Pay ment of Nominal Effective balance balance
1D Number amortization interest Interest Rate | Interest Rate
Thus$ Thuss$

144-A REG.S Luxembourg 11/4/2020 Fixed US$ 1,000,000,000 At Maturity 3.75% 3.89% 396,742 –
144-A REG.S Luxembourg 11/4/2021 Fixed US$ 1,150,000,000 At Maturity 3.88% 4.02% 1,377 226,416
144-A REG.S Luxembourg 7/17/2022 Fixed US$ 1,250,000,000 At Maturity Semi-annual 3.00% 3.16% 4,978 410,882
144-A REG.S Luxembourg 8/13/2023 Fixed US$ 750,000,000 At Maturity Semi-annual 4.50% 4.74% 4,627 332,188
144-A REG.S Luxembourg 7/9/2024 Fixed EURO 600,000,000 At Maturity Annual 2.25% 2.48% 7,236 666,384
BCODE-B Chile 4/1/2025 Fixed U.F 6,900,000 At Maturity 4.00% 3.24% 2,595 270,374
144-A REG.S Luxembourg 9/16/2025 Fixed US$ 2,000,000,000 At Maturity 4.50% 4.75% 14,003 1,055,236
BCODE-C Chile 8/24/2026 Fixed U.F 10,000,000 At Maturity 2.50% 2.48% 3,292 394,774
144-A REG.S Luxembourg 8/1/2027 Fixed US$ 1,500,000,000 At Maturity 3.63% 4.20% 22,607 1,443,875
REG.S Luxembourg 8/23/2029 Fixed US$ 130,000,000 At Maturity 2.87% 2.98% 1,328 128,808
144-A REG.S Luxembourg 9/30/2029 Fixed US$ 1,100,000,000 At Maturity Semi-annual 3.00% 3.14% 8,385 1,087,092
REG.S Luxembourg 11/7/2034 Fixed HKD 500,000,000 At Maturity Annual 0.00% 0.00% 275 63,593
144-A REG.S Luxembourg 9/21/2035 Fixed US$ 500,000,000 At Maturity Semi-annual 5.63% 5.78% 7,804 492,115
144-A REG.S Luxembourg 10/24/2036 Fixed US$ 500,000,000 At Maturity Semi-annual 6.15% 6.22% 5,713 496,544
REG.S Luxembourg 7/22/2039 Fixed AUD 70,000,000 At Maturity Annual 0.00% 0.00% 783 48,519
144-A REG.S Luxembourg 7/17/2042 Fixed US$ 750,000,000 At Maturity Semi-annual 4.25% 4.41% 14,465 733,450
144-A REG.S Luxembourg 10/18/2043 Fixed US$ 950,000,000 At Maturity Semi. 5.63% 5.76% 10,804 933,573
144-A REG.S Luxembourg 11/4/2044 Fixed US$ 980,000,000 At Maturity 4.88% 5.01% 7,481 961,425
144-A REG.S Luxembourg 8/1/2047 Fixed US$ 1,250,000,000 At Maturity 4.50% 4.73% 23,387 1,205,925
144 – REG.S Luxembourg 5/18/2048 Fixed US$ 600,000,000 At Maturity 4.85% 4.91% 3,438 594,487
144-A REG.S Luxembourg 2/5/2049 Fixed US$ 1,300,000,000 At Maturity Semi. 4.38% 4.97% 22,874 1,182,292
144-A REG.S Luxembourg 1/30/2050 Fixed US$ 900,000,000 At Maturity Semi-annual 3.70% 3.78% 8,393 889,406
TOTAL 572,587 13,617,358

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

F-75

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

TUSTA0TE
, Principal . Current
Taxpayer 1D Loans with financial . e Paymentof | Nominal | Effective Non:current balance
Namiber Country nto Institution Maturity — | Interest Rate | Currency Amount Type of amortization Snterest. Interest Ratelnterest Rate] P2Íance
Thus$ Thus$
97.018.001 [Che Bilatera Credit [Scofabank Call 12/20/2019 | Floaing | US$ 300,000,000] Maturiy Semiannua | 360% | 374% 300,059 –
Foreign USA Bilateral Credit [MUFG Bank Ltd algo/2021 | Floaing | US$ 250,000,000] Maturiy Semiannual | 327% | 337% 3,768 249,579
Foreign USA Bilateral Credit. — [ExportDew Canada 1118/2021 | Floaing | US 300.000.000] Mati Semisannual | 344% | 362% 1,604 298,875
Foreign Cayman island — | Bilateral Credit — [Scotiabank 8 Trust (Cayman) Ltd 4/18/2022 | Floaing | USS 300.000.000] Maturiy Quaery | 3.09% | 330% 1,980 298,401
Foreign USA Bilateral Credit. — [ExportDew Canada 77/2022 | Floaing | US$ 300,000,000] Maturity Semisannual | 338% | 348% 1,915 299.432
Foreign USA Bilateral Credit. — [ExportDew Canada 10/25/2028 | Floating | US 300.000.000] Maturiy Semisannual | 396% | 409% 2212 298,250
Foreign Vapan Bilateral Credit [MUFG Bank Ltd 5/24/2029 | Floaing | US$ 96,000,000] Haltyeary principal payments fom 2015 o he present. Semiannual | 344% | 384% 12,016 –
Foreign Vapan Bilateral Credit. Japan Bank Intematonal Cooperation 5/24/2022 | Floaing | US$ 224,000,000| Haltyeary principal payments fom 2015 to he present. Semiannual | 334% | 354% 32,363 79674
Foreign Holand Bilateral Credit. — [Oriente Copper Nethertands B.V, 11/26/2082. | Fixed | US$ 874,959,000| Semisamual Semisannual | 325% | 542% 48490 582,867
Foreign Gemeny Credit Line HSBC Tnkaus 6 Floaing | Euo 125% | 125% 408 –
Oherinsttions 56 –
TOTAL 404871 2,107,078
roxpayer Principal Nominal | Efecive | — Current Non-current
on P A County Maturity — | Interest Rate| Currency Amount Type ofamortizaion | Paymentofinterest | Interest | Interest balance balance
umber
Rate Rate ThUS$ ThUS$
144-A REG.S Luxembourg 1/15/2019 Fixed US$ 00,000,000 AtMaturily 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 7/09/2024 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 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$ 00,000,000 At Maturity Semi-annual 5.63%| 5.78% 7,925 491,814
144-A REG.S Luxembourg 10/24/2036 Fixed US$ 00,000,000 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 11/4/2044 Fixed US$ 980,000,000 At Maturity Semi-annual 4.88%| 5.01% 7,522 961,050
144-A REG.S Luxembourg 8/1/2047 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$ 00,000,000 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.

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

F-76

12/31/2019 Current Non-current
Debtor’s Name Currency | Effective interest rate No Payments of Interest | Less than 90 days | More than 90 days | Currenttotal | 1to3years | 3to5years | More than 5 years | Non-current total
Santander Chile US$ 2.36% 2.36% Semiannual 101,165 101,165 – – – –
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 – – – –
Scotiabank Chile US$ 2.63% 2.63% Semi-annual – 304,054| 304,054 – – – –
MUFG Bank LTD US$ 3.06% 2.96% Semi-annual 3,840 3,737 7,577 261,212 – – 261,212
Export Dev Canada US$ 2.72% 2.54% Semi-annual – 7,757 7,757 307,715 – – 307,715
Scotiabank 8 Trust (Cayman) Ltd US$ 2.86% 2.65% Quarterly 1,988 6,053 8,041 312,062 – – 312,062
Japan Bank International Cooperaton| US$ 2.53% 2.34% Semi-annual – 33,720 33,720 49,137 – – 49,137
Export Dev Canada US$ 2.95% 2.83% Semi-annual 4,411 4,293 8,704 317,291 – – 317,291
Export Dev Canada US$ 3.52% 3.40% Semi-annual 5,213 5,156 10,369 20,683 20,711 346,607 388,001
Export Dev Canada US$ 3.62% 3.42% Semi-annual 5,244 5,187 10,431 20,804 20,833 351,897 393,534
Banco Latinoamericano de Comercio | US$ 3.28% 3.10% Semi-annual – 2,380 2,380 4,722 3,545 80,886 89,153
BONO 144-A REG.S 2020 US$ 3.89% 3.75% Semi-annual – 409,690| 409,690 – – – –
BONO 144-A REG.S 2021 US$ 4.02% 3.88% Semi-annual – 8,796 8,796 235,777 – – 235,777
BONO 144-A REG.S 2022 US$ 3.16% 3.00% Semi-annual 6,187 6,187 12,374 437,224 – – 437,224
BONO 144-A REG.S 2023 US$ 4.74% 4.50% Semi-annual 7,535 7,535 15,070 30,138 349,940 – 380,078
BONO 144-A REG.S 2025 US$ 4.75% 4.50% Semi-annual 24,044 24,044 48,088 96,174 96,174 1,116,688 1,309,036
BONO 144-A REG.S 2027 US$ 4.20% 3.63% Semi-annual 27,188 27,188 54,376 108,750 108,750 1,663,125 1,880,625
REG.S 2029 US$ 2.98% 2.87% Semi-annual 1,865 1,865 3,730 7,459 7,459 148,649 163,567
BONO 144-A REG.S 2029 US$ 3.14% 3.00% Semi-annual 16,500 16,500 33,000 66,000 66,000 1,265,000 1,397,000
BONO 144-A REG.S 2035 US$ 5.78% 5.63% Semi-annual 14,063 14,063 28,126 56,250 56,250 809,375 921,875
BONO 144-A REG.S 2036 US$ 6.22% 6.15% Semi-annual – 30,750 30,750 61,500 61,500 869,000 992,000
BONO 144-A REG.S 2042 US$ 4.41% 4.25% Semi-annual 15,938 15,938 31,876 63,750 63,750 1,323,750 1,451,250
BONO 144-A REG.S 2043 US$ 5.76% 5.63% Semi-annual – 53,438 53,438 106,875 106,875 1,965,313 2,179,063
BONO 144-A REGS 2044 US$ 5.01% 4.88% Semi-annual – 47,175 47,775 95,550 95,550 1,935,500 2,126,600
BONO 144-A REG.S 2047 US$ 4.73% 4.50% Semi-annual 28,125 28,125 56,250 112,500 112,500 2,543,750 2,768,750
BONO 144 REG.S 2048 US$ 4.91% 4.85% Semi-annual – 29,100 29,100 58,200 58,200 1,283,850 1,400,250
BONO 144-A REG.S 2049 US$ 4.97% 4.38% Semi-annual 28,438 28,438 56,876 113,750 113,750 2,693,438 2,920,938
BONO 144-A REG.S 2050 US$ 3.78% 3.70% Semi-annual 11,100 22,261 33,361 66,782 66,782 1,745,911 1,879,476
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 TRUS$ 469,816 1,216,735| 1,686,551] 3,151,442] 1,543,889 20,680,379 25,375,711
[BONO BCODE-B 2025 UF] 3.24% [4.00% Semi-annual 138,000 138,000] 276,000 552,000 552,000 7,038,000 8,142,000
[BONO BCODE-C 2026 | 2.48% [250% Semi-annual 124,228 124,228] 248,457 496,913 496,913 10,496,914 11,490,740
Tolal UF. 262,228 262,228] —524,457| 1,048,913] 1,048,913 17,534,914 19,632,740
Subtotal ThUS$ 9,915 9,915 19,830 39,661 39,660 662,997 742,318
[BONO 144-A REG.S 2024 EURO | 2.48% [2.25% Annual – 13.500,000| 13,500,000| 27,000,000| 27,000,000 600.000,000| —654,000,000
Subtotal ThUS$ – 15,138 15,138 30,276 30,276 672,798 733,350
[REG.s 2039 AUD | 3.65%] 3.58% Annual – 2.506.000| 2.506,000| 5/012,000| 5,012,000 107,590,000| —117.614,000
Subtotal ThUS$ – 1,755| 1,755 3,509 3,509 75,332 82,350
[REG.S 2034 HKD | 2.92% | 2.64% Annual – 14,238,904| 14,238,904| 28,400,000| 28,438,904 642.077,808| —698,916,712
Subtotal ThUS$ – 1,829 1,829 3,648 3,653 82,468 89,769
Total TRUS$ 479,731 1,245,372] 1,725,103] 3,228,536| 1,620,987 22,173,974] 27,023,498

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

F-77

12/31/2018 Current Non-current
Creditor Name Currency Eee es o lerest Payments of Interest el so MA so Currenttotal 1103 years 3to5 years | More than 5 years| Non-current total
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$ 7,78% 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$ 4,71% 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 TRUS$ 430,943 824,602 1,255,545 2,906,039] 3,102,804] 15,390,597 21,399,440
BONO BCODE-B 2025 UE. 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 UE. 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 TRUS$ 15,443 15,443 30,885| 30,885 701,783 763,553
Total TRUS$ 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-78

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

12/31/2019 12/31/2018
Leases Gross Interest Present Value Gross Interest Present Value
ThUS$ ThUS$ ThUS$ ThUs$ ThUs$ ThuS$
Less than 90 days 39,668 (4,557) 35,111 6,092 (1,735) 4,357
Between 90 days and 1 year 105,315 (12,665) 92,650 21,529 (5,186) 16,343
Between 1 and 2 years 107,218 (12,248) 94,970 23,385 (5,943) 17,442
Between 2 and 3 years 77,753 (9,881) 67,872 20,079 (4,807) 15,272
Between 3 and 4 years 60,078 (6,813) 53,265 13,628 (3,699) 9,929
Between 4 and 5 years 32,384 (4,780) 27,604 20,756 (2,812) 17,944
More than 5 years 70,857 (9,458) 61,399 35,126 (8,574) 26,552
Total 493,273 (60,402) 432,871 140,595 (32,756) 107,839

The expense related to short-term leases, low-value assets and variable leases not included in the
measurement and or amortization of lease liabilities for year ended December 31, 2019 is presented in the

following table:

1/1/2019
Lease expense 12/31/2019
TRUS$
Short-term leases 84,252
Low value leases 5,684
Variable lease pay ments not included in the initial measurement or remeasurement of 1,488,400
liabiliies (ex cluding, where applicable, changes in indices or rates)
TOTAL 1,578,345

The operating lease expense recognized in the statement of comprehensive income for the year ended
December 31, 2018 totaled ThUS$191,311.

The table below details changes in CODELCO’s financing activities in the statement of cash flow,

including both cash and non-cash changes for the year ended December 31, 2019 and 2018:

Changes that do not represent cash flow
Initial Balance at Flows of cash Financial Cost Adjustment | Effective Interest | — Other Final Balance at
Liabilities forfinancing activities 41112019 From Used Total (m Exchange aceretion/amortiza 1213112019
US$ US$, MUS$ US$, US$ US$ US$ us$ US$ us$

Loans wih financial instiuions 2,511,949 | — 840,000] — (386625)| 453,375 104,592 – 1,606 2.889 3.074,41
Bond Obiigations 12,745,736 | 3543,190 | (2610,321)| 982878 591,920 (45.137) (85,452) 14,189,945
‘Obligatons for coverage 116,132 (21:167)| (21:67) 21,556 13,142 21.515 – 588 157,826
Paid Dividens – – – – – – –

Financial assets for hedge derivaives (107,700) – – 31,438 (6,322) (82,584)
Leases 107,839 (148,181)| (148,181) 31.416 (18,114) – 459,911 432,871
Capital contibution – 400,000 – 400,000 – – –

Other 64,343 (15488) (75483) 51,082 – – – 18,922 58,864
Total liabilities from financing activities 15.438,20 | 4,783,199 | (3241,777)[ 1,541,422 800,566 (18,671) 21,253 (83,846) 482,310 17,831,333

F-79

Changes that do not represent cash flow
Initial Balance at Flows of cash Financial Cost] Adjustment | Effective Interest ]— Other — | Final Balance at
Liabilities forfinancing activities 4/1/2018 From Used Total (1 Exchange aceretion/amortiza 12/31/2018
US$ THUS$ US$ THUS$ US$ LS US$ LS US$ US$

Loans wih financial insttuions 2460,384 | — 300.000] (333.027) (38027) 84,502 – – 2,511,949
Bond Obiigaions 12249.406 | 600.00| (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)| – – – –
Financial assets for hedge derivaives (137,544) – – – 66,177 (86,333) (107,700)|
Leases 102,711 (27,130) (27.130) 2,774 2,645 – 26,889 107,839
Capital contibuion -| 600,000 600,000 – – – –
Other 69,813 (e9200)| (99200) 82,886 – – – 10.844 64,343
Total liabilities from financing activities 14,828,666] 1,500,000] (1,622,089)| (122/089)| 734,196 3,407 (41,121) (4,904) 37,683 15,430,299

(1) The finance costs consider the capitalization of interest, which for the year ended December 31,
2019 and 2018, amounts to TRUS$367,548 and ThUS$311,399 respectively.

13. Fair Value of financial assets and liabilities

14.

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 December 31, 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 December 31, 2019 valuation ThUS$ THuS$
Financial liabilities:
Bond Obligations Amortized cost 14,189,945 15,522,523

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-80

The following table presents financial assets and liabilities measured at fair

value as of December 31,

2019:
Financial instruments measured at fair 12/31/2019
value Level 1 Level 2 Level 3 Total
ThUus$ ThUS$ ThUus$ ThUus$

Financial Assets

Provisional price sales contracts 723,619 723,619
Cross Currency Swap 82,584 82,584
Mutual fund units 2,158 – 2,158
Metal futures contracts 1,840 – 1,840
Financial Liabilities

Metal futures contracts 1,801 857 2,658
Cross Currency Swap 157,825 157,825

There were no transfers between the different levels during the year ended December 31, 2019.

15. Trade and other payables

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

Currents
Items 12/31/2019 12/31/2018
ThUs$ ThUS$
Trade pay ables 1,150,047 1,317,623
Payables to employees 8,390 21,561
Withholdings 113,147 72,681
Withholding taxes 76,387 60,621
Other payables 72,944 74,098
Total 1,420,915 1,546,584

F-81
16. Other provisions

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

Current Non-current

Other Provisions 12/31/2019 | 12/31/2018 | 12/31/2019 | 12/31/2018
THUSS THUS$ THUSS THUSS$

Sales-related provisions (1) 2,932 2,692 – –
Operating (2) 260,973 233,277 – –
Law No. 13196 109,643 93,309 – –
Other provisions 128,429 51,771 24,097 20,153
Onerous Contract (3) 195 3,200 81 4,534
Decommissioning and restoration (4) – – 2,016,625 1,506, 162
Legal proceedings – – 49,684 69,334
Total 502,172 384,249 2,090,487 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 29 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 1.05% for the obligations in
Chilean currency and 1.86% 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
12/31/2019
Changes Other Provisions, | Decommissioning . .
. Contingencies Total
non-current and restoration
ThUS$ ThUS$ ThUS$ ThUS$
Opening balance 24,687 1,506,162 69,334 1,600,183
Closing provision adjustment – 507,062 507,062
Financial expenses – 36,345 – 36,345
Pay ment of liabilities (406) – (21,366) (21,772)
Foreign currency translation (91) (32,160) (1,657) (33,908)
Provision increase (4,452) – – (4,452)
Other increases (decreases) 4,440 (784) 3,373 7,029
Closing Balance 24,178 2,016,625 49,684 2,090,487

F-82

1/1/2018
12/31/2018
Changes Other Provisions, | Decommissioning ¿. .
il Contingencies Total
non-current and restoration
ThUs$ ThUS$ ThUS$ ThUs$

Opening balance 26,524 1,636,695 48,583 1,711,802
Closing provision adjustment – (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 (decreases) 4,980 5,418 29,425 39,823
Closing Balance 24,687 1,506,162 69,334 1,600,183

17. 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, 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:

F-83

Inflation Health Care

Mortality tables used for projections

Average duration of future cash fows (years)
Expected Retirement Age (Men)

Expected Retirement Age (Women)

5.05%

CB14-RV14 CB14-RV14

7.21 17.13
60 60
59 59

7.50
60
59

: 12/31/2019 12/31/2018
Assumptions — —
Retirement plan Health plan Retirement plan Health plan
Annual Discount Rate 3.68% 3.68% 4.49% 4.93%
Voluntary Annual Turnover Rate for Retirement (Men) 5.00% 5.00% 4.00% 4.00%
Voluntary Annual Turnover Rate for Retirement (Women) 4.70% 4.70% 3.70% 3.70%
Salary Increase (real annual average) 3.26% – 4.08% –
Future Rate of Long-Term Inflation 3.00% 3.00% 3.00% 3.00%

5.05%

CB14-RV14 CB14-RV14

16.94
60
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.

. The detail of current and non-current provisions for employment benefits as of December 31, 2019 and

2018, is as follows:

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

Employees’ collective bargaining agreements 181,040 204,040 – –
Employee termination benefit 21,904 27,247 704,877 802,260
Bonus 35,195 60,616 –
Vacation 143,971 183,628 – –
Medical care programs (1) 497 460 561,709 496,323
Retirement plans (2) 37,479 17,620 8,181 8,355
Other 15,479 16,423 8,590 8,582

Total 435,565 510,034 1,283,357 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 retirement plan and post-employment benefit obligation,

is as follows:

F-84

1/11/2019 1/1/2018
12/31/2019 12/31/2018
Movements
Retirement plan | Health plan |Retirement plan] Health plan
us$ Thus$ Thus$ Thus$
Opening balance 829,507 496,783 882,090 523,649
Service cost 51,086 39,980 72,821 9,962
Financial cost 15,512 9,290 15,966 11,520
Paid contributions (115,970) (44,275) (57,166) (39,779)
Actuarial (gains)/losses 4,828 93,889 16,576 30,200
Transfer from other benefits – 3,335 –
Subtotal 784,963 595,667 933,622 535,552
(Gains) Losses on foreign exchange rate (58,182) (33,461) (104,115) (38,769)
Final Total 726,781 562,206 829,507 496,783

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 year ended December 31, 2019. Such was
charged to equity, which consists of an actuarial loss of ThUS$4,828, corresponding primarily to a
change in financial assumptions; this is broken down into a loss of ThUS$7,262 from the revaluation of
financial assumptions, specifically a profit of ThUS$11,513 from the revaluation of demographic
assumptions and a loss from experience of ThUS$9,079.

For the obligation generated by health benefit plans, an actuarial loss of ThUS$93,889 has been
determined, consisting primarily of an adjustment for experience loss made up of a loss to changes in
financial assumptions of ThUS$9,365; and an adjustment for experience loss of ThUS$84,524.

The balance of the defined benefit liability as of December 31, 2019, comprises a short term portion of
ThUS$21,904 and ThUS$497 for the termination indemnities plan and the medical care plan,
respectively. The expected amount of the defined benefit liability projected at December 31, 2020,
consists of ThUS$766,732 for the termination indemnities plan and ThUS$540,109 for the medical care
plan. The expected monthly average future disbursements related to defined benefit plans are of
ThUS$1,825 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:

F-85

Severance Benefits for Years of Service Low Medium High Reduction Increase
Financial effect on interest rates 3.430% 3.680% 3.930% 1.25% 1.21%
Financial effect on the real increase in income 3.008% 3.258% 3.508% -1.07% 1.10%
Demographic effect of job rotations 4.470% 4.970% 5.470% 0.95% 0.74%
Demographic effect on mortality tables -25.00% CB14-RV14, Chile] 25.00% -0.04% 0.04%

Health Benefits and Other Low Medium High Reduction Increase
Financial effect on interest rates 3.430% 3.680% 3.930% 3.37% 3.28%
Financial effect on health inflation 4.550% 5.050% 5.550% 6.79% 7.64%
Demographic effect, planned retirement age 58 / 57 60 / 59 62/61 3.93% 3.91%
Demographic effect on mortality tables -25.00% CB14-RV14, Chile] 25.00% 11.91% 8.23%

c. Retirement benefits and conflict termination bonus

The Corporation under its operational optimization programs seeks to reduce costs and increase labor
productivity, and through the incorporation of modern technologies and/or best management practices
has established employee retirement programs by making corresponding modifications to employment
contracts or collective bargaining agreements, with benefits encouraging early retirement. The early
retirement plans are recognized as a liability and expense as the Corporation can no longer withdraw
the offer of those benefits.

As of December 31, 2019 and 2018, the retirement plan provision current balance was ThUS$37,479
and ThUS$17,620, respectively, while the non-current balance was ThUS$8,181 and ThUS$8,355,
respectively. The non-current portion is associated with the provision related to the term of the
collective bargaining process that Codelco’s management negotiated during the month of December
2012 with the employee unions of the Chuquicamata Division. The non-current amounts recognized
have been discounted using a discount rate equivalent to that used for calculating employee benefits
provisions and whose outstanding balances are part of the balances as of December 31, 2019 and
2018.

d. Employee benefits expenses

The employee benefit expenses recognized for the year ended December 31, 2019 and 2018, are as
follows:

Expense by Nature of Employee 11112019 111/2018
12/31/2019 12/31/2018
Benefits

TRUS$ TRUS$
Benefits – Short term 1,519,659 1,731,593
Benefits – Post employ ment 39,980 9,962
Benefits – Termination 100,747 54,594
Benefits by years of service 51,086 72,821
Total 1,711,472 1,868,970

F-86
18. Equity

The Corporation’s total equity as of December 31, 2019 is ThUS$11,634,677 (ThUS$11,343,869 as of
December 31, 2018).

In accordance with article 6 of Decree Law 1350 of 1976, it is established that, before March 30 of each
year, the Board must approve the Corporation’s Business and Development Plan for the next three-year
period. Taking that plan as a reference, and keeping in mind the Corporation’s balance sheet for the
immediately preceding year and aiming to ensure its competitiveness, before June 30 of each year the
amounts that the Corporation shall allocate to the formation of capitalization funds and reserves shall be
determined by decree from the Ministries of Mining and Treasury.

Net income shown in the balance sheets, after deducting the amounts referred to in the previous
paragraph, shall belong to the State and becomes part of the Nation’s general income.

Pursuant to the Exempt Decree No. 184 of June 27, 2014 of the Ministry of Finance, the Corporation was
authorized to capitalize US$200 million of the net profit of the financial statements as of December 31,
2013.

Those resources were charged to the profits of 2014.

On October 24, 2014, the President of the Republic of Chile signed Law No. 20790. Such Law sets forth
an extraordinary capital contribution of up to US$3 billion for the Corporation during the period of 2014-
2018. The resources obtained from such capital contribution, together with the capitalization of the profits
obtained during such period — up to US$800 million — generated in that period, will serve to boost the
Investment Plan in mining projects, sustainability, mining development and renewal of equipment and
industrial plants. At December 31, 2014, there were no capitalized resources under such statute.

Pursuant to the Exempt Finance Decree (Decree No. 197 of December 31, 2015 issued by the Ministry of
Finance), the Corporation was authorized to capitalize US$225 million of the net profit registered in the
financial statements as of December 31, 2014.

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.

F-87
Both capital contributions were funded by the Public Treasury through the sale of financial assets.

On January 27, 2017, Law No. 20989 on extraordinary capitalization was enacted. The Law authorizes the
transferring of funds from application of the Copper Reserved Law to the Public Treasury, allowing an
extraordinary capitalization to Codelco of up to US$950 million for year 2017 aiming to reduce Codelco’s
indebtedness in an amount equivalent to the difference between the funds transferred as required by the
Reserved Law No. 13196 and cash flow surpluses obtained by the Corporation.

On March 13, 2017, through Decree No. 322 an extraordinary capital contribution was authorized under
Article 2 of Law No. 20989, for a total amount of US$475 million. The capital contribution was made
effective on April 13, 2017.

By Exempt Decree of Treasury No. 1698, dated November 17, 2017, in accordance with the provisions of
Article 1 of Law No. 20790, it was decided to make an extraordinary contribution of capital for an amount
of US$520 million, which were recorded on December 22, 2017.

On October 16, 2018, the Ministry of Finance issued Exempt Decree 311 in which it has an extraordinary
capital contribution for Codelco pursuant to Law No. 20,790 of US$1,000 million, which will be made in a
first part for US$600 million and in a second part for US$400 million, and that will be transferred in
installments that will not be timed later than December 31, 2018 and February 28, 2019 respectively.

On December 26, 2018 the Corporation received the first part of the contribution to capital for US$600
million.

On February 26, 2019 the Corporation received the second part of the contribution to capital for US$400
million.

As of 2019, the Corporation has established that dividend payments will not be made as long as there are
prepayments of dividends paid in excess.

As of December 31, 2019, the Corporation has not paid dividends, due to the fact that in 2018 there were
advances of dividends paid in excess as follows:

ThUS$
Dividends payable as of December 31, 2017 295,842
Advance dividends as of December 31, 2018 155,719
Advance dividends overpaid as of December 31, 2018 150,900
Total dividends paid as of December 31, 2018 602,461

The consolidated statement of changes in equity discloses the changes in the Corporation’s equity.

F-88
The movement and composition of other equity reserves is presented in the consolidated statement of
changes in equity.

Reclassification adjustments from other comprehensive income to profit or loss resulted in an income of
ThUS$3,337 and a loss of ThUS$4,597 for the year ended December 31, 2019 and 2018, respectively.

a) Other reserves

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

Other Reserves 12/31/2019 | 12/31/2018
ThHuSs$ THuSs$
Reserve on exchange differences on translation (6,672) (6,863)
Reserve of cash flow hedges 19,506 47,792
Capitalization fund and reserves 4,962,393 4,962,393
Reserve of remeasurement of defined benefit plans (305,770) (274,480)
Other reserves 622,290 625,317
Total other reserves 5,291,747 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:

UN Non-controlling Net equity Gain (loss)
Societies participation
12/31/2019 12/31/2018 12/31/2019 12/31/2018 1/1/2019 1/1/2018
12/31/2019 12/31/2018
% % ThUus$ ThUS$ ThUS$ ThUS$
Inversiones Gacrux SpA 32.20% 32.20% 919,764 969,203 7,905 34,031
Others – – (7) 1 (14) (3)
Total 919,757 969,204 7,891 34,028

For the year ended December 31, 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-89

Assets and liabilities 12/31/2019 | 12/31/2018

THus$ Thus$
Current Assets 227,367 361,568
Non-current assets 2,855,708 2,839,764
Current liabilities 157,345 176,742
Non-current liabilities 554,890 593,078

1/1/2019 1/1/2018

Results 12/31/2019 | 12/31/2018
THus$ Thus$
Revenues 682,079 836,195
Expenses (681,954) (762,557)
Profit of the year 125 73,638

1/1/2019 1/1/2018

Cash flow 12/31/2019 | 12/31/2018
THus$ Thus$
Net cash flow from operating activities 84,426 142,997
Net cash flow from (using) investing activities (42,403) –
Net cash flow from (using) financing activities (128,413) (204,961)

19. Revenue

Revenues for the years ended December 31, 2019 and 2018, are as follows:

1/1/2019 1/1/2018
Item 12/31/2019 12/31/2018
THUS$ ThUuS$

Revenue from sales of own copper 10,392,975 11,195,340
Revenue from sales of third-party copper 1,006,199 1,900,899
Revenue from sales of molybdenum 595,967 651,305
Revenue from sales of other products 520,351 537,562
Gain in futures market 9,439 23,652

Total 12,524,931 14,308,758

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

The breakdown of revenue ¡is presented in explanatory note No.24 Operating Segments.

F-90
20. Expenses by nature

21.

Expenses by nature for the years ended December 31, 2019 and 2018, are as follows:

1/11/2019 1/11/2018
Item 12/31/2019 12/31/2018
TRUS$ TRUS$
Short-term benefits to employees 1,519,659 1,731,593
Depreciation 2,217,265 2,180,550
Amortization 2,804 590
Total 3,739,728 3,912,733

Impairment of Assets

As of December 31, 2018, the Corporation made a calculation of the recoverable amount of its cash
generating unit Ventanas Division, for the purpose of checking the existence of a deterioration in the value
of the assets associated with said division, the carrying amount of which amounted to US$323 million.

The aforementioned calculation of the recoverable amount determined a value of US$124 million, which
compared with the amount in books, implied an acknowledgment of an impairment loss of assets for
ThUS$198,898 (before tax), which was recorded in the Other ¡item expenses by function, of the
comprehensive income statement for the year 2018.

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.

During the years ended December 31, 2019 and there were no indicators of additional deterioration or
reversals of impairment recognized in previous years.

F-91
22. Other income and expenses by function

Other income and expenses by function for the years ended December 31, 2019 and 2018, are as follows:
a) Other income by function

1/11/2019 1/11/2018
Item 12/31/2019 12/31/2018
TRUS$ TRUS$
Penalties to suppliers 27,954 18,920
Delegated Administration 4,713 5,346
Miscellaneous sales (net) 39,870 25,973
Insurance claims for claims 27,054 –
Customer recovery 7,836 –
Gain on sale of shares of related companies (Note 8) 103,151 18,279
Material retum 43,510 –
Reverse site closure update 33,993 –
Other miscellaneous income 72,609 56,308
Total 360,690 124,826

b) Other expenses by function

1/1/2019 1/1/2018
Item 12/31/2019 12/31/2018
THUS$ THUS$

Law No. 13196 (935,599) (1,108,209)
Research expenses (85,621) (103,649)
Bonus for the end of collective bargaining (109,651) (204,623)
Expenses plan (100,747) (54,594)
Write-off of investment projects (7,261) (212,587)
Write-off of property, plant 8 equipment (27,495) (7,357)
Medical care plan (39,979) (9,962)
Impairment of assets (note 21) – (198,898)
Write-off inventories (35,136) (4,004)
Customer bad debt (1,307) –
Contingency expenses (20,482) (37,030)
Fixed indirect costs, low production level (313,917) (96,285)
Other (70,643) (78,116)

Total (1,747,838) (2,115,314)

F-92
23.

24.

Finance costs

The detail of finance costs for the years ended December 31, 2019 and 2018, is as follows:

1/1/2019 1/1/2018
Item 12/31/2019 12/31/2018
THUS$ ThHUS$

Bond interest (301,060) (265,001)
Bank loan interest (54,683) (69,869)
Unwinding of discount on severance indemnity provision (12,332) (16,497)
Unwinding of discount on other non-current provisions (43,798) (46,959)
Other (67,434) (65,122)

Total (479,307) (463,448)

Operating segments

The Corporation has defined its Divisions as its operating segments in accordance with the requirements
of IFRS 8, Operating Segments. The revenues and expenses of the Head Office are allocated among the
defined operating segments.

The mining deposits in operation, where the Corporation conducts its extractive and processing activities
are managed by the following Divisions: Chuquicamata, Radomiro Tomic, Ministro Hales, Gabriela Mistral,
Salvador, Andina and El Teniente. In addition, the smelting and refining activities are managed at the
Ventanas Division. All these Divisions have a separate operational management, which reports to the
Chief Executive Officer, through the North and South Central Vice-President of Operations, respectively.
The information on each Division and their corresponding mining deposits is as follows:

Chuquicamata

Types of mine sites: Open pit mines

Operating: since 1915

Location: Calama — Region |

Products: Electro refined and electrolytic (electro-obtained) copper cathodes and copper concentrate

Radomiro Tomic

Types of mine sites: Open pit mines

Operating: since 1997,

Location: Calama — Region ll

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 |

Products: Calcined copper, copper concentrates
Gabriela Mistral

Type of mine: Open pit mine

Operating: since 2008

F-93
Location: Calama — Region |
Products: Electrolytic (electro-obtained) cathodes

Salvador

Type of mine: Underground mine and open pit mine

Operating: since 1926

Location: Salvador — Region |1l

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.

F-94
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.

+ The remaining 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.

F-95
Foreign exchange differences

+ Foreign exchange differences identifiable with each Division are directly allocated.

+ 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 its 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-96
The following tables details the financial information organized by operating segments:

From 1/1/2019

12/31/2019
. . . . . Total Subsidiaries and Total
Segments Chuquicamata R. Tomic Salvador Andina El Teniente Ventanas G. Mistral M. Hales Segments Head Office, net | Consolidated
ThUS$ ThUS$ ThUS$ ThUS$ ThUs$ LES Thus$ Thus$ ThUS$ ThUS$ Thus$

Revenue from sales of own copper 3,341,305 1,655,359 344,116 916,542 2,496,457 65,680 666,997 906,516 10,392,972 3 10,392,975
Revenue from sales of third-party copper 1,634 – – – – 19,233 – 20,867 985,332 1,006,199
Revenue from sales of molybdenum 297,324 10,251 20,026 67,524 194,153 – – – 589,278 6,689 595,967
Revenue from sales of other products 138,935 – 35,741 2,107 109,344 192,567 3,520 31,229 513,443 6,908 520,351
Revenue from futures market 5,859 3,023 418 (69) 29 (733) 805 107 9,439 9,439
Revenue between segments 35,928 – 24,103 2,554 1,330 105,184 – – 169,099 (169,099) –
Revenue 3,820,985 1,668,633 424,404 988,658 2,801,313 381,931 671,322 937,852 11,695,098 829,833 12,524,931
Costof sales of own copper (2,842,594)| — (1,244,908) (855,946) (918,185)| — (1,594,596) (65,974) (675,313) (731,320)| — (8,418,836) 622 (8,418,214)
Cost of sales of copper third-party copper (1,704) – – – (20,225) – (21,929) (974,448) (996,377)
Costof sales of molybdenum (83,780) (13,937) (9,241) (25,982) (47,803) – – – (180,743) (25,256) (205,999)
Costof sales of other products (130,612) – (20,442) (597) (60,816) (197,169) (3,390) (10,616) (423,642) (7,209) (430,851)
Cost of sales between segments (102,971) 42,164 (26,515) (1,589) 6,770 (98,331) (1,720) 13,093 (169,099) 169,099
Cost of sales (3,161,661)| — (1,216,681) (412,144) (946,353) — (1,696,445) (871,699) (680,423) (728,843)| — (9,214,249) (837,192)| — (10,051,441)
Gross profit 659,324 451,952 12,260 42,305 1,104,868 10,232 (9,101) 209,009 2,480,849 (7,359) 2,473,490
Other income, by function 100,500 8,817 20,493 24,001 42,197 1,853 6,878 5,535 210,274 150,416 360,690
Impairment gains determined in accordance with IFRS 9 – – – – – – – 378 378
Distribution costs (5,680) (214) (826) (270) (1,761) (1,262) (90) (1,323) (11,426) (5,643) (17,069)
Administrative expenses (50,451) (28,061) (13,913) (16,504) (45,847) (8,484) (28,135) (25,215) (216,610) (192,624) (409,234)
Other expenses, by function (440,991) (17,273) (96,233) (17,305) (104,232) (13,520) (18,937) (15,871) (724,362) (87,877) (812,239)
Law No. 13.196 (304,321) (148,096) (32,023) (89,524) (222,475) (18,931 (64,906) (55,323 (935,599) – (935,599)
Other gains – – – – – – – – 22,672 22,672
Finance income (1,209) (97) 89 251 874 202 18 (347) (219) 37,090 36,871
Finance costs (64,411) (47,344) (15,309) (64,068) (172,137) (9,899) (15,300) (46,784) (435,252) (44,055) (479,307)
Share in the profit (loss) of associates and joint ventures Ñ (409) (1,255) (1,201) Ñ (2,859) 16,062 13,203
accounted by the equity method
Exchange differences 52,099 10,535 9,807 18,840 56,738 5,586 8,113 13,565 175,283 (21,366) 153,917
Income (loss) before taxes (55,140) 230,219 (116,058) (103,529) 657,024 (34,223) (121,460) 83,246 540,079 (32,306) 407,773
Income tax expenses 29,969 (162,974) 76,094 61,658 (479,456) 20,763 83,454 (59,847) (430,340) 37,095 (393,245)
Income (loss) (25,171) 67,245 (39,964) (41,871) 177,568 (13,460) (38,006) 23,399 109,739 (95,211) 14,528

F-97

From 1/1/2018

12/31/2018
Chuquicamata | R. Tomic Salvador Andina El Teniente Ventanas G. Mistral M. Hales Total Subsidiaries and Total
Segments Segments Head Office, net | Consolidated
ThUSs$ Thus$ Thus$ Thus$ ThUus$ ThUSs$ 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-party copper 177 – – – 14,597 – 23,123 37,897 1,863,002 1,900,899
Revenue from sales of moly bdenum 359,996 15,751 20,356 88,841 164,388 – – 649,332 1,973 651,305
Revenue from sales of other products 142,143 – 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 – 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 ofown copper (2,880,603)| — (1,343,886) (297,189) (031,698)] — (1,637,057) (2,889) (540,134) (896,470)| — (8,630,926) (15,076) (8,646,002)
Costof sales of copper third-party copper (192) – – – – (16,345) – (23,123) (39,660) (1,841,680) (1,881,340)
Costof sales of molybdenum (79,793) (8,902) (9,530) (25,980) (51,627) – – – (175,832) (18,048) (193,880)
Costof sales of other products (140,063) – (27,477) (738) (74,274) (214,792) – (14,166) (471,510) (1,609) (473,119)
Costof sales between segments (198,829) 52,328 (79,004) 4,217 17,831 (117,771) (1,228) 18,942 (803,514) 303,514 –
Cost of sales (3,299,480)| — (1,300,460) (513,200) (054,199)| — (1,745,127) (852,797) (541,362) (914,817)| — (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 function 10,994 5,769 4,497 14,348 18,018 1,819 3,108 4,577 63,130 61,696 124,826
Impairment gains 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) (82,429) (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 (314,516 (201,452) (34,027 (118,451) (265,868) (15,137) (63,789) (94,969)| — (1,108,209 (1,108,209)
Other gains – – – – – – – 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) (50,821) (463,448)
Share in the profit (loss) of associates and joint ventures
accounted by the equity method 174 (475) (466) (2,253) – – 6,020 122,134 119,114
Exchange differences 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) (6,531) 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) (813) 159,475 (54,297) (4,603) 215,913 (71,948) (1,392) 30,492 272,727 (82,980) 189,747

F-98
The assets and liabilities related to each operating segment, including the Corporation’s head office as of
December 31, 2019 and 2018, are detailed in the following tables:

12/31/2019
Category Chuquicamata | domio le ador | Andina | ElTeniente | Ventanas | G.Mistral | M.Hales |ouccueries and [> Total
Tomic Head Office, net | Consolidated
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Current assels 1,318,498 673,058] 409,962 269,730 959,041 63,802 264,389 342,614 1,748,927 6,050,021
Non-current assets 9,079,665 2,097,006] 1,0203] 4,828,805] 7,521,778] 268,457| 1,149,763] 3,247,562 5,079,521 | 34,204,590
Current labilites 821,067 179,649] — 140,456 214,350 474,126| 76,222 103,484 139,946 1,773,657 3,922,957
Non-current labiiies 765,850 262,729| 255,063 588,841| — 1,257,577| 138,455 152,528 115,909 21,250,035 | 24,786,987
12/31/2018
cat chueuicamata. | Fadomiro [ Andi El Teniente | Vent mistral | mates. SUbsidiarios and | Total
ategory uquicamata salvador ndina enient fentanas | G. Mistral -Hales cad fico, net | Consolidated
ThUS$ ThUS$ ThUSS ThUS$ ThUS$ ThUS$ 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] 4,519,730] 6,547,657] 155316| 1,136,948] 3,278,883 5,091,501 | — 31,262,599
Current labilites 729,319 192,735] — 115,908 218,550 441,255| 61,363 111,615 117,624 1,551,043 3,539,412
Non-current labiiies 855,735 205,997| 196,608 472,713 910,005| 53,084 146,005 81,958 19,315,419 | 22,207,524
The revenue segregated per geographical areas is the following:
1/1/2019 1/1/2018
Revenue per geographical areas 12/31/2019 12/31/2018
Thus$ Thus$
Total revenue from domestic customers 2,616,605 1,313,064
Total revenue from foreign customers 9,908,326 12,995,694
Total 12,524,931 14,308,758
1/1/2019 1/1/2018
Revenue per geographical areas 12/31/2019 12/31/2018
Thus$ Thus$
China 2,315,772 3,867,505
Restof Asia 1,673,357 1,982,163
Europe 3,673,299 3,482,755
America 3,932,012 3,764,467
Other 930,491 1,211,868
Total 12,524,931 14,308,758

During the periods January – December 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-99

25. Foreign exchange differences

The detail of foreign exchange differences for the years ended December 31, 2019 and 2018, is as

follows:
1/1/2019 1/1/2018
Gain (loss) from foreign exchange differences recognized inincome | 12/31/2019 12/31/2018
Thus$ Thus$
Gain from foreign exchange differences 254,314 277,780
Loss from foreign exchange differences (100,398) (99,637)
Total exchange difference, net 153,916 178,143

26. Statement of cash flows

The following table shows the items that comprise other collections and payments from operating activities
in the Statement of Cash Flows:

1/1/2019 1/11/2018
Other collections from operating activities 12/31/2019 12/31/2018
ThuS$ TRUS$
VAT Refund 1,580,041 1,513,219
Sales hedge 12,357 –
Other 234,866 220,336
Total 1,827,264 1,733,555
1/1/2019 1/11/2018
Other payments from operating activities 12/31/2019 12/31/2018
ThuS$ TRUS$
Contribution to Chilean treasury Law N?*13.196 (917,632) (1,136,559)
Sales hedge – (29,843)
VAT and other similar taxes paid (1,319,723) (1,388,782)
Total (2,237,355) (2,555, 184)

During the years ended December 31, 2019 and 2018, as indicated in the equity note, capital
contributions were received for a total of ThUS$400,000 and ThUS$600,000, respectively, which are

presented in other cash inflows (outflows) corresponding to the net cash flows provided by (used in)
activities of financing.

F-100
27. 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.

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, 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 December 31, 2019 and 2018 the balance of time deposits denominated in Chilean pesos
amounts to ThUS$56,308 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.

F-101
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 December 31, 2019, a 1% change in
interest rates on the financial liabilities subject to variable interest rates would mean approximately
a US$23 million change in finance costs, before tax. This estimationis made by
identifying the liabilities 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 December 31, 2019
correspond to amounts of ThUS$14,189,945 and ThUS$3,074,411, respectively.

b. Market risks
– — Commodity price risk:

As a result of its commercial operations and activities, the Corporation’s income is mainly
exposed to the volatility of copper prices and certain sub-products such as gold and silver.

Copper and molybdenum concentrate sale agreements and copper cathode sale agreements
generally provide for provisional pricing of sales at the time of shipment, with final pricing based
on the monthly average market price for specified future periods. At the reporting date, the
provisionally priced metal sales are marked-to-market, with adjustments (both gains and losses)
being recorded in revenues in the consolidated statement of comprehensive income. Forward
prices at the period-end are used for copper sales, while period-end average prices are used for
molybdenum concentrate sales due to the absence of an assets futures market. (See Note 2.r)
“Income from Activities Ordinary Procedures from Contracts with Customers “of section II” Main
policies countable ”).

For the year ended December 31, 2019, if the future price of copper fluctuates by + / – 5% (with
the other variables constant), the result would vary in an amount of US$97 million before taxes
as a result of setting the mark to market of sales revenue to provisional prices in effect as of
December 31, 2019 (MTMF 314). 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.

F-102
d.

As of December 31, 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$194 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.

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 12/31/2019 one year and five years five years
ThUS$ ThUS$ ThUS$

Loans from financial institutions 666,144 1,195,172 1,213,095
Bonds 572,587 1,635,870 11,981,488
Finance leases 127,761 243,711 61,399
Derivatives 11,496 – 148,987
Other financial liabilities 363 58,501 –
Total 1,378,351 3,133,254 13,404,969

Credit risk

This risk comprises the possibility that a third party does not fulfill its contractual obligations, thereby
causing a loss for the Corporation.

F-103
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, 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 December 31, 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 year ended December 31, 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.

F-104
28. 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 TAUS$19,792.

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

December 31, 2019

Type of colin: Fair value of
Hedged item Bank derivative| Maturity |Currency| Amount . hedging Asset Liability
contract hedging instruments
instrument
ThUS$ ThUuSs$ ThUuS$ ThUus$ Thus$
Bond UF Mat 2025 [Credit Suisse (EE.UU) Swap 4/1/2025 US$ 260,890 208,519 75,608 | 329,480 | (253,872)
Bond EUR Mat. 2024 [Santander (Chile) Swap 7/9/2024 US$ 336,399 409,650 (73,114)| 380,570 | (453,684)
Bond EUR Mat. 2024 [Deustche Bank (Inglaterra) Swap 7/9/2024 US$ 336,399 409,680 (72,756)| 380,583 | (453,339)
Bond UF Mat 2026 [Santander (Chile) Swap | 8/24/2026 | US$ 378,101 406,212 6,976 | 461,581 (454,605)
Bond AUD Mat. 2039 |Santander (Chile) Swap | 8/22/2039 | US$ 49,013 49,266 (1,558) 54,509 (56,067)
Bond HKD Mat. 2034 [HSBC Bank USA N.A. (EH Swap | 11/7/2034 | US$ 64,220 63,792 (703) 64,220 (64,923)
Total 1,425,022 | 1,547,119 (65,547) | 1,670,943 | (1,736,490)
December 31, 2018
Type of Financial Fair value of
Hedged item Bank derivative | Maturity |Currency| Amount a hedging Asset Liability
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 (53,592) 388,339 | (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 1,569,485 | (1,568,547)

As of December 31, 2019, the Corporation does not maintains cash deposit guarantee balances.

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.

F-105
The notional amounts are detailed below:

Notional amount of contracts with final maturity
Less than 90 | More than 90 More than5 | Non- t
December 31, 2019 Currency ess nan ore nan CurrentTotal | 1to3 years | 3to5 years ore nan orcumen
days days years Total
ThUs$ ThUS$ ThUS$ ThUs$ ThUS$ ThUS$ ThUs$
Currency derivatives ThUS$ 13,156 48,151 61,307 122611 122,611 1,629,037 1,874,259

b. Cash flows hedging contracts and commercial policy adjustment

The Corporation enters into metals hedging activities. Such results increase or decrease the total sales
revenue based on the market prices of the metals. As of December 31, 2019, these operations
generated a gain of ThUS$10,935.

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, 2019, the Corporation performed derivative market transactions of copper that
represent 432,800 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, 2019, present a negative fair value of ThuS$815 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 year ended December 31, 2019 resulted in a net positive effect on
net income of ThUS$11,960, which is comprised of the amounts received for sales contracts for
ThUS$10,464 and the amounts net off against purchases contracts for ThUS$1,496.

b.2. Commercial Transactions of Current Gold and Silver Contracts

As of December 31, 2019, the Corporation maintains derivative contracts for the sale of gold and
silver of ThOZT 2,720.

The contracts outstanding as of December 31, 2019 show a negative fair value of ThUS$1. 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
2020.

F-106
b.3.

The operations completed between January 1 and December 31, 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 December
31, 2019.

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

above:

December 31, 2019

Maturity date

ThUS$

2020

2021 2022

2023 2024 Upcoming

Total

Flex Com Cobre (Asset)
Flex Com Cobre (Liability)
Flex Com Gold/Silver
Price setting

Metal options

1,315
(1,799)
(1)

(2,655)
(1)

Total

(819) (12)

(816)

December 31, 2018

Maturity date

ThUs$

2019

2019 2020

2021 2022 Upcoming

Total

Flex Com Cobre (Asset)
Flex Com Cobre (Liability)
Flex Com Gold/Silver
Price setting

Metal options

43,539
(56)
(671)

13,969 993
(62)

58,501
(118)
(671)

Total

42,812

13,907 993

57,712

December 31, 2019

Maturity date

AII figures in thousands of
metric tons ounces

2020

2021 2022

2023 2024 Upcoming

Total

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

335.65
272

96.65 0.50

432.80
272

December 31, 2018

Maturity date

AII figures in thousands of
metric tons ounces

2019

2020 2021

2022 2023

Total

Copper Futures [MT]
Gold/Silver Futures [MOZ]
Copper price setting [MT]

Copper Options [MT]

300.10
349.57

110.45 10.30

Upcoming

420.85
349.57

F-107

29. 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 ¡ts 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 (SI), 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.

– — Atthe date of issuance of these financial statements, the Codelco faces various lawsuits and legal
actions against it for a total of approximately US$306 million corresponding to 372 cases. According
to the estimate made by the legal advisors of the Corporation, 298 cases, which represent 80.11%
of the universe, have associated probable loss results amounting to ThUS$49,684. There are also
61 cases, representing 16.4% for an amount of ThUS$34,981, 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.”

F-108
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.
Subsequently, on March 14, 2012, CUuPIC paid off its debt to the abovementioned bank. As of
December 31, 2017. Codelco does not hold any indirect guarantee regarding its participation in
this associated company.

On December 17, 2015, the Codelco administration presented a restructuring for the Supply
Contract, which implies the removal of its share in CUPIC.

On April 7, 2016, the Corporation formalized the removal of ¡ts 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.

F-109
+ 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 lAS 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 8 Co. Ltd. for the acquisition of the 24.5% stake in Anglo American
Sur S.A. which was subsequently amended on October 31, 2012, a pledge is included over the
shares that the subsidiary has on Acrux Inversiones SpA (shared participation with Mitsui and
minority shareholder in Anglo American Sur S.A.), in order to ensure compliance with the
obligations that the financial agreement contemplates.

This pledge extends to the right to collect and receive from Acrux dividends which have been
agreed in the corresponding meetings of shareholders of the company and any other distributions
paid or payable to Gacrux respect of the pledged shares.

On December 22, 2017 according to archive No. 12326 / 2017, 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, 2019 and 2018.

F-110
vi.

vil.

viii.

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.
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. lt also establishes the obligation to make
contributions to a fund which aims to cover the costs of post-closure activities.

F-111
ix.

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, 2019, the Corporation has agreed guarantees for an annual amount of U.F.
27,892,917 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 a Thus$
lo
Banco Estado Radomiro Tomic| 3,232,980 UF 11/8/2019 | 11/10/2020 0.09 122,239
Banco ltau Ministro Hales 1,845,954 UF 11/6/2019 | 11/13/2020 0.09 69,796
Banco de Chile Chuquicamata 4,191,593 UF 11/26/2019 | 11/26/2020 0.10 158,485
Banco Santander El Teniente 5,000,000 UF 11/29/2019 | 12/2/2020 0.15 189,051
Banco ltau El Teniente 2,367,016 UF 11/28/2019 | 12/2/2020 0.15 89,497
Banco Bci El Teniente 1,800,000 UF 11/29/2019 | 12/2/2020 0.18 68,058
Banco Estado Gabriela Mistral 1,978,180 UF 12/11/2019 | 12/15/2020 0.11 74,795
Banco ltau Salvador 2,700,000 UF 8/8/2018 2/18/2020 0.10 102,087
Banco Santander Salvador 611,647 UF 2/6/2019 2/18/2020 0.15 23,126
Banco Estado Andina 3,310,724 UF 4/22/2019 5/3/2020 0.07 125,179
Banco Estado Ventana 400,043 UF 12/19/2019 | 10/7/2020 0.10 15,126
Banco Bci Ventana 454,782 UF 12/18/2019 | 10/7/2020 0.18 17,195
Total 27,892,919 1,054,634

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.

F-112
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-113
30. 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:

Direct Guarantees provided to Financial Institutions

Creditor of the Guarantee Type of Gu: 123112019 1213112018
Currency | Maturity ThUs$ Thus$

Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
Ministry of national goods Project of exploitaion CLP 2/28/2020 7 –
General Directorate of Maritime Territory and Merchant Marine Maritime concession CLP 3/1/2020 1,409 –
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 230 –
Minestry of Public Works Building project UF 12/31/2019 22,364 –
General Directorate of Mariime Territory and Merchant Marine Building project CLP 3/1/2019 – 1,783
Minestry of Public Works Building project UF 10/1/2019 – 566
Minestry of Public Works Building project UF 10/2/2021 516 –
management Building project UF 3/1/2020 1 –
management UF 3/1/2020 1 –

Viability management Building project UF 3/1/2020 1 –
management Building project UF 3/1/2020 1 –

Viability management Building project UF 4/22/2020 4 –
management Building project UF 2/18/2020 1 –

Viability management Building project UF 4/8/2024 4 –
management Building project UF 3/10/2020 2 –
management UF 3/10/2020 2 –

Viability management Building project UF 3/10/2020 4 –
Ministry of national goods Project of exploitaion UF 6/19/2020 8 –
Ministry of national goods Project of exploitaion UF 6/19/2020 8 –
Ministry of national goods Project of exploitaion UF 6/19/2020 8 –
[Oriente Copper Netherlands B.V. Pledge on shares US$ 11/1/2032 877,813 877,813
|¡Semageomin Environmental UF 3/18/2019 – 17,920
|¡Semageomin Environmental UF 5/9/2019 – 137,355
|¡Semageomin Environmental UF 6/13/2019 – 73,210
|¡Semageomin Environmental UF 6/13/2019 – 11,980
|¡Semageomin Environmental UF 6/1/2019 – 110,322
|¡Semageomin Environmental UF 6/1/2019 – 273,875
|¡Semageomin Environmental UF 5/25/2019 – 192,789
|¡Semageomin Environmental UF 5/25/2019 – 103,290
|¡Semageomin Environmental UF 5/12/2019 – 39,150
|¡Semageomin Environmental UF 5/12/2019 – 38,215
|¡Semageomin Environmental UF 5/25/2019 – 96,395
|¡Semageomin Environmental UF 11/11/2019 122,239 –
|¡Semageomin Environmental UF 11/14/2019 69,796 –
|¡Semageomin Environmental UF 11/14/2019 158,485 –
|¡Semageomin Environmental UF 11/27/2019 189,051 –
|¡Semageomin Environmental UF 11/27/2019 89,497 –
|¡Semageomin Environmental UF 11/27/2019 168,058 –
|¡Semageomin Environmental UF 12/2/2019 74,795 –
|¡Semageomin Environmental UF 12/2/2019 102,087 –
|¡Semageomin Environmental UF 12/15/2019 23,126 –
|¡Semageomin Environmental UF 2/18/2020 125,179 –
|¡Semageomin Environmental UF 5/3/2020 15,126 –
|¡Serageomin Environmental UR 9/18/2020 17,195 –
Total 1,957,167 | 1,974,663

F-114

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 12/31/2019 12/31/2018
ThUs$ ThUus$
Andina 418 3,891
Chuquicamata 375 2,445
Casa Matriz 887,051 803,719
Salvador 387 1,311
El Teniente 447 4,137
Ventanas 52 105
Total 888,730 815,608

31. Balances in foreign currency

a) Assets by Type of Currency

Category 12/31/2019 12/31/2018
ThUs$ ThUus$
Liquid assets 1,476,056 1,460,534
US Dollars 1,385,451 1,383,897
Euros 49,773 25,482
Other currencies 4,674 4,547
Non-index ed Ch$ 34,367 46,129
UF. 1,791 479
Cash and cash equiv alents 1,303,105 1,229,125
US Dollars 1,212,657 1,152,715
Euros 49,773 25,482
Other currencies 4,674 4,547
Non-index ed Ch$ 34,348 46,109
UF. 1,653 272
Other current financial assets 172,951 231,409
US Dollars 172,794 231,182
Euros – –
Other currencies – –
Non-index ed Ch$ 19 20
UF. 138 207
Short and long term receivables 2,723,280 2,409,835
US Dollars 2,042,514 1,789,757
Euros 112,649 62,857
Other currencies 384 320
Non-index ed Ch$ 547,809 482,180
UF. 19,924 74,721
Trade and other receivables 2,588,268 2,212,209
US Dollars 2,006,046 1,676,862
Euros 112,649 62,580
Other currencies 384 320
Non-index ed Ch$ 450,304 398,966
UF. 18,885 73,481

F-115

12/31/2019 12/31/2018
Category
ThUsS$ ThUs$
Rights receivables, non-current 98,544 84,731
US Dollars – –
Euros 277
Other currencies – –
Non-indexed Ch$ 97,505 83,214
UF. 1,039 1,240
Due from related companies, current 20,874 92,365
US Dollars 20,874 92,365
Euros –
Other currencies – –
Non-indexed Ch$ – –
UF. – –
Due from related companies, non-current 15,594 20,530
US Dollars 15,594 20,530
Euros –
Other currencies – –
Non-indexed Ch$ – –
UF. – –
Rest of assets 36,145,275 33,220,436
US Dollars 35,353,960 32,171,442
Euros 191 705
Other currencies 65,714 279
Non-indexed Ch$ 86,056 377,119
UF. 639,354 670,891
Total assets 40,344,611 37,090,805
US Dollars 38,781,925 35,345,096
Euros 162,613 89,044
Other currencies 70,772 5,146
Non-indexed Ch$ 668,232 905,428
UF. 661,069 746,091

F-116

b) Liability by type of currency:

12/31/2019 12/31/2018
Current liability by currency Up to 90 days | 90 days to 1 year | Up to 90 days | 90 days to 1 year
ThUS$ ThUs$ ThUs$ ThUS$

Current liabilities 3,031,838 891,119 3,049,854 489,558
US Dollars 1,874,286 812,946 1,824,181 452,648
Euros 84,339 (7,238) 107,341 408
Other currencies 10,280 5,180 9,826 –
Non-indexed Ch$ 1,041,933 73,518 1,088,536 31,419
UF. 21,000 6,713 19,970 5,083
Other current financial liabilities 508,466 869,885 412,451 459,826
US Dollars 468,557 812,910 396,148 452,635
Euros 7,236 (7,238) 7,404 408
Other currencies 813 5,180 34 –
Non-indexed Ch$ 21,818 52,661 879 1,700
UF. 10,042 6,372 7,986 5,083
Bank loans 326,228 339,916 5,739 399,132
US Dollars 326,228 339,916 5,683 398,724
Euros – – – 408
Other currencies – – – –
Non-indexed Ch$ > – – >
UF. – – 56 –
Obligations 146,757 425,830 401,174 34,255
US Dollars 132,851 419,842 387,578 34,255
Euros 7,236 – 7,404 –
Other currencies 783 5,988 – –
Non-indexed Ch$ > – – >
UF. 5,887 – 6,192 –
Finance lease 35,111 92,650 5,167 16,343
US Dollars 9,478 27,224 2,887 9,560
Euros – – – –
Other currencies 30 242 – –
Non-indexed Ch$ 21,448 52,661 542 1,700
UF. 4,155 12,523 1,738 5,083
Others 370 11,489 371 10,096
US Dollars – 25,928 – 10,096
Euros – (7,238) – –
Other currencies – (1,050) 34 –
Non-indexed Ch$ 370 – 337 –
UF. – (6,151) – –
Other current liabilities 2,523,372 21,234 2,637,403 29,732
US Dollars 1,405,729 36 1,428,033 13
Euros 77,103 – 99,937 –
Other currencies 9,467 – 9,792 –
Non-indexed Ch$ 1,020,115 20,857 1,087,657 29,719
UF. 10,958 341 11,984 –

F-117

12/31/2019 12/31/2018
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$ ThUSs$

Non-Current liabilities 7,366,038 1,204,628 5,517,333 10,698,988 6,804,312 2,260,258 5,142,419 8,000,535
US Dollars 6,868,702 366,261 5,249,173 8,965,313 6,396,888 2,114,245 4,160,204 6,918,087
Euros – 666,384 (672,798) – 14 – (7,832)

Other currencies 788 – – 608,656 1 – – –
Non-indexed Ch$ 456,079 154,879 247,001 548,174 390,088 141,392 277,356 505,603
UF. 40,469 17,104 693,957 576,845 17,321 4,621 712,691 576,845
Other non-current financial

liabilities 2,053,813 1,079,441 5,259,536 8,145,433 1,710,559 2,118,866 4,847,087 5,997,998
US Dollars 1,950,557 366,261 5,224,934 7,536,777 1,702,164 2,114,245 4,142,228 5,997,998
Euros – 666,384 (672,798) – – – (7,832)

Other currencies 378 – – 608,656 – – –

Non-indexed Ch$ 75,474 29,692 13,538 – 219 – –

UF. 27,404 17,104 693,862 – 8,176 4,621 712,691 –
Bank loans 1,195,172 668,991 544,104 548,454 677,507 298,250 582,867
US Dollars 1,195,172 668,991 544,104 548,454 677,507 298,250 582,867
Euros – – – – – –

Other currencies – – – – – –

Non-indexed Ch$ – – – – – –

UF. – – – – – – – –
Obligations 637,298 998,572 4,380,159 7,601,329 1,065,419 1,414,296 4,415,461 5,415,131
US Dollars 637,298 332,188 3,715,011 6,992,673 1,065,419 1,414,296 3,034,864 5,415,131
Euros – 666, 384 – – – – 678,446

Other currencies – – 608,656 – – –

Non-indexed Ch$ – – – – – –

UF. – – 665,148 – – – 702,151

Finance Lease 162,842 80,869 61,399 – 32,714 27,063 26,552

US Dollars 59,589 34,073 19,400 – 24,322 22,442 16,012

Euros – – – – – –

Other currencies 378 – – – – – –

Non-indexed Ch$ 75,471 29,692 13,538 – 216 – –

UF. 27,404 17,104 28,461 – 8,176 4,621 10,540

Others 58,501 148,987 – 63,972 – 106,824

US Dollars 58,498 821,532 – 63,969 – 793,102

Euros – (672,798) – – – (686,278)

Other currencies – – – – – –

Non-indexed Ch$ 3 – – 3 – –

UF. – – 253 – – – – –
Other liabilities non-current 5,312,225 125,187 257,797 2,553,555 5,093,753 141,392 295,332 2,002,537
US Dollars 4,918,145 24,239 1,428,536 4,694,724 – 17,976 920,089
Euros – – – 14 – –

Other currencies 410 – – – 1 – – –
Non-indexed Ch$ 380,605 125,187 233,463 548,174 389,869 141,392 277,356 505,603
UF. 13,065 95 576,845 9,145 – – 576,845

F-118

32. Sanctions

33.

As of December 31, 2019 and 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 December 31, 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 years ended December 31, 2019 and 2018,
respectively, and the projected future expenses are stated below.

F-119

Chuquicamata
Codelco Chile [Talambre dam capaci extension, Sth stage In Progress 76.611 | — Asset P.P8E 148,715 65,157 | — 2020
Codelco Chile [Emergency restoraon system dust control crushing plant 2/3 Finished | Asset P.P8E 345 – –
Codelco Chile [Replacementof circulation pot 1A and 2A In Progress 14,033 | — Asset P.P8E 1,370 6590 | 2020
Codelco Chile [Construction instalañon surplus management In Progress 761 | Asset P.P8E . 65| 2019
Codelco Chile [Replacementof water treatment plant In Progress 8,944 | — Asset P.P8E . 4822| 2019
Codelco Chile [Replacement gas management system In Progress 9,671| Asset P.P8E 745 1,724 | 2020
Codelco Chile [Acid plant tranformañon 3-4 DCIDA In Progress 160,546 | — Asset P.P8E 200,844 7291 | 2020
Codelco Chile: |Enablementreíning gas tealmentsystem In Progress 50,009 | — Asset P.P8E 26.973 28,504 | 2020
Codelco Chile [Dryer replacementn * 5 fuco In Progress 39,136 | — Asset P.P8E 23,204 16,603 | 2020
Codelco Chile [Management feeding and transport powders Finished | Asset P.P8E 1,363 – –
Codelco Chile [Construction Relle Res Don+Asim Montec In Progress 2,181 | — Asset P.P8E 599 8408| 2020
Codelco Chile [Construction IX stage Talambre tanque In Progress 9,542 | — Asset P.P8E 6,063 1601| 2019
Codelco Chile [Construction 8 Seg Montecristo In Progress 11,393 | — Asset P.P8E 799 7875| 2020
Codelco Chile [Acid plants In Progress 35.823 | Expendiure | — Adm. Expense 30.989 – | 2019
Codelco Chile [Solid waste In Progress 2.388 | Expendiure | — Adm. Expense 6.595 – | 2019
Codelco Chile [Taiings In Progress 23,153 | Expendiure | — Adm. Expense 23,047 – | 2019
Codelco Chile [Water treatment plant In Progress 25,143 | Expendiure | — Adm. Expense 17,501 – | 2019
Codelco Chile [Environmental monitoring In Progress 2,152 | Expendiure | — Adm. Expense 3.811 – | 2019
Codelco Chile [Normalizaton drainage system dril hole In Progress 4,551 | — Asset P.P8E . 6747 | 2020
Codelco Chile [Standard handing / feeding / tansportpowder In Progress 61| Asset P.P8E – 21505| 2021

Total Chuquicamata 476,098 492,963 177,082

Total Salvador 177,079 138,153 75,906

Total Andina 177,501 166,793 135.278
Subtotal 830,678 797,909 388,266

F-120

F-121

34. Subsequent events

On January 7, 2020, the Corporation reported an essential fact that on such date Don Roberto
Ecclefield Escobar, current Vice President of Marketing has submitted his resignation to the
Corporation, which will become effective on February 1, 2020.

On January 7, 2020, the Corporation reported as an essential fact that Codelco accessed the
international financial markets, through the placement of bonds in New York for US$1 billion for 10
years and US$1 billion for 30 years, through a reopening of the 30-year bond issued in September
2019, with yields of 3.175% and 3.958%, respectively. The rates represent spreads of 135 and 165
basis points on the American Treasury bond in each term. With this operation, Codelco’s net debt is
not increased and a new step is taken to a sustainable financing of the investment portfolio, in
accordance with the guidelines given by the Board of Directors with respect to progress in the
materialization of structural projects while maintaining a solid financial position.

The issuance was led by banks HSBC Securtires (USA) Inc., JP Morgan Securities LLC, BofA
Securities, and Scotia Capital (USA) Inc.

On January 9, 2020, the Corporation reported as an essential fact, in accordance with the provisions of
Circular No. 1,072, detail of the financing operation carried out on January 7, 2020.

On January 29, 2020, the Corporation reported as an essential fact that S.E. the President of the
Republic has designated as Director of Codelco, Mr. Rodrigo Cerda Norambuena, replacing Mr.
Ignacio Briones Rojas.

On January 31, 2020, the Corporation reported as an essential fact that Ms. Lorena Ferreiro Vidal has
been appointed as Codelco’s Legal Counselor from March 1, 2020.

From such date, Ms. María Francisca Dominguez M. finishing practicing as Interim Legal
Counselor.and will continue serving as Legal Director of the Corporation.

On January 31, 2020, the Corporation reported as an essential fact, the creation of the Vice
Presidency of Smelters and Refinery, reporting to the Executive President. From March 2020, Mr. José
Sanhueza Reyes, who served up to such date, as General Manager of the Ventanas Division, was
appointed Vice President in charge. Likewise, from such date, Mr. Gerardo Sanchez, is appointed as
General Manager of the Ventanas Division.

On February 28, 2020 and in relation to PE – 015/2020 dated January 31, 2020, the Corporation
reported as an essential fact, that Mr. Gerardo Sánchez Sepúlveda will continue to serve as Manager
of the Caletones Foundry of the El Teniente Division, for such reason, as of March 1, 2020, Mr.
Cristián Cortés Egaña will assume in an interim capacity the position of General Manager of the
Ventanas Division.

F-122
- On March 2, 2020, the Corporation reported as an essential fact, the appointment of Don Patricio
Vergara Lara, as Vice President of Mining Resources and Development Management, from April 20,
2020.

– On March 11, 2020, the World Health Organization characterized the outbreak of a strain of the new
coronavirus (“COVID-19”) as a pandemic that has resulted in a series of public health and emergency
measures that have been put in place and are underway to combat the spread of the virus. The
duration and impact of COVID-19 are unknown at this time and it is not possible to reliably estimate the
impact of the duration and severity of these developments in future periods.

For several weeks now, Codelco has been permanently monitoring the aforementioned outbreak, its
constant evolution, eventual impact on the Corporation’s financial and operational indicators, possible
effects on our workers, clients, suppliers, as well as collaborating with government actions that are
being taken to reduce its spread, with no material impact observed to date on its ability to meet its
financial, production or sale commitments. The foregoing is without prejudice to the impact on world
demand for copper, which has meant a decrease in the price, which is public knowledge.

Particularly, in relation to the Corporation’s liquidity levels, and as a result of the last financing carried
out in January this year, the Corporation finds itself in a solid cash position, which allows it to absorb
the short-term negative impacts on the price of copper.

Thus, we cannot currently estimate the overall duration of any resulting adverse impact on our
business, financial condition and / or results of operations as well as its degree of materiality. However,
given some scenarios that could materialize in the coming months, we cannot rule out that our financial
results may be negatively affected by this contingency.

– On March 23, the Ministry of Finance issued Ordinary Letter No. 843, which modifies the payment
method of the Law 13,196 funds to meet national needs generated by the COVID-19 crisis.

Said Official Letter establishes the full amount of funds owed to the Treasury for the application of Law
No. 13,196, equivalent to TRUS$240,168 (contribution for December 2019, January and February
2020), before March 31 this year. Subsequently and from the month of April, the Corporation should
carry out the monthly transfer of the corresponding resources according to their recordkeeping, within a
period not exceeding the last day of the month following its booking.

Before the amendment established in this document, the payment method of the funds associated to
Law 13,196, consisted in an annual payment no later than December 15 of each year.

– On March 25, the Corporation announced that it will temporarily suspend some of its projects, as part
of the measures to prevent the spread of Coronavirus. The suspension will be carried out gradually
starting from March 25 and will last for 15 days. Specifically, it deals with the construction of the
remaining works of the Chuquicamata Underground Mine Project, the early works of Rajo Inca and the
assembly works of Traspaso Andina. This measure has no impact on the production of the respective
divisions that maintain operational continuity with the largest sanitary safeguards.

F-123
Management 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, occurring between January 1, 2020 and the date
of issue of these consolidated financial statements as of March 26, 2020.

Octavio Araneda Osés Alejandro Rivera Stambuk
Chief Executive Officer Chief Financial Officer

Javier Tapia Avila Juan Ogas Cabrera

Accounting and Finance Control Manager Accounting Director

F-124
O

CODELCO

CODELCO – CHILE

Consolidated Financial Statements as of and for the years ended December 31,
2018 and 2017

(Translation into English of the consolidated financial statements originally issued
in Spanish — see Note 1.2)
TABLEOF CONTENTS
CONSOLIDATED FINANCIALSTATEMENTS
(Translation into English of the consolidated financial statements originally issued in Spanish — see Note 12)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION. F-130
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ….. F-131
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS). F-132
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS). F-133
CONSOLIDATED STATEMENTS OF CASH FLOWS – DIRECT METHOD… F-134
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY.. F-135
l GENERAL INFORMATION …. F-136
1 Corporate Information F-136
2 Basis of Presentation of the Consolidated Financial Statements F-137
ll SIGNIFICANT ACCOUNTING POLICIES …….ucconncioncnnsrnsis F-139
1 Significant Judgments and Key Estimates… F-139
2 Significant accounting policies F-143
3 New standards and interpretations adopted by the Corporation. F-161
4 New accounting pronouncements F-164
111 EXPLANATORY NOTES…ccnaccacancooosss F-167
1 Cash and cash equivalents F-167
2 Trade and other receivables F-167
3 Balance and transactions with related parties. F-169
4 Inventories F-175
5 Income taxes and deferred taxes F-176
6
7
8
9

Current and non-current tax assets and liabilities . sus P-178
Non-current assets or groups of assets for disposition classified as held for sale . F-179
Property, Plant and EquipMeNt….coccnonnennnmerarrr reee F-179
Investments accounted for using the equity method.
10 Intangible assets other than goodwil! …
11 SubsidiarieS ………..m…
12 Other non-current non-financial assets
13 Current and non-current financial assets .
14 Interest-bearing borrowings….
15 Fair Value of financial assets and liabilities .
16 Fair value hierarchy ………c.as..o. F-203
17 Trade and other payables
18 Other provisions ………..
19 Employee benefits

22 Expenses by nature…
23 Impairment of Assets
24 Other income and expenses by function…
25 Finance costs
26 Operating segments
27 Foreign exchange differences ….
28 Statement of cash flows

F-126
29
30
31
32
33
34
35
36

Financial risk management, objectives and policies ………ca.ocammomama F-223
Derivatives CONtTACt …….cccmm
Contingencies andrestrictions …
Guaranteés mccccscoscosiosisios
Balances in foreign currency..
Sancti0nS …ccauccansnssss
Environmental Expenditures…
SUDSEQUENt CVeNES coccciconnnnnnnnn recrear rca

F-127
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.

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-129
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-130
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-131
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the years ended December 31, 2018 and 2017

(In thousands of US dollars – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish — see

Note 1.2)

Notes 1/1/2018 1/1/2017
N? 12/31/2018 12/31/2017

Revenue 21 14,308,758 14,641,555
Cost of sales (11,194,341) (10,380,403)
[Gross profit 3,114,417 4,261,152
Other Income, by function 24.a 124,826 154,332
Impairment gain and reversal of impairment loss determined in accordance with IFRS 9 158 –
Distribution costs (18,262) (10,403)
Administrative expenses (465,328) (428,140)
Other expenses 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 (357,283) (1,193,067)
[Net income for the years 189,747 623,602
Net income attributable to owners of parent 155,719 569,175
Net income attributable to non-controlling interests 20.b 34,028 54,427
189,747 623,602

[Net income for the years

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

F-132
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
CONTINUED
For the years ended December 31, 2018 and 2017
(In thousands of US dollars – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Notes 1/1/2018 1/1/2017
N* 12/31/2018 12/31/2017

[Net income for the years 189,747 623,602
Components of other comprehensive income that will not be reclassified to profit or loss,

before tax:

(Losses) gains on remeasurement of defined benefit plans, before tax (48,626) 25,106
Share of other comprehensive (loss) income of associates and joint ventures accounted for using the (1,617) 193
equity method that will not be reclassified to profit or loss before tax ‘

Other comprehensive (loss) income that will not be reclassified to profit or loss before tax (50,243) 25,229
Components of other comprehensive income that will be reclassified to profit or loss, before

tax

(Losses) gains on exchange difference on translation, before tax (848) 4,592
Gains (losses) on cash flow hedges, before tax 104,160 (2,874)
Share of other comprehensive income (loss) of associates and joint ventures accounted for using 554 (604)
equity method that will be reclassified to profit or loss, before tax

Other comprehensive income that will be reclassified to profit or loss before tax 103,866 1,114
Other comprehensive income, before tax 53,623 26,343
Net income tax effect of components of other comprehensive income which will not be

reclassified to profit or loss:

Income tax effect relating measurement of defined benefit plans in other comprehensive income 5 33,148 (16,937)
Net income (loss) tax of components of other comprehensive income which will be reclassified

to profit or loss:

Income tax effect relating to cash flow hedges of other comprehensive income 5 (67,704) 1,868
Total other comprehensive income 19,067 11,274
Total Comprehensive Income 208,814 13,142
Comprehensive income attributable to:

Comprehensive income attributable to owners of the parent 174,786 580,449
Comprehensive income attributable to non-controlling interests 20.b 34,028 54,427
[Total comprehensive Income 208,814 634,876

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

F-133
CORPORACION NACIONAL DEL COBRE DE CHILE
CONSOLIDATED STATEMENTS OF CASH FLOWS – DIRECT METHOD
For the years ended December 31, 2018 and 2017

(In thousands of US dollars – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish – see Note 1.2)

Notes 1/1/2018 1/1/2017
12/31/2018 12/31/2017
Cash flows provided by operating activities:
Receipts from sales of goods and rendering of services 15,428,893 14,521,538
Other cash receipts from operating activities 28 1,733,555 1,657,104
Payments to suppliers for goods and services (8,870,763) (7,822,093)
Payments to and on behalf of employees (1,920,204) (1,614,446)
Other cash payments from operating activities 28 (2,555,184) (2,223,368)
Dividends received 188,749 227,843
Income taxes paid (67,326) (31,224)
| Cash flows provided by operating activities 3,937,720 4,715,354
Cash flows used in investing activities:
Other payments to acquire equity or debt instruments of other entities (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)
Decrease) Increase in cash and cash equivalents before effect of exchange (137,027) 852.816
Effect of exchange rate changes on cash and cash equivalents (82,683) 19,293
(Decrease) increase in cash and cash equivalents (219,710) 872,109
Cash and cash equivalents at beginning of years 1 1,448,835 576,726
Cash and cash equivalents at end of years 1 1,229,125 1,448,835

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

F-134
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 – TRUS$)
(Translation into English of the consolidated financial statements originally issued in Spanish — see Note 1.2)

Reserve of
Reserve on exchange remeasuement of Other Eauly
December 31, 2018 O O a A rccmuis att o
sud cepl translation edges P reserves Total other ao O Total Equiy
reserves et 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 (36,672)| 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 (34,390)| 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 (306,619) (806,619) (306,619)
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
Reserve of Equiy
Reserve on exchange remeasurement of Other a
Reserve of cash fow| attibutable to
D ber 31, 2017 dif defined benefit ll
‘acamber Issued capital da hedges plans Doa Total other Acum oa the Nor-conteling Total Equiy
reserves interests
Note 19 Note 20 Note 20
Initial balance as of 1/1/2017 3,624,423 (10,607) 12,342 (267,171)| 5,582,828 5,317,392 (30,072)| 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 (36,672)| 9,917,843 1,007,495 10,925,338

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

F-135
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 ¡ts 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-136
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 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
II of Note 9.

Basis of Presentation of the Consolidated Financial Statements

The Corporation’s consolidated statements of financial position as of December 31, 2018 and 2017, and
the consolidated statements of comprehensive income for the years ended December 31, 2018 and 2017,
changes in equity and of cash flows for the years ended December 31, 2018 and 2017, have been prepared
in accordance with International Financial Reporting Standards (*IFRS”) as issued by the International
Accounting Standards Board (*lASB”).

These consolidated financial statements include all information and disclosures required in annual financial
statements.

These consolidated financial statements have been prepared from accounting records maintained by the
Corporation.

The consolidated financial statements of the Corporation are presented in thousands of United States dollar
(“U.S. dollar”).

Responsibility for the Information and Use of Estimates

The Board of Directors of the Corporation has been informed of the information included in these
consolidated financial statements and expressly declared its responsibility for the consistent and reliable
nature of the information included in such financial statements as of and for the year ended December 31,
2018, which financial statements fully comply with IFRS as issued by the lASB. These consolidated financial
statements as of December 31, 2018 and for the year then ended were approved by the Board of Directors
at a meeting held on March 28, 2019.

F-137
Accounting Principles

These consolidated financial statements reflect the financial position of Codelco and its subsidiaries as of
December 31, 2018 and 2017, and the results of their operations for the years ended December 31, 2018
and 2017, changes in equity and cash flows for years ended December 31, 2018 and 2017, and their related
notes, all prepared in accordance with lAS 1, “Presentation of Financial Statements”, in consideration of
the presentation instructions of the Commission for the Financial Markets, where not in conflict with IFRS.

For the convenience of the reader, these consolidated financial statements and their accompanying notes
have been translated from Spanish into English.

F-138
SIGNIFICANT ACCOUNTING POLICIES

Significant Judgments and Key Estimates

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.

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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.

The Corporation has assessed and defined that the CGUs are determined at the level of each of its
current operating divisions.

Impairment testing also is performed at the level of associates and joint arrangements.

d) Provisions for decommissioning and site restoration costs – The Corporation is obliged to incur
decommissioning and site restoration costs when such site restoration or decommissioning ¡is required
due to a legal or constructive obligation. Costs are estimated on the basis of a formal closure plan and
are reassessed annually or as of the date such obligations become known. The initial estimate of
decommissioning and site restoration costs is recognized as property, plant and equipment in
accordance with IAS 16, and simultaneously a liability in accordance with IAS 37, is recorded.

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-140
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.

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.

Accruals for open invoices – 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 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

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.

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-141
Corporation determines appropriate revenue recognition for its contracts with customers by analyzing
the type, terms and conditions of each contract or agreement with a customer.

As part of the analysis, the management must make judgments about whether an agreement or
contract is legally enforceable, and whether the agreement includes separate performance obligations.
In addition, estimates are required in order to allocate the total price of the transaction to each
performance obligation based on the stand-alone selling price of the promised goods or services
underlying each performance obligation. (The Corporation applies the constraint on variable
consideration as defined in IFRS 15, if applicable).

Although the abovementioned estimates have been made based on the best information available as of
the date of issuance of these consolidated financial statements, itis possible that new developments could
lead the Corporation to modify these estimates in the future. Such modifications, if applicable, would be
adjusted prospectively, as required by IAS 8 “Accounting Policies, Changes in Accounting Estimates and
Errors.”

F-142
2.

Significant accounting policies

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

– Consolidated statements of financial position as of December 31, 2018 and 2017.

– Consolidated statements of comprehensive income for years ended December 31, 2018 and 2017.
– —Consolidated statements of changes in equity for years ended December 31, 2018 and 2017.

– Consolidated statements of cash flows for years ended December 31, 2018 and 2017.

Basis of preparation – The consolidated financial statements of the Corporation as of December 31,
2018 and 2017, and for the years ended December 31, 2018 and 2017 have been prepared in
accordance with the instructions from the Commission for the Financial Market which fully comply with
IFRS as issued by the lASB.

The consolidated statement of financial position as of December 31, 2017, and the consolidated
statement of income for the year ended December 31, 2017, the consolidated statement of changes in
equity and consolidated statement of cash flows for the year ended December 31, 2017, which are
included for comparative purposes, have been prepared in accordance with IFRS issued by the lASB,
on a basis consistent with the criteria used for the same period ended December 31, 2018, except for
the adoption of the new IFRS standards and interpretations adopted by the Corporation as of and for
the years ended December 31, 2018, which are disclosed in note 11.3.

These consolidated financial statements have been prepared based on the accounting records kept by
the Corporation.

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-143
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-144
The companies included in the consolidation are as follows:

12/31/2018 12/31/2017
Taxpayer ID Number Company Country Currency % Ownership % Owmership
Direct Indirect Total Total

Foreign Chile Copper Limited England GBP 100.00] -] 100.00] 100.00]
Foreign [Codelco do Brasil Mineracao Brazil BRL -] 100.00] 100.00] 100.00]
Foreign [Codelco Group Inc. Unid States | ¡os 100.00] , 100.00 100.00

of America
Foreign [Codelco Intemational Limited Bermuda US$ 100.00] -] 100.00] 100.00]
Foreign ¡Codelco Kupferhandel GmbH Germany EURO 100.00] -] 100.00] 100.00]
Foreign [Codelco Metals Inc. United States [yg y 100.00 100.00 100.00

of America
Foreign [Codelco Services Limited England GBP -] 100.00] 100.00] 100.00]
Foreign ¡Codelco Shanghai Company Limited China RMB 100.00] -] 100.00] 100.00]
Foreign [Codelco Technologies Ltd. Bermuda US$ -] 100.00] 100.00] 100.00]
Foreign [Codelco USA Inc United States [yg y 100.00 100.00 100.00

of America
Foreign [Codelco Canada Canada US$ -] 100.00] 100.00] 100.00]
Foreign Ecometales Limited Channel US$ y 100.00] 100.00] 100.00]

Islands

Foreign Exploraciones Mineras Andinas Ecuador EMSAEC S.A. Ecuador US$ -] 100.00] 100.00] 100.00]
Foreign ¡Cobrex Prospeccao Mineral Brazil BRL -] 51.00] 51.00] 51.00]
78.860.780-6 ¡Compañía Contractual Minera los Andes Chile US$ 99.97| 0.03] 100.00] 100.00]
179.566.720-2 Isapre Chuquicamata Ltda. Chile CLP 98.30] 1.70] 100.00] 100.00]
81.767.200-0 ¡Asociación Garantizadora de Pensiones Chile CLP 96.69] >] 96.69] 96.69]
88.497. 1004 [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]
176.173.357-5 Inversiones Gacrux SpA Chile US$ 100.00] -] 100.00] 100.00]
76.231.838-5 Inversiones Mineras Nueva Acrux SpA Chile US$ -] 67.80] 67.80] 67.80]
76.237.866-3 Inversiones Mineras Los Leones SpA Chile US$ 100.00] -] 100.00] 100.00]
76.173.783-K Inversiones Mineras Becrux SpA Chile US$ -] 67.80] 67.80] 67.80]
76.124.156-7 [Centro de Especialidades Médicas San Lorenzo Ltda. Chile US$ -] 100.00] 100.00] 100.00]
76.255.061-K [Central Eléctrica Luz Minera SpA Chile US$ 100.00] -] 100.00] 100.00]
70.905.700-6 Fusat Chile CLP -] -] -] 3
176.334.370-7 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]
77.270.020-2 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-145
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 iii) the ability to use ¡its power to influence the amount of these returns.

The Corporation reassesses whether or not it controls a subsidiary if facts and circumstances
indicate that there are changes to one or more of the elements of control listed above.

The consolidated financial statements include all assets, liabilities, revenues, expenses and cash
flows of Codelco and its subsidiaries, after eliminating all inter-company balances and
transactions.

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-146
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.

+ 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-147
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.

Property, plant and equipment and depreciation – ltems of property, plant and equipment are
initially recognized at cost. Subsequent to initial recognition, they are measured at cost, less any
accumulated depreciation and any accumulated impairment losses.

Furthermore, assets acquired under finance lease contracts are included in property, plant and
equipment.

Starting fiscal year 2014, the assets included in property, plant and equipment are depreciated, as a
general rule, using the units of production method, when the activity performed by the asset is directly
attributable to the mine production process. All other assets included in property, plant and equipment
are depreciated using the straight-line method.

F-148
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.

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-149
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.

The main intangible assets are described as follows:

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-150
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 its carrying amount, an
impairment loss is recognized immediately in profit or loss, reducing the carrying amount to its
recoverable amount. When an impairment loss subsequently reverses, the carrying amount of the
asset or CGU is increased to the revised estimate of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognized for the asset or CGU in prior years.

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 (PP8.E)

are recognized in property, plant and equipment and are amortized through — profit or loss over the
period during which the benefits are obtained.

F-151
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.

Income taxes and deferred taxes – Codelco and ¡ts 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.

– 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-152
- 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.

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.

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.

In accordance with ¡ts operating optimization programs to reduce costs and increase labor productivity
by incorporating new current technologies and/or better management practices, the Corporation has
established employee retirement programs by amending certain employment contracts or collective
union agreements to include benefits encouraging employees to early retire. Accordingly, these
arrangements are accounted for as termination benefits and required accruals are established based
on the accrued obligation at current value, In case of employee retirement programs which involve
multi-year periods, the accrued obligations are updated using a discount rate determined based on

F-153
p)

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.

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.

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.

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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 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.

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.

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The Corporation’s financial assets are classified into the following categories:

Fair value through profit or loss:

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.

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 ¡ts 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 ¡ts 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.

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 ofthe following concepts:
“Non-current assets or groups of assets for disposition classified as held for sale” and “Non-current
liabilities or groups of liabilities for disposition classified as held for sale.”

New standards and interpretations adopted by the Corporation

The accounting policies adopted in the preparation of the consolidated financial statements are consistent
with those applied in the preparation of the Corporation’s annual consolidated financial statements for the
year ended December 31, 2017, except for the adoption of new standards, interpretations and amendments,
effective from January 1, 2018, which are:

a) IFRS 9, Financial Instruments:

Due to the transition alternatives indicated in IFRS 9, no balances have been adjusted for comparative
periods corresponding to the year 2017.

The initial application date of IFRS 9 is January 1, 2018, and the difference between the recorded amounts
in comparative periods and those recorded at the date of initial application were recorded in Accumulated
Deficit as a gain of ThUS $ 2,282 (see detail below).

Classification of financial assets and liabilities

The adoption of IFRS 9 involved, first, reassessing the classification of financial assets and liabilities, based
on the new definition included in this standard. 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 ¡is 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-162

Finally, the net effect on initial application of IFRS 9 on Codelco’s accumulated deficit, considering the
amounts previously indicated, was as follows:

Effects of IFRS 9 on accumulated deficit as of January 1, 2018 ThUS$
Accumulated deficit balance as of January 1, 2018, under accounting criteria (36,672)
prior to IFRS 9

Transition adjustments to IFRS 9, net of deferred taxes 2,282
Accumulated deficit balance as of January 1, 2018, adjusted for IFRS 9. (34,390)

b) IFRS 15, Revenue from Contracts with Customers

IFRS 15 establishes a new model for the recognition of income, which highlights the concept of the transfer
to the client of the “control” of assets sold in place of the “risk” transfer concept referred to in IAS 18.
Additionally, it requires more detail in disclosures and makes more in-depth reference to contracts with sale
of multiple elements. The application of IFRS 15 has not materially affected the measurements of Codelco’s
revenue, and the disclosures required by this standard are set forth in notes 21 and 26 of section !1l ofthese
Consolidated Financial Statements.

c) Amendments to IFRS 4, Applying IFRS 9 “Financial Instruments” with IFRS 4 “Insurance Contracts”:

It instructs on aspects related to insurance contracts that will be affected upon entry into application of IFRS
9 – Financial Instruments. The application of these amendments had no impact on the consolidated financial
statements of the Corporation, however, it could affect the accounting for future transactions or agreements.
d) Amendments to IAS 40, Transfers of investment property:

These amendments clarify the requirements for the treatment of investment property transfers. The
application ofthese 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-163
New accounting pronouncements

application is not yet mandatory:

The following new IFRS, amendments and interpretations had been issued by the lASB, but their

New IFRS

Date of mandatory application

Summary

IFRS 16 — Leases

Annual periods beginning on or after
January 1, 2019

Requires lessees to recognize
assets and liabilities for all rights
and obligations originated by
leases unless the lease term is 12
months or less or the underlying
asset has a low value, where such
expedients have been adopted by
an entity. Additional disclosure
requirements are also included.
Additionally, the Standard
establishes new requirements of
information to disclose related to
the risk exposure on the part of
lessors.

IFRS 17, Insurance Contracts

Annual periods beginning on or after
January 1, 2021

Establishes the principles for the
recognition, measurement,
presentation and disclosure of
insurance contracts, reinsurance
contracts and investment contracts
with discretional participating
features and supersedes IFRS 4
Insurance contracts.

Amendments to IFRS

Date of mandatory application

Summary

Amendment to IFRS 10 and
IAS 28: Sale or Contribution of
Assets

Date to be determined by IASB.

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.

It adds paragraphs on the
designation of financial assets and
liabilities, restatement of previous
periods and disclosures for
instruments repayable in advance
and provides additional clarity as to
the accounting effects should
prepayment features result in
negative compensation to the
creditor.

Long-term investments in
Associates and Joint Ventures
(amendments to lAS 28)

Annual periods beginning on or after
January 1, 2019.

It includes, within the scope of
IFRS 9, other financial instruments
in an associate or joint venture to
which the equity method does not
apply, including long-term
investments.

Annual improvements for the
2015-2017 cycle
(amendments to IFRS 3, IFRS
11, lAS 12 and lAS 23)

Annual periods beginning on or after
January 1, 2019.

Amendments to IFRS 3 and IFRS
11: Adds paragraphs on treatment
for acquisitions in previously held
shares in a joint operation.
Amendments to lAS 12: Adds
paragraphs on treatment of taxes
related to dividends payable.
Amendments to 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.

F-165

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-166

EXPLANATORY NOTES

Cash and cash equivalents

The detail of cash and cash equivalents as of December 31, 2018 and 2017, is as follows:

ltem 12/31/2018 | 12/31/2017
ThUS$ ThUS$
Cash on hand 25,033 3,300
Bank balances 59,030 124,275
Time deposits 1,131,049 1,306,476
Mutual Funds – Money Market 1,698 651
Repurchase agreements 12,315 14,133
Total cash and cash equivalents 1,229,125 1,448,835

Interest on time deposits is recognized on an accrual basis using the contractual interest rate of each of
these instruments.

The Corporation does not hold any significant amounts of cash and cash equivalents that have a restriction
on use.

Trade and other receivables

Accruals 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
ThUuS$ 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:

ltems 12/31/2018 12/31/2017
Thus$ Thus$

Opening balance 37.861 9.035
Initial adjustment NIIF 9 2.239 –
Initial balance adjusted 40.100 9.035
Net Increases 7.215 29.160
Write-offs/applications (4.658) (334)
Total movements 2.557 28.826
Closing balance 42.657 37.861

As of December 31, 2018 and 2017, the balance of past due but not impaired trade receivables, is as
follows:

. 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

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.

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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.

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-170

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
Thus$ ThUuS$
Administración de Sistemas y Servicios Herman . , .
76.349.138-2 Chile [Employee’s relative Services 200 –
‘Yerko Valenzuela Rojas E.LR.L
Anglo American Sur S.A. 77.762.940-9 Chile [Associate Supplies 55 3
Arcadis Chile S.A. 89.371.200-3 Chile [Employee’s relative Services 3,511 –
Arriendo de Maquinaria Marcelo Enrique Balocchi Vivg 76.300.049-4 Chile [Employee’s relative Services – 95
Asociación Chilena de Seguridad 70.360.100-6 Chile [Member of Board of directors Services 852 –
B.Bosch S.A. 84.716.400-K Chile [Employee’s relative Supplies – 60
Centro de Capacitación y Recreación Radomiro Tomi 75.985.550-7 Chile [Other related Services 847 177
Codelco Tec SpA 96.991.180-9 Chile [Subsidiary Services 10,000 –
Consultor Jannet Troncoso Carvajal E.I.R.L. 76.174.237-K Chile [Employee’s relative Supplies – 74
Distribuidora Cummins Chile S.A. 96.843.140-4 Chile [Employee’s relative Supplies – 302
Ecometales Limited agencia en Chile. 59.087.530-9 Chile [Subsidiary Services 20,040 462
Exploraciones Mineras Andinas S.A. 99.569.520-0 Chile [Subsidiary Services 358,130 –
Fundación de Salud El Teniente. 70.905.700-6 Chile [Subsidiary Services – 13
Fundación Orquesta Sinfónica Infantil de los Andes. 65.018.784-9 Chile |Founder member donor Services 297 247
Fundación Sewell 65.493.830-K Chile [Founder member donor Services – 421
Geotermica del Norte S.A. 96.971.330-6 Chile [Employee’s relative Services – 3,912
Glasstech S.A. 87.949.500-8 Chile [Employee’s relative Supplies 3 –
Industrial Support Company Ltda 77.276.280-1 Chile [Employee’s relative Services – 218
Industrial y Comercial Artimatemb Ltda. 76.108.720-7 Chile [Employee’s relative Services 28 40
Inoxa S.A. 99.513.620-1 Chile [Employee’s relative Services 468 14
Institución de Salud Previsional Chuquicamata Ltda. 79.566.720-2 Chile [Subsidiary Services 22 15,571
Institución de Salud Previsional Río Blanco Ltda. 89.441.300-K Chile [Subsidiary Services 47,028 –
Isapre Fusat Ltda, 76.334.370-7 Chile [Subsidiary Services – 126,800
Kaefer Buildteck SpA 76.105.206-3 Chile [Employee’s relative Services – 97
Kairos Mining S.A. 76.781.030-K Chile [Other related Services 13,700 –
Komatsu Chile S.A. 96.843.130-7 Chile [Employee’s relative Services and Supplies 138,962 208,437
Linde Gas Chile S.A. 90.100.000-K Chile [Employee’s relative Supplies 91 –
Nueva Ancor Tecmin S.A. 76.411.929-0 Chile [Employee’s relative Supplies – 83
San Lorenzo Isapre Limitada 76.521.250-2 Chile [Subsidiary Services 25,945 –
Servicios de Ingeniería IMA S.A. 76.523.610-K Chile [Employee’s relative Services 125 –
Sociedad Contractual Minera El Abra. 96.701.340-4 Chile [Associate Supplies – 134
Sociedad de Procesamiento de Moblibdeno Ltda, 76.148.338-2 Chile [Subsidiary purchase of products – 1
Sodimac S.A. 96.792.430-K Chile [Employee’s relative Supplies – 2,132
Sonda S.A. 83.628.100-4 Chile [Employee’s relative Services – 1,446
Sourcing SpA. 76.355.804-5 | Chile [Employee’s relative Services – 1,259
Teléfonica Chile S.A. 90.635.000-9 Chile [Employee’s relative Services – 99
Transelec Norte S.A. 99.521.950-6 Chile [Member of Board of directors Services 4,411 –
Ziiblin International GmbH Chile SpA 77.555.640-4 Chile [Employee’s relative Services – 117,637

b) Key Management of the Corporation

In accordance with the policy established by the Board of Directors and its related regulations, the
transactions with the Directors, its Chief Executive Officer, Vice Presidents, Corporate Auditor, the
members of the Divisional Management Committees and Divisional General Managers shall be
approved by the Board of Directors.

During the years ended December 31, 2018 and 2017, the members of the Board of Directors have
received the following amounts as per diems, salaries and fees:

F-171

1/1/2018 | 1/1/2017
Name Taxpayer number] Country Nature of the Description of the | 12/31/2018 | 12/31/2017

relationship transaction Amount | Amount

ThUuS$ | 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.

F-172
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 TAUS$1,084 and ThUS$471, respectively.

There were no payments to key management for other non-current benefits during the periods
ended December 31, 2018 and 2017.

There are no share based payment plans granted to Directors or key management personnel of
the Corporation.

Transactions with companies in which Codelco has ownership interest
The Corporation undertakes commercial and financial transactions that are necessary for ¡ts activities
with its subsidiaries, associates and joint ventures (“related parties”). The financial transactions
correspond mainly to loans granted (mercantile current accounts).
Commercial transactions with related companies mainly consist of purchases/sales of products or
rendering of services carried out under market conditions and prices, which do not bear any interest or
indexation.
As of the date of these financial statements, the Corporation has not recognized any allowance for
doubtful accounts with respect to receivable balances from ¡ts related companies.
The detail of accounts receivable and payable between the Corporation and its related parties as of
December 31, 2018 and 2017, is as follows:
Accounts receivable from related companies:
7 Nat Fin Indexati Current Non-current
ee Name Country meo ve non 12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017
number relationship currency
ThUS$ TUSS ThUS$ TUSS
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

F-173

Accounts payable to related companies:

. Current Non-current
Taxpayer Nature of the Indexation
Name Country a Si 12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017
number relationship currency
ThHUS$ ThHUS$ THUS$ THUSS$

77.762.940-9 Anglo American Sur S.A. Chile Associate US$ 125,913 92,315
196.701.340-4 Sociedad Contractual Minera El Abra Chile Associate US$ 22,940 25,370
Foreign Deutsche Geissdraht GmbH Germany Associate EURO 6,106
76.255.054-7 Planta Recuperadora de Metales SpA Chile Associate US$ 2,063 –
Totals 150,916 123,791

The following table sets forth the transactions carried out between the Corporation and its related
companies and their corresponding effects in profit or loss for the years ended December 31, 2018 and

2017:
1/1/2018 1/1/2017
12/31/2018 12/31/2017
Effects on net Effects on net
Taxpayer a a Index. . .
number Entity Nature of the transaction | Country Currency income (charges) I income (charges) 1
Amount credits Amount credits
ES THus$ ES ES

96.801.450-1 | Agua de la Falda S.A. Sales of services Chile CLP 4 4 5 5
96.801.450-1 | Agua de la Falda S.A. Capital contribution Chile CLP 338 –
77.762.940-9 | Anglo American Sur S.A. Dividends received Chile US$ 182,903 187,346
77.762.940-9 | Anglo American Sur S.A. Dividends receivable Chile US$ 84,372 – 59,003 –
77.762.940-9 | Anglo American Sur S.A. Sales of goods Chile US$ 58,411 58,411 76,065 76,065
77.762.940-9 | Anglo American Sur S.A. Sales of services Chile CLP 8,162 8,162 6,598 6,598
77.762.940-9 | Anglo American Sur S.A. Purchase of products Chile US$ 711,384 (711,384)| 714,340 (714,340)
77.762.940-9 | Anglo American Sur S.A. Capital contribution Chile US$ – – – –

Foreign | Deutsche Geissdraht GmbH Dividends received Germany | EURO 946 – 1,119
76.063.022-5 [Inca de Oro S.A. Sales of services Chile CLP 214 2 169 –
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
96.701.3404 [Soc. Contractual Minera El Abra Perceived commissions — [Chile US$ 113 113 9% 9%
96.701.340-4 |Soc. Contractual Minera El Abra Other purchases Chile US$ 992 (992)
76.028.880-2 |Sociedad Contractual Minera Puren Dividends received Chile US$ 178 –

Additional information

The current account receivable from Planta Recuperadora de Metales SpA. corresponds to the loan
agreement granted to build its plant, which was signed on July 7, 2014.

F-174

SpA (whose non-controlling shareholder is Mitsui) and Anglo American Sur S,A,, under which the latter
agreed to sell a portion of its annual copper output to said subsidiary.

Inventories

The detail of inventories as of December 31, 2018 and 2017, is as follows:

Current Non-current
ltems 12/31/2018 12/31/2017 12/31/2018 12/31/2017
ThUS$ ThUS$ ThUuS$ 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$ ThUs$
Opening Balance (94,083) (90,930)
Period provision (2,722) (3,153)
Closing Balance (96,805) (94,083)

For the years ended December 31, 2018 and 2017, the Corporation recognized write-offs of damaged
inventories for ThUS$4,004 and ThUS$4,126 respectively.

The provision for the net realizable value of inventories was ThUS$31,889 for the year ended December
31, 2018 (ThUS$3,000 at December 31, 2017).

During the years ended December 31, 2018 and 2017, decreases in the provision for net realizable value
were ThUS$28,890 and ThUS$3,744, respectively.

As of December 31, 2018 and 2017, there are no unrealized gains or losses recognized on the
intercompany sales of inventories of finished products.

As of December 31, 2018 and 2017, there are no inventories pledged as security for liabilities.

F-175
5. Income taxes and deferred taxes

a) Composition of income tax expense

1/1/2018 1/1/2017
Items 12/31/2018 | 12/31/2017

ThUus$ ThUs$
Currentincome tax (92,270) (72,897)
Effect of Deferred Taxes (249,217) (1,126,918)
Adjustments to current tax from the prior period (19,956) –
Other 4,160 6,748
Total tax expense (357,283) (1,193,067)

b) Deferred tax assets and liabilities:

The following table details deferred tax assets and liabilities:

Deferred tax assets 12/31/2018 12/31/2017
ThUus$ 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
ner 12/31/2018 12/31/2017
Deferred tax liabilities Thus$ ThUS$
Tax on mining activity 163,280 183,571
Property, plant and equipment variations 889,841 1,058,609
Post-employment beneft obligations 10,346 21,532
Accelerated depreciation for tax purposes 5,017,532 5,168,062
Fair value of mining properties acquired 108,518 108,518
Hedging derivatives — future contracts 12,282 5,635
Undistributed profits of subsidiaries 50,006 45,177
Other – 6,695
Total deferred tax liabilities 6,251,805 6,597,799
The following tables sets forth the deferred taxes as presented in the statement of financial position:
Deferred taxes 12/31/2018 12/31/2017
ThUuS$ ThUus$
Non-current assets 31,443 43,285
Non-current liabilities 4,586,168 4,314,237
Net 4,554,725| 4,270,952.

F-176
The effects of deferred taxes on the components of other comprehensive income are as follows:

12/31/2018 | 12/31/2017

Deferred taxes on components of other comprehensive income ThUS$ ThUS$

(Charge) credit cash fiow hedge (67,704) 1,868
Defined Benefit Plans 33,148 (16,937)
Total deferred taxes on components of other comprehensive income (loss) (34,556) (15,069)

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

12/31/2018
Reconciliation of tax rate Taxable Base Atthe Taxrate

25,0% 40,0% 5% 25,0% 40,0% 5% Total

TRUS$ THUS$ THUS$ ThUS$ THUS$ THUS$ LES
Tax effect on the income (loss) before taxes 498,216 498.216 498.216 (124.554) (199.286) (24.911) (348.751)
Tax effect on the income (loss) before taxes of subsidiaries 48.814 48.814 48.814 (12.204) (19.526) (2.441) (34.171)
Tax effect consolidated profit (loss) before taxes 547.030 547.030 547.030 (136.758) (218.812) (27.352) (382.922)
Permanent differences:
First category income tax (25% ) (96.902) 24.226 24.226
Specific tax for state-owned entities Art 2 D.L. 2398 (40% ) (114.392) 45.757 45.757
Specific tax on mining activities 868.189 (43.409) (43.409)
Single Tax Art 21 Inc. N*1 (3.856)
Others 2.921
TOTAL TAX EXPENSE (112.532) (173.055) (70.761) (357.283)

12/31/2017
Reconciliation of tax rate Taxable Base Atthe Tax rate

25,0% 40,0% 5% 25,0% 40,0% 5% Total

TRUS$ THUS$ THUS$ ThUS$ THUS$ THUS$ LES
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-177

The principal changes, among others, was the creation of two optional tax systems: (i) The Attributed
Income System established a progressive increase in the first category income tax rate to 21%, 22.5%,
24% and 25% for fiscal years 2014, 2015, 2016 and 2017, respectively; and (ii) the Partially Integrated
System, established a progressive increase in the first category income to 21%, 22.5%, 24%, 25.5%
and 27% for fiscal years 2014, 2015, 2016, 2017 and 2018, respectively.

Notwithstanding the above, the Corporation has applied the General Taxation Regime, with
progressive first category income tax rates of 21%, 22.5%, 24% and 25% for fiscal years 2014, 2015,
2016 and 2017 onwards, respectively. The Corporation, as a state-owned company, did not have the
option to apply the tax regimes stated in the Tax Reform. Meanwhile, the subsidiaries and associates
applied the partially integrated tax system by default.

In relation to the specific tax on mining activities the tax rate applicable is a 5% under Law No. 20469.
The Corporation, as a Taxpayer of first category, is liable to the single Tax of 40%, contained in the
first paragraph of Article 21 of the Income Tax Law No. 824, in numbers i), li) and iii) , the disbursements
incurred in said numerals.

6. Current and non-current tax assets and liabilities

12/31/2018 | 12/31/2017

Current Tax Assets ThUSS$ ThUS$
Taxes to be recovered 13,645 21,623
Total Current Tax Assets 13,645 21,623

12/31/2018 | 12/31/2017

Current Tax Liabilities 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
ltems 12/31/2018 | 12/31/2017
ThUS$ ThUS$

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-178
7.

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 1213112017

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 1213112017

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-179

: 12/31/2018 12/31/2017

Property, Plant and Equipment, net ThUS$ ThUS$

Construction in progress 8,808,652 7,004,522
Land 164,962 167,086
Buildings 2,354,393 2,490,529
Plant and equipment 5,768,793 5,660,185
Fixtures and fitings 14,929 17,842
Motor vehicles 684,009 743,542
Land improvements 2,352,556 2,247,481
Mining operations 2,486,324 2,607,039
Mine development 3,313,044 3,495,230
Other assets 807,336 842,056
Total Property, Plant and Equipment, net 26,754,998 25,275,512

F-180

Movement of Property, plant and equipment:

oemens Constructionin | Land | Buildings | Plantand [Fixedinstalaions andy; epicios| — Ground Ma aval Other Total
ThUS$ equipment accessories , operations |Developmentof | assets
progress improvements mines
Reconciliation of changes in properties, plant and equipment
Properties, plant and equipment al the beginning ofhe period. Opening Balance 1/4/2018 7,004,522 — 167.086] — 2,490,520] 5,660,185 17842] 749,542 2.247.481] 2607.09] 3405230] 842056] — 25275512
Changes in property, plant and equipment
Increases other than those ffom business, propery, plant and equipment combinatons 3,582,688) . 138 21,008 376 1,383 484 375.575 1,125 38478] — 4021275
Deprecialion, property, plant and equipment 3 (aom| (167,547) (657,866) (6.689) — (119,872) (218,323) (859,955) (80,159)| — (70299) — (2.172,605)
Impaimentlosses recognized in proftor loss for the period (2179) (82,585) (98,77) – (140) (4,786) . (10:53) (198,808)
Increases (decreases) in transfers and other changes, properties, plant and equipment
Increases (decreases) by transfers from constuctons in process, properties, plant and equipment (1,281,365) 102888 812.901 647 51,758 191,986 21,168 99.681 359 .
Increases (decreases) by other changes, properties, plant and equipment (851,945) — (1,113) 11,228 38,322 (68) 2.879 135,714 342.497 (202,889) 75% (17,780)
Increase (decrease) by transfers and other changes, properties, plant and equipment (1,600,310) — (11413) 114.008 851,223 579 54,697 327,700 360,665 (103-158) 7,895] (17,789)
Dispositions and witherawals of service, property, plant and equipment
Retements, properiy, plant and equipment (143,069) (235) (7,400) (199) (1541) . (259) (152.407)
Dispositions and witherawals of service, property, plant and equipment (143,069) . (235) (7,400) (199) (1,544) . . (e88) (15240)
Increase (decrease) in properties, plant and equipment 1,804,130 (2,124| — (136,136) 108,608 (2913)| (69,539) 105,075] (120,715) (182,486)| — (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] — 2,354,399] 5,768,793 14,929] 684,009] 2.352,556] ——2,86,324[ 3,313,044] —807,336| — 26,754,998
Movements Plantand — [Fixed installations and . Minin Other
muss Construction in | Land | ungings | equipment accessories [Motorvehicies| Ground operations Development of | assets Jotal
progress improvements mines
Reconciliation of changes in properties, plant and equipment
Properties, plant and equipment the beginning of the year. Opening Balance 1/1/2017 6260471] — 144415] — 2407188] — 5402668 13,150] 807087 2.089.866] 2598209) 3407706 900536| — 23,977,261
Changes in property, plant and equipment
Increases other than those ffom business, property, plant and equipment combinations 3,061,027] — 2814 2,76 54,962 5 3207 20.081 395,786 2984] 27524 3,511,192
Depreciaton, property, plant and equipment (1:29) (161,592) (632,410)| (6:465)| — (117.366) (225,571) (807,000) (82.627)| — (65549) — (2,096,809)
Impairmentlosses recognized in profitor loss for the year – – – – – – – – – – –
Increases (decreases) in transfers and other changes, properties, plant and equipment
Increases (decreases) by transfers from constructons in process, propertes, plant and equipment (1406.450)| — 16.959] 187,749 690,167 7,581 50,908 311,076 58,806 163,908| — 10201 .
Increases (decreases) by obher changes, propertes, plant and equipment (624,685) 5021 86813 220,085 441 3014 52,861 481,238 32641 — (256558) 2.400
Increase (decrease) by transfers and other changes, properties, plant and equipment (2231,135| — 20.986 244,562 850,252 8/22 53,922 363,937 540,044 167,167| — (15451) 2,400
Dispositions and withdrawals of service, property, plant and equipment
Retremenis, propery, plant and equipment (91,841) (2.387) (15.267) (9) (6.288) (692) (4898) — (118,592)
Dispositions and withdrauals of service, property, plant and equipment (91,841) . (2,387) (15,267) (19) (6288) (632) . (4898) (118,592)
Increase (decrease) in properties, plant and TO8.051| 22,671 89,346 257,521 4602| (63,525) 157,615 68,890 87,524 (58,480) 1,208,251
Properties, plant and at the end of the year. Closing balance 12/31/2017 7,004,522] —167,086| 2,490,520] 5,660,185 17,842] —— 743,542 2,247,481] 2,607,039[ 3,495,230] —84Z056| — 25,275,512

F-181

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:

1/11/2018 1/11/2017
Expenditure on exploration and drilling reservoirs 12/31/2018 | 12/31/2017
ThUS$ ThUS$
Recognized in profit /(loss) 50,765 46,068
Cash outfows disbursed 62,857 76,010

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

Other assets, net 12/31/2018 | 12/31/2017
: Thus$ 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) ofthe investments accounted
for using the equity method:

Equity Interest Carrying Value Net income (loss)
Associates Taxpayer Funct. Cuurenc. 11112018 41112017
Numbers 12/31/2018 12/31/2017 12/31/2018 12/31/2017 12/31/2018 12/31/2017
% % Thus$ Thus$ Thus$ Thus$
[Agua de la Falda S.A. 96.801.450-1 US$ 42.26% 42.26% 4,953 4,943 (329)| (422)
¡Anglo American Sur S.A. 77.762.940-9 US$ 29.5% 29.5% 2,835,412 2,945,084 99,709 163,775
Deutsche Geissdraht GmbH Foreign EURO 40.0% 40.0% – – 1,159 1,375
Inca de Oro S.A. 73.063.022-5 US$ 33.19% 33.19% 12,913 12,942 (42) (104)|
Minera Purén SCM 76.028.880-2 US$ 35.0% 35.0% 9,902 9,897 8 (16)
Planta Recuperadora de Metales SpA 76.255.054-7 US$ 34.0% 34.0% 10,365 10,916 55 (74)
¡Sociedad Contractual Minera El Abra 96.701.340-4 US$ 49.0% 49.0% 610,339 605,769 10,181 15,343
¡Sociedad GNL Mejillones S.A. 76.775.710-7 US$ 37.0% 37.0% 84,409 76,050 8,373 5,551
[TOTAL 3,568,293 3,665,601 119,114 185,428
a) Associates
Agua de la Falda S.A.

As of December 31, 2018, Codelco holds a 42.26% ownership interest in Agua de la Falda S.A., with
the remaining 57.74% owned by Minera Meridian Limitada.

The corporate purpose of this company is to exploit deposits of gold and other minerals, in the third
region of Chile.

Sociedad Contractual Minera El Abra
Sociedad Contractual Minera El Abra was incorporated in 1994. As of December 31, 2018, Codelco
holds a 49% ownership interest, with the remaining 51% owned by Cyprus El Abra Corporation, a

subsidiary of Freeport-McMoRan Copper 8 Gold Inc.

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

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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.

Inca de Oro S.A.

On June 1, 2009, Codelco’s Board of Directors authorized the incorporation of a new company aimed
to develop studies allowing the continuity ofthe Inca de Oro Project, which is a wholly-owned subsidiary
of Codelco.

Prior to the association, Codelco owned 100% of the company. This transaction resulted in a gain after
taxes of ThUS$33,668 recognized in the year ended December 31, 2011.

At the Extraordinary meeting of the shareholders held on December 30, 2014, a capital increase of
ThUS$102,010 was agreed upon, reducing Codelco’s ownership interest to 33.19%.

As of December 31, 2015, the Corporation reduced the carrying amounts of mining property and
exploration and evaluation expenditures as a result of an impairment loss recognized.

As of December 31, 2018, Codelco holds a 33.19% ownership interest in this company.

F-184
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 ¡ts entirety to the participation held by the Corporation at that date through its
affiliate Codelco Kupferhandel GmbH, having a 40% interest in the capital of the company Deutsche
Giessdraht GmbH.

On July 31, 2018 the share sale agreement was finalized representative of the shareholding held by
CK in Deutsche Giessdraht GmbH. The acquiring company of the shares was the Aurubis Company
AG, which was, until before the sale transaction, the majority shareholder of DG.

The result after taxes of this transaction was a net income Th€ 15,214 (ThUS $ 18,172).
Anglo American Sur S.A.

As December 31, 2018, the controlling shareholder of Anglo American Sur S.A. is Inversiones Anglo
American Sur S.A. holding a 50.06% ownership interest, while the non-controlling interest is held by
Inversiones Mineras Becrux SpA., which in turn is a subsidiary controlled by Codelco with a 67.8%
ownership interest. Consequently, Codelco exercises significant influence in Anglo American Sur S.A.
through its indirect ownership interest of 29.5%.

F-185
Company, which would be dissolved without the need for its liquidation. In addition the Absorbing
Company ¡is responsible for the payment of all taxes owed or which may be owed by the Absorbed
Company.

The following tables provide details of asset and liabilities of the associates as of December 31, 2018
and 2017, and their profit (loss) for the years ended December 31, 2018 and 2017:

Assets and Liabilities 12/31/2018 1213112017
TRUS$ TRUS$
Current Assets 1,805,003 1,595,687
Non-current Assets 5,637,321 5,925,176
Current Liabilities 1,008,086 766,986
Non-current Liabilities 1,699,529 1,724,512
1/1/2018 1/1/2017
Net Income 12/31/2018 12/31/2017
TRUS$ TRUS$
Revenue 3,256,402 2,766,212
Cost of sales (2,665,805) (2,359,555)
Profit for the period 590,597 406,657
Movements of Investment in Associates 1/1/2018 1/1/2017
12/31/2018 12/31/2017
TRUS$ TRUS$
Opening balances 3,665,601 3,753,974
Capital contribution 338
Dividends (213,172) (273,560)
Result of the period 119,114 118,151
Foreign exchange differences – (59)
Reverse/ Impairment Anglo American Sur S.A. – 67,277
Other comprehensive income (710) (4,236)
Other (2,878) 4,591
Final balance 3,568,293 3,665,601

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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)
Profit for the period 384,896 361,917

Sociedad Contractual Minera El Abra

rs 12/31/2018 12/31/2017
Assets and liabilities ThUS$ ThUS$
Current Assets 576,167 477,857
Non-current Assets 1,013,165| 1,110,167
Current Liabilities 73,458| 80,077
Non-current Liabilities 270,283 271,684
1/1/2018 1/1/2017
Net Income 12/31/2018 12/31/2017
ThUS$ ThUS$
Revenue 596,060 501,073
Costof sales (575,283) (469,761)
Profit (loss) for the period 20,777 31,312

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-187
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

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

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.

F-188
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.

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, 2018, there are no indicators of impairment, therefore, there have been no
adjustments recognized to the carrying amounts of the assets.

F-189
e)

10. Intangible assets other than goodwill

As of December 31, 2018 and 2017, the intangible assets other than goodwill are described as follows:

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.

This item is composed of the following:

ltem 12/31/2018 12/31/2017
ThUuS$ ThUuS$
Intangible assets with finite useful lives, net 40,421 35,449
Intangible assets with indefinite useful lives 7,958 183,668
Total 48,379 219,117
Carrying amount and accumulated amortization:
12/31/2018
Accumulated
Gross o Net
Item Amortization
TRUS$ TRUS$ THUS$
Trademarks, patents and licenses 28 28
Water rights 7,958 7,958
Sofware 2,803 (1,351) 1,452
Other intangible assets 38,950 (9) 38,941
Total 49,739 (1,360) 48,379

F-190

12/31/2017
Accumulated
Gross o Net
Item Amortization
ThUS$ ThUS$ TRUS$
Trademarks, patents and licenses 28 – 28
Water rights 7,959 – 7,959
Sofware 5,226 (3,533) 1,693
Technological development and innovation 175,710 – 175,710
Other intangible assets 33,727 – 33,727
Total 222,650 (3,533) 219,117

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

Trademarks, Technological
Movements patents and — | 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 1758,710| 33,727 219,117
Changes in intangible assets other than goodwill
Increases other than those arising from business combinations, intangible assets other than goodwil 586 704 9,261 10,561
‘Amortization, intangible assets other than goodwil (603) – (852) (855)
Increases (decreases) in transfers and other changes, intangible assets other than goodwill
Ihcreases (decreases) in transfers and other changes, intangible assets other than goodwil – – (103,638) – (103,638)
Increases (decreases) due to other changes, intangible assets other than goodwil (0) (149) – 7) (157)
Increase (decrease) in transfers and other changes, intangible assets other than goodwill (1 (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 – (475) (72,776) (3,688) (76,639)
Increase (decrease) in intangible assets other than goodwill – 4) (241) (475,710)| 5214] (170,738)
Intangible assets other than goodwill. Final Balance 12/31/2018 2 7,958 1,452 -| 38,941 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 than goodwil. Opening balance (1/1/2017) 2 7,959 1,905 174,624 12,381 196,897
Changes in intangible assets other than goodwill
Ihcreases other than those arising from business combinations, intangible assets other than goodwil 87 1,086 4 1,177
‘Amortization, intangible assets other than goodwill (430) – (852) (782)
Increases (decreases) in transfers and other changes, intangible assets other than goodwill
Increase (decrease) in transfers and other changes, intangible assets other than goodwill – 22,869 22,869
Increases (decreases) due to other changes, intangible assets other than goodwil 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 goodwil – 0) (1,123) (1,124)
Disposiciones y retiros de servicio, activos intangibles distintos de la plusvalía – (1) 1 (4,123) (1,124)]
Increase (decrease) in intangible assets other than goodwill – (212) 1,086 | 21,346 22,220
Intangible assets other than goodwill. Final Balance 12/31/2017 2 7,959 1.693 175,0] 33,727 219,117

d) Additional Information

As of December 31, 2018, the Corporation does not hold balances for intangible assets corresponding
to technological development and innovation. The Corporation has significant intangible assets for
ThUS$175,710, as of December 31, 2017, related to the “Continuous Mining” Project.

Continuous Mining is a project of the Corporation aimed toward development of an internal
technological breakthrough associated with the exploitation of underground mines, the main
Characteristics of the project are: (1) reduction in the exposure of workers to mineral extraction areas;

F-191
(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:

eres 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$ ThUS$
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-192
12. Other non-current non-financial assets

Other non-current non-financial assets as of December 31, 2018 and 2017, are as follows:

Other non-current non-financial assets 12/31/2018 12/31/2017
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
Atfair value though prof 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
Atfair value though prof Amortized Cost Derivatives for hedging Total financial
and loss assets
Classification in the statement of financial position Cross currency
Hedging derivatives swap

Thus$ Thus$ Thus$ Thus$ ThUS$
Cash and cash equivalents 651 1,448,184 – – 1,448,835
Trade and other current receivables 244,265 2,571,087 – – 2,815,352
Non – current receivables – 91,442 – – 91,442
Current receivables from related parties – 64,344 – – 64,344
Non – current receivables from related parties – 25,830 – – 25,830
Other current financial assets – 1,327 – – 1,327
Other non – current financial assets – 11,127 855 137,544 149,526
TOTAL 244,916 4,213,341 855 137,544 4,596,656

+» Fair value through profit or loss: As of December 31, 2018, this category mainly includes receivables
from provisional invoicing sales. Section 11.2.r.

» Amortized cost: lt corresponds to financial assets held within a business model whose objective is to

hold financial assets to collect contractual cash flows that are solely payments of principal and interest
on the principal outstanding. These assets are not quoted in an active market.

F-193
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
ThUus$ Thus$ Thus$ ThUs$ Thus$ Thus$
Loans from financial institutions 404,871 – 404,871 2,107,078 – 2,107,078
Bonds issued 435,429 – 435,429 12,310,307 – 12,310,307
Financial Lease 21,510 – 21,510 86,329 – 86,329
Hedging derivatives – 10,096 10,096 – 106,824 106,824
Other financial liabilities 371 – 371 63,972 – 63,972
Total 862,181 10,096 872,277 14,567,686 106,824 14,674,510
12/31/2017
Current Non-current
ltems Loans and other Hedging Loans and other Hedging
payables derivatives Total payables derivatives Total
ThUus$ Thus$ Thus$ ThUs$ Thus$ Thus$
Loans from financial institutions 130,727 – 130,727 2,329,657 – 2,329,657
Bonds issued 165,784 – 165,784 12,083,622 – 12,083,622
Financial Lease 16,364 – 16,364 86,347 – 86,347
Hedging derivatives – 10,526 10,526 – 79,552 79,552
Other financial liabilities 987 – 987 68,826 – 68,826
Total 313,862 10,526 324,388 14,568,452 79,552 14,648,004

F-194
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 of the contract. The terms established an annual interest
rate of Libor +2.5% with a 5 year maturity to be payable in one installment at maturity with semi-annual
interest payment.

On May 26, 2017, Codelco signed a credit agreement with Oriente Copper Netherlands BV renegotiating
the semi-annual payment. The terms established an annual interest rate of Libor +2.5% with a 5 year
maturity to be payable in one installment at maturity with semi-annual interest payment.

The credit agreements obtained in 2016 and 2017, mentioned above, were paid on May 23, 2018.

As of December 31, 2018, the outstanding balance of the credit agreements is ThUS$631,357.

Bond issued:

These bonds are payable in a single installment on April 1, 2025, at an annual interest rate of 4% and
semi-annual interest payments.

F-195
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 November 4, 2010, the Corporation issued and placed bonds in the U.S. market under Rule 144-A
and Regulation S, for a nominal amount of ThUS$1,000,000. These bonds are payable in a single
installment on November 4, 2020, atan annual interest rate of 3.75% and semi-annual interest payments.
On August 3, 2017, principal was paid for an amount of ThUS$414,763.

On November 3, 2011, the Corporation issued and placed bonds in the U.S. market under Rule 144-
A and Regulation S, for a nominal amount of ThUS$1,150,000. These bonds are payable in a single
installment on November 4, 2021, atan annual interest rate of 3.875% and semi-annual interest
payments. On August 3, 2017, principal was paid for an amount of ThUS$665,226.

On 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
() Thus$1,250,000 at an annual interest rate of 3%, On August 22, 2017, principal was paid for an
amount of ThUS$412,514, with maturity on July 17, 2022, and (ii) TRUS$750,000 at an annual interest
rate of 4.25% with maturity on July 17, 2042, and each have annual interest payments.

On August 13, 2013, the Corporation issued and placed bonds in the U.S. market, under Rule 144-A
and Regulation S, for a nominal amount of ThUS$750,000, payable in a single installment on August 13,
2023, at an annual interest rate of 4.5% and semi-annual interest payments. On August 22, 2017,
principal was paid for an amount of ThUS$162,502.

On July 9, 2014, the Corporation issued and placed bonds in the international financial markets, under
Rule 144-A and Regulation S, for a nominal amount of EUR$600,000,000, payable in a single installment
on July 9, 2024, at an annual interest rate of 2.25% and semi-annual interest payments.

On November 4, 2014, the Corporation issued and placed bonds in the U.S. market, under Rule 144-A

and Regulation S, for a nominal amount of ThUS$980,000, payable in a single installment on November
4, 2044, at an annual interest rate of 4.875% and semi-annual interest payments.

F-196
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.

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-197
As of December 31, 2018, the details of loans from financial institutions and bond obligations are as follows:

12/34/2018
. Principal Nominal | Effective | Current [ Non-current
Taxpayer ID Loans with a . Interest _ Payment of
Country Institución Maturity Currency| Amount Type of amortization Interest | Interest | balance | balance
Number financial entities Rate Interest
Rate Rate Thus$ Thus$
97.018.000-1 [Chile Scotiabank Chile 12/20/2019 3,60% | 3,74% 300,059 –
Bilateral Credit Floating | US$ 300,000,000| Maturity 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 | Floaing | US$ 300,000,000| Maturity Semizannual | 3.44% | 3.62% 1,604 298,875
Foreign [Cayman Island | Bilateral Credit — [Scotiabank 8: Trust (Cayman) Ltd 4/13/2022| Floaing | US$ 300,000,000| Maturity Quarterly 3.09% | 3.30% 1,980 298,401
Foreign [USA Bilateral Credit — [Export Dev Canada 7/7/2022] Floating | US$ 300,000,000| Maturity Semizannual | 3.38% | 3.48% 1,915 299,432
Foreign [USA Bilateral Credit — [Export Dev Canada 10/25/2019| Floaing | US$ 300,000,000| Maturity 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 US$ 874,959| Semi-annual Semizannual | 3.25% | 5.42% 48,490 582,867
Foreign [Germany creditline HSBC Trinkaus 8 Floating | Euro 1.25% | 1.25% 408 –
other institutions 56 –
TOTAL 404,871] 2,107,078
Taxpayer merest Principal Nominal | Effective Current Non-current
DD Number Country Maturity Rat Currency Amount Type of amortization Pay mentofinterest | Interest | Interest balance balance
Rate Rate ThUS$ ThUS$
144-A REG.S Luxembourg 1/15/2019| — Fixed US$ 600,000,000 At Maturity Semizannual 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 UR. 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 UR. 10,000,000 At Maturity Semi-annual 2.50% 2.48% 3,455 416,715
144-A REG.S Luxembourg 8/112027| — 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 4111/2044] — 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 – REG S 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-198
As of December 31, 2017, the details of loans from financial institutions and bond obligations are as follows:

12/31/2017
si s Principal Nominal a Current — | NonForeign USA Bilateral Credit Bank of Tokyo Mitsubishi Ltd. 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 11/3/2021| — Floating US$ 300,000,000| Maturity Quarterly 2.00% 2.17% 969| 298,480]
Foreign Cayman Island | Bilateral Credit — [Scotiabank 8 Trust (Cayman) Ltd 4/18/2022| – 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| Maturity Quarterly 2.14% 2.35% 130] 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| Halfyeariy 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 maturity 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 maturity 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 . Non-current

CA Country Maturity Interest Rate Currency Amount Type of amortization Payment of interest e IN MA 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 7/17/2022 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 v.F 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 v.F 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-199

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! noma e lerest Payments of Interest a 9 More tan so Current total 1 to 3 years 3to5 years | More than 5 years| Non-current total

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|
Bank of Tokyo-Mitsubishi 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$ 7.78%) 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 TRUS$ 430,943 824,602| 1,255,545] 2,906,039] 3,102,804] 15,390,597| 21,399,440

BONO BCODE-B 2025 VE 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 UE. 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| 67,500,000,
Subtotal ThUS$ 15,443 15,443 30,885 30,885 701,783 763,553
Total TRUS$ 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-200

12/31/2017 Current Non-current
Debtor’s Name Currency Efecive interest Nominal Payments of Interest Less than 90 More than 90 Current total 1 to 3 years 3 to 5 years More han 5 Non-current total
rate Rate days days years
Bank of Tokyo Mitsubishi Ltd. US$ 2.16%] 2.10%] Quarterly 1,344 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 8. 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 Ltd. 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$ 7.18%] 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$ 5.18%] 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] 1,515,000
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 ThUS$ 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 TRhUS$ -| 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-201
The present value of future lease payments for financial lease obligations are detailed in the following table:

12/31/2018 12/31/2017
Financial Leases Gross Interest Present Value Gross Interest Present Value
ThUS$ ThUS$ ThUS$ ThUs$ ThUS$ ThUS$

Less than 90 days 6,902 (1,735) 5,167 6,745 (2,857) 3,888
Between 90 days and 1 year 21,529 (5,186) 16,343 20,877 (8,401) 12,476
Between 1 and 2 years 23,385 (5,943) 17,442 23,807 (8,222) 15,585
Between 2 and 3 years 20,079 (4,807) 15,272 17,114 (5,729) 11,385
Between 3 and 4 years 13,628 (3,699) 9,929 11,733 (3,993) 7,740
Between 4 and 5 years 19,946 (2,812) 17,134 10,426 (3,196) 7,230
More than 5 years 35,126 (8,574) 26,552 57,181 (12,774) 44,407
Total 140,595 (32,756) 107,839 147,883 (45,172) 102,711

The total future lease payments for operating leases and rental expenses recognized in the statements of
comprehensive income are summarized in the following tables:

Future lease payments for operating issues 12/31/2018 1213112017
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
a o 12/31/2018 12/31/2017
Rental fees recognized in the statement of comprehensive income ThUS$ ThUSS$
Rental expenses 191,311 228,104

The table below details changes in CODELCOSs liabilities classified as financing activities in the statement
of cash flow, including both cash and non-cash changes for the ended December 31, 2018:

Changes that do not represent cash flow

Initial Balance at Flows of cash Effective Interest | — Other
Financial Cost Fair Value — [accretion/amortizat
Liabilities forfinancing activities 11112018 From Used Total (Mm Exchange Adjustment | ¡on notcah flow Final Balance at
Difference related 12/31/2018
ThUS$ ThUS$ ThUS$ ThUS$ ThUs$ ThUS$ ThUS$ ThUS$ ThUS$ ThUs$
[Loans wifi inandal insitulons 2,460,384 300,000 | (333,027)| (33,027) 84,592 – – 2.511.949
Bond Obligatons 12.249.406 600.000 | (541,341) 58,659 543874 (101,299) – (4,904) 12,745,736
Obiigatons for coverage 83,896 (18,980)| (18/30) 20.070 35,884 (4,788) – 116,132
Paid Dividens – (602.461)| — (602.461) – – – (602,461)
Financial assets for hedge derivalves (137,544) – – – 66,177 (96,333) – (107,700)
Finanoe leases 102,711 (27,130)| —— (27,130) 2,774 2645 26,839 107,839
¡Capital contibuton – | 600.00 – | 600.000 – – – –
¡Other 69813 – (e9200)| (99,200) 82.886 – – – 10.844 64,343
[Total liabilies from financing activities 14,828,666 | — 1:500,000| —(1.622,088)| (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 . Fair Value — | Effective Interest
Liabiites forfinancing activi 12017 » Used Total a a A Adjustment — [accretion/amortizat Final Balance at
sabes foriinancing activites mm se oa (1 Difference ionnotcahflow | Other 1213112017
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThuS$ ThUS$

Loans wih inandalinstiulons 3,154,741] — 300.000] (1,043,246) — (743,246) 74,342 (25,453) – 2460384
Bond Obligatons 11,758,820 | 2,760,000 | (3094,341)| — (344,341) 521,750 163,314 – – 149,863 12.249.406
Obiigatons for coverage 171,061 15,737 – 15,737 15,553 (89,036)| (6,162) (23257) – 83,896
Paid Dividens – | (273332) — (273332) – – – – –
Financial assels for hedge derivatves (63,781)| 5291 – 5291 4,765 (71,579) (85497) 23257 – (137,544)
Finance leases 124,491 (25565) (25565) – – – 3,785 102,711
¡Capital contibuton -| 995000 – | 995,000 – –
¡Other 74,253 – (45980)| (45,980) – – – 41,540 69813
“Total liabilties fromfinancing activities 15.219.585] — 4,066,028] —(4,482,464)| (416.436) 516.410 (22,754) (41,659) 195.188 14,820,666.

F-202

15.

16.

(1) The finance costs consider the capitalization of interest, which for the year ended December 31, 2018
and 2017, amounts to TRUS$311,399 and ThUS$217,031, respectively.

Fair Value of financial assets and liabilities

The carrying amount of financial assets is a reasonable approximation to their fair value, therefore, no
additional disclosures are required in accordance with IFRS 7.

Regarding financial liabilities, the following table shows a comparison as of December 31, 2018 between
the carrying amount and the fair value of financial liabilities other than those whose carrying amount is a
reasonable approximation of fair value.

Comparison value book vs fair value Accounting treatment for Carrying amount Fair value
as of December 31, 2018 valuation ThUS$ ThUS$
Financial liabilities:
Bond Obligations Amortized cost 12,745,736 13,131,637

Fair value hierarchy

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-203
17. Trade and other payables

The detail of trade and other current payables as of December 31, 2018 and 2017, ¡is as follows:

Currents
ltems 12/31/2018 12/31/2017
ThUus$ ThUus$
Trade payables 1,317,623 1,376,270
Dividends payables – 295,842
Payables to employees 21,561 17,177
Withholdings 72,681 88,386
Withholding taxes 60,621 36,020
Other payables 74,098 102,073
Total 1,546,584 1,915,768

18. Other provisions

The detail of other current and non-current provisions as of December 31, 2018 and 2017, ¡is as follows:

Current Non-current
Other Provisions 12/31/2018 12/31/2017 12/31/2018 12/31/2017
ThUS$ ThUs$ ThUS$ ThUS$

Sales-related provisions (1) 2,692 4,177
Operating (2) 233,277 152,075
Law No. 13196 93,309 134,013 – –
Other provisions 51,771 31,166 20,153 18,790
Onerous Contract (3) 3,200 3,200 4,534 7,734
Decommissioning and restoration (4) 1,506,162 1,636,695
Legal proceedings – 69,334 48,583

Total 384,249 324,631 1,600,183 1,711,802

(1) Corresponds to a sales-related accruals, which includes charges for freight, loading, and unloading that
were not invoiced at the end of the period.

(2) Corresponds to a provision for customs duties, freight on purchases, electricity, among others.

(3) Corresponds to a provision recognized for an onerous contract with Copper Partners Investment

Company Ltd, See Note 31 b).

(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-204
Changes in Other provisions, were as follows:

1/1/2018
12/31/2018
Changes Other Provisions, |Decommissioning . .
. Contingencies Total
non-current and restoration
TRUS$ TRUS$ TRUS$ ThUS$

Opening balance 26,524 1,636,695 48,583 1,711,802
Adjust closing provision – (117,174) (117,174)
Financial expenses – 34,754 – 34,754
Pay ment of liabilities – (827) (5,100) (5,927)
Foreign currency translation (3,617) (52,704) (3,574) (59,895)
Provision increase (3,200) – – (3,200)
Other increases 4,980 5,418 29,425 39,823
Closing Balance 24,687 1,506,162 69,334 1,600,183

19. Employee benefits
a. Provisions for post-employment benefits and other long term benefits

Both long-term employee benefits are stated in the terms of employment contracts and collective
bargaining agreements as agreed to by the Corporation and its employees.

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-205

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 Infiation 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.

. The detail of current and non-current provisions for employment benefits as of December 31, 2018 and
2017, is as follows:

Current Non-current
Accrual for employee benefits 12/31/2018 12/31/2017 12/31/2018 12/31/2017
ThUS$ ThUS$ ThUs$ ThUs$

Employees’ collective bargaining agreements 204,040 218,167 – –
Employee termination benefit 27,247 31,468 802,260 850,622
Bonus 60,616 62,921 – –
Vacation 183,628 176,489 – –
Medical care programs (1) 460 443 496,323 523,206
Retirement plans (2) 17,620 7,987 8,355 9,494
Other 16,423 19,206 8,582 9,337

Total 510,034 516,681 1,315,520 1,392,659

(1) Corresponds to a provision recognized for the obligations with health care institutions as agreed
with current and former employees.
(2) Correspond to the provision recognized for early retirement benefits provided to employees.

F-206
The reconciliation of the present value of the post-employment benefit obligation, is as follows:

11112018 1/11/2017
12/31/2018 12/31/2017
Movements
Retirement plan Health plan Retirement plan Health plan
ThUS$ ThUS$ ThUS$ ThUs$
Opening balance 882,090 523,649 777,706 538,237
Service cost 72,821 9,962 65,284 936
Financial cost 15,966 11,520 9,332 8,666
Paid contributions (57,166) (39,779) (57,897) (37,678)
Actuarial (gains)/losses 16,576 30,200 7,178 (31,426)
Transfer from other benefits 3,335 – 3,346 –
Subtotal 933,622 535,552 804,949 478,735
(Gains) Losses on foreign exchange rate (104,115) (38,769) 77,141 44,914
Final Total 829,507 496,783 882,090 523,649

The technical revaluation (actuarial gain/loss as defined under IAS 19) of the liability for compensation
benefits for years of service has been made, for the year ended December 31, 2018. Such was charged
to equity, which consists of an actuarial loss of ThUS$16,576, corresponding primarily to a change in
financial assumptions. . Such charge to equity is broken down into a loss of ThUS$15,584 for the
revaluation of financial assumptions and an experience loss of ThUS$992.

For the obligation generated by health benefit plans, an actuarial loss of ThUS$30,200 has been
determined, consisting primarily of an adjustment for financial assumptions which is composed of a loss
for changes in the financial assumptions of ThUS$25,930; and an experience loss of ThUS$4,270.
The balance of the defined benefit liability as of December 31, 2018, comprises a short term portion of
ThUS$27,247 and ThUS$460 for the termination indemnities plan and the medical care plan,
respectively. The expected amount of the defined benefit liability projected at December 31, 2019,
consists of ThUS$881,076 for the termination indemnities plan and ThUS$457,843 for the medical care
plan. The expected monthly average future disbursements related to defined benefit plans are of
ThUS$2,271 for termination indemnities and of 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-207

Severance Benefits for Years of Service Low Medium High Reduction Increase
Financial effect on interest rates 3.490% 4.490% 5.490% 5.46% 4.78%
Financial effect on the real increase in income 3.530% 4.030% 4.530% -2.21% 2.34%
Demographic effect of job rotations 3.340% 3.840% 4.340% 0.78% 0.69%
Demographic effect on mortality tables -25.00% CB14-RV14, Chile 25.00% 0.07% 0.07%

Health Benefits and Other Low Medium High Reduction Increase
Financial effect on interest rates 3.926% 4.926% 5.926% 15.44% -12.06%
Financial effect on health inflation 4.550% 5.050% 5.550% 5.96% 6.65%
Demographic effect, planned retirement age 58/57 60/59 62/61 3.98% 3.90%
Demographic effect on mortality tables -25.00% CB14-RV14, Chile 25.00% 10.22% -7.20%

Cc. Retirement plans and conflict termination bonus

As of December 31, 2018 and 2017, the termination benefits current balance was ThUS$17,620 and
ThUS$7,987, respectively, while the non-current balance was ThUS$8,355 and ThUS$9,494,
respectively. The non-current portion is associated with the provision related to the term of the collective
bargaining process that Codelco’s management negotiated during the month of December 2012 with the
employee unions of the Chuquicamata Division. The non-current amounts recognized have been
discounted using a discount rate equivalent to that used for calculating employee benefits provisions and
whose outstanding balances are part of the balances as of December 31, 2018 and 2017.

d. Employee benefits expenses

The employee benefit expenses recognized for the years ended December 31, 2018 and 2017, are as
follows:

1/1/2018 1/1/2017

Expense by Nature of Employee Benefits 12/31/2018 12/31/2017

TRUS$ ThUS$
Benefits – Short term 1,731,593 1,633,536
Benefits – Post employ ment 9,962 936
Benefits – Retirement plans and confiict termination 54,594 20,553
Benefits by years of service 72,821 65,284
Total 1,868,970 1,720,309

F-208
20. Equity

The Corporation’s total equity as of December 31, 2018 is ThUS$11,343,869 (ThUS$10,925,338 as of
December 31, 2017).

Net income shown in the balance sheets, after deducting the amounts referred to in the previous paragraph,
shall belong to the State and becomes part of the Nation’s general income.

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.

Those resources were to be taken from the profits for year 2015 for their capitalization.

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-209
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.

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:

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-210
a) Other reserves

The detail of other reserves as of December 31, 2018 and 2017, is as follows:

12/31/2018
Other Reserves 12/81/2017
ThUS$ ThUS$
Reserve on exchange differences on translation (6,863) (6,015)
Reserve of cash flow hedges 47,792 11,336
Capitalization fund and reserves 4,962,393 4,962,393
Reserve of remeasurement of defined benefit plans (274,480) (259,002)
Other reserves 625,317 626,380
Total other reserves 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 4213112017
% % ThuS$ LES ThUuS$ ThUS$
Inversiones Gacrux SpA 32.20% 32.20% 969,203 1,007,493 34,031 54,423
Others – – 1 2 (3) 4
Total 969,204 1,007,495 34,028 54,427

For the year ended December 31, 2018, Inversiones Gacrux SpA did not distribute any dividends to

non-controlling interests.

comprehensive income and cash flows:

F-211

Assets and liabilities 12/31/2018 12/81/2017
ThUS$ ThUS$
Current Assets 361,568 306,496
Non-current assets 2,839,764 2,959,114
Current liabilities 176,742 158,455
Non-current liabilities 593,078 676,208
1/11/2018 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
1/11/2018 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:

1/11/2018 1/11/2017
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-212
22.

23.

Expenses by nature

Expenses by nature as of December 31, 2018 and 2017, are as follows:

11112018 1/11/2017
Item 12/31/2018 12/31/2017
ThUs$ ThUS$
Short-term benefits to employees 1,731,593 1,633,536
Depreciation 1,186,480 1,152,803
Amortization 994,660 948,298
Total 3,912,733 3,734,637

Impairment of Assets

As of December 31, 2018, the Corporation made a calculation of the recoverable amount of its cash
generating unit Windows Division, for the purpose of checking the existence of a deterioration in the value
of the assets associated with said division, the carrying amount of which amounted to US$323 million.

The aforementioned calculation of the recoverable amount determined a value of US$124 million, which
compared with the amount in books, implied an acknowledgment of an impairment loss of assets for
ThUS$ 198,898 (before tax), which was recorded in the Other ¡item expenses by function, of the
comprehensive income statement for the year 2018 (note 24b).

The aforementioned loss due to impairment is mainly generated by the fall in the costs of treatment and
refining.

As of December 31, 2017, the Corporation recognized a reversal of a portion of the impairment loss
previously recognized on the Anglo American Sur investment (Explanatory Note 9).

As of December 31, 2018 and 2017 there are no signs of additional deterioration or reversals of impairment
recognized in previous years.

F-213
24. Other income and expenses by function
Other income and expenses by function for periods ended December 31, 2018 and 2017, are as follows:

a) Other income by function

11112018 1/11/2017
Item 12/31/2018 12/31/2017
ThUS$ ThUS$
Penalties to suppliers 18,920 10,926
Delegated Administration 5,346 4,458
Miscellaneous sales (net) 25,973 33,243
Insurances recoveries by incidents – 16,757
Profit on sale of shares of Deutsche Giessdraht GmbH (See note 7) 18,279 –
Other income 56,308 88,948
Total 124,826 154,332
b) Other expenses by function
1/1/2018 1/1/2017
Item 12/31/2018 12/31/2017
ThHUS$ TRHUS$
Law No. 13196 (1,108,209) (1,098,556)
Research expenses (103,649) (110,942)
Bonus for the end of collective bargaining (204,623) (28,577)
Expenses plan (54,594) (20,553)
Write-off of investment projects (See Note 10) (212,587) (74,655)
Write-off of property, plant 8, equipment (7,357) (11,824)
Medical care plan (9,962) (936)
Additional bonuses to contractors – (161)
Impairment of assets (note 22) (198,898) –
Write-off 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-214
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$ LES
Bond interest (265.001) (333.717)
Bank loan interest (69.869) (74.583)
Unwinding of discount on severance indemnity provision (16.497) (12.301)
Unwinding of discount on other non-current provisions (46.959) (34.751)
Other (65.122) (189.258)
Total (463.448) (644.610)

26. Operating segments

The Corporation has defined its Divisions as ¡ts operating segments in accordance with the requirements of
IFRS 8, Operating Segments. The revenues and expenses of the Head Office are allocated among the
defined operating segments.

The mining deposits in operation, where the Corporation conducts its extractive and processing activities
are managed by the following Divisions: Chuquicamata, Radomiro Tomic, Ministro Hales, Gabriela Mistral,
Salvador, Andina and El Teniente. In addition, the smelting and refining activities are managed at the
Ventanas Division. All these Divisions have a separate operational management, which reports to the Chief
Executive Officer, through the North and South Central Vice-President of Operations, respectively.

The information on each Division and their corresponding mining deposits is as follows:

Chuquicamata

Types of mine sites: Open pit mines

Operating: since 1915

Location: Calama — Region |

Products: Electro refined and electrolytic (electro-obtained) copper cathodes and copper concentrate

Radomiro Tomic

Types of mine sites: Open pit mines

Operating: since 1997,

Location: Calama — Region |

Products: Electro refined and electrolytic (electro-obtained) copper cathodes and copper concentrate

Ministro Hales

Type of mine: Open pit mine
Operating: since 2014
Location: Calama — Region |

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Products: Calcined copper, copper concentrates

Gabriela Mistral

Type of mine: Open pit mine

Operating: since 2008

Location: Calama — Region |

Products: Electrolytic (electro-obtained) cathodes

Salvador

Type of mine: Underground mine and open pit mine

Operating: since 1926

Location: Salvador — Region |1l

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.

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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

Income tax benefit (expenses)

+ Other tax expenses are allocated in proportion to the corporate income tax, specific mining tax and
tax under D.L. 2398 of each Division.

b) Transactions between segments

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.

Conversely, activities such as obtaining financing, investment and payment of relevant financial
obligations are mainly based at the Head Office.

F-218
The following tables details the financial information organized by operating segments:

From 1/1/2018

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-party copper 177 – – – – 14.597 – 23.123 37.897 1.863.002 1.900.889
Revenue from sales of molybdenum 359.996 15.751 20.356 88.841 164.388 – – – 649.332 1.973 651.305
Revenue from sales of olher products 142.143 – 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 – 23.652
Revenue betw een 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) (831.698)| — (1.637.057) (3.889) (540.134) (896.470)| — (8.630.926) (15.076) (8.646.002)
Cost of sales of copper third-party copper (192) – – – – (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) – – – (175.832) (18.048) (193.880)
Cost of sales of other products (140.063) – (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 (303.514) 303.514 –
Cost of sales (3.299.480)| (1.300.460) (613.200) (954.199)| — (1.745.127) (352.797) (541.362) (014.817)| — (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 function 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) (32.077) (264.215) (201.113) (465.328)
Other expenses, by function (97.154) (35.056) (125.943) (82.589) (171.207) (210.008) (12.023) (87.058) (781.038) (226.067) (1.007.105)
Law No. 13.196 (314.516) (201.452) (34.027 (118.451) (265.868) (15.137) (63.789) (94.969)| — (1.108.209) – (1.108.209)
Other gains (losses) – – – – – – – – – 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) (50.821) (463.448)
Share in the profit (loss) of associates and joint ventures 174 – (75) (466) (2258) – – – (9.020) 122.134 119114
accounted by the equity method
Exchange diflerences 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 (357.283)
Income (loss) 913 159.475 (54.297) (4.603) 215.913 (71.948) (1.392) 30.492 272.727 (82.980) 189.747

F-219

From 1/1/2017

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 (81.418) 11.636.279
Revenue from sales of hird-party copper (1.165) – (104) – – 32.392 – 237.708 268.831 1.737.143 2.005.974
Revenue from sales of moly bdenum 276.868 40.654 16.005 65.908 101.571 – – – 501.006 1.376 502.382
Revenue from sales of olher 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 between 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) (837.786) (1.562.246) (9.193) (546.845) (870.282)| — (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 molybdenum (84.777) (28.807) (9.656) (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) (398.813) (11) (398.824)
Cost of sales beween segments (283.468) 80.943 (68.990) 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 funcion 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) (6.613) (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) (6.583) (6.546) (315.288) (143.629) (458.917)
Law No. 13.196 (269.112) (196.289) (61.423) (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) (66.324) (587.098) (57.512) (644.610)
Share in the profit (loss) of associates and joint ventures
accounted by the equiyy method 529 – 427 (685) 413 – – – e 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) (320.426) 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 (30.003) 44.629 80.371 589.995 33.607 623.602

F-220
The assets and liabilities related to each operating segment, including the Corporation’s head office as of
December 31, 2018 and 2017, are detailed in the following tables:

12/31/2018
Category Chuquicamata | C4omiro | ador | Andina | ElTeniente | Ventanas | G.Mistral | M.Hales | ubsanariós and Total
Tomic Head Office, net | Consolidated
ThUS$ RUSS RUSS TRUS$ RUSS ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Current assess 1.278.051 715.681] — 278.481 247.576 696.341 89.148 239.493 291.782 1.991.553 5.828.206
Non-current assets 7.868.607. 1.941.213] 727.675] 4.519.739] 6s47.657| 156.316| 1.136.948| 3.278.883 5.091.501 | — 31.262.599
Currentliabiiies 729.319 192.735| — 116.008 218.560 441.255] 61.363 111.615 117.624 1.551.043 3.539.412
Non-current labiiies 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
cat chuauicamara | Rádomiro [a aná er eniente | Venta 6.mera | m.hates. |Subsidiaries and | — Total
tegory uquicamata alvador dina enient fentanas | G. Mistral . Mates | hoxa Ofico, net | Consolidated
ThUS$ RUSS RUSS TRUS$ RUSS ThUS$ ThUSS ThUSS ThUS$ ThUSS
Currentasses 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| 6sbI| 4326237] 61aati] 3szoso| 1.172667| 3.409.326 5.455.861] — 30.145.088
Currentliabiiies 727.862 181.996| — 140.431 202.925 433.047] 62.748 87.569 99.511 1.378.367] 3.315.456
Non-current labiiies 939.029 206.370] 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:

1/11/2018 1/11/2017
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
1/11/2018 1/11/2017
Revenue per geographical areas 12/31/2018 12/31/2017
ThUS$ ThUS$
China 3,867,505 3,231,719
Restof Asia 1,982,163 1,990,528
Europe 3,482,755 1,353,503
America 3,764,467 3,453,366
Other 1,211,868 4,612,439
Total 14,308,758 14,641,555

F-221
The main customers of the Corporation are listed in the following table:

1/1/2018
Principal Customers Country 12/31/2018

ThUS$
Glencore International Ag. Switzerland 1,039,310
Southwire Company United States 720,172
Nexans France France 531,740
Glencore Chile S.P.A. Chile 516,938
Trafigura Pte Ltd. Singapore 502,875
Wanxiang Sg Pte Ltd. Singapore 430,957
Jiangxi Copper Company Ltd. China 359,495
Lobb Heng Pte. Ltd China 303,718
Concord Resources Limited Japan 303,083
Triway International Limited Hong-Kong 274,615
Total 4,982,903

27. Foreign exchange differences

The detail of foreign exchange differences for the years ended December 31, 2018 and 2017, is as follows:

1/11/2018 1/1/2017
Gain (loss) from foreign exchange differences
doss) an nana 12/31/2018 | 12/31/2017
recognized in income

ThUS$ ThUS$
Gain from foreign exchange differences 277,780 74,782
Loss from foreign exchange differences (99,637) (280,840)
Total exchange difference, net 178,143 (206,058)

F-222

28. Statement of cash flows

The following table shows the items that comprise other collections and payments from operating activities
in the Statement of Cash Flows:

1/11/2018 1/1/2017
Other collections from operating activities 12/31/2018 12/31/2017
ThUS$ ThUS$
VAT Refund 1,513,219 1,373,195
Other 220,336 283,909
Total 1,733,555 1,657,104
1/11/2018 1/1/2017
Other payments from operating activities 12/31/2018 12/31/2017
ThUS$ ThUS$
Contribution to the Chilean Treasury (Law No. 13196) (1,136,559) (1,062,496)
Finance hedge and sales (29,843) (5,090)
VAT and other similar taxes paid (1,388,782) (1,155,782)
Total (2,555,184) (2,223,368)

As of December 31, 2018 and 2017, as indicated in the equity note, capital contributions were received
for a total of ThUS $ 600,000 and ThUS $ 995,000, respectively, which are presented in other cash
inflows (outflows) corresponding to the net cash flows from (used in) activities of financing.

29. Financial risk management, objectives and policies

Codelco has committees within its organization to set out strategies allowing to reduce the financial risks to
which it may be exposed.

The risks to which Codelco is exposed and a brief description of the management procedures that are
carried out in each case, are described below:

a. Financial risks
– Exchange rate risk:
According to IFRS 7, exchange rate risk is understood to be the risk that arises from financial
instruments that are denominated in foreign currencies, that is, a currency other than the
Corporation’s functional currency (US dollar).
Codelco’s activities that generate this exposure correspond to funding in UF, accounts payable and

receivable in Chilean pesos, other foreign currencies used in its business operations and obligations
with employees.

F-223
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:

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

F-224
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.

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.

F-225
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 Between one More than
12/31/2018 one year and five years five years
ThUS$ ThUS$ ThUS$

Loans from financial institutions 404,871 1,225,961 881,117
Bonds 435,429 2,479,715 9,830,592
Finance leases 21,510 59,777 26,552
Derivatives 10,096 – 106,824
Other financial liabilities 371 63,972 –
Total 872,277 3,829,425 10,845,085

Credit risk

This risk comprises the possibility that a third party does not fulfill its contractual obligations, thereby
causing a loss for the Corporation.

Given the Corporation’s sales policy, principally with cash and advance payments and bank letters of
credit, the uncollectability of client debt balances is minimal. This is complemented by the familiarity
the Corporation has with its clients and the length of time it has operated with them. Therefore, the
credit risk of these transactions is not significant.

The indications with respect to the payment conditions to the Corporation are detailed in every sales
contract and the negotiation management is under the charge of the Vice Presidency of Marketing.

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 explanatory note 2, trade and other receivables presents past due balances that have not been
impaired.

F-226
The Corporation estimates that unimpaired amounts overdue over 30 days are recoverable based on
clients’ historical payment behavior and their existing credit ratings.

As of December 31, 2018 and 2017, there are no receivable balances that have been renegotiated.
Codelco works with major banks, which have high national and international ratings, and continually
assesses them; therefore, the risk that could affect the availability of the Corporation’s funds and
financial instruments is not significant.

During the years ended December 31, 2018 and 2017, no guarantees have been executed to ensure
the collection of third party debt.

Personnel loans mainly related to mortgage loans, according to programs included in union
agreements, which are paid for through payroll discounts.

30. Derivatives contracts

The Corporation has entered into transactions to hedge cash flows, to minimize the risk of foreign exchange
rate variations and sales price variations, detailed as follows:

a. Hedges

The Corporation has taken measures to protect itself from exchange rate and interest rate variations,
where the positive fair value of such derivative, net of taxes, amounts to ThUS$27,346.

The following table summarizes the financial hedges contracted by the Corporation:

December 31, 2018

Type of Financial | Fair value of
Hedged ¡tem Bank derivative | Maturity | Currency | Amount | *Pligation: | oing Asset | Liability
contract a ln ments
instrument
ThUS$ TRUS$ ThUS$ Thus$ | Thuss
Bond UF Mat 2025 — [Credit Suisse (USA) Swap | 411/2025 | US$ 273.765 | 208.519 84.365 334.180 | (249.815)
Bond EUR Mat 2024 [Santander (Chile) Swap | 7/9/2024 | US$ 343.170 | 409.650 (63.592) | 338.339 | (441.931)
Bond EUR Mat 2024 |Deustohe Bank (England) swap | 7/9/2024 | US$ 343.170 | 409.680 (63.170) | 3ee.339 | (441.509)
Bond UF Mat 2026 — [Santander (Chile) Swap | 8/24/2026 | US$ 396.761 406.212 23.335 458.627 | (435.292)
Total 1.356.866 | 1.434.061 938 1.596.485 | (1.568.547)

F-227
December 31, 2017

Type of Financial Fair value of
Hedged item Bank derivative | Maturity Currency | Amount obligation: hedging Asset Liability

contract hedging instruments

instrument
ThUs$ ThUs$ ThUusS$ ThUs$ ThUus$
Bond UF Mat 2025 |Credit Suisse (USA) Swap 4/1/2025 US$ 300.784 208.519 101.158 361.056 (259.898)
Bond EUR Mat. 2024 |Santander (Chile) Swap 7/9/2024 US$ 360.708 409.650 (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 ore than Current total 1to 3 years 3to5 years More than 5 years| Non-currenttotal
December 31, 2018 Currency days
ThUS$ ThUS$ Thus$ ThUS$ ThUS$ ThUS$ Thus$
Currency derivative US$ 13,156 44,290 57,446 114,892 114,892 1,525,989 1,755,773

. Cash flows hedging contracts and commercial policy adjustment

The Corporation enters into metals hedging activities. Such results increase or decrease the total sales
revenue based on the market prices of the metals. As of December 31, 2018, these operations generated
a gain of ThUS$29,414.

b.1. Commercial flexibility operations of copper contracts

The purpose of these contracts is to adjust the price of shipments to the price defined in the
Corporation’s related policy, defined in accordance with the London Metal Exchange (LME). As of
December 31, 2018, the Corporation performed derivative market transactions of copper that
represent 420,850 metric tons of fine copper. These hedging operations are performed as part of
the Corporation’s commercial policy.

The current contracts as of December 31, 2018, present a positive fair value of such derivatives of
ThUS$53,518 and their final result will only be known at their maturity, offsetting the hedging
transactions with revenue from the sale of the hedged products.

The transactions settled as of period ended December 31, 2018 resulted in a net positive effect on
net income of ThUS$29,351, which is comprised of the amounts received for sales contracts for
ThUS$23,588 and the values paid for purchases contracts for ThUS$5,763.

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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 ThUS$671. The
final result will only be known at the expiration of such operations, after offsetting between hedging
and income from the sale of the goods. These hedging operations expire up until April 2019.

The operations completed between January 1 and December 31, 3018, generated a positive effect
on results of ThUS$63, corresponding to values per physical sales contracts for a positive amount
of ThUS$64 and securities for contracts physical purchases for a negative amount of ThUS$1.
Cash flow hedging operations backed by future production

The Corporation does not possess cash flow hedges backed by future production as of December
31, 2018.

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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:

– Labor proceedings: Labor proceedings brought by the workers of the Andina Division against the
Corporation with regard to occupational diseases (silicosis).

– 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.

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, CUuPIC paid off its debt to the abovementioned bank. As of
December 31, 2017. Codelco does not hold any indirect guarantee regarding its participation in this
associated company.

On December 17, 2015, the Codelco administration presented a restructuring for the Supply
Contract, which implies the removal of its share in CUPIC.

In order to realize the above mentioned term of the shareholding, Codelco signed a set of
agreements which formalized primarily the following issues:

+ 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 CUuPIC from January
1, 2016 and the date of signing the agreement.

* Additionally, the cessation of dividends reception as a consequence of the removal of the
Codelco share in the ownership of CuPIC since 2016, led to a reduction of the net profit
estimated to Codelco until the end of the contract signed with that company (year 2021). This
implied that such contract qualifies as an onerous contract, according to IAS 37, which negatively
impacts on earnings before tax of Codelco in ThUS$22,184 (negative net tax effect of
ThUS$6,599 as of April 7, 2016).

Regarding the financing agreement signed on August 23, 2012, between the subsidiary, Gacrux
Inversiones SpA and Mitsui 3, 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.”

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

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vi.

vil.

viii.

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:

. . . . Emission
Transmitter Mine site Amount Currency Date Maturity date rate % ThUS$
Banco Estado Radomiro Tomic 2,691,723 UF 11/30/2018 11/11/2019 0.08 106,797
Banco Estado Ministro Hales 911,821 UF 11/29/2018 11/14/2019 0.08 36,178
Banco Chile Ministro Hales 541,257 UF 12/6/2018 11/14/2019 0.10 21,475
Banco Chile Chuquicamata 2,300,000 UF 12/5/2018 11/27/2019 0.10 91,255
Banco Bci Chuquicamata 4,600,000 UF 11/30/2018 11/27/2019 0.15 182,510
Banco ltau Chuquicamata 915,319 UF 27/12/2018 11/27/2019 0.16 36,316
Banco Chile El Teniente 2,632,299 UF 12/5/2018 12/2/2019 0.10 104,439
Banco Santander El Teniente 5,000,000 UF 12/20/2018 12/2/2019 0.15 198,381
Banco Estado Gabriela Mistral 1,513,907 UF 11/29/2018 12/15/2019 0.08 60,066
Banco ltau Gabriela Mistral 278,180 UF 6/6/2018 6/13/2019 0.15 11,037
Banco ltau Salvador 2,674,603 UF 8/8/2018 2/18/2019 0.10 106,118
Banco Estado Andina 2,666,740 UF 10/29/2018 5/3/2019 0.07 105,806
Banco Chile Ventanas 333,069 UF 12/13/2018 9/19/2019 0.07 13,215
Total 27,058,918 1,073,593

On August 24, 2012, Codelco through its subsidiary Inversiones Mineras Nueva Acrux SpA (Nueva
Acrux) (which minority shareholder is Mitsui), signed a contract with Anglo American Sur S.A. Under
this contract, Codelco agreed to sell a portion of its annual copper production to the mentioned
subsidiary, who in turn agrees to purchase such production.

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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 ThUs$ ThUS$
Urban Regional Manager, Metropolitan Building project UF 3/31/18 – 10
Urban Regional Manager, Metropolitan Building project UF 8/31/18 – 10
Minestry of Public Works Building project US$ 6/27/18 – 209
General Directorate of Maritime Territory and Merchant | Building project CLP 3/1/19 1,783 –
Marine
Minestry of Public Works Building project UF 10/31/18 – 25,339
Minestry of Public Works Building project UF 10/31/18 – 28,399
Minestry of Public Works Building project UF 10/1/19 566 566
Oriente Copper Netherlands B.V. Pledge on shares US$ 11/1/32 877,813 877,813
Sernageomin Environmental UF 11/3/18 – 139,589
Sernageomin Environmental UF 3/18/18 – 13,156
Sernageomin Environmental UF 5/10/18 – 106,936
Sernageomin Environmental UF 5/10/18 – 57,302
Sernageomin Environmental UF 6/1/18 – 104,598
Sernageomin Environmental UF 6/1/18 – 199,215
Sernageomin Environmental UF 6/14/18 – 60,716
Sernageomin Environmental UF 5/26/18 – 118,924
Sernageomin Environmental UF 5/26/18 – 156,804
Sernageomin Environmental UF 5/26/18 – 24,526
Sernageomin Environmental UF 8/31/8 – 119,414
Sernageomin Environmental UF 8/31/8 – 852
Sernageomin Environmental UF 3/18/19 17,920 –
Sernageomin Environmental UF 5/9/19 137,355 –
Sernageomin Environmental UF 6/13/19 73,210 –
Sernageomin Environmental UF 6/13/19 11,980 –
Sernageomin Environmental UF 6/1/19 110,322 –
Sernageomin Environmental UF 6/1/19 273,875 –
Sernageomin Environmental UF 5/25/19 192,789 –
Sernageomin Environmental UF 5/25/19 103,290 –
Sernageomin Environmental UF 5/12/19 39,150 –
Sernageomin Environmental UF 5/12/19 38,215 –
Sernageomin Environmental UF 5/25/19 96,395 –
Total 1,974,663 2,034,381

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Guarantees received from third parties
A 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
soy 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

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Category 12/31/2018 12/31/2017
ThUS$ ThUS$
Rights receivables, non-current 84,731 91,442
US Dollars – –
Euros 217 1,305
Other currencies – –
Non-indexed Ch$ 83,214 88,770
UE. 1,240 1,367
Due from related companies, current 92,365 64,344
US Dollars 92,365 64,344
Euros – –
Other currencies – –
Non-indexed Ch$ – –
UE. – –
Due from related companies, non-current 20,530 25,830
US Dollars 20,530 25,830
Euros – –
Other currencies – –
Non-indexed Ch$ – –
UE. – –
Rest of assets 33,220,436 31,909,011
US Dollars 32,171,442 31,025,279
Euros 705 26,952
Other currencies 279 367
Non-indexed Ch$ 377,119 119,690
UE. 670,891 736,723
Total assets 37,090,805 36,356,141
US Dollars 35,345,096 34,877,389
Euros 89,044 89,721
Other currencies 5,146 6,237
Non-indexed Ch$ 905,428 589,281
UE. 746,091 793,513

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b) Liability by type of currency:

12/31/2018 12/31/2017
Current liability by currency Up to 90 days 90 days to 1 year Up to 90 days 90 days to 1 year
ThuS$ Thus$ ThUS$ ThuS$
Current liabilities 3,049,854 489,558 3,126,371 189,085
US Dollars 1,824,181 452,648 1,821,173 150,417
Euros 107,341 408 119,851 –
Other currencies 9,826 – 9,668 –
Non-indexed Ch$ 1,088,536 31,419 1,155,722 32,964
UE. 19,970 5,083 19,957 5,704
Other current financial liabilities 412,451 459,826 166,557 157,831
US Dollars 396,148 452,635 124,107 150,402
Euros 7,404 408 32,182 –
Other currencies 34 – – –
Non-indexed Ch$ 879 1,700 1,269 1,725
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 –

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12/31/2018 12/31/2017
Non-current liability by currency 1to3 3to5 5to 10 More than 1to3 3to5 5to 10 More than
years years years 10 years years years years 10 years
Thus$ Thus$ Thus$ Thus$ Thus$ Thus$ Thus$ Thus$
Non-Current liabilities 6,804,312 2,260,258 5,142,419 8,000,535 6,200,324 2,773,522 5,534,293 7,607,208
US Dollars 6,396,888 2,114,245 4,160,204 6,918,087 5,755,523 2,619,881 4,461,270 6,501,948
Euros 14 – (7,832) – 89 – (9,682) –
Other currencies 1 – – – 1 – – –
Non-indexed Ch$ 390,088 141,392 277,356 505,603 423,022 148,258 291,395 527,887
UF 17,321 4,621 712,691 576,845 21,689 5,383 791,310 577,373
Other non-current financial liabilities 1,710,559 2,118,866 4,847,087 5,997,998 1,349,908 2,625,264 5,226,237 5,446,595
US Dollars 1,702,164 2,114,245 4,142,228 5,997,998 1,334,855 2,619,881 4,444,609 5,446,595
Euros – – 7,832 – – – (9,682) –
Other currencies – – – –
Non-indexed Ch$ 219 – – 2,996 – –
UF 8,176 4,621 712,691 – 12,057 5,383 791,310 –
Bank loans 548,454 677,507 298,250 582,867 406,167 1,297,133 – 626,357
US Dollars 548,454 677,507 298,250 582,867 406,103 1,297,133 626,357
Euros – – – – – – –
Other currencies
Non-indexed Ch$ –
UF – – – – 64 – – –
Obligations 1,065,419 1,414,296 4,415,461 5,415,131 847,944 1,313,161 5,102,279 4,820,238
US Dollars 1,065,419 1,414,296 3,034,864 5,415,131 847,944 1,313,161 3,613,723 4,820,238
Euros – – 678,446 – – – 711,734 –
Other currencies – –
Non-indexed Ch$ – –
UF – – 702,151 – – 776,822
Finance Lease 32,714 27,063 26,552 26,970 14,970 44,407
US Dollars 24,322 22,442 16,012 11,981 9,587 29,919
Euros – – – – – –
Other currencies – –
Non-indexed Ch$ 216 – – 2,996 – –
UF 8,176 4,621 10,540 11,993 5,383 14,488
Others 63,972 – 106,824 68,827 – 79,551
US Dollars 63,969 793,102 68,827 800,967
Euros – (686,278) – (721,416)
Other currencies – – –
Non-indexed Ch$ 3
UF – – – – – – – –
Other liabiliies non-current 5,093,753 141,392 295,332 2,002,537 4,850,416 148,258 308,056 2,160,613
US Dollars 4,694,724 – 17,976 920,089 4,420,668 – 16,661 1,055,353
Euros 14 – – 89 – –
Other currencies 1 – – – 1 – – –
Non-indexed Ch$ 389,869 141,392 277,356 505,603 420,026 148,258 291,395 527,887
UF 9,145 – – 576,845 9,632 – – 577,373

34. Sanctions

As of December 31, 2018 and December 31, 2017, neither Codelco Chile nor its Directors and Managers
have been sanctioned by the CMF or any other administrative authorities.

35. Environmental Expenditures

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.

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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-242

Future committed

F-243

F-244

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 ¡ts 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-245
It is estimated that, with the existing information up to this moment, this situation will not cause a material
or significant impact on Codelco’s results in 2019.

– On February 28, 2019, an extraordinary capital contribution was received through the Exempt Decree No.
311 of the Ministry of Finance, pursuant to Law No. 20.970, for an amount of TRUS$400 million.

– On March 1, 2019, it was reported as an essential fact that it was proceeded to designate from April 1,
2019, the following principal executives:

1. Mr. Jaime Rivera Machado was appointed as General Manager of the Andina Division.
2. Mr. Andrés Music Garrido was appointed as General Manager of the Ministro Hales Division.
3. Mr. Sergio Herbage Lundín was appointed as General Manager of the Gabriela Mistral Division.

– As of March 1, 2019, the role of Vice-Presidency of Technology was created reporting to the Executive
President., Don Alvaro García González was appointed, starting on March 11, 2019.

The administration of the Corporation is not aware of other significant events of a financial nature or of any
other nature that could affect these financial statements, which occurred between January 1, 2019 and the
date of issuance of these consolidated financial statements up to the March 28, 2019.

Nelson Pizarro Contador Alejandro Rivera Stambuk
Chief Executive Officer Chief Financial Officer
Gonzalo Zamorano Martínez Javier Tapia Avila
Accounting and Finance Control Manager Accountant Director

F-246
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 As to Chilean law
Cleary Gottlieb Steen € Hamilton LLP Carey y Cía. Ltda.
One Liberty Plaza Isidora Goyenechea, 2800, Piso 43
New York, New York 10006 Las Condes, Santiago
United States Republic of Chile

LEGAL ADVISORS TO THE INITIAL PURCHASERS

As to New York law As to Chilean law

Davis Polk $: Wardwell LLP Philippi, Prietocarrizosa, Ferrero DU €
450 Lexington Avenue Uría SpA
New York, New York 10017 El Golf 40, Piso 20
United States Las Condes, Santiago
Republic of Chile
INDEPENDENT AUDITORS
Deloitte

Auditores y Consultores Ltda.
Rosario Norte 407, Las Condes
Santiago
Chile
U.S.$800,000,000

CODELCO

Corporación Nacional del Cobre de Chile

U.S.$800,000,000 3.750% Notes due 2031

Offering Memorandum

Joint Book-Running Managers

BNP PARIBAS HSBC Mizuho Securities Scotiabank

April 29, 2020

Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=37924c97fe9b962fb7935b5900b46fd4VFdwQmVVMUVRVEZOUkVVeFRWUk5NRTVuUFQwPQ==&secuencia=-1&t=1682376108

61704000 - K 77 CODELCO Colocación de valores Emisión de valores importante

CODELCO: CORPORACION NACIONAL DEL COBRE DE CHILE 2020-05-04 T-15:05

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