Antofagasta denies quake has hit Chile copper mines

Copper miner Antofagasta today reassured investors that the Chilean earthquake had not limited the profitability of its vast operations in the country.

The company, named after the port in northern Chile around which its operations are based, today said it was still confident of meeting its output forecasts for the year.

"The recent earthquake near Concepcion is not expected to have any material effect on our operations," chief executive Marcelo Awad said today.

"Los Pelambres [copper mine] currently expects to be able to make up production in the second half of the year and, accordingly, our forecast group copper production of 543,000 tonnes remains unchanged."

"Fags", as it is known in London share dealing rooms, posted a 21% fall in 2009 earnings per share on weaker production and soft prices, with EPS excluding exceptional items falling to 67.7 cents, on 12% lower revenue of $2.96 billion (£1.98 billion).

Its total dividend, including a special payout, would be 23.4 cents a share, down from 60 cents for 2008 which included a payout from an exceptional gain. The total ordinary dividend increased 4%.

Last month Antofagasta released production data which showed copper output for last year fell 7.4%, but said production would rise because of expansion projects.

Output declined last year to 442,500 tonnes, mainly because of harder ore and lower grades at its flagship Los Pelambres mine. Output at its three mines had been forecast to total 543,000 tonnes this year as expansion projects kick in, especially at Los Pelambres.