Antofagasta : Financial Reporting Document

ANTOFAGASTA PLC

Report 2021

Tax Report

Antofagasta plc

CONTENTS	OUR	A WORD FROM	A WORD FROM	OUR	OUR CONTRIBUTION	APPENDICES	2
APPROACH	OUR CEO	OUR CFO	BUSINESS	BEYOND TAXES

ANTOFAGASTA PLC

Sponsors

Vice Presidency of Finance

Vice Presidency of Corporate Affairs and Sustainability

Antofagasta Minerals

Contents

Constanza Campos, Tax Manager

Paulina Rabajille, Sustainability Specialist

Writing

Kellun

EY

Translation

Emily Russell

Design

www.ngr.design

Contents

1. OUR APPROACH
2. Tax payments and beyond
3. A word from our CEO
4. A word from our CFO
5. OUR BUSINESS

1. OUR CONTRIBUTION BEYOND TAXES
2. Generating a positive impact and development in the areas where we operate
3. Antofagasta plc Tax Strategy
4. Economic contribution during the mining lifecycle

1. Tax description
2. Payment detail by tax type of the companies of Antofagasta's Mining division
3. Total tax contribution

1. Sworn statements and global fiscal transparency
2. APPENDICES
3. Letter from the auditor
4. Reconciliation between tax burden and tax payment
5. Methodology and scope

June 2022

CONTENTS	OUR	A WORD FROM	A WORD FROM	OUR	OUR CONTRIBUTION	APPENDICES	3
APPROACH	OUR CEO	OUR CFO	BUSINESS	BEYOND TAXES

Our approach

At Antofagasta, we are committed to sustainable mining and contributing through that approach to the development of Chile and the wellbeing of people who live in our areas of influence.

The Group is comprised of a Mining division, which covers all our mining operations, and a Transport division, which is also known as Ferrocarril de Antofagasta a Bolivia (FCAB).

CONTENTS	OUR	A WORD FROM	A WORD FROM	OUR	OUR CONTRIBUTION	APPENDICES	4
APPROACH	OUR CEO	OUR CFO	BUSINESS	BEYOND TAXES

Tax payments and beyond

For Antofagasta, creating economic value implies generating profits responsibly and with a long-term vision. In this context, the payment of taxes is an important part of the economic contribution to the development of the areas where we operate.

In 2021, the price of copper was 51% higher than the previous year, but the tax accrued and the tax paid were 144% and 143% higher, respectively, than in 2020.

Annual Report 2021		Taxes paid 2021
Total tax charge2		(millions of $)
(millions of $)
Transport division	Mining division	Transport division	Mining division
11.8	1,321.1	8.0	1,195.0
0.89%	99.11%	0.67%	99.33%

1,332.9	1,203.0
Antofagasta plc	Antofagasta plc

Antofagasta plc reporting suite

This report joins other initiatives such as Antofagasta's Annual Reportand the Antofagasta Mineralsand Transport division'sSustainability Reports, as well as special reports such as the TCFD Progress Report. For more information about our reporting, see our website.

As part of our commitment to stakeholders, we seek to improve transparency about our economic contribution with the publication of Antofagasta's special Tax Report, with a particular focus on the Mining division, which represented more than 97% of

the company's total income and EBITDA in 2021.

2 Tax charge excluding exceptional item. The exceptional item corresponds to deferred tax assets for $90.6 million (see note 4 on page 187 of the 2021 Annual Report).

This report seeks to facilitate access to information about our tax payments, complementing what we report annually in our Report on Payments to Governments1, Annual Report and Sustainability Reports, thus contributing to a transparent and informed discussion on tax matters.

For more information, see our Report on Payments to Governments.

As part of our Tax Strategy - which applies to all Antofagasta entities

- we are committed to complying with the tax laws and practices

1  This report is filed in the UK in accordance with the UK's Report on Payments to Governments Regulations 2014 and reflects the cash flows during the relevant calendar year.

in all the countries and territories where we operate, including the United Kingdom, where Antofagasta is listed and trades on the London Stock Exchange.

For more information, see our Tax Strategy.

This report details the taxes paid by the Mining division to the Chilean state, where our operations and almost all our tax payments are concentrated, with regards to the operation of our business during the 2021 calendar year.

The tax payments detailed in this report are the taxes paid relating to the 2021 calendar year. These amounts differ from those presented in the Annual Report and in the Payments to Governments Report. A reconciliation of these differences is shown on pages 24-26 and relate to the timing of the payments, the exclusion of deferred taxes and the inclusion of the company's share of taxes paid by Zaldívar.

The values are presented in millions of US dollars and the information on tax payments conforms to tax regulations in Chile, which has a centralised tax system.

Antofagasta's total payment of taxes for 2021 was $1,203.0 million, of which $1,195.0 million corresponds to tax paid by the Mining division and $8.0 million by the Transport division. Details of these figures and their reconciliation with those in the Annual Report are provided in the following pages.

For more information on Antofagasta's tax charge, see our Annual Report 2021, page 198.

CONTENTS	OUR	A WORD FROM	A WORD FROM	OUR	OUR CONTRIBUTION	APPENDICES	5
APPROACH	OUR CEO	OUR CFO	BUSINESS	BEYOND TAXES

A word from our CEO

Our contribution beyond taxes

	t Antofagasta, we are interested in developing mining for a
	Abetter future and this is why it is important for us to transparently
	report our contribution to the country and to the wellbeing and
	development of the communities that live around our operations
	and projects.
	Through mining we generate not only economic activity, jobs and
IVÁN ARRIAGADA	pay taxes which benefits everyone, but also contribute directly to
CEO	training people, integrating new technologies, developing supplier
	companies and investing in the community.
	Our 2021 performance is the reflection of a team committed to
	safety, excellence and innovation, which seeks to conduct modern,
	competitive and responsible mining. Evidence of this is the
	production of 721,500 tonnes of copper, generating revenues of
	more than $7,400 million.
	In 2021 we distributed $7,132 million through salaries, purchases of
	goods and services (generating supply chains that benefit hundreds
	of small and medium-sized companies in the regions where we
	operate), social investment in communities, taxes to governments,
	dividends to shareholders and interest payments to lenders.

In terms of costs, our robust discipline and a favourable environment for input prices and inflation allowed us to maintain our cost profile and, thereby, achieve an EBITDA margin of 64.7%, a record in the last 10 years.

Our commitment is to continue operating in a sustainable and competitive way to produce copper, a key metal in the global challenge to decarbonise the economy and address the climate emergency. Our activity is essential for the future of the planet, and also provides opportunities for greater wellbeing and development to millions of people, especially those who live near our mines.

I invite you to read this report, in which we reflect why, at Antofagasta, our purpose is to develop mining for a better future.