Antofagasta reports $654.8 million in government payments for 2024

LONDON - Chilean copper miner Antofagasta (LON:ANTO) plc paid $654.8 million in taxes and fees to governments in 2024, primarily to Chile where its four operating mines are located, according to a regulatory filing released Friday.

The company’s annual Report on Payments to Governments shows that over 99% of these payments went to Chilean authorities, with the remainder paid to U.S. government entities related to the Twin Metals project in Minnesota.

The majority of payments consisted of income taxes totaling $616.5 million, while royalties accounted for $30.1 million and various fees amounted to $8.2 million.

Los Pelambres, Antofagasta’s largest mine which is 60% owned by the company, generated the highest government payments at $481.2 million, including $450.5 million in income taxes and $30.1 million in royalties.

Centinela, 70% owned by Antofagasta, contributed $105.4 million in government payments, while Antucoya, also 70% owned, paid $892,000.

The report notes that a new mining royalty regime took effect in Chile on January 1, 2024, which includes a royalty ranging from 8% to 26% applied to mining operating margin and a 1% ad valorem royalty on copper sales. Los Pelambres has been subject to this new system since the beginning of the year, while Centinela and Antucoya continue operating under previous royalty arrangements due to existing tax stability agreements.

The payments disclosure is required under UK regulations for extractive companies and covers activities involving exploration, discovery, development, and extraction of minerals.

Antofagasta’s mining operations represent over 95% of the group’s revenue and profit before tax, with the remainder generated by its Transport Division in Chile, according to the statement based on the company’s press release.

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