Relevant Events to the Consolidated Financial Statements

The Corporation has reported to the Chilean Securities and Insurance Supervisor the following relevant events occurred for the year from January to December 2010:

1) Creation of Companies

On April 14, 2009, Codelco Chile’s Board of Directors authorized its Chairman to create a closely held corporation with the purpose of developing markets for the use of copper and molybdenum through carrying out research and participating in projects, managing the contributions made by Codelco in different market development opportunities.

The authorization includes an initial capital contribution of US$2,074,000 which is directly paid by Codelco (0.1%) and Sociedad Inversiones Copperfield (99.9%).

On June 1, 2009, Codelco Chile’s Board of Directors authorized its Chairman to create a closely held corporation with the purpose of developing the studies required for the continuity of the Inca del Oro Project. The partner in charge of developing the Project will join this new company and Codelco will make a contribution of ThUS$6,100. The name of the new company is Inca del Oro S.A. and Codelco will hold a 79.74% interest and Compañía Contractual Minera Los Andes, the remaining 20.26%.

Compañía Contractual Minera Los Andes is a subsidiary owned by Codelco, which will contribute the “Porteñas” mining properties which adjoin with the Inca del Oro Project. On October 8, 2009, Codelco sold the 603,045 shares it owned in CMS Tecnología S.A. which represented 30% of total capital. Income before income taxes will amount to US$1,212,246.65.

On November 6, 2009, Codelco’s Board of Directors approved the agreement reached with the Suez Group (Suez Energy Andino (“SEA”) and Suez Energy Investments S.A.), in relation to carrying out a merger with the purpose of gathering in a single company all the shares and rights held by Suez Group and Codelco, whether directly or indirectly, in EDELNOR, Electroandina, Central Termoeléctrica Andina S.A. (“CTA”), Inversiones Hornitos S.A. (“HORNITOS”), Gasoducto Nor Andino Argentina S.A. (“GASODUCTO ARGENTINA”) and Gasoducto Nor Andino S.A. (“GASODUCTO CHILE”).

This gave rise to the following transactions:

a. The sale by SEA and Electropacífico Inversiones Limitada of: 100% of CTA’s series B shares to CODELCO; and (ii) 49% of CTA’s series A shares to Inversiones Tocopilla Ltda. (“Tocopilla”).

b. Transference to CODELCO by SEA of 66.7461% of certain credits receivable from CTA.

c. The division of Inversiones Mejillones S.A. (“MEJILLONES”) into three entities: one that will be the legal successor remaining the same legal entity and changing its name to INVERSIONES MEJILLONES-1 S.A.; and, other two companies that will be created under the names of INVERSIONES MEJILLONES-2 S.A. and INVERSIONES MEJILLONES-3 S.A. INVERSIONES MEJILLONES-2 S.A. will hold 66.74% of the shares of EDELNOR, and INVERSIONES MEJILLONES-3 S.A. will hold 1% of the rights in Energía del Pacífico Limitada (“ENERPAC”).

d. The transformation of TOCOPILLA into a public company under the new name of INVERSIONES TOCOPILLA 1 S.A. and its division into three public companies: one being the same legal entity and the other two created under the names of INVERSIONES TOCOPILLA 2-A S.A. and INVERSIONES TOCOPILLA 2-B S.A. INVERSIONES TOCOPILLA 2-A S.A. and INVERSIONES TOCOPILLA 2-B S.A. will hold the shares owned by TOCOPILLA in INVERSIONES MEJILLONES-1 S.A. and INVERSIONES MEJILLONES-2 S.A.

e. The contribution made by SEA to INVERSIONES TOCOPILLA 1 S.A. of all its interest in GASODUCTO CHILE (78.91%), GASODUCTO ARGENTINA (78.91%), HORNITOS (60%), and 51% of its series A shares in CTA..

f. The contribution made by CODELCO to INVERSIONES TOCOPILLA 1 S.A. of all its interest (less 1 share) in ELECTROANDINA (34,8%), CTA (34,797%) and INVERSIONES MEJILLONES 3 S.A. (34,8%).

g. The transfer by CODELCO to SEA of 18% of the shares of INVERSIONES TOCOPILLA 1 S.A. for a total amount of US$172.5 million.

h. The take-over merger between EDELNOR and INVERSIONES TOCOPILLA 1 S.A. under which EDELNOR became the owner of the shares and rights held by INVERSIONES TOCOPILLA 1 S.A. in Electroandina, CTA, HORNITOS, GASODUCTO CHILE and GASODUCTO ARGENTINA.

i. The exchange between SEA and CODELCO of the shares the latter holds in INVERSIONES TOCOPILLA 2-A S.A. and INVERSIONES MEJILLONES 1 S.A. for the shares SEA holds in INVERSIONES TOCOPILLA 2-B S.A. so that SEA becomes the holder of all the shares of INVERSIONES TOCOPILLA 2-A S.A. and INVERSIONES MEJILLONES-1 S.A., and CODELCO becomes the holder of all the shares of INVERSIONES TOCOPILLA 2-B S.A.

j. The termination of the agreement between CODELCO and SEA in relation to TOCOPILLA named Limited Liability Company Agreement which was signed on March 6, 1996, and the shareholder agreement granted by the same parties in relation to MEJILLONES via public instruments on March 20, 2002 and July 4, 2002. In the parties’ opinion, should the mentioned actions and agreements occur, SEA’s interest in EDELNOR will be 52.4% while CODELCO’s interest will be 40%, and SEA will maintain control.

The execution and signing of the mentioned actions and agreements involves, among others, the appointment and holding of a Extraordinary Meeting of the Shareholders of EDELNOR and INVERSIONES TOCOPILLA-1 S.A. Such meetings were held on December 29, 2009, and the take-over merger was agreed. As a result, INVERSIONES TOCOPILLA-1 S.A. was dissolved and transferred all of its assets and liabilities to EDELNOR.

In addition to the transfer of the assets and liabilities, EDELNOR will transfer to the shareholders of INVERSIONES TOCOPILLA-1 S.A. 604,176,440 issued shares based on the interest they held in the takenover company. Thus, SEA and CODELCO received 430,793,979 and 173,382,461 shares of EDELNOR respectively. Considering the interest both of these companies hold in the Company through INVERSIONES MEJILLONES-1 S.A. and INVERSIONES MEJILLONES-2 S.A., the direct and indirect interest held by SEA, the controller of EDELNOR, is approximately 52.4% while Codelco’s direct and indirect interest is approximately 40%.

The issuance of these 604,176,440 new shares will be covered by transferring to EDELNOR’s capital account an amount of US$705,404,607.11 from the capital accounts INVERSIONES TOCOPILLA-1 S.A. had at the moment of the merger. For such purposes, at the Extraordinary Shareholders Meeting, EDELNOR shareholders approved to increase paid-in capital by US$705,404,607.11 through the issuance of the mentioned 604,176,440 shares.

The approval of the merger gives rise to the right of withdrawal of the dissident shareholders. Should this right of withdrawal be exercised by EDELNOR’s minority shareholders holding more than 5% of the total shares, Codelco or SEA, as applicable, can request that the other party takes all the actions as direct or indirect EDELNOR’s shareholders, with the purpose of revoking the merger.

Nevertheless and notwithstanding the fact that this option is exercised by one party, the other party can oppose to such action and request that the agreements related to the merger become final, as long as this party obliges itself to acquire from EDELNOR all the shares it acquires as a result of the exercise of the right of withdrawal by minority shareholders of the shares (i) exceeding 5% of all EDELNOR shares with voting rights issued before the merger; and, (ii) that have not been placed by EDELNOR in the preferred share offer made to shareholders or a public offer within the ten months following the acquisition date of the shares.

On January 29, 2010, the Company was informed about the fact that some dissident shareholders of Empresa Eléctrica del Norte Grande S.A. (EDELNOR) exercised their right of withdrawal in relation to the merger agreement reached at the Extraordinary Shareholders Meeting held on December 29, 2009. This right of withdrawal expired on January 28, 2010. These shareholders held 7,176,940 shares which represented 1.572331% of total shares issued by EDELNOR before the merger; this percentage is lower than the one that would have enabled Suez Energy Andino S.A. and Codelco to revoke the merger, as agreed in the Merger Agreement signed on November 6, 2009.

Consequently, the merger process between EDELNOR and INVERSIONES TOCOPILLA-1 S.A. became final through the take-over of INVERSIONES TOCOPILLA 1 S.A. by EDELNOR. As a result, INVERSIONES TOCOPILLA 1 S.A. was dissolved and transferred all its assets and liabilities to EDELNOR. Thus, EDELNOR became the owner of the shares INVERSIONES TOCOPILLA-1 S.A. owned in Electroandina S.A. (99.99%), Central Termoeléctrica Andina S.A. (99,99%), Inversiones Hornitos S.A. (60%), Gasoducto Norandino S.A. (78,91%) and Gasoducto Norandino Argentina S.A. (78,91%).

In conformity with current legislation, EDELNOR must pay the shareholders exercising the right of withdrawal an amount of Ch$955.10 per share, which is equivalent to the average weighted price of EDELNOR’s shares in the Chilean stock exchanges during the two months prior the Meeting. On January 29, 2010, Suez Energy Andino S.A. exchanged with CODELCO 51,000 shares issued by Inversiones Tocopilla 2-B S.A., for 49,000 shares issued by Inversiones Tocopilla 2-A S.A., plus 22,648 shares issued by Inversiones Mejillones-1 S.A. As a result, Suez Energy Andino S.A. ceased to hold interest in the company through which CODELCO participates in EDELNOR (Inversiones Tocopilla 2-B S.A.), and CODELCO ceased to hold interest in the companies through which Suez Energy Andino S.A. participates en EDELNOR (Inversiones Tocopilla 2-A S.A. and Inversiones Mejillones-1 S.A.). In addition, on the same date, Suez Energy Andino S.A. and CODELCO terminated all the Shareholder Agreements granted in relation to the companies in which they held joint interest (Inversiones Tocopilla-1 S.A., Inversiones Tocopilla 2-A S.A. and Inversiones Tocopilla 2-B S.A., Inversiones Mejillones-1 S.A., Inversiones Mejillones-2 S.A. and Inversiones Mejillones-3 S.A.).

On January 29, 2010, in compliance with the obligations assumed in the Merger Agreement and taking into account that as of the mentioned date all the actions and contracts to be completed by the closing date had been executed and all the related payments had been made, Suez Energy Andino S.A. and Codelco terminated the Agreement stating there are no charges or observations to be made between them.

2) Changes in Executives and the Organizational Structure

On March 3, 2009, the General Manager of the Salvador Division, Mr. Julio Cifuentes, resigned Codelco. Since April 1, 2009, Mr. Cifuentes was replaced by Mr. Jaime Rojas Espinoza, Metallurgical Engineer, who previously acted as the Operation Manager at Fundición Refinería Potrerillos in the Salvador Division.

On April 20, 2010, the Corporation’s Board of Director unanimously agreed to appoint Mr. Diego Hernández Cabrera as the new Chairman. Mr. Hernández took charge of his position on May 19, 2010.

On April 29, 2010, it was informed that Mr. Roberto Souper Rodríguez will cease acting as Codelco Chile’s Marketing Corporate Vice President since May 1, 2010. This position was filed by Mr. Raúl de la Piedra Ramírez, the current Copper Sales Corporate Manager.

On May 11, 2010, the President of the Republic appointed Fernando Porcile Valenzuela, Juan Luis Ossa Bulnes and Andrés Tagle Domínguez as new members of the Corporation’s Board of Directors. Mr. Gerardo Jofré Miranda was appointed as the Board President. The new appointed directors replaced Nicolás Majluf Sapag, Alberto Arenas de Mesa and Andrés Sanfuentes Vergara because their appointment period had ended.

On May 14, 2010, it was informed that Mr. Francisco Tomic Errázuriz will cease acting as Codelco’s Investment and Human Development Corporate Vice President. On June 15, Mr. Jaime Piña Piña was appointed for this position provisionally.

On May 19, 2010, it was informed that Mr. Rodrigo Toro Ugarte has been appointed to act as Codelco’s Marketing Corporate Vice President starting his activities on June 1, 2010. On June 16, 2010, it was informed that Mr. Thomas Keller Lippold has been appointed to act as Codelco’s Finance and Administration Corporate Vice President starting his activities on July 1, 2010.

On July 30, 2010, it was informed as an essential fact that from August 16, 2010, Mr. Sebastián Conde Donoso has been appointed as the Human Resources Vice President.

On August 26, 2010, it was informed as an essential fact that Mr. Fernance Vivanco Giesen has resigned his position of Project Corporate Vice President since October 1, 2010. Mr. Sergio Fuentes Sepúlveda, the Chuquicamata Underground Mine Manager of the Project Corporate Vice Presidency.

On August 27, 2010, it was informed as an essential fact that, from that date, it has been decided to eliminate from Codelco’s organizational structure the Shared Services Corporate Vice Presidency and the Risk Management and Finance Vice Presidency. Their tasks and functions were transferred to the Finance and Administration Vice Presidency.

As a result of the above, Mr. Juan Medel Fernández and Mr. Mario Espinoza Durán, who acted as Shared Services Corporate Vice President and Risk Management and Finance Vice President, respectively, will assume other functions within the Corporation.

On September 1, 2010, it was informed as an essential fact that, taking into account the need to tailor the Company’s organization based on future challenges thus preparing its structure to reach maximum competitiveness standards as well as generating the conditions required for the development and operation of the main projects ensuring the Corporation’s long-term sustainability, the following changes in the Corporation’s structure will be made:

i) Creating the Ministro Hales Mine Division, which will be in charge of operating the Ministro Hales Mine.

ii) Creating the North Operations Vice Presidency and the Center South Operations Vice Presidency, which main objective is to assure operational excellence and synergies among the Divisions, representing the Chairman in all issues related to the Divisions’ operational management, in conformity with the policies established by the Corporation’s Board of Directors and the powers granted by the Chairman.

iii) The North Operations Vice Presidency will be in charge of the Divisions Codelco Norte, Ministro Hales Mine and Salvador.

iv) The Center South Operations Vice Presidency will be in charge of the Divisions Andina, El Teniente and Ventanas.

v) Mr. Luis Farías Lasarte, the current Operational Excellence and Control Management Vice President, was appointed as the North Operations Vice President.

vi) Mr. Ricardo Alvarez Fuentes, the current General Manager of the El Teniente Division, was appointed as the Center South Operations Vice President.

vii) Mr. Juan Medel Fernández was appointed as the General Manager of the Ministro Hales Mine Division.

viii) The position of Operational Excellence and Control Management Vice President, previously filed by Mr. Luis Farías Lasarte, was eliminated.

ix) The position of Vice President of the Codelco Norte Division was eliminated starting from September 17, 2010.

x) Mr. Sergio Jarpa Gibert was appointed as Advisor for the Executive Presidency up to November 30, 2010, in order to allow for an adequate transference of duties and responsibilities considering the new structure of the organization.

xi) Mr. Juan Carlos Avendaño was appointed as the Interim General Manager of the Codelco Norte Division since September 17, 2010.

xii) Mr. Octavio Araneda Oses was appointed as the Interim General Manager of the El Teniente Division.

All these changes and appointments shall be effective from September 1, 2010, except when expressly stated otherwise.

On November 18, 2010, is was informed as an essential fact the resignation of the General Manager of the Ventanas Division, Mr. Alex Acosta Maluenda, who will remain in his position up to December 31, 2010, at the Corporation’s request.

On November 19, 2010, it was informed as an essential fact that, starting from December 1, 2010, the Chuquicamata Division and Radomiro Tomic Division were created from the current Codelco Norte Division. From the same date, Mr. Julio Aranís Vargas was appointed as the General Manager of the Chuquicamata Division and Mr. Juan Carlos Avendaño Díaz was appointed as the General Manager of the Radomiro Tomic Division.

On November 19, 2010, it was informed that from that date, Mr. Sergio Fuentes Sepúlveda has been appointed as the Project Vice President, who was previously filing the same position in an interim manner.

On November 29, 2010, it was informed the appointment of the new General Managers of the two divisions that comprise the Vice-presidency of Operations of the Central-Southern region: Mr. Octavio Araneda in the El Teniente Division, who was internally in charge and Mr. José Sanhueza in the Ventanas Division, who will take office as from January 1, 2011 replacing Mr. Alex Acosta Maluenda. Also, it was informed that Mr. Armando Olavarría will remain as the General Manager of the Andina Division.

On November 19, 2010, it was informed on the authorization, by Codelco’s Board, of the investment in the amount of US$ 2,077 million for the exploitation of the Ministro Hales Mine, which will be in charge of the l Ministro Hales Division and the Vice-presidency of Projects.

With this approval, the new Ministro Hales Division of Codelco becomes the highest investment in the history of this mining company. It is also the first structural project of the Corporation that enters into the execution stage – with a 36-month period until its implementation – and the only that develops a new ore deposit. To keep the continuity that assures the execution in the abovementioned periods, the Corporation’s Board also authorized the anticipation of expenses during this year in the amount of ThUS$133.4.

It is estimated that once in production operations, by late 2013, the Ministro Hales Division will contribute with an average annual production of 163 thousand fine copper metric tons.

3) Strategic Alliances

On January 30, 2009, the Corporation communicated to Anglo American Sur S.A., its decision of postponing the exercise of the option to acquire up to 49% of the shares of such companies for the next contractual period from January 1 to January 31, 2012.

Notwithstanding the above, Codelco has communicated to Anglo American its interest and will to continue and going into the conversations on cooperation and complementation alternatives of the operations of Los Bronces and Andina, which can produce value increases for both companies.

On September 15, 2009, Codelco signed an agreement with Colbún S.A. for the long-term electric supply for its divisions Salvador, Andina, Ventanas and El Teniente, which involves the hiring of an electric supply for power up to 510 MW and its associated energy of around 4,000 GWh a year by means of two Supply Agreements with terms of 15 and 30 years starting on March 1, 2013 with 328 MW of power until reaching the total of 510 MW on January 1, 2015 or on a subsequent date if certain agreed conditions are met.

The agreement includes an option given to Colbún S.A. for the acquisition of certain assets that are part of one of Codelco’s developing projects called Central Termoeléctrica Energía Minera (CETEM) (Mining Energy Thermoelectric Power Plant), which include an environmental impact study, an option to buy the land in which it would be built and certain engineering projects. The supply agreements are not linked to such option, therefore, they do not consider any commitments for disbursement and/or delivery of assets, and their annual amount will depend mainly on the price of the fuels (coal, and diesel oil) they are referred to as well as the hydrology of the period and the international inflation indexes. Their annual value may vary between US$300 and US$330 million, depending on the evolution of the abovementioned parameters over the term of the agreements.

On October 8, 2009, the Board of Directors of Sociedad Contractual Minera El Abra approved the resumption of the construction activities of the Sulfoix Project, which, by late 2008, had been deferred for the conditions of the market.

The project considers the development of a big sulphide deposit which will extend the life of the mine by ten years and will produce approximately 300 million pounds of copper. The total capital investment until 2015 is estimated in US$600 million. The capital investment of the initial phase of the project – which would be completed in 2012 – amounts approximately to US$ 450 million, from which there is a US$350 million surplus.

On November 6, 2009, Codelco subscribed the following long-term electric supply agreements with ELECTROANDINA S.A.:

a. Agreement that supersedes the one signed on November 22, 1995 for the supply of electric power of the Chuquicamanta division, valid for 15 years starting in January 2010 and for a power range between 200 and 280 MW and all its associated electric power. The contract has an approximate cost of MUS$1,380, for the entire period.

b. Modification of the agreement signed on December 21, 1995 for the Radomiro Tomic division for a maximum power of 110 MW, by means of which, starting on January 2010, new prices are established for the power and energy involved in the contract as well as their new adjustment formulas.

On January 20, 2010, Codelco and Colbún S.A. subscribed the “Long-term Electric Supply Agreements” referred to in Relevant Events dated September 15, 2009 and September 22, 2009, by which it was communicated the Agreement between Colbún and Codelco for the long-term electric supply for the Salvador, Andina, Ventanas and El Teniente divisions.

On February 25, 2010, the Corporation’s Board of Directors approved the binding offer of US$ 45 million made by the Australian company PanAust Limited, to purchase the 66% ownership interest of Inca de Oro S.A. This operation will be subject to the approval by the President of the Republic through the issuance of a supreme decree, in conformity with Law 19137, which allows Codelco partnering with third parties for the development of mining projects.

On February 22, 2010, Codelco made an advanced payment of the price of the transfer of the purchase option of the shares of Enami in Anglo American Sur S.A. in the amount of ThUS$163,935 in three installments, the first two will be payable on February 22 and 25, 2010, respectively, and the third installment payable on March 1, 2010.

The board of directors of GNL Mejillones S.A., a company whose ownership is shared by Codelco and the GDF Suez Group, approved on October 28, 2010, an investment of US$ 200 million for the construction of a storage pond for liquefied natural gas, which will replace the current system based on gas carrier ships.

Although Codelco will not participate in the funding of this initiative, it will hold 37% of the company’s ownership interest; the remaining ownership will be controlled by the GDF Suez Group.

4) Site Closure

Due to the favorable market conditions, which allowed obtaining new hedges for its production, on May 8, 2007, the Corporation made the technical and economic decision of extending the exploitation of the line of oxides of the Salvador Division by two years, thereby postponing the closing that work from 2008 to 2010.

On February 26, 2010, the Corporation reported on the agreement signed by the Board of Directors in regards to the continuation of the mining operations of the Salvador Division until 2016, if market and operation conditions remain stable until 2021, both extensions will be subject to the condition of complying with management improvement commitments and the reduction of costs promised by the Division.

To make the abovementioned decision, the Board of Directors took into account the new business plan prepared with current price parameters and economic indicators of management and costs, which generates a positive VAN and makes possible the profitable exploitation of the Division’s mining resources.

5) Corporate Governance

On November 14, 2009, Law 20392 was published in the Official Gazette; this law modifies the organic law of Corporación Nacional del Cobre de Chile. The new legal instrument implies for the Corporation, that the Chilean Securities and Insurance Supervisor will oversee Codelco in the same terms applied to Public Companies. Additionally, the law includes the introduction of significant changes in the composition, appointment and attributions of the Board of Directors of Codelco together with the authorization of an extraordinary contribution in the amount of MUS$1,000, which has been consigned in Article 60 of this law and will be used for the setting of the funding structure of Codelco’s investment program. The aforementioned contribution was received on December 4, 2009.

In February 11, it was reported that the Corporation was informed through a formal notification of the Ministry of Mining on the decision of the President of the Republic regarding the appointment of the members of the new Board of Directors of Codelco. The new board was composed of Mr. Alberto Arenas de Mesa, Andrés Sanfuentes Vergara, Nicolás Majluf Sapag, Raimundo Espinoza Concha, Jaime Roberto Gutiérrez Castillo, Marcos Lima Aravena, Marcos Büchi Buc, Gerardo Jofré Miranda and Jorge Bande Bruck. Mr. Nicolás Majluf Sapag was appointed Chairman of the Board.

The aforementioned board took office on March 1, 2010.

On March 1, 2010, it was held a meeting of the new Board of Directors of the Corporation, appointed by Supreme Decree No.35 dated February 12, 2010.

On March 22, 2010, Codelco Chile informed on the meeting of the Corporation’s Directors Committee, which is comprised by Mr. Gerardo Jofré Miranda (President), Jorge Bande Bruck (Vice-president), Marcos Lima Aravena and Marcos Büchi Buc..

6) Contingences, Strikes and stoppage of activities and others

At a voting held on December 28, 2009 and whose results were certified by the attester in the early hours of the morning of December 29, 2009; most of the workers from trade unions 1, 2, and 3 of the Chuquicamata site of the Codelco Norte Division, involved in the collective bargaining process, rejected the last offer of the Company.

Consequently, it was approved the strike that should take place in the three-day term following the approval of this action unless any of the circumstances (included in the law) that may avoid this strike arises. The company’s last offer considered Ch$11.5 million for bonuses, Ch$3 million for soft loans, an adjustment of 3.8% in addition to a series of other benefits.

In regards to the collective bargaining of the members of the trade unions 1, 2, and 3 of the Chuquicamata site of the Codelco Norte Division, aimed to replace the collective agreements expiring on December 31, 2009, the workers voted on January 5, 2010 in favor of the company’s offer and the legal strike started on January 4, 2010 was ended. Normal activities were taken up as from the first shift of January 6, 2010.

In short, the new collective agreement subscribed on January 6, 2010 is valid for 38 months, considers an only adjustment of 4% and the payment of single liquid bonuses in the amount of Ch$12.14 million plus an optional soft loan of Ch$3 million.

These benefits amounted to ThUS$ 204,857, and were paid in January 2010. On April 30, 2010, it was informed that the “General Policy of Frequency for Operations between Related Parties” was approved on April 29, 2010.

 

7) Funding

On January 20, 2009, the Corporation placed and issued a bond for US$ 600 million in the American market, under the standard 144-A and regulation S. Such issuance was led by HSBC and JP Morgan, with an annual interest rate of 7.5% and expiring in a single deposit in 2019.

On October 1, it was communicated as a relevant event that the Corporation’s Board of Directors agreed at the Ordinary Session dated July 29, 2010, to authorize the Executive President to start the bargaining process to obtain bank loans and/or issue bonds with terms between 1 and 30 years, internal or external in domestic or foreign currency for an amount up to US$ 1,810 million; and to empower the Executive President to exercise and sign by itself or by the agents appointed for such purpose, all the actions and agreements required for that purpose.

Note that the agreement was adopted as private and confidential. At this date, Codelco Chile informs that the agreement is no longer classified as private and confidential.

On October 28, 2010, Codelco Chile accessed to international markets through the issuance of bonds for US$1,000 million at a 10-year term, with a coupon of 3.75% a year and a return of 3.96% a year.

This is the eighth bond issuance of the Corporation and was led by Deutsche Bank and HSBC. The final conditions were achieved after a roadshow process that comprised more than 45 investors and included Europe and the United States.

These resources will allow the refunding of liabilities and the funding of the mining investment plan of Codelco.

8) Insurance Policies

On August 28, 2009, the Corporation and the insurance companies La Interamericana, Compañía de Seguros Generales S.A. and Penta Security S.A., came to a full agreement regarding the casualties for the three events occurred in the Codelco Norte Division between July 2006 and May 2007.

By virtue of the agreement, the insured party will receive a total compensation in the amount of ThUS$62,514, regarded by the parties as the fair evaluation of all the damages covered by the insurance policy and occurred as a result of these events; the Corporation will record this amount as non operating income with a positive effect on profit or loss for the period 2009.