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Xstrata Nickel’s Koniambo Nickel project has gone into production with first metal tapped this week.

Production marks a key milestone for this complex $5 billion greenfield project in New Caledonia, which has been under construction for the past six years and has been a flagship component of Xstrata’s organic growth programme.  At the height of its construction more than 6,000 people were employed in building the project and its associated infrastructure.

First metal production signals the start of Koniambo Nickel as a multi-decade, tier one asset with long-term cash costs at the bottom of the second quartile.  At peak production the mine will further cement New Caledonia’s position as one of the most important nickel producers in the world and provide steady employment for approximately 800 workers, with a focus on local employment, and indirect employment for thousands of others.

Ian Pearce, Chief Executive of Xstrata Nickel, said: “All components of the mining and smelting process have now been successfully tested, leading to production of metal from Line 1.  The production of first nickel metal at Koniambo after six years of complex design and construction is a huge achievement and a source of great pride for all of our employees.  We are on track to deliver the full production rate of 60,000 tonnes per annum by the end of 2014 as scheduled, while maintaining excellence in terms of environmental and safety performance at this world-class industrial complex.”

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Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement

Xstrata Nickel New Caledonia:
Antonin Beurrier
Telephone +687 25 56 71
Mobile +687 76 73 03
Email abeurrier@xstratanickel.nc

Xstrata Nickel
Peter Fuchs
Telephone: +1 416-775-1523
Mobile: +1 416-305-9273
Email: pfuchs@xstratanickel.ca

Notes to Editors

About Koniambo Nickel

Koniambo Nickel SAS is developing a world-class industrial complex that at peak production will further cement New Caledonia as one of the most important nickel producers in the world. Benefitting from one of the largest and highest grade undeveloped nickel resources in the world, it will be a low-cost and long-life operation committed to sustainable development.

Once construction is complete, Koniambo Nickel will operate a mine, a pyrometallurgical nickel smelting process plant, a power plant and other complementary infrastructure, including a deep water private port and 11-km overland conveyor.

Located near the North Province capital of Koné in New Caledonia, Koniambo Nickel is a catalyst for regional development. Through the employment of 750 permanent staff and long-term relationships with local contractors and suppliers, Koniambo Nickel truly represents a unique opportunity for surrounding communities to shape their future as well as the future of the North Province and New Caledonia.

About Xstrata Nickel

Xstrata Nickel, headquartered in Toronto, Canada, is one of Xstrata Group’s global commodity businesses. We operate mines and processing facilities in Canada, the Dominican Republic and Australia, and a refinery in Norway.  We also have a world-class portfolio of growth projects in New Caledonia, Tanzania and Brazil.

We are the world’s fourth largest nickel producer, with annual managed production of almost 106,000 tonnes of nickel.  We produce some of the world’s purest nickel, ferronickel and cobalt and are one of the largest recyclers and processors of nickel and cobalt-bearing materials.  Nickel-containing materials play a vital role in modern life and can be found in everything from cooking utensils, cutlery and saucepans, to medical equipment, mobile phones, wind turbines, computers, coins, and marine and aerospace engineering. For more information, visit www.xstratanickel.com.

About Xstrata plc

We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach. For more information, visit www.xstrata.com.

Preliminary results for the 12 months ended 31 December 2012 (full report)

Key Financial Results

Highlights:

• A transformational year for Xstrata in which ten major projects commissioned;
• Real cost savings of $176 million; the eleventh consecutive year of successfully delivering sustainable, long-term reductions to operating costs;
• During 2012, our Reserves and Resource base continued to grow; with significant increases at our South American copper operations and at our zinc sites;
• Continued improvements to our safety and environmental performance; with a Group-wide 15% reduction in total recordable injuries on 2011 performance;
• Two successful bond issues, raising $7.4 billion, ensuring a benign debt repayment schedule and strong balance sheet;
• Final dividend of 31.5¢ per share, bringing the dividends for the year to 45.5¢, a 14% increase on 2011; and
• Our shareholders approved the proposed merger between Glencore and Xstrata, subject to the necessary regulatory approvals being received.

Mick Davis, Chief Executive Officer of Xstrata, commented:

“2012 was a transformational year for Xstrata across a number of fronts. The development of our project pipeline reached its zenith in 2012 with ten major projects entering commissioning. The introduction of a number of new world-class operations into Xstrata’s portfolio delivers not only significant volume increases and further improves the relative competitive position of Xstrata’s portfolio through the introduction of structurally lower real unit cost operations, but lays the foundation for further attractive brownfield growth for many years to come.

“Our ongoing focus on reducing costs allows me to report, for the eleventh consecutive year, a reduction of costs in real terms.  The $176 million of cost savings achieved in 2012 was predominantly realised through a combination of cost efficiency initiatives and the benefit of increased volumes in our coal and zinc businesses.

“During our current phase of expansionary capital expenditure, required to deliver our organic growth strategy, we have maintained gearing below 30%.  Despite a peak capital expenditure of $10.3 billion in 2012, our balance sheet remains robust, with net debt at year end at $14.7 billion and gearing at 24%. 

“In November, our shareholders approved our merger with Glencore International plc, heralding the next significant development in Xstrata’s history and the creation of a unique natural resource company with an improved ability to capture returns along the value chain and redefine the competitive landscape.

“My executive team and I are content in that we will hand over to the new Glencore Xstrata a company with a strong legacy for value creation and growth, a high quality portfolio of operations and growth options, supported by a very healthy balance sheet.”

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Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement

Xstrata contacts:

Alison Flynn
Telephone +44 20 7968 2838
Mobile +44 7769 314374
Email aflynn@xstrata.com

Pamela Bell
Telephone +44 20 7968 2822
Mobile +44 7799 626715
Email pbell@xstrata.com

Investors & analysts
Martin Fewings
Telephone +44 20 7968 2893
Mobile +44 7990 591536
Email mfewings@xstrata.com

Caroline Yates
Telephone +44 20 7968 2878
Mobile +44 7824 826546
Email cyates@xstrata.com

Notes to editors

About Xstrata plc

We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach. For more information, visit www.xstrata.com

Xstrata Nickel Sudbury Operations has reached a tentative agreement for a new Collective Agreement with the United Steelworkers Local 2020, Unit 6855, which represents 215 office, clerical and technical employees. The prior agreement expired at midnight on February 28, 2013.

The union's bargaining team has unanimously recommended acceptance of the new agreement.  Details of the agreement will be presented to union members and will be followed by a ratification vote. 

Marc Boissonneault, Vice President of Xstrata Nickel Sudbury Operations said:  “We are very pleased with the positive outcome of these negotiations.  The successful conclusion of these negotiations was the result of dedication and commitment on both sides of the bargaining table, and I congratulate both teams. Our belief is that the tentative agreement is fair and balanced for the company and the union, continuing the positive trend we established with the last agreement.  We look forward to working together to pursue our goals in Sudbury, positioning our business for future success.”

End

Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement

Xstrata contacts:

Yonaniko (Iyo) Grenon
Telephone 705 693-2761 x3120
Mobile 705-688-6478
Email: ygrenon@xstratanickel.ca

Notes to editors

About Xstrata plc

We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach. For more information, visit www.xstrata.com.

About Xstrata Nickel

Xstrata Nickel, headquartered in Toronto, Canada, is one of Xstrata Group’s global commodity businesses. We operate mines and processing facilities in Canada, the Dominican Republic and Australia, and a refinery in Norway. We also have a world-class portfolio of growth projects in New Caledonia, Tanzania and Brazil.

We are the world’s fourth largest nickel producer, with annual managed production of almost 106,000 tonnes of nickel. We produce some of the world’s purest nickel, ferronickel and cobalt and are one of the largest recyclers and processors of nickel and cobalt-bearing materials. Nickel-containing materials play a vital role in modern life and can be found in everything from cooking utensils, cutlery and saucepans, to medical equipment, mobile phones, wind turbines, computers, coins, and marine and aerospace engineering. For more information, visit www.xstratanickel.com.

About Xstrata Nickel Sudbury Operations

Sudbury, Ontario, Canada is one of the most geologically rich areas of the world. This northern city in the Canadian Shield boasts a 60-kilometer-long formation called the Sudbury basin, which is brimming with nickel, copper, cobalt, gold, silver, platinum and palladium deposits. It’s also been home to Xstrata Nickel since 1929. Our Sudbury operations include underground mines, a mill and a smelter, all located in this basin.

We currently employ more than 1,300 permanent employees. Through our Vision and Values on Sustainable Development, we take a principled approach to doing business and continually balance economic, social and environmental considerations in order to create value today and generations to come.

Compañía Minera Doña Inés de Collahuasi SCM announces a significant increase to its Mineral Resources and Ore Reserves following its 2012 resources estimation process.

The new Measured, Indicated and Inferred Resource has increased by 1.4 billion tonnes to over 9.0 billion tonnes at an average grade of 0.81% copper and 0.02% of molybdenum. This represents a 19% increase on the previous estimate published in December 2011. Total contained copper metal has increased by 23% to around 73 million tonnes.

Ore Reserves have increased by 10% compared to the previous year, up 292 million tonnes to a total of 3.2 billion tonnes at an average grade of 0.81% copper. This new estimate is the result of new drill results, geological modelling updates, mining design optimization and adjustments to metal price assumptions.

Collahuasi Chief Executive Officer, Jorge Gomez, said: “This impressive uplift in our mineral resource base at Collahuasi clearly indicates the significant potential for further expansion at Collahuasi. We continue to work on bringing increased stability to our processes through operational improvements to ensure we can capitalize on this world-class resource.”

Collahuasi’s Resources and Reserves* as of December 31, 2012

Ore Reserves included in Mineral Resources

*Competent persons:   Mr. Mario Quiñones V. and Mr. Luis Aedo S., who are full time Collahuasi employees, are responsible for the Quality of exploration data used as the basis for Collahuasi’s Resource estimates, of the geological interpretations that constrain the Resource estimates and the transformation of the Resources into Reserves.  Both are Competent Persons under the meaning of the 2004 JORC Code. Numbers may not be exact as they have been rounded for tabulation.

Compañía Minera Doña Inés de Collahuasi’s Contacts:

Bernardita Fernández
Manager Corporate Affairs
Collahuasi
Tel: +562 3626514
Cel: +569 78798331
Email: bernarditafernandez@collahuasi.cl

Claudia Dinamarca
Journalist
Collahuasi
Tel:  +562 3626414
Cel: +569 79790450
Email: claudiadinamarca@collahuasi.cl

www.collahuasi.cl

Note to Editors

ABOUT COMPAÑÍA MINERA DOÑA INÉS DE COLLAHUASI SCM

Compañía Minera Doña Inés de Collahuasi SCM is located in the Región of Tarapacá, Chile, and produced 284,000 tonnes of fine copper in 2012. Its shareholders are Xstrata Plc 44%, Anglo American Plc 44% and a Japanese consortium headed by Mitsui. Collahuasi provides direct and indirect employment to more than 7,000 people.

Xstrata Nickel Sudbury Operations has reached a tentative agreement for a new Collective Agreement with the Canadian Auto Workers Sudbury Mine, Mill and Smelter Workers Union Local 598, which represents production and maintenance employees. The prior agreement expired at midnight on January 31, 2013.

The union's bargaining team has unanimously recommended acceptance of the new agreement.  Details of the agreement will be presented to union members and will be followed by a ratification vote.

Marc Boissonneault, Vice President of Xstrata Nickel Sudbury Operations said:  “We are very pleased to have successfully reached this tentative agreement.  We believe the new offer is fair and balances the needs of our company with those of employees.  We can now look forward to working together to pursue our goals in Sudbury, positioning our business for future success.  The positive outcome from these negotiations was the result of dedication and commitment on both sides of the bargaining table, and I congratulate both teams for their success.”

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Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement

Xstrata contacts:

Yonaniko (Iyo) Grenon
Xstrata Nickel Sudbury Operations
Telephone: 705 693-2761 x3120
Mobile: 705-688-6478
Email: ygrenon@xstratanickel.ca

Notes to editors

About Xstrata plc

We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach. For more information, visit www.xstrata.com.

About Xstrata Nickel

Xstrata Nickel, headquartered in Toronto, Canada, is one of Xstrata Group’s global commodity businesses. We operate mines and processing facilities in Canada, the Dominican Republic and Australia, and a refinery in Norway. We also have a world-class portfolio of growth projects in New Caledonia, Tanzania and Brazil.

We are the world’s fourth largest nickel producer, with annual managed production of almost 106,000 tonnes of nickel. We produce some of the world’s purest nickel, ferronickel and cobalt and are one of the largest recyclers and processors of nickel and cobalt-bearing materials. Nickel-containing materials play a vital role in modern life and can be found in everything from cooking utensils, cutlery and saucepans, to medical equipment, mobile phones, wind turbines, computers, coins, and marine and aerospace engineering. For more information, visit www.xstratanickel.com.

About Xstrata Nickel Sudbury Operations

Sudbury, Ontario, Canada is one of the most geologically rich areas of the world. This northern city in the Canadian Shield boasts a 60-kilometer-long formation called the Sudbury basin, which is brimming with nickel, copper, cobalt, gold, silver, platinum and palladium deposits. It’s also been home to Xstrata Nickel since 1929. Our Sudbury operations include underground mines, a mill and a smelter, all located in this basin.

We currently employ more than 1,300 permanent employees. Through our Vision and Values on Sustainable Development, we take a principled approach to doing business and continually balance economic, social and environmental considerations in order to create value today and generations to come.

Xstrata Copper announces a definitive estimate of US$5.2 billion for the Las Bambas project in southern Peru reconfirming the updated estimate reported in August 20121 and the project’s status as a world class, Tier 1 copper asset that will deliver substantial value.

Las Bambas is now in full construction phase and is set to produce 400,000 tonnes of copper per annum from 2015 for at least the first five years, with a very competitive capital intensity of $13,000 per annual tonne of copper, first quartile cash costs and a mine life of more than 20 years from at least three open pit mines.  The project delivers robust financials, earning Xstrata’s cost of capital at a life of mine flat copper price of US$1.89 per pound. The highly prospective Las Bambas Mineral District provides significant further brownfield growth potential.

Xstrata Copper Chief Executive, Charlie Sartain, said: “Las Bambas represents the next major stage in Xstrata Copper’s Peruvian development plans that will result in combined annual production levels in the country of around 700,000 tonnes of high margin copper from 2015. Following the successful commissioning of five projects in just over a year, including our new US$1.5 billion Antapaccay mine and the major plant expansion at our Antamina joint venture also in Peru, this latest review of Las Bambas confirms the progressive realisation of Xstrata Copper’s ambitious organic growth strategy.  

“Antamina has consistently surpassed nameplate throughput capacity of 130,000 tonnes per day since it completed plant commissioning in March 2012. At Antapaccay we are already achieving throughput rates of over 60,000 tonnes per day through the concentrator and expect to ramp up to design capacity of 70,000 tonnes per day in the first half of 2013. 

“Las Bambas will benefit from synergies and the experience derived from our Antapaccay project development and operations and will consolidate Xstrata Copper’s position as a leading producer of copper concentrates and one of the world’s largest copper producers.”
Las Bambas continued to make significant progress during 2012 with over 90% of engineering works and 80% of procurement and contracts completed by the end of the year. Construction advanced on both the main project site and the re-settlement townsite of Nueva Fuerabamba and all major process plant equipment is committed and either in-country or in transit from global suppliers. As of December 2012, almost 65% of the project’s construction capital cost had been committed including process plant equipment, bulk materials, mining fleet, EPC/CM services as well as third party engineering and site construction contracts. The project is expected to commence commissioning at the end of 2014 with production ramp-up occurring during 2015.

Almost 14,000 people are currently employed on the project in construction and operational roles, with 100% of unskilled labour positions being filled from local communities. Importantly, Las Bambas achieved almost 20 million man-hours without a Lost Time Incident (LTI) by the end of 2012, exceeding all previous LTI injury-free records in Peru across all industries.
Photos and further information about our Las Bambas project in Peru are available on the web-based version of this press release on Xstrata Copper’s website: www.xstratacopper.com

1 Xstrata Half-Yearly Report 2012  

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Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement

Xstrata Copper contacts:

Emily Russell
Telephone: +562 478 2204
Mobile: + 569 9443 3571
Email: erussell@xstratacopper.com
www.xstratacopper.com

Alison Flynn
Telephone +44 20 7968 2838
Mobile +44 7769 314374
Email aflynn@xstrata.com

Notes to editors

About Xstrata plc

We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach. For more information, visit www.xstrata.com

About Xstrata Copper

We are the fourth largest global copper producer and one of the world’s largest producers of smelter, refined and recycled copper, including from third party materials. The copper we produce is essential to our modern society, being used extensively in electronic, consumer and building products, and with its use in green-technologies, anti-microbial applications and ability to be recycled, it is playing a vital role in our sustainable future.  

Headquartered in Brisbane, Australia, we have operations and projects in eight countries and employ over 20,000 people. We play an essential role in the communities in which we live and work, by providing jobs, training, infrastructure, income for suppliers and support for social development. For more information, visit www.xstratacopper.com

About Las Bambas

In August 2004, Xstrata was awarded the right to explore and the option to develop Las Bambas following a competitive international bid process conducted by Peru’s investment promotion agency ProInversión. The project sits at an elevation of 3,700 to 4,650 metres above sea level and is located in the provinces of Cotabambas and Grau in the Region of Apurímac, 75 kilometres southwest of the city of Cusco. The Las Bambas mining project extends over 35,000 hectares and includes the Ferrobamba, Chalcobamba, Sulfobamba and Charcas mining concessions.

In December 2011, Xstrata Copper announced a 10% increase to the Las Bambas Mineral Resource to 1.71 billion tonnes at a grade of 0.60% copper using a 0.2% cut-off grade.

Xstrata Copper’s Lomas Bayas operation, located in northern Chile, has completed construction and commenced commissioning on schedule of its c.$300 million Lomas II project to extend the mine life by 16 years, until at least 2028, at existing production levels of 75,000 tonnes of copper cathodes per annum.

The Lomas II project involved the development of the Fortuna de Cobre open pit, located three kilometres from the operation’s original mine and infrastructure, and the construction of a new primary crusher, conveyor transport system and new heap and run-of-mine (ROM) leach pads. Copper cathodes are produced using the existing Lomas Bayas SX-EW plant.

During the project’s construction we employed more than 4,500 people and delivered over 100,000 hours of technical and safety training. In operation, Lomas II will add around 50 permanent positions to Lomas Bayas’ existing workforce of approximately 1,850 people including employees and contractors. 

Xstrata Copper Chief Executive Charlie Sartain said:  “I am delighted that we have been able to successfully complete this project to extend the life of Lomas Bayas, one of the world’s lowest grade mining operations.  The Lomas II project team has achieved this with a commendable safety performance, recording only one lost time injury in over 3.7 million man hours and a Total Recordable Injury Frequency Rate of 1.07 per million hours worked.  

“Through the Lomas Bayas operation, we will continue to make a significant contribution to local communities, the Antofagasta Region and the country with continued regional employment, investment in social projects and partnerships, opportunities for local suppliers and enterprise development and fiscal payments to government.

“This is a great achievement by the Lomas Bayas team and wraps up a remarkable year for Xstrata Copper in which we have commissioned four major projects on schedule and in line with budget, establishing a solid platform for strong long term production and significant production growth from our operations in 2013.”

Photos, videos and further information about our Lomas Bayas operation in Chile are available on the web-based version of this press release on Xstrata Copper’s website: www.xstratacopper.com

End

Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement.

Xstrata Copper contacts:

Emily Russell
Telephone: +562 478 2204
Mobile: + 569 9443 3571
Email: erussell@xstratacopper.com

Viviana Alarcón
Telephone: +56 2 478 2235
Mobile: +56 9 9552 4557
Email: valarcon@xstratacopper.com

www.xstratacopper.com

Notes to editors

About Xstrata plc

We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach. For more information, visit www.xstrata.com

About Xstrata Copper

We are the fourth largest global copper producer and one of the world’s largest producers of smelter, refined and recycled copper, including from third party materials. The copper we produce is essential to our modern society, being used extensively in electronic, consumer and building products, and with its use in green-technologies, anti-microbial applications and ability to be recycled, it is playing a vital role in our sustainable future.  

Headquartered in Brisbane, Australia, we have operations and projects in eight countries and employ over 20,000 people. We play an essential role in the communities in which we live and work, by providing jobs, training, infrastructure, income for suppliers and support for social development. For more information, visit www.xstratacopper.com

About Lomas Bayas

Lomas Bayas is an open pit mine and solvent extraction and electro winning (SX-EW) operation located at an altitude of 1,700 metres in Sierra Gorda, 110 kilometres to the north-east of the port of Antofagasta in the Region of Antofagasta, northern Chile. We produce 75,000 tonnes of copper cathodes per annum.  

We began operations in 1998 and today form part of Xstrata Copper’s Southern Cone Operations Division.  We approved the Lomas II mine-life extension project in the fourth quarter of 2009, commenced mining at Fortuna de Cobre in January 2010 and commissioned the new ROM system at the end of 2011. In the fourth quarter of 2012, we completed the heap leach system and commenced commissioning of the primary crusher and conveyor transport system.  Our new Lomas Bayas Sulphides project, located under the open pit of the original mine, is currently in the prefeasibility study stage.

Xstrata Zinc announces plans to increase ore production by a further 33% to 1.6 million tonnes per annum at its high-grade Lady Loretta mine in north-west Queensland, Australia.  The greenfield underground zinc-lead-silver Lady Loretta mine commenced ore production ahead of schedule in September. Commercial-scale mining is due to commence in mid-2013 and the expanded production rate of 1.6 million tonne per annum level is expected by 2016.

Lady Loretta was originally designed to produce one million tonnes of ore per annum, but Xstrata Zinc’s project teams have continued to assess opportunities to increase maximum output. An internal study identified an opportunity to increase the maximum output of the Lady Loretta mine by reviewing stoping sequences over the life of mine, the second project announced this year to accelerate production.  This latest expansion increases maximum output by 60% over the original mine plan through a AUD59.2 million (US$60.4 million) project and brings the total investment to develop the mine to date to AUD362.2 million (US$356.4 million).

Xstrata Zinc Australia Chief Operating Officer, Brian Hearne said: “This increase in high-grade ore supplied to our Mount Isa processing facilities reflects Lady Loretta’s important place in our regional production profile.

“The expansion project will allow the earlier recovery of resources from several of Lady Loretta’s upper ore bodies and will increase the number of stoping levels available in the underground mine in future years.

“To achieve this, we are investing in larger ore handling facilities, increased mobile and fixed plant equipment including an expanded ventilation system, more village accommodation and utilities upgrades.”

Construction is well advanced on the concrete batch plant, paste plant, warehouse, fuel farm and power station with surface infrastructure now 56% complete.  The operation will employ a permanent workforce of more than 200 people.

The Lady Loretta deposit contains an estimated 12.7 million tonne reserve, consisting of a 14.2% zinc and 4.8% lead grade, alongside 84 grams of silver per tonne. The amount of zinc metal contained is assessed at 1,803kt and lead metal contained at 610kt.

End

Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement.

Xstrata Zinc contacts:

Joanne Pafumi
GM Corporate Affairs, Community Relations and Human Resources
Xstrata Zinc Australia
Telephone +61 7 3295 7586
Mobile +61 411 759 683
Email jpafumi@xstratazinc.com.au

Fran Rossberg
Manager Corporate Affairs and Community Relations
Xstrata Zinc Australia
Telephone +61 7 3295 1584
Mobile +61 0422 980 120
Email frossberg@xstratazinc.com.au

www.xstratazinc.com

Notes to editors

About Xstrata Zinc

Headquartered in Madrid, Spain, we are one of the world’s largest vertically integrated producers of zinc, with an annual production of about a million tons of mined zinc. We have operations in Australia, America, and Europe, including world-class mines and deposits in Northern and East Australia, Canada, Peru, and processing and refining facilities in Spain, Germany and the United Kingdom.

Zinc is a versatile material that plays a vital role in modern society. It is an essential nutrient in human health and very useful in crop yield improvement. Zinc in galvanizing protects steel against corrosion for its use in automobiles, buildings and others. It is also used for the production of zinc die-casting alloys, brass and oxide, and in manufacturing batteries and other electrical and consumer goods.

For more information, visit www.xstratazinc.com

About Xstrata plc

We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach.

For more information, visit www.xstrata.com

About the Lady Loretta project

Lady Loretta is a high-grade zinc, lead and silver deposit located approximately 140 kilometres north west of Mount Isa, in north west Queensland. The deposit was first discovered in 1969 and in April 2011, Xstrata Zinc Australia gained full ownership of the deposit, having acquired the 25 per cent held by our previous joint venture partner. With Lady Loretta, Xstrata Zinc’s resources in and around Mount Isa now total more than 400 million tonnes of ore. This makes it the largest zinc resource base in the world.

In September, Xstrata Zinc announced that ore production had commenced at Lady Loretta ahead of schedule. Lady Loretta’s ore will go through primary crushing on site before being transported to the Xstrata Zinc Mount Isa complex for processing. There, blended with ore from the George Fisher underground mine, Black Star Open Cut and Handlebar Hill Open Cut mines, the high-grade Lady Loretta ore has the potential to lift average grades and metal production and in so doing, support improved cost efficiencies across the North Queensland business.

Xstrata Copper’s Antapaccay copper mine in southern Peru commenced production of commercial grade copper in concentrates at the beginning of November and has delivered its first shipment to Matarani Port for delivery to customers worldwide.

Plant commissioning activities continue as Antapaccay progressively ramps up to the nameplate processing capacity of 70,000 tonnes per day in the first half of 2013. The mine will produce an average of 160,000 tonnes of copper in concentrate per annum, plus gold and silver by-products, in the initial years of production.  

Antapaccay is a major copper operation with a mine life of more than 20 years, including a new mine and state-of-the-art concentrator facility. The mine is located approximately 10 kilometres from our Tintaya open pit mine, where mining activities are scheduled to end in the coming months, and benefits from Tintaya’s existing administrative and logistics infrastructure and experienced workforce. 

On average, 4,250 direct jobs were generated during construction with more than 6,500 people employed at its peak. 100% of unskilled labour was drawn from the surrounding area providing extensive training and promotion opportunities for local people. The Antapaccay mine will employ a permanent workforce of around 1,400 people, with the majority of workers transferring from the existing Tintaya mine as it closes, and will create further opportunities for local employment.

Xstrata Copper Chief Executive Charlie Sartain said:

“I am delighted to announce that we commenced production at our major Antapaccay project on schedule and in line with the original budget of $1.5 billion, a significant achievement for a project undertaken through a period of industry inflation and global economic uncertainty.

“Antapaccay is the culmination of a strategy we initiated six years ago when we acquired the Tintaya operation in 2006.  In this short space of time, we have added substantial value for the company, local communities and Peru through the successful management of the Tintaya mine; the confirmation of a further 1.3 billion tonnes of mineral resources in the district; the completion of conceptual and feasibility studies for the Antapaccay development; and now with the construction of a major, long-life mine.

“This strategy has resulted in important reinvestment in the Cusco region and Espinar province where our operations were due to close in 2012 with the completion of the Tintaya open pit. Antapaccay extends and increases Tintaya’s contribution to important local infrastructure, ongoing opportunities for local suppliers, skills training and enterprise development, royalty and tax payments and substantial voluntary annual investment in community projects and partnerships.”

The Antapaccay deposit has recently been expanded by 30% to an estimated total Mineral Resource of over
1 billion tonnes at a grade of 0.49% copper using a cut-off grade of 0.15% copper, including gold and silver by-products. The Mineral Resource contains 5 million tonnes of copper metal.

The highly attractive Tintaya geological district also hosts the Coroccohuayco deposit, with a current Mineral Resource of 324 million tonnes at a grade of 0.93% copper, and a number of exploration targets within our extensive mineral tenements.

Photos, videos and further information about our Tintaya Antapaccay operations in Peru are available on the web-based version of this press release on Xstrata Copper’s website:  www.xstratacopper.com

Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement

Xstrata Copper contacts:

Emily Russell
Telephone: +562 478 2204
Mobile: + 569 9443 3571
Email: erussell@xstratacopper.com

Domingo Drago
Telephone: +51 1372 2233
Mobile: +51 989259180
Email: ddrago@xstratacopper.com.pe
www.xstratacopper.com

Notes to editors

About Xstrata plc

We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach. For more information, visit www.xstrata.com

About Xstrata Copper

We are the fourth largest global copper producer and one of the world’s largest producers of smelter, refined and recycled copper, including from third party materials. The copper we produce is essential to our modern society, being used extensively in electronic, consumer and building products, and with its use in green-technologies, anti-microbial applications and ability to be recycled, it is playing a vital role in our sustainable future.  

Headquartered in Brisbane, Australia, we have operations and projects in eight countries and employ over 20,000 people. We play an essential role in the communities in which we live and work, by providing jobs, training, infrastructure, income for suppliers and support for social development. For more information, visit www.xstratacopper.com

About Antapaccay

Our Antapaccay open pit mine and processing facilities are located 4,100 metres above sea level in the Yauri district of Espinar Province in southern Peru’s Cusco Region approximately 10 kilometres from our Tintaya operation.  Since acquiring Antapaccay in 2006, we have rapidly advanced the project through conceptual and feasibility studies to full construction. Antapaccay is a major new copper operation with a mine life of more than 20 years. It will initially produce an average of 160,000 tonnes of copper in concentrate per annum, plus gold and silver by-product credits.

During construction of Antapaccay, we provided over 90,000 hours in technical and safety training allowing us to create 10,000 jobs, employ over 3,000 local people on project construction and related works and promote local industry development. The Antapaccay mine will employ a permanent workforce of around 1,400 people, with the majority of workers transferring from the existing Tintaya mine as it closes, and will create further opportunities for local employment. All unskilled labour will be drawn from the local community. 

Mining activities at Tintaya are scheduled to cease in the coming months. We acquired our Tintaya operation for $750 million from BHP Billiton in 2006, including the Antapaccay and Coroccohuayco projects.

Xstrata Nickel, the industrial partner in the Koniambo Nickel Project, is pleased to announce that the construction of the first production line of the smelter (Line 1) is complete.  The necessary support services and operational infrastructure are undergoing pre-operational testing and commissioning.  First molten metal is expected before year end and we anticipate the first metal being tapped from Line 1 in January 2013.
Ian Pearce, Chief Executive of Xstrata Nickel, said: “We are very excited about the progress being made at Koniambo, including the successful delivery of Line 1.  It is a testament to our dedicated project and operation teams at Koniambo Nickel that we can now focus on moving to first production.

“Our journey to this point has been a long and complex one, but Koniambo Nickel is finally close to becoming a reality and bringing mutual benefit to all the stakeholders who have a keen interest in its success.  I am proud of the role Xstrata has played in making Koniambo Nickel a reality – including continuing construction throughout the global financial crisis – and the support we have received from our many partners in New Caledonia and France.”

With the completion of Line 1, the majority of our construction resources will now be devoted to the second production line, which is forecast to be complete in the second quarter of 2013.  Koniambo Nickel will ramp up to a steady state annual production run rate of 60,000 tonnes of nickel in ferronickel within two years, by the end of 2014.

Koniambo Nickel’s mine is already operating with the geological integrity of our resource forecasts intact.  The ore-preparation plant and overland conveyer are in operation and the team is working to ensure we have 30,000 tons of on-spec ore ready for the metallurgical plant by the end of the year. 

Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement

Xstrata Nickel contacts:

Xstrata Nickel New Caledonia:
Antonin Beurrier
Telephone +687 25 56 71
Mobile +687 76 73 03
Email abeurrier@xstratanickel.nc

Xstrata Nickel:
Peter Fuchs
Telephone: +1 416-775-1523
Mobile: +1 416-305-9273
Email: pfuchs@xstratanickel.ca

Notes to Editors

About Koniambo Nickel

Koniambo Nickel SAS is developing a world-class industrial complex that at peak production will make New Caledonia one of the most important nickel producers in the world. Benefitting from one of the largest and highest grade undeveloped nickel resources in the world, it will be a low-cost and long-life operation committed to sustainable development.

Once construction is complete, Koniambo Nickel will operate a mine, a pyrometallurgical nickel smelting process plant, a power plant and other complementary infrastructure, including a deep water private port and 11-km overland conveyor.

Located near the North Province capital of Koné in New Caledonia, Koniambo Nickel is a catalyst for regional development. Through the employment of 750 permanent staff and long-term relationships with local contractors and suppliers, Koniambo Nickel truly represents a unique opportunity for surrounding communities to shape their future as well as the future of the North Province and New Caledonia.

About Xstrata Nickel

Xstrata Nickel, headquartered in Toronto, Canada, is one of Xstrata Group’s global commodity businesses. We operate mines and processing facilities in Canada, the Dominican Republic and Australia, and a refinery in Norway.  We also have a world-class portfolio of growth projects in New Caledonia, Tanzania and Brazil.

We are the world’s fourth largest nickel producer, with annual managed production of almost 106,000 tonnes of nickel.  We produce some of the world’s purest nickel, ferronickel and cobalt and are one of the largest recyclers and processors of nickel and cobalt-bearing materials.  Nickel-containing materials play a vital role in modern life and can be found in everything from cooking utensils, cutlery and saucepans, to medical equipment, mobile phones, wind turbines, computers, coins, and marine and aerospace engineering. For more information, visit www.xstratanickel.com.

About Xstrata plc

We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach. For more information, visit www.xstrata.com.

Mick Davis, Xstrata plc CEO said:
“As a significant Lonmin shareholder, we are concerned about the destruction of value of our shareholding.  For two years we have sought to address the strategic and operational challenges that Lonmin faces.  Given the dire financial position of Lonmin, we concur that a substantial recapitalisation of the business is required.  However that recapitalisation must be backed by a suitable management team and business plan.

“While it was open to Xstrata to vote against the rights issue at the forthcoming Lonmin general meeting, such a vote by Lonmin’s largest shareholder would, in all likelihood, have prevented the rights issue from proceeding.  As a responsible shareholder, we want Lonmin to begin its recovery from this difficult time as soon as possible and it is not our intention to bring about an unnecessary failure of the rights issue.  We do not wish to contribute further uncertainty to Lonmin’s position that may further impede operational performance and delaying the proposed rights issue could run the risk that market conditions or other factors prevent a successful rights issue in the future. 

“However, we also have a duty to our shareholders and we cannot passively lend our financial support to a strategy that we believe is flawed.  We will, therefore, be seeking change to the Board and management promptly following completion of the rights issue. We have asked Lonmin’s board to engage and co-operate with major shareholders to commence this process, refresh the Board, strengthen the management team and overhaul the current business plan so that a realistic strategy to restore shareholder value can be developed. 

“An assurance in this regard from the Lonmin Board would provide shareholders with greater comfort and likely lead to greater take-up of the rights issue by core shareholders.  This would also obviate the need for us to call a further general meeting of shareholders to make the changes we believe necessary.”

A copy of this announcement is available on Xstrata’s website at www.xstrata.com.

Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement

Xstrata contacts:

Xstrata plc

Claire Divver
Telephone +44 20 7968 2871
Mobile +44 7785 964340
Email cdivver@xstrata.com

Alison Flynn
Telephone +44 20 7968 2838
Mobile +44 7769 314374
Email aflynn@xstrata.com

Aura Financial
Michael Oke
Andy Mills
Telephone +44 20 7321 0000
Mobile +44 7834 368 299

StockWell Communications
Philip Gawith
Telephone +44 20 3370 0013
Mobile + 44 7887 954048

Notes to editors

About Xstrata plc

We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach. For more information, visit www.xstrata.com.

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