Xstrata Copper Corporate Profile

8/8/2019 Xstrata Copper Corporate Profile

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Xstrata CopperCorporate Profle


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About Xstrata Copper

Xstrata Copper is the ourth argest goba

copper producer with operations and projectsin eight countries and an annua attributabe

production capacity o over one miion

tonnes. Headquartered in Brisbane, Austraia,

Xstrata Copper is one o the commodity

business units within the major goba

diversied mining group Xstrata pc.

Our operations are administered by ve

separate divisions, based cose to the mining

operations, namey the North Queensand,

Minera Aumbrera, North Chie, Southern

Peru and Canada divisions. We aso have a

recycing business (Xstrata Recycing) with

pants in the United States and oces in

Canada and Asia. Our word-cass portoioo six copper deveopment projects provides

us with the potentia to doube our annua

production through organic growth over

the next ve years.

This mix o quaity producing assets,

deveopment projects and a cear strategy

geared towards urther dynamic, protabe

growth has estabished Xstrata Copper as

an exciting part o the Xstrata pc Group.

Commitment to

Sustainable Development

As a signatory to the Internationa Counci on

Mining and Metas Sustainabe Deveopment

principes, Xstrata Copper is committed

to the highest standards o heath, saety,

environmenta and community (HSEC)

perormance. In ine with this commitment,

we report pubicy on the sustainabe

deveopment perormance o our operating

divisions and projects. Our sustainabiity

reports are pubished annuay and are

widey distributed to stakehoders.

They are aso avaiabe on Xstratas

website (www.xstrata.com).

Saety and Health

The saety and heath o our empoyees and

contractors is paramount to Xstrata Copper.

We aim to operate with zero harm and

beieve that a work reated inesses and

injuries are preventabe.

To achieve our goa o zero harm, we

have put in pace poicies and standards

to ensure a controed work environment.

Responsibe eadership, skis and saety

training, risk management systems, sae work

procedures, eective investigations, reguar

audits, empoyee heath screening and the

continuous measurement and communication

o saety perormance are key eements o our

Saety and Heath Poicy.

Xstrata CopperDefnition o Purpose

Xstrata Copper is committed to

maximising vaue or Xstratas

sharehoders by successuy

growing and managing an

industry-eading portoio o

copper assets that deiver superior

returns. We wi achieve this

in a sae, environmentay and

sociay responsibe way, in open

partnerships between our peope,

with communities, governments

and other stakehoders.

Xstrata RecyclingEast Providence

Antamina

Tintaya

Minera

Alumbrera

Collahuasi

Energa Austral

El Pachn

El Morro

Lomas BayasAltonorte

Antapaccay

Las Bambas

Xstrata RecyclingSan Jos

Kidd Creek Horne Smelter

Canadian CopperRefnery (CCR)

2 XSTRATA COPPER CORPORATE PROIlE

Xstrata Copper

Strategic Objectives

Xstrata Copper is ocused

on achieving:

Injury-ree, sae work environments

Recognised eadership in

environmenta perormance

Reputation or socia responsibiity

Reaisation o the u potentia

o our peope

Achievement o the u capacity

o our physica assets

Cost competitiveness through

the cyces

Vaue creation through dynamic

growth and continuous improvement

Eective impementation o common

key systems and strategies.


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XSTRATA COPPER CORPORATE PROIlE 3

Xstrata plc

Xstrata is a goba diversied mining group, isted

on the london and Swiss Stock Exchanges, withits headquarters in Zug, Switzerand. Xstratas

businesses maintain a meaningu position in

seven major internationa commodity markets:

copper, coking coa, therma coa, errochrome,

nicke, vanadium and zinc, with additiona

exposures to patinum group metas, god, cobat,

ead and siver, recycing aciities and a suite o

goba technoogy products, many o which are

industry eaders. The Groups operations and

projects span 18 countries: Argentina, Austraia,

Brazi, Canada, Chie, Coombia, the Dominican

Repubic, Germany, New Caedonia, Norway,

Papua New Guinea, Peru, the Phiippines, South

Arica, Spain, Tanzania, the USA and the UK.

Xstrata empoys approximatey 56,000 peope,

incuding contractors.

Xstratas Mission

Statement

We will grow and manage a diversifed portolio

o metals and mining businesses with the single

aim o delivering industry-leading returns or

our shareholders. We can achieve this only

through genuine partnerships with employees,

customers, shareholders, local communities

and other stakeholders, which are based onintegrity, cooperation, transparency and

mutual value-creation.

We require a our contractors to abide by

our stringent saety standards. Our ocus

on saety and the eectiveness o our systems

is evidenced by notabe improvements in

saety and heath statistics at our newy

acquired operations.

Environment

Xstrata Copper strives or industry eadership

in environmenta perormance and its

operations and projects are required to meet

and, where practicabe, exceed reevant aws,

reguations and standards.

undamenta to this approach is the setting

o environmenta improvement targets,

evauation o perormance against these

targets, pubic reporting o resuts and

independent auditing o environmentaperormance. Energy eciencies, water

recycing, biodiversity conservation and

emission contro are just some o the areas

where we are impementing measures to

improve perormance.

Xstrata Copper is the words argest recycer

o copper and precious meta bearing

eectronic scrap, and we beieve that our

recycing business makes an important

contribution to our sustainabe deveopment

goas. As the use o eectronic equipment

increases, the voume o eectronic waste has

become a serious environmenta concern.

Xstrata Recycing is heping to provide asoution by doubing eectronic scrap recycing

capacity at its Horne smeter in Canada.

Communities

The Xstrata Group sets aside a minimum

o 1% o prot beore tax each year to

und Corporate Socia Invovement (CSI)programmes to support initiatives that

contribute to the prosperity and the

sustainabe deveopment o the communities

in which we operate. In 2007, Xstrata

set aside USD102 miion to support the

communities which host its operations,

empoyees and their amiies.

At Xstrata Copper, each division or project

deveops its own CSI programme according

to oca needs and, in many cases, in

partnership with oca governments and

stakehoder groups. Our CSI investments

ocus on the areas o heath, education, job

creation, enterprise deveopment and sociaand community deveopment.

We seek to maintain broad-based ongoing

community support or our activities

throughout our operations ie cyce.

We consut with communities as eary

as possibe and estabish appropriate

mechanisms or ongoing consutation,

eedback and grievance resoution. This

incudes air and equitabe processes or

engagement with indigenous and oca

communities incuding, where reevant,

ree prior inormed consent.

Recycling

ProjectsOperations

Joint Venture Operations

Mount Isa Mines

CopperOperations

Tampakan

Frieda River

TownsvilleCopper

Refneryand PortOperations

Ernest Henry Mining

Xstrata RecyclingPenang

ArgentinaMinera Alumbrera

North Queensland

Mount Isa MinesCopper Operations

Ernest Henry Mining

Townsville CopperRefnery and PortOperations

Canada

Kidd Mine andMetallurgical Plants

Horne Smelter

Canadian CopperRefnery (CCR)

Xstrata Recycling

North ChileAltonorte

Lomas Bayas

Southern Peru

Tintaya

Projects

El Morro

Energa Austral

El Pachn

Las Bambas

Antapaccay

Frieda River

Tampakan


Collahuasi

Antamina


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Minera Alumbrera

Bajo de la Alumbrera

Employs:Approximatey 2,200 peope, incuding

contractors.

Annual production capacity:180,000 tonnes o copper in concentrate;550,000 ounces o god in concentrate;50,000 ounces o god dore; and2,000 tonnes o moybdenum in concentrate.

Annual mining rate:30 miion tonnes o ore rom an open pit mine.

Annual plant throughput capacity:Concentrator: 40 miion tonnes o ore.

Pipeline:317 kiometre concentrate surry pipeine.

Port Operations:Owned and operated by Minera Aumbrera atPuerto Genera San Martn, Santa e province.

Xstrata Copper manages and has a 50%

controing interest in Minera Aumbrera.

Canadian companies Godcorp and Yamana

God own the remaining 50%. Minera

Aumbrera has its main oce at the mine site

in Catamarca province in northwest Argentina,

and support oces in the cities o Tucumn,

Catamarca and Buenos Aires.

Minera Aumbrera has the right to mine the

Bajo de a Aumbrera copper-god deposit by

agreement with Yacimientos Mineros de Agua

de Dionisio (YMAD), which has the tite to the

deposit. YMAD is ormed by the government

o Catamarca province and the Nationa

Tucuman University and is entited to 20%

o Minera Aumbreras net proceeds.

located at an atitude o 2,600 metres, Bajo

de a Aumbrera was deveoped at an initia

capita cost o USD1.3 biion and began

commercia production in ebruary 1998.

Since 2002, a series o ow capita cost

expansions to the concentrator have

increased pant throughput capacity by

54% to 40 miion tonnes per annum.

In December 2007, Minera Aumbreracommissioned a moybdenum pant with

production capacity o 2.000 tonnes per

annum o moybdenum in concentrate at

a capita cost o USD16 miion.

North Queensland

Xstrata Coppers North Queensand division

is headquartered in Mount Isa and comprises

the Mount Isa Mines copper mining and

processing operations, Ernest Henry openpit mine, and the Townsvie copper renery

and port operations. The divisions integrated

operations have the capacity to produce

300,000 tonnes o rened copper per annum.

Mount Isa Mines Copper Operations

Employs:Approximatey 2,600 peope, incudingcontractors.

Annual production capacity:190,000 tonnes o copper in concentrate romunderground mining; and300,000 tonnes o copper anode romthe smeter.

Annual mining rate:6.5 miion tonnes o ore rom two undergroundmines (Enterprise and X41).

Annual plant throughput capacity:Concentrator: 7 miion tonnes o ore; andCopper smeter: 1.19 miion dry metric tonneso concentrate eed.

Mount Isa Mines operates two separate

mining and processing streams copper and

zinc-ead-siver orming one o the argest

underground mining operations in the word.

The North Queensand division oversees the

copper mining and processing operations.

Through its vision to create a secure uture

or Mount Isa, Xstrata Copper has invested

more than USD144 miion in new projects

since 2003. Most recenty it has competed

an expansion o the Mount Isa copper

smeter which has increased its capacity rom

240,000 to 300,000 tonnes per annum o

copper anode.

The Enterprise mine is the most recenty

deveoped copper ore source at Mount Isa and

is Austraias deepest mine, with an interna

shat which reaches a depth o 1,900 metres.

A pre-easibiity study is currenty underway

at Mount Isa to evauate underground massmining options. The mass mining studies aim

to progressivey increase the Mount Isa mine

hoisting and miing rates to 7 miion tonnes

per annum. A u easibiity study is expected

to start in 2009.

Ernest Henry Mining

Employs:Approximatey 610 peope, incudingcontractors.

Annual production capacity:115,000 tonnes o copper in concentrate; and120,000 ounces o god in concentrate.

Annual mining rate:11 miion tonnes o ore rom an open pitmining operation.

Annual plant throughput capacity:Concentrator: 11 miion tonnes o ore.

Ernest Henry Mining began commercia

production in 1998. The open pit mining

operation produces copper concentrate

containing god which is either trucked to

Mount Isa or smeting or sent to Townsvie

or export.

At the end o 2006, a pre-easibiity study

began to evauate the start o underground

mining at Ernest Henry, thus potentiay

extending the mine ie beyond 2010.

Positive pre-easibiity resuts ed to the

approva, in November 2007, o investment

o AUD26 miion to construct the rst

stage o an underground decine that wi

aciitate eary access to underground ore and

improve the continuity between open cut and

underground mining.

Construction o the underground decine

began in ebruary 2008 and is expected to be

compete in eary 2009. A easibiity study to

assess the viabiity o u scae underground

mining operations began in eary 2008 and isrunning in parae with the deveopment o

the rst stage o the decine.

Townsville Copper Refnery

and Port Operations


Annual production capacity:300,000 tonnes o copper cathode.

The Townsvie copper renery is one o the

words eading eectroytic copper reneries.

It produces copper cathode rom copper

anode produced at the Mount Isa smeterand other smeters, such as Xstrata Coppers

Atonorte smeter in Chie. The renery uses

Xstratas ISA PROCESS technoogy.

In 2005, the renery underwent a

AUD3 miion capita improvement project to

convert its ue source rom iquid ue to coa

seam gas. This has improved eciencies and

reduced greenhouse gas emissions. A renery

expansion rom 280,000 to 300,000 tonnes

per annum o copper cathode was competed

during the second ha o 2007.

The port operations export copper cathodes

and minera concentrates rom the NorthQueensand division and ertiiser or third

party customers through the Townsvie Port.

In addition to Xstrata Copper product, the

port operations aso hande concentrates

rom mining operations in the NW Mineras

Province o Queensand.

Xstrata Copper divisions

Haul trucks leaving the Minera Alumbrera open pit mine Mine Planning Engineer, Jade Munari, prepares or her

shit at Mount Isa Mines, Australia


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Canada

The Xstrata Copper Canada division comprises

the Kidd mining and metaurgica compex,

the Horne smeter, the Canadian Copper

Renery (CCR) and Xstrata Recycing. Thedivisions main oce is ocated in Toronto.

Kidd Mine and Metallurgical Plants


Annual production capacity:50,000 tonnes copper in concentrate;135,000 tonnes copper in cathode;145,000 tonnes o zinc meta;Over 3 miion ounces siver; and575,000 tonnes o suphuric acid.

Annual mining rate:2.7 miion tonnes o copper/zinc ore.

Annual plant throughput capacity:Concentrator: 2.7 miion tonnes copper/zinc oreand 0.9 miion tonnes nicke ore;Copper smeter: 455,000 tonnes o eed; andZinc pant: 285,000 tonnes o eed.

In operation since 1965, the Kidd mining and

metaurgica operations in Timmins, Ontario,

produce copper, zinc, indium, cadmium,

siver bearing renery simes, copper-nicke

carbonate, iquid suphur dioxide and

suphuric acid.

The Kidd Mine is ocused on deveoping and

sustaining economic mining pans or the

Kidd Creek orebody, which is currenty minedthrough two separate shats known as No. 2

and No. 4. Production operations reached a

depth o 8,800 eet (2,725m) in 2007, making

the operation the deepest base meta mine

in the word.

The Kidd metaurgica site, ocated

27 kiometres rom the mine, processes

both company-sourced and purchased eeds.

Currenty approximatey 50% o its eed is

acquired rom third parties. The metaurgica

site consists o a concentrator processing

the copper-zinc ore rom the Kidd Mine and

the copper-nicke ore rom Xstrata Nickes

Montcam Mine. It aso has a copper smeter

and renery, a zinc pant, and cadmium,

indium and suphuric acid by-product pants.

The Kidd smeter, one o the words ceanest

smeting operations with 98% suphuric

dioxide emission capture, aso has a nicke

recovery circuit. The copper renery uses

Xstrata Technoogys Kidd Process copper

rening technoogy.

Horne Smelter


Annual production capacity:180,000 tonnes o copper anode; and600,000 tonnes o suphuric acid.

Annual plant throughput capacity:840,000 tonnes o concentrates and recycabematerias.

In operation since 1927, the Horne smeter

is ocated in Rouyn-Noranda, Qubec and

is the argest processor o copper and

eectronic scrap in North America. The

smeter is a custom copper smeter whichuses both copper concentrates and precious

meta-bearing recycabe materias as its

eedstock to produce a 99.1% copper anode.

Copper anodes rom the Horne are raied to

Xstrata Coppers CCR renery in Montrea to

be converted into copper cathodes.

One o the notabe eatures o the Horne

smeter is its abiity to process a wide-range

o eeds, incuding copper and precious meta

bearing eectronic equipment provided by

Xstrata Recycing. In 2007, the voume o

recyced eeds procured by Xstrata Recycing

or processing at the Horne smeter was up by

26% to 120,000 tonnes.

Canadian Copper Refnery (CCR)


Annual production capacity:375,000 tonnes o copper cathode; andPrecious metas: approximatey 30 miionounces o siver and 1 miion ounces o god(depending on simes).

The CCR renery, ocated in Montrea,

Quebec, processes anodes rom three

principa suppiers Horne smeter, Atonortesmeter and CVRD Incos Sudbury operations

and has been in operation since 1931.

The pant is equipped to process anodes

that are high in bismuth, antimony, ead and

nicke. The renerys precious meta simes

processing pant obtains eed rom internay

generated as we as externay purchased

simes. The CCR renerys products incude

copper cathodes, god, and siver and other

speciaty metas and chemicas, incuding

seenium, teurium, copper suphate, nicke

suphate and a concentrate o patinum

group metas.

Xstrata Recycling

Employs:Approximatey 70 peope, incuding contractors.

2007 throughput:120,000 tonnes o recycabe materias.

Xstrata Recycing is the words argest

recycers o metaic copper and eectronic

scrap incuding printed circuit boards,processor chips and mobie phones. The

business operates two samping and recovery

pants ocused on eectronics recycing in San

Jose, Caiornia; and East Providence, Rhode

Isand. These two pants sampe high vaue

eectronic scrap materias. Commercia oces

are maintained in Toronto, Ontario; East

Providence, Rhode Isand; San Jose, Caiornia;

Zug, Switzerand; and Penang, Maaysia.

The Maaysia oce sources copper and

precious meta-bearing scrap streams rom

eectronics manuacturers in Asia, which are

shipped to recycing aciities in Caiornia and

Rhode Isand or samping, then sent as eed

to the Horne smeter in Canada.

In January 2008, Xstrata Recycing announced

pans to doube eectronic scrap recycing

capacity at the Horne smeter, providing

the smeter with the capacity to receive and

process 100,000 tonnes per year o eectronic

scrap, thus contributing to the soution or

the growing environmenta concern o

eectronic waste.


Development Miner, Darryl Booth, conducts an

underground mark-up survey at Kidd Mine in Canada

Copper cooling vats at the Horne Smelter in Canada

Stock piles o recyclable materials are converted into

copper anode at the Horne Smelter in Canada


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North Chile

Xstrata Coppers North Chie division

comprises the Atonorte metaurgica aciity

and the lomas Bayas open pit mine in

northern Chies Antoagasta Region. TheNorth Chie division aso manages Xstratas

44% interest in the Coahuasi Joint Venture

in northern Chies Tarapac Region. The

divisions main oce is in the port o

Antoagasta, cose to the operations.

Altonorte metallurgical acility

Employs:Approximatey 1,000 peope incudingcontractors.

Annual production capacity:290,000 tonnes anode copper;11 miion pounds o moybdenum; and800,000 tonnes o suphuric acid.

Annual plant throughput capacity:900,000 tonnes o copper concentrate; and14,000 tonnes o moybdenum concentrate.

The Atonorte custom metaurgica aciity

is ocated near the port o Antoagasta in

the words argest copper-producing region.

The words tenth argest copper smeter, the

metaurgica aciity aso produces suphuric

acid and moybdenum oxides rom its

moybdenum concentrate roasting pant.

In eary 2008 a smeter dust treatment

pant was commissioned.

A USD89 miion expansion is underway to

increase the smeters annua production

capacity by amost one third to 380,000

tonnes o copper anodes and 1.1 miion

tonnes o suphuric acid by 2009. In addition,

a easibiity study has started into the

instaation o a moybdenum eaching pant

and the reurbishment o an ide roasting

pant to doube moybdenum concentrate

roasting capacity.

A series o environmenta upgrades, incuding

the instaation o a new acid pant, wi initiay

increase suphide dioxide emissions capture

rom 93.5% to 95%, and then to 98% by

2010, converting Atonorte into one o the

words eading metaurgica aciities.

Lomas Bayas Mine


Annual production capacity:70,000 tonnes o copper in cathode.

Annual mining rate:49.2 miion tonnes o materia rom one openpit mine.

Annual crushing capacity:14 miion tonnes o ore.

located in the Atacama Desert, 120 kiometres

rom the port o Antoagasta in northern

Chie, lomas Bayas open pit copper mine

is one o the words owest-grade copper

operations with average grades in 2007 o

0.27% soube copper.

The oxide copper ores o lomas Bayas

are ast eaching and ow acid consuming.

Higher grade ore is crushed and eached in

heaps. low grade ore is sent directy romthe mine to dump each. Copper is recovered

rom soution by sovent extraction and

eectro-pated into high quaity cathodes.

Cathodes are transported to Antoagasta

and shipped to na customers.

An expansion to 75,000 tonnes o copper

cathodes per annum wi be competed in the

second ha o 2008, requiring investment o

USD70 miion. The lomas Bayas mine ie has

been extended by eight years to 2020 by the

incorporation o the nearby lomas II deposit

(ormery known as ortuna de Cobre) into

the mine pan.

Southern Peru

The Southern Peru division was ormed in

November 2007 and comprises the Tintaya

copper mine in Cusco Region, the nearby

Antapaccay deveopment project, and the

las Bambas deveopment project in

neighbouring Apurimac Region. The Southern

Peru division is aso responsibe or managing

Xstrata Coppers 33.75% interest in the

copper operations at the Antamina Joint

Venture. The divisions headquarters are in

the city o Arequipa, cose to operations.

Tintaya Mine


Annual production capacity:85,000 tonnes o copper in concentrate;35,000 tonnes o copper cathode; and25,000 ounces o god in concentrate.

Annual mining rate:11 miion tonnes o ore rom an open pit mine.

Annual plant throughput capacity:Concentrator: 6.8 miion tonnes o ore; andleaching-SX/EW pant: 3.6 miion tonnes o ore.

The Tintaya open pit mine is ocated at

4,100 metres above sea eve in the Yauri

district o Espinar Province in southern

Perus Cusco Region. The orebody presents

both copper suphide and copper

oxide mineraisation.

The copper suphides are treated in a

conventiona crushing, grinding and fotationpant to produce copper in concentrates.

The copper oxides are treated in a combined

heap/agitation eaching process oowed by

sovent extraction/eectrowinning (SX/EW)

to produce copper cathodes. Both copper

concentrates and copper cathode products

are trucked 370 kiometres to Matarani port

in Arequipa department, and then shipped

to wordwide customers.

Inormation about Antapaccay and las Bambas

projects can be ound in the Xstrata Copper

Projects section (page 7).


Casting wheel operator, Anbal Contreras, at Altonorte

metallurgical acility in Antoagasta, Chile

Haul trucks undergo routine maintenance inspections

at Lomas Bayas mine

The Tintaya Foundation supports local Ilama breeders

through its corporate social involvement program


7/8


Xstrata Copper projects

El Morro, Chile

The E Morro copper-god exporation project

in Chie is a joint venture between Xstrata

Copper (70%) and Metaica Resourceslimited (30%). The project consists o two

porphyry systems on the property the

E Morro and la ortuna deposits.

A easibiity study was conducted in 2007

based on a mineabe resource o 487 miion

tonnes o ore grading 0.56% copper and

0.44% god at the la ortuna deposit.

The easibiity study, competed in January

2008, outined initia capita investment o

USD2.5 biion to construct an operation that

woud produce 195,000 tonnes o copper

and 355,000 ounces o god per annum

over the rst ve years.

Energa Austral, Chile

Energa Austra is an eectricity generation

project ocated in the Aysn Region o

southern Chie with the potentia to generate

more than 1,000 MW. A easibiity study is

being conducted into the construction o

three hydroeectric dams at Ro Cuervo, Rio

Banco and lago Condor. Energa Austra

expects to submit an environmenta impact

study or the initia Ro Cuervo hydroeectric

dam in the second ha o 2008.

El Pachn, Argentina

E Pachn is a bi-nationa copper projectocated in northwest Argentinas San Juan

Province, ve kiometres rom the Chiean

border. A easibiity study was competed by

previous owners in 1998.

In March 2008, Xstrata Copper pubished

its rst Minera Resource estimate or

E Pachn o 980 miion tonnes at grades

o 0.58% copper and 0.016% moybdenum

in the Measured, Indicated and Inerred

categories, using a 0.3% copper cut-o

grade. Recent work has ocused on

re-evauating previous studies through

the competion o a pre-easibiity study

in 200708.

Las Bambas, Peru

In August 2004, Xstrata was granted up to six

years to compete exporation and easibiity

work at the las Bambas copper project in

Perus Cotabambas and Grau Provinces,

during which time Xstrata may exercise the

option to deveop the mining concessions into

a mining project.Exporation at las Bambas commenced in

March 2005 oowing extensive consutation

with oca communities. By the end o 2007,

an accumuated tota o 241,000 metres

o resource driing had been competed

on the project. In March 2008 Xstrata

Copper pubished a 19% increase to Minera

Resources at las Bambas o 860 miion

tonnes at a grade o 0.93% copper and

0.02% moybdenum, using a 0.4% copper

cut-o grade. The project is at the pre-

easibiity stage.

O Xstratas payments to the Peruvian

Government to secure the project, an initia

USD45.5 miion was aocated to a trust und

or the benet o communities in Cotabambas

and Grau Provinces. This unds heath,

education, inrastructure and sustainabe

deveopment projects in the oca area and

is in addition to Xstrata Coppers Corporate

Socia Invovement programme at las Bambas.

Antapaccay, Peru

A positive pre-easibiity study into the stand-

aone deveopment o the Antapaccay project,

ocated ess than 10 kiometres rom Tintaya,

was competed in 2007. The pre-easibiity

work, which incuded 40,000 metres

o in driing, has ed to an updated

Minera Resource estimate or Antapaccay

o 520 miion tonnes at a grade o 0.72%

copper and minor god vaues, using a 0.4%

copper cut-o grade.

A na easibiity study into the deveopment

o Antapaccay is expected to be competed

in 2008 aong with a potentia decision

regarding its construction.

Frieda River, Papua New Guinea

In January 2007, Xstrata Copper exercised an

option to obtain a 73.7% interest in the high

grade rieda River copper-god project in a

joint venture with Highands Pacic limited

(16.4%) and Japans OMRD (9.9%). Xstrata

Copper subsequenty assumed management

contro and competed a scoping study,

incuding metaurgica studies, inrastructure

denition and exporation.

The current work programme incudes urther

driing to improve the condence categoriesin the resource inventory, urther metaurgica

testing, environmenta baseine studies and

consutation with oca communities.

Tampakan, Philippines

On 30 March 2007, Xstrata Copper assumed

management contro o the Tampakan

project through its Phiippine-based aiate

Sagittarius Mines, Inc (SMI) ater exercising its

option in December 2006 to acquire 62.5%

o the controing interest in the project.

Activities in 2007 ocused on integrating

SMI into the Xstrata Copper organisation,

strengthening community deveopment and

stakehoder engagement programmes, and

competing additiona technica studies to

suppement previous pre-easibiity work

undertaken by Indophi Resources.

In December 2007, Xstrata Copper pubished

a new Measured, Indicated and Inerred

Resource estimate or Tampakan o 2.2 biion

tonnes at a grade o 0.6% copper, 0.2 grams

per tonne god and 0.007% moybdenum

using a 0.3% copper cut-o grade.

Xstrata Copper projects

Geological samples at El Morro project, Chile

The Tierra de Nios centre in Fuerabamba is one

o the community initiatives supported by the

Las Bambas project

Geology student, Titus Saiwa, and geologist,

Misel Paulus, examine core samples at Frieda River,

Papua New Guinea


8/8


Collahuasi Mine (on a 100% basis)

Employs:Approximatey 4,500 peope, incuding

contractors.

Annual production capacity:490,000 tonnes o copper in concentrate;50,000 tonnes o copper in cathode; and4,500 tonnes moybdenum oxides.

Annual mining rate:65 miion tonnes o ore rom three open pits:Ujina, Rosario and Huinquintipa.

Annual plant throughput capacity:Concentrator: 49 miion tonnes o ore; andleaching-SX/EW process: 6.5 miion tonneso ore.

Pipeline:

203 kiometre pipeine to moybdenum pantand port aciities at Punta Patache.

Port Operations:The port aciities at Punta Patache are ownedand operated by Coahuasi.

The giant Coahuasi open pit operation, the

words th argest copper mine, is ocated

on the Andean pateau o northern Chies

Tarapac Region. The mine is operated by

a joint venture company, Compaa Minera

Dona Ins de Coahuasi SCM. The joint

venture partners are Xstrata (44%), Ango

American (44%), and a group o Japanese

companies headed by Mitsui & Co. ltd (12%).

Xstrata Copper is represented on the Board

and Executive Committee o Coahuasi.

The operation is ocated at atitudes o 4,000

metres to 4,600 metres above sea eve

and consists o two major porphyry copper

deposits Ujina and the Rosario custer andthe smaer Huinquintipa deposit, containing

a mixture o suphide and oxide copper

mineraisation. The suphide ore is processed

in the concentrator pant to produce copper

in concentrates and the oxide ore is eached

and processed in the SX/EW pant to produce

copper cathodes. In ate 2005, Coahuasi

competed construction o a moybdenum

pant at its port aciities in Punta Patache.

One o the words argest copper resources,

in January 2008 Coahuasi announced an

increase to its tota Minera Resource o 28%

to 5.19 biion tonnes at an average grade o

0.83% copper. This signicant resource wisupport the business strategy to more than

doube annua production to over 1 miion

tonnes o copper progressivey by 2014.

Antamina Mine (on a 100% basis)


Annual production capacity:360,000 tonnes o copper in concentrate(average or the ast three years);250,000 tonnes o zinc in concentrate; and7,000 tonnes o moybdenum in concentrate.

Annual mining rate:36 miion tonnes o copper-zinc ore romopen pit mine.

Annual plant throughput capacity:32.5 miion tonnes o ore.

Pipeline:300 kiometre concentrate surry pipeineto port.

Port Operations:Owns and operates Puerto lobitos at Huarmey.

The words ourth argest zinc and ninth

argest copper mine, Antamina is ocated in

the Andes in northern Perus Ancash Region

at an eevation o 4,300 metres. It is operated

by a joint venture company, Compaa Minera

Antamina S.A. The joint venture partners

are Xstrata (33.75%), BHP Biiton (33.75%),

Teck-Cominco limited (22.5%) and Mitsubishi

Corporation (10%). Xstrata Copper andXstrata Zinc are represented on the Board and

Advisory Committee o the company.

The Antamina open pit mine began

operations in 2001 or investment o over

USD2.2 biion, the argest mining investment

in Perus history. The operations concentrator

is considered to be the words argest

poymetaic processing pant, treating copper,

zinc, moybdenum, siver and ead ores.

Antamina has an expected mine ie o

over 15 years.

XST0982 04/08

Xstrata Queensland LimitedABN 69 009 814 019

Xstrata Copper Head Ofce leve 9 Riverside Centre 123 Eage Street GPO Box 1433 Brisbane Queensand Austraia 4001 Te +61 7 3295 7500 ax +61 7 3295 7640

Xstrata Copper Chile Mariano Snchez ontecia 310 Piso 4 las Condes Santiago Chie Te +56 2 478 2200 ax +56 2 478 2299

Xstrata Copper Argentina Av. leandro N. Aem 853 22 C1001AAD Buenos Aires Argentina Te +54 11 4316 8300 ax +541 1 4316 8390

Xstrata Copper Peru Monte Rosa 271 O. 7B Centro Empresaria Urbanizacin Chacaria de Estanque Surco lima Peru Te +511 372 2223 ax +511 217 1111

Xstrata Copper Canada irst Canadian Pace 100 King St West Suite 7200 P.O. Box 405 Toronto ON M5X 1E3 Te +1 416 775 1200 ax +1 416 775 1290

www.xstrata.com


Collahuasis, Lucio Condori, inspects plants or

environmental rehabilitation projects in Tarapac

Region, Chile

Water monitoring at Antamina Ore is transported by conveyor belt at Collahuasi Mine

Xstrata Copper Corporate Profile

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