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Highlights • Impact of newly commissioned mines and restarted capacity increased coal, nickel and ferrochrome production compared to the same period in 2010: - Commencement of production at the new Mangoola thermal coal operation in Australia ahead of schedule and within budget led to 3% increase in total consolidated coal production
- 6% increase in nickel production from the restart of the Falcondo ferronickel operation at 50% capacity
- 4% increase in ferrochrome production as smelters operated at 91% of total capacity
• Adverse weather conditions including flooding in Queensland and Western Australia, tropical cyclone Yasi and heavy rainfall in South Africa, Colombia and other parts of South America impacted production during the period • Mined copper production was 6% lower at Xstrata Copper compared to the corresponding period in 2010, due to severe weather conditions at Collahuasi (Chile) and a geotechnical event at Alumbrera (Argentina) • Willy Strothotte, Chairman, Xstrata plc, will retire from the Board as Chairman and non-executive director at the conclusion of the Annual General Meeting on 4 May 2011 • Sir John Bond joined the Xstrata plc Board as a consultant on 7 March 2011 and will be appointed Chairman from the conclusion of the AGM, subject to shareholder election. Sir John is currently Chairman of Vodafone Group Plc and will step down from the Vodafone Board on 26 July 2011 • In February, Xstrata Copper completed the construction of the magnetite base plant at Ernest Henry Mining (EHM), an initial component of the AUD589 million ($542 million) project to transform EHM into a major underground copper-gold operation. The first shipment of magnetite concentrate is scheduled for the second quarter of 2011 • In February, Xstrata exercised its call option to acquire a 50% plus one share controlling interest in Jumelles Limited, a subsidiary of AIM-listed Zanaga Iron Ore Company. Jumelles, through its subsidiary, MPD Congo, owns the Zanaga iron ore project in the Republic of Congo • Xstrata Coal settled the majority of annually priced thermal coal contracts with Japanese customers at prices just below $130 per tonne, representing a 33% increase over the prior Japanese fiscal year contract price • Quarterly prime hard coking coal contract prices for the second quarter 2011 have been agreed at $330 per tonne • In March, Xstrata Coal’s proposed 30 million tonnes per annum Wandoan thermal coal Project in Queensland’s Surat Basin received conditional environmental approval from the Australian Government • In March, Xstrata Copper and Goldcorp Inc. entered into a Letter of Intent with Yamana Gold Inc., granting Minera Alumbrera an exclusive option in respect of Yamana’s 100% interest in the Agua Rica copper gold project in Catamarca province in northwest Argentina • Peru’s authorities announced approval of the Environmental and Social Impact Study for the $4.2 billion Las Bambas copper project in southern Peru in March, where construction is on track to commence in the third quarter of 2011 • In March the Collahuasi board approved a $210 million investment to expand concentrator throughput capacity to 160,000 tonnes per day to be commissioned in the first half of 2013 • Xstrata Zinc acquired the remaining 25% interest in the Lady Loretta joint venture held by Cape Lambert Lady Loretta Pty Ltd for AUD30 million ($30 million) • In March, Xstrata Zinc announced a proposed integrated development plan involving its smelters to increase capacity and secure the future of McArthur River Mine in the Northern Territory, Australia • During the first quarter, significant increased mineral resource estimates were announced at the Frieda River copper project in Papua New Guinea and the Antamina copper and zinc mine in Peru |
