Group structure
Xstrata differentiates itself from its peers through operating a highly decentralised management model. Maximum responsibility and accountability are devolved to the Group's commodity businesses, within a defined governance structure. We believe this model directly benefits the Group's performance by creating a strong sense of local ownership at the operational level, encouraging innovation and entrepreneurialism, and empowering managers to address site-specific challenges and unlock value within the appropriate local context.
Xstrata's businesses are structured along commodity lines and each of the Group's five major commodity businesses operates as a global business in its own right, with responsibility from exploration to post-closure obligations and from revenue to EBIT. The Group maintains a lean corporate centre of approximately 50 people in total, comprising a head office in Zug and a corporate office in London. The role of the corporate centre is defined to avoid bureaucracy and duplication with the commodity businesses.
Also in About us
Alloys
Xstrata Alloys is the world's largest producer of ferrochrome, a leading producer of primary vanadium and has a growing platinum group metals business. Xstrata Alloys also owns carbon and anthracite operations which supply key raw materials to its ferrochrome smelters. Xstrata Alloys' operations are based in South Africa.
Coal
Xstrata Coal is the world's largest exporter of thermal coal and a significant producer of premium quality hard coking coal and semi-soft coal. Headquartered in Sydney, Australia, Xstrata Coal has interests in over 30 operating coal mines in Australia, South Africa and Colombia and an exploration project in Nova Scotia, Canada.
Copper
Xstrata Copper is the fourth largest global copper producer, with mining and processing facilities located in Australia, Chile, Peru, Argentina and Canada. It also manages a recycling business (Xstrata Recycling) with offices in North America, Europe and Asia. Xstrata Copper's world-leading portfolio of growth projects includes Las Bambas in Peru, Tampakan in the Philippines, El Pachón in Argentina and Frieda River in Papua New Guinea.
Nickel
Xstrata Nickel, headquartered in Toronto, Canada, is the fifth largest global nickel producer and one of the world's largest producers of cobalt. Xstrata Nickel's operations include three mines and processing facilities in Canada, operations in Australia, a ferronickel mine and processing facility in the Dominican Republic and a refinery in Norway. Xstrata Nickel's promising portfolio of growth projects includes Nickel Rim South in Canada, Kabanga in Tanzania and Koniambo in New Caledonia.
Zinc
Xstrata Zinc is one of the world's largest miners and producers of zinc. Xstrata Zinc's operations span Spain, Germany, Australia, the UK and Canada, with an interest in the Antamina copper-zinc mine in Peru. Xstrata Zinc's growth projects include interests the Bracemac zinc deposit in Quebec, Canada.
Technology services
Xstrata Technology Services provides proprietary technologies and specialist services in the areas of mining, mineral processing and metals extraction to major mining companies worldwide and to Xstrata's own operations to improve efficiency and reduce operating costs.
Effective governance
To enable a highly devolved management model to function effectively within a major global business and to ensure consistently high standards of ethical and sustainable development performance, clear governance and effective communication across the Group are essential.
Each business is governed by a commodity business board, which includes representatives of Xstrata's corporate centre, typically the CEO, CFO or other senior corporate personnel. Xstrata's Business Principles set out an ethical framework for our activities worldwide and Risk Management, Fraud Control and Sustainable Development (SD) policies and detailed SD Standards apply to every managed operation and office worldwide. We expect contractors, suppliers and other business partners to adhere to our Business Principles and to meet our minimum standards in health and safety, environmental and social performance. A rigorous internal audit and SD assurance programme, including third party audits, provides assurance to the Board that Xstrata's standards and Business Principles are being put into practice. A number of mechanisms also exist to encourage sharing of good practices, transfer of skills and personnel, formal and informal communication networks and communities of practice between commodity businesses, and between business units and the corporate centre.
We believe that any potential benefits from centralised processes are outweighed by the significant advantages of clear accountability and responsibility at the operational level offered by our model. However, because each commodity business is incentivised to seek out any opportunity to create value, Xstrata's businesses join forces where this makes good business sense.